Carlton Communications

Carlton Communications plc was a British media and communications company built by Michael P. Green from a printing and photo-processing business into one of the United Kingdom's largest broadcasting and audiovisual groups. Its origins lay in Tangent Industries, established by Green and members of his family in 1967. Green expanded into television facilities through the acquisition of Transvideo in 1982, and the business adopted the Carlton Communications name when it became publicly listed in 1983. Carlton initially combined broadcasting ambitions with a substantial technology and production-services operation. It acquired or invested in companies involved in video facilities, post-production, satellite equipment, film processing, video duplication, professional audio, and television libraries. Notable acquisitions included the Moving Picture Company, Abekas Video Systems, Complete Post, Modern Video Productions, Technicolor, United Engineering Industries, Pickwick Video, and the Rank film library. Through these businesses, Carlton served broadcasters, film studios, software companies, and other media producers in Britain and overseas. Technicolor in particular made Carlton a major international provider of film processing and videocassette duplication services. The company's most important strategic objective was to obtain a terrestrial television franchise. An attempt to acquire Thames Television in the mid-1980s was unsuccessful, and regulatory intervention also constrained Carlton's efforts to take a stake in London Weekend Television. Carlton later acquired a 20 percent interest in Central Television in 1987, giving it an important foothold in ITV. Its decisive broadcasting breakthrough came in the 1991 franchise round, when Carlton outbid Thames for the London weekday ITV licence. Carlton Television began operating the London weekday service in 1993. Carlton's broadcasting model was primarily that of a publisher-broadcaster. It commissioned programmes from independent producers rather than operating as a fully integrated in-house production company, while news provision was supplied through London News Network. The company subsequently expanded its ITV interests by increasing its stake in Central, acquiring Westcountry Television, taking interests in GMTV and Independent Television News, and acquiring parts of HTV's broadcasting operations. Central and Westcountry were rebranded under the Carlton identity in 1999, although their regional news services retained distinct identities for a period. Carlton also assembled a large catalogue of British film and television material. The 1992 acquisition of Pickwick Video helped create Carlton Visual Entertainment, while the 1999 purchase of the ITC television and film library from PolyGram and Seagram added a substantial body of programming and reunited material associated with Associated Television and Central Television. Carlton later held one of the industry's largest British programme libraries, marketed internationally through Carlton International. In the late 1990s, Carlton broadened its digital and cinema activities. In partnership with Granada and British Sky Broadcasting, it won the national digital terrestrial television licence. Sky was subsequently excluded from the operating company on competition grounds, leaving Carlton and Granada to launch ONdigital, later renamed ITV Digital. ITV Digital collapsed in 2002 after sustained commercial and operational difficulties. Carlton also acquired the Rank Organisation's film library and cinema advertising business, which became Carlton Screen Advertising. Carlton's technology and production-services portfolio was gradually reshaped. It sold Solid State Logic in 1999 and Quantel in 2000. Technicolor was sold to Thomson Multimedia in 2001 for approximately $1.9 billion, ending Carlton's ownership of one of its largest international businesses. The company then agreed to combine with Granada in October 2003. Although pr…

