The Stage

Grade warns ITV may drop public service broadcasting duties

Published Wednesday 8 October 2008 at 14:05 by Matthew Hemley

ITV executive chairman Michael Grade has warned that the broadcaster could drop all its public service broadcasting duties and become a Freeview only offering, with “no guarantee of any particular type of programme provision”.

Grade, addressing the Royal Television Society this morning (Wednesday), was responding to three potential future models for public service broadcasting outlined by Ofcom earlier this month.

The regulator proposed one model which would see ITV stay as a public service broadcaster and two in which it would not have a public service licence.

He said: “In our submissions to Ofcom, we have said we would like to remain a PSB, if justified economically. However, on face value, either route - PSB licensed or fully commercial - is capable of providing a viable basis from which ITV could continue to follow its content-led strategy, and deliver value for viewers, advertisers and shareholders.”

Grade said if the broadcaster remained a PSB, it would “accept licence obligations for UK programming and impartial prime time network news”.

However, he continued: “If we choose to operate without PSB status, ITV could buy its existing DTT (Freeview) spectrum at the market rate. Alternatively, we could simply buy commercial DTT capacity in the market. ITV would enjoy a unified brand. There would be no regulatory prescription - the lightest touch. Of course without a PSB licence there could be no guarantee of any particular type or level of programme provision.”

Grade said the ITV board would decide over the next few months which route would be best for the broadcaster.

“The essential difference if that a PSB licence gives ITV a balance of benefits to match the extra cost of guaranteeing our commitment to UK production,” he said.