ITV welcomes Ofcom review of Channel 3 licensee network

Yesterday Ofcom announced that it planned to review the network of 15 regional Channel 3 licensee holders as it did not feel that the current media landscape was reflected in its current arrangements. This included the budget provisions made available to each.

A spokesperson for ITV, said that the broadcaster ‘warmly welcomed the consultation and Ofcom’s acknowledgement that existing Network Arrangements resulted in ITV ‘significantly’ subsidising the non-consolidated licensees on an annual basis.

"As Ofcom itself says in its consultation document, these arrangements are a regulatory framework designed for an analogue world and we now await with interest Ofcom’s consultation on next steps, in particular the potential reduction or elimination of this subsidy, continued the spokesperson.

"Action should be taken to overhaul this outdated regulation to reflect purely commercial, market driven agreements with no subsidies. This would allow for a straightforward relationship to exist between ITV plc and the non-consolidated licensees."

Commenting on the consultation, a spokesperson from one of the regional licensees, STV said: “STV has said for some time that it would be appropriate for the Channel 3 Networking Arrangements and the operation of the Channel 3 Network to be reviewed in light of the changing media landscape. We will of course participate fully in the consultation and we note that Ofcom’s initial consultation document points to retention of the status quo as consistent with the statutory objectives of the NWA and as the only practical option to implement.”