Granada and Carlton Communications have hit a stumbling block in plans to bring their pay-TV businesses under the umbrella ITV brand (see Granada And Carlton Bring ONdigital Under ITV Brand), following discussions with some of the Network’s smaller franchise holders.
Although all the parties involved have so far declined to comment on the talks, press reports this morning suggest that the smaller ITV shareholders are not happy with Carlton and Granada commandeering the ITV brand to turn their digital terrestrial service, ONdigital, into ITV Digital. Plans for the creation of digital channel, ITV Sport, are likely to be similarly affected.
Granada and Carlton hold nine of the fourteen regional ITV licences and control most of the Network’s advertising revenue.
It is thought that if no agreement is reached, ITV Sport, due to launch this summer, may not be available to Scottish viewers and ONdigital might not be promoted outside England and Wales by the smaller TV companies.
SMG and Ulster TV are rumoured to be seeking compensation for the use of the ITV brand by Granada and Carlton. Reports claimed that SMG had walked out on the negotiations. A spokesperson for the company declined to comment on this, but added that an agreement is ‘not yet in place’. An Ulster spokesperson concurred.
The smaller ITV franchises are naturally inclined to protect their shareholders’ value and may well feel that the moves by the two ITV giants are akin have their toes trampled on. Whilst Carlton and Granada own the majority of the Network, ITV is at least in principle still a federal structure. ONdigital, on the other hand, is specifically a Carlton-Granada 50:50 joint venture.
Stock in Carlton was down ¾p at 347¾p; Granada was also down ¾p at 158p.
