ITV CONSOLIDATION IS A STEP NEARER

THE MAIN ITV companies including Granada, Carlton and many of the regional Channel 3 licensees have welcomed the proposed reforms in the Communications White Paper.
Granada Media in their response to the publication of the Government’s Communications White Paper predicted further consolidation in ITV ownership.
Charles Allen, Chairman of Granada Media, said: "The proposed regulatory framework will allow further consolidation of ITV’s ownership and the emergence of a single ITV company, which can compete more strongly at home and abroad, serving the interests of our viewers and our shareholders. In programming, greater self-regulation places the onus on broadcasters to deliver quality and diversity for viewers, a challenge we are determined to meet."
Granada Media’s Chief Executive, Steve Morrison, said: "ITV are the UK’s leading regional channel, screening over 11,000 hours of regional programming every year. We are delighted that ITV’s unique regional role has been recognised and endorsed by the Government. The modernised regulatory framework plays to Granada’s strengths as regional public service broadcasters and producers. We are committed to ensuring that public service broadcasting on ITV, nationally and regionally, remains secure in the digital age.”
Carlton also gave support on the removal of regulations allowing a move towards a single ITV. Nigel Walmsley, Deputy Chief Executive of Carlton, said: "We welcome proposals to remove regulations standing in the way of a stronger, more efficient ITV - able to take decisions more quickly and to invest more in programmes. We hope that the Government's proposed new system for ensuring plurality will allow this to happen".
The White Paper confirms that the ‘London licence’ rule will be revoked and the 15 per cent audience share limit will be replaced with a new system for ensuring plurality in television services.
The Government states that there will be no additional barriers placed in the way of ITV companies, other than ordinary competition law.
ITV’s Director of Programmes David Liddiment said: “The White Paper sets out a clear vision for the future regulation of broadcasting in the digital age. Its strong endorsement of ITV’s unique contribution to public service broadcasting as the UK’s leading regional broadcaster is good news both for the industry and for viewers.
“The modernised regulatory regime proposed in the White Paper should enable public service broadcasters to continue to thrive in an increasingly dynamic and competitive multi-media world.”
However, Granada point out that the Government has suggested that the prohibition on joint ownership of ITV and Channel 5 may be retained.
(CD/CMcL)