Carlton And UNM Collaboration Talks Reported

ITV companies Carlton Communications and United News & Media (UNM) are understood to be holding talks to form a united front against growing competition in the pay-television market. Between them, Carlton and United own six of the 15 ITV regional franchise companies; Carlton is also a 50% stakeholder, along with Granada, in digital terrestrial TV company, ONdigital.

According to a report in yesterday’s Sunday Business, the two companies are in serious discussions about the possibility of making joint bids for broadcasting rights. One possible venture could be a bid for Premier League matches broadcasting rights, which are due to go up for tender in the next few months (see Negotiations Over Premier League TV Rights Imminent). The battle for Premier League rights is likely to be fiercer than ever with the emerging digital television platforms all vying for new subscribers. BSkyB has already been reported to have made an informal £1 billion offer for the rights – a price tag which Carlton, Granada and UNM could afford to match much more easily if they were in partnership.

Another tie-in could see UNM take a material stake in ONdigital. Talks between the two group were reported in United’s own Express newspaper last month (see UNM Reported To Be Interested In ONdigital Stake). UNM was understood to be after a one-third stake in ONdigital, although the report was not officially confirmed by United. Carlton, UNM and Granada are already in partnership through ITV’s digital channel, ITV2. A deal with ONdigital would strengthen UNM’s interests in the digital marketplace.

There is also speculation that joint ventures at this stage could be a precursor to a full merger of United News & Media and Carlton in the future, if ownership restrictions are relaxed by the Office of Fair Trading. Any changes to ownership rules are not expected to come into effect until 2001 at the earliest.

Carlton Communications: 0171 663 6363 United News & Media: 0171 921 5000