Ofcom Could Fine ITV If It Ditches PSB Licences

ITV could be fined 7% of its annual net advertising revenue if it gives its public services broadcasting licences back to Ofcom.

Under the 1990 Broadcasting Act, PSB licence holders who fail to provide the service they are contracted for face a financial penalty of whichever amount is larger: £500,0000 or 7% of the qualifying revenue for the last financial year.

ITV’s net advertising revenue for 2007 was £1.22 billion, meaning ITV fines could start at £80m a year and rise until its licences end in 2014.

In a recent speech at the Royal Television Society, ITV executive chairman Sir Michael Grade said that one option open to the broadcaster could be to operate fully commercially without PSB status (see Michael Grade Speaks Up About ITV’s PSB Future).

Ofcom said in a statement: “Ofcom would prefer that ITV retains its licence and provides a continuing public service based on the remaining value of the free spectrum it is gifted.

“To ensure audience demands are met, we have outlined a way forward for this in our latest PSB proposals.

“If ITV decides to hand back its licences that is entirely a matter for the company, and we are ready for such an eventuality.”

ITV: 020 7843 8000 www.itv.com Ofcom: 020 7981 3040 www.ofcom.org.uk