ITC Announces Financial Renewal Terms For Remaining Seven ITV Licences

The Independent Television Commission (ITC) has announced the financial terms for the renewal of licences for the ITV Border, Central, Channel, Grampian, Granada, LWT and Scottish regions, if they choose to renew their analogue licences for the ten year period beginning 1 April this year.

Below are the cash bids and percentages of qualifying revenue required to be paid annually under the ITC’s terms, and the terms as they presently stand. The annual cash sum is index linked, while the qualifying revenue is mainly made up of advertising and sponsorship revenue:

The new terms would see the majority of tender payments being derived from a percentage of advertising revenue earned by the licensees. It is thought that this system will be fairer and more responsive to changes in market conditions.

All licensees are expected to see a fall in their payments over the next decade as digital penetration increases and the analogue service accounts for a diminishing part of revenue. Total tender payments from Channel 3 companies totalled around £360m in 1999, £350m in 2000 and is expected to fall to £335m this year.

The licensees have until 23 March to inform the ITC whether they intend to accept or reject these terms.

ITC: 020 7255 3000 www.itc.org.uk

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