ITV Companies May See Licence Payment Reductions From ITC

The Independent Television Commission (ITC) is to meet later this week to determine the licence payments which the ITV franchises will have to pay the Treasury in order to retain their licences to broadcast. It is expected that the Commission will decide that, in light of increased competition from cable and satellite multichannel television, the payments will be reduced. The reduction could be as great as £100 million per year.

GMTV, particularly, is hoping for a significant reduction in its payments as it is believed to be losing around £15 million per year. The breakfast broadcaster’s future ownership could also be determined by the outcome of the ITC’s meeting on Thursday. Both Scottish Media Group and Guardian Media Group, which respectively hold stakes of 20% and 15% in GMTV, are understood to be ready to reassess their holdings following the payments decision.

Independent Television Commission: 0171 255 3000