STV commits to new Taggart as it files £35m countersuit
STV has said that it remains in discussions with ITV to recommission police drama, Taggart. Should it not be co-commissioned with ITV, the broadcaster will commit to making a series for next year on its own.
In an interim management statement released this morning for the third quarter of this year, the broadcaster said that it remained in discussions with ITV about securing its commission or co-commission and that it would not be delivering any further episodes for 2009, resulting in a reduction in earnings of around £2million.
“STV recognises the widespread popularity of the programme and the strong ratings and return on investment the series delivers. This will ensure that this popular brand continues,” the statement read.
As to its legal stance as it prepares itself for the legal claim of £38m gross by ITV, STV continued to refute the claim and will submit a ‘robust defence’ which will include a claim against ITV for £35m gross that it claimed is owed to it and offsets the ITV claim.
“STV’s strong defence against this claim also includes a counter claim against ITV plc, challenging the practices and transparency of the processes of ITV when operating as STV’s sales agent for national airtime revenue. This counter claim relates to revenues which STV should have received under its Advertising Sales Agreement. As previously announced, on the 5% of related revenue which STV’s independent auditor Deloitte was able to review, a potential shortfall of approximately £2m (covering only 30 months of a six year period) was identified. This defence and counter claim will be submitted by 13 November 2009,” the release continued.
Rob Woodward, CEO of STV, commented: “To build shareholder value it is essential that we protect and secure STV’s rights within the Channel 3 Network. We have explored numerous routes to engage with ITV, but we have been left with no choice but to seek protection through the courts and we are confident that our position will be upheld. Although we continue to operate in a challenging economic climate, we are beginning to see signs of an improvement in the market.”
Meanwhile, STV has also announced the launch of STV Local, an online service which will provide information on what is happening in 284 places around Scotland and is the next development of the broadcaster’s digital platforms. STV will also take control of Premium Rate Telephony Services in-house to increase minimal revenue being generate from the activities being provided by ITV’s Network Management.
The company said that it would continue to take a ‘cautious approach’ despite seeing a ‘continued stabilisation and improvement’ across the market, and said that it would continue its strategy launched earlier in the year of cost savings while also looking to build its brand through the commission of its own productions which includes a documentary exploring the character of Sherlock Holmes and the broadcast of Australian drama Underbelly.