ITC Confirms End Of Minimum Carriage Requirements

The ITC today confirmed that the minimum carriage requirements (MCRs)on pay-TV channels is to end (see ITC Denies Backtracking On ‘Unbundling’ Strategy). This will start to take effect on July 1st 1998 when the services provided under those agreements are broadcast for digital reception, and from 1 January 2000 service for analogue reception.

Under the new guidelines viewers must be able to receive premium channel from a subscription to a basic channel package, from September 30th 1998. Premium channels do not need to be sold separately from basic packages but they must be made available individually to viewers.

Sir Robin Biggam, ITC Chairman, said: “The ITC is confident that the ending of MCRs will allow easier access to pay-television, including premium services, and increase viewer choice. This is especially important at the time of the launch of digital television which is why we are applying our requirement immediately to digital broadcasting. However, on the analogue service we think that it is reasonable to allow channels a longer period to adapt and renegotiate their existing contracts.

There are two exceptions to the guidelines that the ITC have made.

Firstly, channels such as L!ve and Channel One which are contractually exclusive to one platform like cable, will be able to continue existing MCRs for a period to be determined by the ITC. This will only apply to channels that entered into their existing contracts before April 1st 1998.

Secondly, for the first 12 months of their existence, new channels will be able to negotiate MCRs with their distributors. This allow viewers to become familiar with the new channels and to indicate to the distributor their interest in having them included in future channel packages.

ITC Website – http://www.itc.org.uk/

ITC: 0171 255 3000