Fighting Over News Moves To Fresh Battleground As Sky Consortium Eyes ITV Contract
BSkyB’s latest attempt to wrest the contract for ITV news provision from ITN has sparked an undignified war of words between the two groups. BSkyB announced yesterday that it was joining with two American and two UK broadcasters to form a consortium which would bid for the new contract beginning at the end of next year.
Joining with BSkyB to compete for the £45m per year contract are US broadcaster CBS, financial broadcaster Bloomberg, Chrysalis Group and Ulster TV. On hearing the news, an ITN spokesman retorted, “BSkyB has been touting round for potential partners for months. After all their efforts, they have ended up with two small UK broadcasters and two cost-cutting American outfits. It’s a ragbag partnership crafted from desperation.” A Sky News representative then responded by accusing ITN of “spitting out the dummy” at the challenge.
The companies involved in Sky’s consortium would each take a one-fifth stake in the new company, in order to get around ITC rules which does not allow a single organisation to own more than 20% of ITV’s news provider. Rupert Murdoch made an unsuccessful attempt to win the contract when it last came up for renewal in 1996 (see ITV Signs New News Contract).
Sky News also made a solo request to the ITC to be considered for the contract last year (see BSkyB Looks To Oust ITN As ITV News Provider), but was refused. “We understand the ITC wrote to Sky last year confirming Sky News was unsuitable to make a solo bid for ITV news because of Rupert Murdoch’s large stake in the company,” an ITN spokesman said today. “Sky has had to construct this coalition to technically dilute Murdoch’s influence – but he’s still there.”
A spokesman for the consortium said that the group “believes there should be a strong element of healthy competition when the next ITV news supply contract is decided. Indeed we understand that ITV would welcome such competition.” The consortium is said to have approached the ITC as a first step towards becoming a Nominated News Provider under the 1996 Broadcasting Act, and has also written to ITV outlining its plans and requesting an early meeting.
The debate over the News at Ten, which has resulted in the current, near farcical situation (see ITV And BBC1 Go Head To Head With Evening News), has also illustrated that the other media, not to mention politicians, are not afraid to wade in with their own opinions and influence on the public when it comes to news provision. Politicians are particularly sensitive on the subject, since the news is the media arena where their careers are primarily made or broken. Murdoch is known for neither his shyness in exerting influence or his political neutrality, therefore the idea of his company being involved in news provision for the UK’s most watched channel will be uncomfortable for some influential people. Whether the ITC or other bodies could or would legally stop him making a bid as part of this consortium, or prevent ITV from accepting it, is yet to be seen.
BSkyB: 020 7705 3000 www.sky.com ITC: 020 7255 3000 www.itc.org.uk ITN: 020 7833 3000 www.itn.co.uk ITV: 020 7843 8222 www.itv.co.uk
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