ITV faces fines if it returns PSB licences

ITV will face a series of fines if it presses ahead with its threat to hand back its public service broadcasting (PSB) licences. Michael Grade, ITV executive chairman (pictured), made the comments in a recent speech.

It is understood that the broadcaster would be fined 7% of its annual net advertising revenue plus other penalties if it returns the licences to Ofcom. ITV’s net advertising revenue was £1.22bn in 2007.

The broadcaster would be fined under Section 42 of the 1990 Broadcasting Act, which says that PSB broadcasters will face penalties if they do not meet the terms of their contracts.

Ofcom is understood to be talks with ITV, and the three non-ITV licence holders, UTV, STV and Channel Television, over the future of the network. The regulator says it would prefer the broadcaster to retain its licence but is “ready” for it to hand it back.

The regulator published its vision for PSB in a report last month. It supported calls from ITV to reduce the PSB commitments that it is required to meet for its free spectrum. Ofcom proposed that it could reduce its PSB obligations from next year including a reduction in regional programming, such as daytime news bulletins and non-news shows by 50% to 15 minutes per week in England and one and half hours in Wales, Scotland and Northern Ireland.

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here