Broker Shore Capital reiterated its ITV PLC (LSE:ITV) 'buy' recommendation after the UK government unveiled new rules to try and level the playing field with streaming giants Netflix, Amazon Prime and Disney+.
The Department for Culture, Media and Sport said the UK's main broadcasters will "get new privileges and freedoms to make more hit shows and better compete with global streaming giants" under its new draft legislation, while big US streamers like Netflix will be brought under new Ofcom rules, with a new complaint procedure added too.
The proposed measures aim to ensure video-on-demand viewers can more easily discover public service broadcast services such as the BBC's iPlayer and ITVX on smart TVs, set-top boxes and streaming sticks.
There was also announcements that ITV and STV's broadcast licences can be renewed for a further 10 years from 2025, which Shore Cap analyst Roddy Davidson said were "a formality" but "the clarity [...] is welcome nonetheless".
New legislative support were also welcomed by the analyst as encouraging and positive for ITV and STV Group Plc (LSE:STVG), with share price targets of 81p and 252p respectively.