ITC Publishes Document For ITV Licence Renewal

The ITC has today launched a document which sets out the methodology and procedure for renewing ITV licences.

The ITV licences came into force on 1 January 1993 and the earliest date from which they can be renewed is after six years operation – ie, from 1 January 1999. Licensees who wish to seek renewal from that date should submit a firm expression of interest by 1 June 1998.

The ITC has to decide whether to renew the existing licence or to advertise new ones; the date by which new licences must be advertised; and the financial terms upon which licences can be renewed. The latter involves the ITC fixing both the percentage of qualifying revenue and a fixed annual sum which must be paid to the Government.

Among the financial factors which the ITC will consider are: how much revenue will be generated through advertising, sponsorship and programme sales; how much money the licensee will pay to the network; programme costs; and how much expenditure will be undertaken.

The Commission would not renew a licence if it felt that the licensee would not continue to meet commitments in its existing licence or if the ITC proposed to make changes in the areas to which programme services are currently provided.

Chief executive Peter Rogers commented: “The sums we must charge ITV companies have to reflect what would be obtained if the licence were put out to tender. But equally this valuation must take full account of the obligation on these licensees to continue, over the next decade, to provide diverse and high quality programme services in an increasingly competetive environment.”

ITC: 0171 255 3000