Carlton Communications developed from Tangent Industries, a printing and photo-processing company established by Michael P. Green and family associates in 1967. Green moved the company toward television and audiovisual services by acquiring Transvideo in 1982. The business was renamed Carlton Communications when it floated on the London Stock Exchange in 1983. During the 1980s, Carlton pursued two related strategies: obtaining a role in British television broadcasting and assembling an international production-technology group. It acquired the Moving Picture Company and other video and post-production businesses, including Abekas Video Systems, Complete Post, Post Perfect, and Modern Video Productions. Carlton also acquired Skyscan, a satellite-dish manufacturer, although that business was later sold after slow sales and delays affecting new satellite television services. Carlton's broadcasting ambitions initially met resistance. Its attempt to acquire Thames Television in 1985 was rejected by the Independent Broadcasting Authority, which considered a single ownership change potentially damaging to the character of a viable ITV programme company. Carlton also failed to secure the direct-broadcast satellite franchise, which went to British Satellite Broadcasting. In 1987, however, Carlton purchased a 20 percent interest in Central Television, giving it an important terrestrial broadcasting investment. The group expanded dramatically in 1988 by acquiring Technicolor. This made Carlton a major international supplier of film processing and videocassette duplication services. The following year it acquired United Engineering Industries, bringing Quantel and Solid State Logic into the group. These acquisitions gave Carlton significant capabilities in professional video, digital graphics, and audio technology, alongside its broadcasting and media interests. Carlton's decisive broadcasting opportunity came in the 1991 ITV franchise competition. It won the London weekday licence from Thames Television and launched Carlton Television in 1993. The company operated as a publisher-broadcaster, commissioning programmes from independent producers rather than producing most content itself. Its London news output was supplied by London News Network. The Independent Television Commission later criticised the quality of Carlton's network programming, particularly in its early years. The company continued to consolidate its British television interests. It acquired Pickwick Video in 1992 and combined the resulting catalogue with its existing library to form Carlton Visual Entertainment. It bought stakes in GMTV and Independent Television News, increased its ownership of Central Television, and acquired Westcountry Television. Carlton also added production and distribution assets including Action Time and Planet 24. In 1997, Carlton, Granada, and British Sky Broadcasting won the national digital terrestrial television licence. Competition concerns prevented Sky from participating in the final operating company, and Carlton and Granada launched ONdigital, later renamed ITV Digital. Carlton broadened its library and advertising activities in the late 1990s. It acquired the Rank Organisation's film library and cinema advertising operation, and it bought the ITC television and film library in 1999. The ITC transaction substantially increased Carlton International's catalogue and brought together important elements of Britain's commercial television heritage. Carlton also rebranded Central and Westcountry broadcasting activities under the Carlton name from 1999, while some regional news identities continued separately. The group began divesting some technology assets as its strategy evolved. Solid State Logic was sold in 1999, Quantel in 2000, and Technicolor was sold to Thomson Multimedia in 2001. ITV Digital failed in 2002. In October 2003, Carlton and Granada agreed to combine. Granada shareholders controlled roughly two-thirds of the resulting company, Charles Allen became chief executive, and Michael Green left. Completion on 2 February 2004 formed ITV plc and ended Carlton's independent corporate existence. The Carlton brand was subsequently removed from most ITV regional and production operations, although Carlton Screen Advertising retained the name in parts of Ireland and the United Kingdom for several years before becoming Wide Eye Media in 2014.

1. 2004Carlton becomes part of ITV plc

   The Granada transaction completes on 2 February, ending Carlton's status as an independent listed company.

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2. 2002ITV Digital collapses

   The digital terrestrial television venture created by Carlton and Granada fails commercially.

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3. 2001Technicolor is sold

   Carlton sells Technicolor to Thomson Multimedia for approximately $1.9 billion.

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4. 1999Carlton acquires the ITC library

   The purchase of the ITC television and film library substantially increases Carlton International's catalogue.

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5. 1997Carlton participates in the national digital terrestrial television licence

   Carlton, Granada, and British Sky Broadcasting win the licence that leads to the creation of ONdigital; Sky is later excluded from the operating company.

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6. 1993Carlton Television begins broadcasting

   Carlton commences service as the London weekday ITV franchise holder.

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7. 1991Carlton wins the London weekday ITV franchise

   Carlton outbids Thames Television for the London weekday licence in the ITV franchise round.

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8. 1988Technicolor joins the group

   Carlton acquires Technicolor, substantially expanding its international film-processing and video-duplication operations.

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9. 1987Carlton acquires a stake in Central Television

   Carlton purchases 20 percent of Central Television from Ladbrokes for approximately £30 million.

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10. 1983Carlton Communications becomes publicly listed

    The company adopts the Carlton Communications name and lists on the London Stock Exchange.

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11. 1982Transvideo is acquired

    Green acquires Transvideo and renames the operation Carlton Television Studios, marking Carlton's move into television facilities.

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12. 1967Tangent Industries is established

    Michael P. Green and family associates establish the printing and photo-processing business that later develops into Carlton Communications.

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A diversified British media group combining ITV broadcasting franchises with international audiovisual technology, film-processing, post-production, programme-library, digital television, and cinema-advertising businesses.

