Hundreds of jobs are about to be axed at troubled digital terrestrial broadcaster, ONdigital, according to a report in this Sunday’s Observer. Citing unnamed sources, the article claims that ONdigital’s owners, Carlton Communications and Granada, are to cut the staff numbers later this month in a determined effort to cut costs.
The news comes as the latest in a series of negative stories about the digital service’s woes. A leaked letter from Granada chairman Charles Allen to prime minister Tony Blair warned that investors are tiring of pouring money into the loss making business and a
Financial Times poll showed that a number of major shareholders would countenance the idea of pulling out of ONdigital altogether (see
Granada Faces Investor Pressure Over ONdigital, Reports FT).
The Observer article claims that jobs are also likely to be lost at the main ITV Network in the restructure, the details of which were announced this morning. ONdigital is to become ITV Digital on 11 July and ITV will become known as ITV1, “to reflect the extended family of [ITV] brands.” Under the changes, ONdigital’s TV internet service, ONnet, will become ITV Active. The ITV Sport Channel will launch on 11 August.
ITV chief executive, Stuart Prebble, said: “With the continued growth of multi-channel television, the time is right for the ITV brand to develop so that the full range of services we offer can be promoted under a consistent identity. In one simple step, the change to ITV1 for the Network will convey that ITV is now a family of brands.”
Stock in Granada had nudged up ¾p to 150p by early afternoon and Carlton’s shares were up 6½p at 342½p.
