BBC and ITV set to strike regional news deal

BBC director general Mark Thompson has confirmed that the BBC and ITV are close to agreeing a deal, which would allow the commercial broadcaster to continue to provide regional news.

Speaking to the House of Lords Communications Committee today, Thompson said the broadcasters have been in discussions about the possibility of sharing facilities since last month, in a bid to help ITV maintain its Public Service Broadcasting (PSB) commitments.

Thompson said: “They’re progressing very well. We are close to agreement on regional television. ITV has been positive about this approach.

“We hope to provide a way in which regional services on ITV, if that is the wish of ITV, Ofcom and the government, to continue into the next decade,” he added.

Thompson also told the watchdog committee that a commercial partnership between BBC Worldwide and Channel 4 could provide up to £50 million a year cash for the struggling broadcaster.

However, he quickly dismissed the idea of any formal merger between the two companies, stating that “a simple transfer of dividend of Worldwide to another broadcaster is functionally identical to top-slicing”.

In December, reports suggested a potential merger between BBC Worldwide and Channel 4, effectively creating a hybrid broadcaster, as a means of preventing C4 from facing bankruptcy (see Channel 4 could merge with BBC Worldwide).

A day later, the BBC hit back at the idea, saying it was a “fanciful idea that distracts from what is actually doable” (see BBC Trust Chairman hits back at Worldwide & Channel 4 merger idea).

Instead, the BBC proposed that Channel 4 receive a stake in the corporation’s commercial arm to help C4 make up its funding shortfall.

Thompson also suggested another possible option for Channel 4 would be consolidation with Five – “There is a strong argument for consolidation,” he said, arguing that within a decade there were unlikely to be three advertising-funded PSBs.

BBC: 020 8743 8000 www.bbc.co.uk ITV: 020 7843 8000 www.itv.com Channel Four: 020 7396 4444 www.channel4.com