Michael Grade today underlined options for ITV’s future, following the release of Ofcom’s phase two Public Service Broadcasting (PSB) review two weeks ago.
Speaking at the Royal Television Society this morning, Grade outlined two alternative options in response to Ofcom’s report.
The first model would see ITV retain its public service status and provide guaranteed levels of original, UK programming and an impartial national and international news service in return for PSB benefits.
The second option would see ITV operate without PSB status, purely as a commercial broadcaster, which would mean ITV wouldn’t guarantee any particular type or level of programming.
Grade said: “The benefits of a new settlement must at least match the costs it imposes.”
“ITV does not itself want any direct public money,” he added. “We wish only to operate as a free-standing commercial business, with less rather than more regulation.”
Grade also pointed out that “viewer expectations and economics dictate that we must retain the widest coverage of the UK”.
Ofcom’s recent review proposed reducing ITV’s PSB obligations next year so it could concentrate on British content and news until its licence expires in 2014.
The review suggested making significant changes to ITV’s news service, involving a restructuring of its regional news services in England and the Scottish borders (see Ofcom Publishes Second Phase of PSB Review).
In response to Ofcom’s proposals, Grade said: “A new settlement needs to be formulated to sustain the health of British Broadcasting, and the talent and creativity on which it thrives.”
He added: “It needs to be done urgently, and it needs to be implemented before the end of 2012.”
Grade also said that in his submission to Ofcom, he made it clear that ITV “would prefer to remain a licensed PSB, if justified economically”.
If ITV remains a PSB, Grade promised to “accept licence obligations for UK programming and impartial prime time network news”. He added: “The PSB licence would in effect be the guarantee that they would be delivered.”
However, he also outlined a future scenario in which ITV could operate without PSB status. “ITV would enjoy a unified brand, with the widest UK coverage through DTT [Freeview] and other platforms,” he said.
He concluded, that either way “ITV will remain the engine that drives massive investment in UK production”.
ITV: 020 7843 8000 www.itv.com Ofcom: 020 7981 3040 www.ofcom.org.uk