Ofcom favours reduction in ITV's PSB programming

by Tristan O'Carroll, Media Week 25-Sep-08, 10:45

LONDON - ITV could be allowed to cut its public service programming obligations significantly from next year, under new Ofcom proposals that would potentially save the broadcaster tens of millions of pounds.

Unveiling the second phase of its public service broadcasting review, Ofcom said ITV should be able to drop some regional news bulletins, reduce regional programming by half and cut back on current affairs shows. It proposed that the minimum quota for ITV’s regional non-news programmes should be cut from 30 minutes to 15 minutes on average per week. In addition, the volume of current affairs programmes in off-peak time should fall by 40 minutes per week, Ofcom said.

ITV has been lobbying for changes for several years, arguing that it is becoming increasingly difficult for the broadcaster to sustain investment in such programming, which typically generates lower commercial returns than drama or sports shows.

The Ofcom review said that in order to sustain PSB programmes on channels other than the BBC, some £145m-£235m in replacement funding would be required by 2012.

Meanwhile, Channel 4’s effort to persuade Ofcom that it needs around £100m in additional funding to allow it to meet its public service programming obligations, appears to have paid off. The media regulator said that its analysis shows that by 2012, Channel 4 will need replacement funding of around £60m-£100m if it is to sustain investment in public service content, adding that it is a priority to clarify Channel 4's future role and economic model.

However, the regulator insisted that the funding solutions for Channel 4 are a matter for government. But provided new funding arrangements are put in place, Ofcom said that Channel 4’s quota for programmes produced outside the M25 area should increase from 30% to 35%.

Ofcom said Five would continue to face PSB obligations, although it said the RTL Group-owned broadcaster should be focused on programmes made in the UK, network news and UK children's programmes. For Five, Ofcom proposed a small adjustment to its current quota for original productions from 53% to 50%, with a reduction from 42% to 40% in peak time.

Ed Richards, Ofcom chief executive, said: "Audiences value public service programming highly, but strong digital TV take-up means it is becoming harder for our leading commercial broadcasters to provide this.

"We have provided a clear set of choices for maintaining and strengthening public service broadcasting in the future. Along with our proposals in the short term, timely decisions by government and Parliament will be critical."

Ofcom's consultation closes on 4 December this year. Ofcom expects to publish a final statement in early 2009. Parliament will make a decision on the future funding of PSBs and, if appropriate, introduce legislation by 2011.