ITV may be allowed to stop regional news

22nd Sep 2009 07:31

Struggling broadcaster ITV could be released from its public service requirement to provide regional news after Ofcom estimated the service would be heavily loss making once digital TV is switched on. The TV regulator instead proposes that an independent news consortia, funded by competitive tender, be set up to deliver a choice of regional news across the UK on the Channel 3 schedule. These could offer greater 'localness' and cross-media news provision. Ofcom, which came up with the proposal in response to a government consultation on delivering TV news in the nations and regions, suggests that the ITV Channel 3 regional network licences could be in deficit to the tune of £38-£64m by 2012, with regional news provision accounting for the biggest chunk of that deficit. New funding will be required if regional news on Channel 3 is to be maintained, the regulator says.The alternative independent news consortia would also provide a potential platform for the future development of more local services, including local TV, and using other media, it adds.+Meanwhile, ITV is issuing legal proceedings against Scottish broadcaster STV to recover gross debt of £38m, accumulated as a result of "STV not honouring its contractual contributions towards the Network Programme Budget." "STV is attempting retrospectively to opt out of an increasing number of peaktime programmes which contravenes existing agreements. The company is also wrongly attempting to claim a rebate against programmes which have been 'written off,'" says ITV. The group said it is currently withholding monies from STV against this debt and believes net debt is approximately £15m to £20m."We have been attempting to resolve this matter for more than a year but unfortunately our efforts have been unsuccessful. Given that we are a commercial organisation, with responsibilities to our shareholders, we are left with no option but to take legal action to recover this sizeable debt," it added.