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Ofcom to reduce ITV licence fee

  • 29-06-2005 9:37am
    #1
    Registered Users, Registered Users 2 Posts: 2,457 ✭✭✭


    http://www.breakingnews.ie/2005/06/29/story209246.html


    looks like itv will have more cash to pay for sky encryption
    ITV offered licence fee cuts
    29/06/2005 - 09:11:08

    Broadcaster ITV was today offered deep cuts in its licence fee to help it cope with the challenge of the digital age.

    UK communications industry regulator Ofcom is proposing to slash the cost of ITV’s dozen licences, including GMTV, to less than £80m (€120.6m) this year – down from the £215m (€324m) paid in 2004.

    Ofcom also paved the way for further reductions in licence fee payments beyond this year if advertising revenues come under pressure as more households turn to digital.

    The move affects ITV plc and companies which have franchises that use the Channel 3 network such as Scottish TV owner SMG and Ulster TV. Including the Five channel, the licence fee will be about £90m (€135.6m) this year against £180m (€271m) under the terms of the previous licence deal.

    ITV welcomed the changes, which it said would boost their programme budget and come after months of lobbying for a shake-up of a licence fee system that dated back to the time when it managed the sole commercial television station in the UK.

    Central to its complaints was the rise in digital television, which tempted audiences away from its analogue ITV1 channel and put advertising revenues under pressure.

    ITV said it was unfairly disadvantaged compared with rivals such as Five, which paid less than £20m (€30.1m) for its licence last year, and Channel 4, the BBC and BSkyB, which were not required to pay anything at all.

    Media reports this week said ITV could abandon its licences for public service broadcasting if Ofcom failed to cut the fee significantly.


Comments

  • Registered Users, Registered Users 2 Posts: 10,726 ✭✭✭✭DMC


    Not Satellite specific, moved to Broadcasting.


  • Closed Accounts Posts: 1,242 ✭✭✭Ulsterman 1690


    Media reports this week said ITV could abandon its licences for public service broadcasting if Ofcom failed to cut the fee significantly

    Sounds like a bluff to me

    Like they would loose their right to a terrestrial slot along with their right to the 103 EPG slot


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