ITV calls for cost sharing agreement to change following Ofcom ruling
ITV has said that the current cost sharing agreement in place between the broadcaster and its regional contract holds is ‘not sustainable’ following Ofcom’s decision not to alter the agreement.
Earlier today, Ofcom released the findings of a consultation between ITV and its licence holders, following requests for change to the agreement.
Following a review of all information provided by all parties to the watchdog, the decision was taken to continue with the networking arrangements in place, despite ITV asking for the regulation to change.
An ITV spokesman said: "Ofcom acknowledged earlier this year that the existing networking arrangements result in ITV significantly subsidising the non-consolidated licensees on an annual basis. Given the value of our PSB licences this is not sustainable and action will be needed to overhaul this outdated regulation to reflect purely commercial, market-driven agreements with no subsidies.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."
ITV has also announced that it is set to set up a presence in MediaCity UK after much speculation.