ITV Considering Bid For UKTV Digital Channels

ITV is understood to be planning a take-over bid for digital broadcaster UKTV’s portfolio of channels, a move that would secure the broadcaster’s future in a multi-channel TV environment.

Although ITV has yet to make a formal bid for its rival’s collection of digital channels, reports this morning suggest the proposition is at the centre of serious consideration, with ITV eager to cement its position against digital rivals which have cannibalised its audience share.

UKTV’s portfolio consists of nine main channels ranging from entertainment to factual, documentary-based offerings as well as several “time-shifted” sister channels. The company is currently operated by Flextech, a subsidiary of Telewest, and the BBC.

Any proposed acquisition of UKTV by ITV would almost certainly require intervention by the Competition Commission, and would likely require an extension of the Contract Rights Renewal scheme to protect advertisers from ITV’s growing control of the advertising market.

However, ITV does have other irons in the digital TV fire, with the plans for several new ITV-branded stations due to bear fruit in the next five years. The broadcaster’s chief executive Charles Allen has gone on record as saying: “I see ITV developing into a package of channels over the next five years, in some ways very similar to the BBC, but funded from a commercial perspective” (see ITV Reveals Plans To Launch Range Of New Channels).

The broadcaster recently launched its third entertainment channel, ITV3, designed to appeal to older viewers with a range of drama and factual entertainment programmes, securing space on Sky’s digital satellite platform at the last minute thanks to a deal to acquire Sky Ventures’ 49.5% share in multi-channel operation Granada Sky Broadcasting for £10 million (see ITV3 Launches On Sky Following GSB Acquisition).

BBC: 020 8743 8000 www.bbc.co.uk ITV: 020 7843 8000 www.itv.com Telewest: 0845 142 0000 www.telewest.co.uk

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