STV has deepened its commitment to premium scripted TV by increasing its Two Cities Television stake from 51% to 75%. The move signals growing confidence in one of the UK and Ireland’s most closely watched indie producers, the company behind acclaimed titles including Patrick Melrose and Blue Lights. For the TV and video industry, the enlarged Two Cities Television stake is more than a financial update—it is a clear sign that scale, repeatable drama brands, and smart rights strategies remain central to today’s production landscape.
According to a recent filing, STV has raised its ownership in the London- and New York-based company after initially taking a minority position in 2020 and moving to majority control in 2024. The latest increase reinforces a plan STV had already outlined: to keep backing the label as it expands.
Why the Two Cities Television stake matters
The bigger Two Cities Television stake shows STV is doubling down on established drama producers with international upside. In a highly competitive scripted market, broadcasters and studio groups are looking for production labels that can deliver both returning hits and prestige limited series. Two Cities has shown it can do both.
Its recent slate reflects that balance:
- Returning drama: BBC police procedural Blue Lights
- Prestige limited series: projects such as Amadeus for Sky
- Upcoming titles: Army of Shadows for Channel 4 and Canal+, plus a new RTÉ drama starring Kate Mulgrew
That mixture is especially attractive in today’s market. Returners create operational stability and predictable relationships with commissioners, while limited series often offer creative prestige and stronger international buzz. By increasing the Two Cities Television stake, STV is effectively buying deeper exposure to both of those revenue paths.
STV’s long-term studio strategy comes into focus
This latest ownership change did not happen in isolation. STV Studios has been building a wider production portfolio, taking positions in several drama companies and striking partnerships designed to strengthen its footprint in scripted television.
Its wider strategy appears to rest on a few key pillars:
- Backing proven creative leadership rather than building every label from scratch
- Owning more of the value chain through majority and expanded holdings
- Prioritising drama with international potential across UK, Irish, and global buyers
- Balancing risk between returning series and limited-event programming
In that context, the bigger Two Cities Television stake fits neatly. Two Cities is led by experienced executives Michael Jackson and Stephen Wright, and the company has steadily built a reputation for high-end scripted work. STV’s decision suggests the business sees further growth ahead, not only in commissions but potentially in rights value, global distribution, and long-tail brand building.
Two Cities Television’s production model is built for this moment
One reason the Two Cities Television stake has become more valuable is the indie’s programming strategy. Rather than leaning entirely on one type of commission, Two Cities has pursued a dual-track model: keep one or two returning shows active while simultaneously developing distinctive limited dramas based on strong intellectual property.
That approach is well suited to the current television economy because it helps production companies:
- Maintain cash flow from repeat commissions
- Keep development pipelines active
- Reduce overreliance on a single hit
- Attract top writing and acting talent with event projects
- Stay relevant to both public-service broadcasters and international streamers
In practical terms, this means a company can use the steady momentum of a returning drama like Blue Lights to create room for riskier, more ambitious limited series. That discipline likely played a major role in STV deciding to increase the Two Cities Television stake once again.
What this means for Blue Lights, Patrick Melrose, and future scripted TV
For viewers, the bigger Two Cities Television stake could translate into more development firepower behind the company’s slate. While equity changes do not automatically guarantee new commissions, they can provide a producer with stronger financial backing, more strategic confidence, and better leverage when pitching future projects.
That matters because scripted TV is increasingly expensive. Financing premium drama now often requires a complex mix of broadcaster support, co-production agreements, tax structures, and distribution planning. A producer with stronger corporate backing is often in a better position to compete.
It also hints at STV’s confidence in drama as a growth engine. As audiences continue to reward well-made crime dramas, literary adaptations, and prestige event series, companies with reliable creative pipelines become more valuable. The rise in the Two Cities Television stake underscores that trend.
Industry implications to watch
Several developments could follow from this deal:
- More aggressive pursuit of international co-productions
- Greater scale for Two Cities development activity
- Expanded focus on rights-rich scripted programming
- Potentially stronger packaging of talent, IP, and broadcaster partnerships
For the broader UK and Irish TV sector, it is another reminder that consolidation is not just about size—it is about securing creative engines capable of delivering standout shows in a crowded global market.
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Conclusion
STV’s decision to raise its Two Cities Television stake to 75% is a strong vote of confidence in a producer that has built momentum through smart drama choices and experienced leadership. It also highlights a wider industry truth: in premium scripted TV, companies that can sustain returners while developing distinctive limited series are becoming increasingly valuable. As competition for standout drama intensifies, the expanded Two Cities Television stake positions STV to benefit more directly from Two Cities’ next phase of growth.
