ITV has bought Mammoth Screen, the maker of the hit Cornish drama Poldark (above), eight years after it first invested in the company.

The UK's biggest commercial broadcaster has committed £1.4 billion including earnouts to acquiring TV productions companies since 2010, responding to the rise of streaming services such as Netflix.

The deal for Mammoth is among ITV’s smaller transactions. The broadcaster bought 25 per cent of the company in 2007 for £1 million and has now acquired the remainder for an undisclosed sum – which is below £10 million, according to one person familiar with the deal.

Mammoth’s revenues peaked in 2012 at £24.6 million, falling to £9.5 million the following year.

The profitability of production companies can drop when they are acquired by broadcasters, because they lose legal advantages afforded to independent studios.

ITV's shares have risen more than 50 per cent in the past year, boosted by a recovery in advertising spending and speculation of a possible acquisition. However, its audiences have continued to shrink, despite hyped dramas such as Broadchurch.

– (Copyright The Financial Times Limited 2015)