ITV Preparing Challenge To Sky’s Broadcast Fees

ITV is understood to be considering a complaint to media super watchdog Ofcom over the charges imposed by Sky for carrying and encrypting its television channels.

According to reports, ITV believes the £17 million fee charged by Sky for the broadcast of ITV1 and 2 is simply too high, with negotiations between the two broadcasters over the renewal of ITV’s broadcasting contract deadlocked.

A report in The Business claims that ITV is demanding a “substantial reduction” in the fee charged by Sky, and although the two broadcasters are likely to agree on a new deal, ITV could challenge the satellite broadcaster’s rights to charge the amount it does.

The move could be seen as further opposition by ITV to broadcasting an encrypted signal on Sky, and could eventually see the company broadcast in the clear, without encryption, in the same way as the BBC.

The speculation surrounding ITV’s place on Sky’s platform follows a last minute deal to give the broadcaster’s new entertainment channel, ITV3, a place in the satellite giant’s channel line up. The placement was secured following ITV’s purchase of Sky Ventures’ 49.5% share in multi-channel operation Granada Sky Broadcasting for £10 million, bringing ITV3 to Sky in place of GSB’s Plus (see ITV3 Launches On Sky Following GSB Acquisition).

ITV: 020 7843 8000 www.itv.com

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