• Carlton TelevisionITV regional broadcasting1993

  Carlton Television was the London weekday ITV franchise operated by Carlton from 1993 until the creation of ITV plc in 2004. Carlton used a publisher-broadcaster model, commissioning much of its programming from independent producers. The service later traded under the ITV1 London identity, while the Carlton name disappeared from ordinary on-air branding.

• Carlton InternationalTelevision and film distribution

  Carlton International marketed the company's television and film catalogue worldwide. Its holdings grew through the Pickwick Video acquisition, the Rank film library, and especially the 1999 purchase of the ITC library, giving the business a large archive of British commercial television programming.

• TechnicolorFilm processing and video duplication

  Technicolor was Carlton's major international production-services subsidiary, providing film processing, videocassette duplication, and related media services to entertainment companies. Carlton expanded the business internationally before selling it to Thomson Multimedia in 2001.

• ONdigital / ITV DigitalDigital terrestrial television1998

  ONdigital, later renamed ITV Digital, was the digital terrestrial television service developed by Carlton and Granada after they secured the national licence in 1997. The service attempted to establish a subscription-based digital platform in the United Kingdom but collapsed in 2002.

• Carlton Screen AdvertisingCinema advertising1995

  Carlton Screen Advertising was formed through Carlton's acquisition and renaming of the Rank Organisation's cinema advertising business. It became a major cinema-sales operation and retained the Carlton name after the ITV merger in some markets before being renamed Wide Eye Media in 2014.

• 2003Carlton agrees to combine with GranadaM&A

  Carlton and Granada were the two principal ITV groups, and their combination would consolidate most of the commercial network's franchise interests.

  What changed. The companies agreed to a transaction described as a merger but structured so that Granada shareholders would own about two-thirds of the new company.

  Aftermath. The transaction completed in February 2004, creating ITV plc. Charles Allen became chief executive and Michael Green left Carlton.

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• 2001Carlton divests TechnicolorM&A

  Carlton was reshaping its portfolio and reducing its exposure to international media-technology operations.

  What changed. Technicolor was sold to Thomson Multimedia.

  Aftermath. The sale removed one of Carlton's largest non-broadcasting businesses before the company's eventual combination with Granada.

  Sale price. Approximately $1.9 billion (2001)

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• 1999Carlton buys the ITC television and film libraryM&A

  Carlton was expanding its catalogue-distribution business and seeking to consolidate historically significant British television assets.

  What changed. The company acquired the ITC library from PolyGram and Seagram for approximately £91 million.

  Aftermath. The acquisition greatly enlarged Carlton International and reunited major elements of the Associated Television and Central Television catalogues.

  Acquisition price. Approximately £91 million (1999)

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• 1997Carlton enters digital terrestrial televisionProduct launch

  The United Kingdom introduced a national digital terrestrial television framework, creating an opportunity for ITV companies to develop a new platform.

  What changed. Carlton and Granada proceeded with ONdigital after winning the national licence with British Sky Broadcasting; competition rules prevented Sky from joining the final operating company.

  Aftermath. ONdigital was renamed ITV Digital but collapsed in 2002.

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• 1991Carlton bids for the London weekday ITV franchiseStrategy

  Carlton had repeatedly sought a larger role in terrestrial broadcasting, including an unsuccessful attempt to acquire Thames Television.

  What changed. The company outbid Thames Television in the 1991 franchise competition and secured the London weekday licence.

  Aftermath. Carlton Television began broadcasting in 1993 and became the company's principal public-facing British broadcasting asset.

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• 2004Carlton and Granada complete the creation of ITV plc

  The transaction completed on 2 February 2004. Carlton ceased to exist as an independent listed company, and its shareholders received approximately 32 percent of ITV plc.

  M&ALeadership change
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• 2003Carlton agrees to combine with Granada

  Carlton and Granada agreed to combine in a transaction that created the company later known as ITV plc.

  M&ALeadership change
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• 2002ITV Digital collapses

  The digital terrestrial television service formerly known as ONdigital and later branded ITV Digital entered collapse after commercial difficulties.

  BankruptcyOther
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1. Carlton Communications