ITV Withdraws Complaint Against BSkyB

ITV has withdrawn its formal complaint against BSkyB, after claiming that the satellite giant charges too much for the regionalisation of ITV’s channels on its digital satellite platform.

Negotiations between the two broadcasters had been headlocked, resulting in ITV making a formal complaint to media watchdog, Ofcom, over the affair (see Ofcom Investigating Sky Over Regional Charges).

In its original complaint to Ofcom, ITV described the charge proposed by Sky as “not fair and reasonable” and claimed that it was “discriminatory” when compared to charges made to other broadcasters for related services.

However, negotiations between Sky and ITV have been resumed, with ITV withdrawing its complaint and Ofcom closing the case.

Earlier this month, BSkyB, announced better than expected full year results, revealing total revenues of over £4 billion for the year to 30 June (see BSkyB Reports Record Profits For Full Year).

The group reported an increase of 11% in turnover to £4,048 million, with operating profit up by 34% to £805 million and profit after tax increasing to £425 million, up 32% year on year.

Earlier this summer, ITV had its annual fee payable to industry regulator, Ofcom, cut by £135 million to less than £80 million, as part of a review into licence fees by the watchdog taking into account the increasing growth of digital TV (see ITV Has Licence Fees Slashed).

The broadcaster paid £215 million for its 12 licences in 2004, astounding city analysts who predicted Ofcom to drop the fee to between £90-95 million (see ITV Set For Massive Licence Fee Cuts).

Sky: 08702 40 40 40 www.sky.com

ITV: 020 7843 8000 www.itv.com