Zenith Media has launched a damning attack on ITV’s decision to press on with the investment in its digital terrestrial TV service, ITV Digital. According to the MediaGuardian website, the media buying agency – one of ITV’s biggest customers – has said in a report that nothing short of ‘divine intervention’ will save the business now.
The comments come after ITV chief executive Stuart Prebble recently claimed that the digital business will break even in 2004. Zenith is quoted as describing this as ‘fantasy’ and is calling for ITV to ditch the business altogether. This echoes the reported views of a number of Carlton and Granada shareholders, who were also in favour of withdrawing from and writing off the venture.
The costs of setting up and running ITV Digital are expected to break the £1 billion mark before the company breaks even. Zenith claims that very little of this money will be returned to ITV from the venture.
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