The ITV Network has put forward proposals to the ITC which argue that ITV’s licence payments to the Treasury ought to be reduced in the light of the more “fragmented and competitive marketplace” which ITV now finds itself. Its current payments total £400m per year.
The Network has outlined the objectives which it deems essential to its future and which represent a large financial undertaking. ITV wishes to assure the maintenance of high quality public service television, with a strong regional element; to continue to invest in a high level of original UK programming and to ensure the successful launch of digital terrestrial television. In view of these objectives it has requested that the ITC amends its licence renewal policies.
It concludes that the level of payments to the Treasury should be reduced as a counter-balance to increasing competition which ITV licensees will face over the next licence period (particularly from cable and satellite TV). The ITV Network is also due for further financial loss as Channel 4’s advertising funding formula is phased out by 1999. Channel 4 currently contributes £90m from advertising revenue; this will drop to £60m next year and then be removed the following year.
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