ITV To Receive £88 Million From Channel 4

At the end of this month, Channel Four will reluctantly hand over a cheque for £88 million to the ITV companies. The payments are due under Channel 4’s funding formula. Channel 4 Television has to pay 50% of any excess it earns from advertising revenues over and above 14% of total qualifying revenue.

The funding agreement is expected to be reformed next year. It is anticipated that the controversial ITV payments will be abolished. These amendments look set to correspond with changes to the cash payments ITV companies have to pay to the Treasury as part of their licensing agreements. Those companies which made high bids under the 1990 Broadcasting Act will be able to renegotiate the payments with the ITC.