10/09/2009
ITV statement in response to Ofcom Review of ITV Networking Arrangements
ITV notes the findings of Ofcom’s Review of ITV Networking Arrangements published today.
The Review has amended Ofcom’s position on compliance sanctions, whereby the upper limit for a financial sanction is now potentially 5% of qualifying revenue across all of the regional licensees, rather than that of the Compliance Licensee alone. However, the Review leaves in place the ability for producers commissioned by the ITV Network to choose which Compliance Licensee they use, which includes ITV licensees not owned or controlled by ITV plc.
Given this significant movement in Ofcom’s position, ITV plc could be liable for up to 92% of any sanction for programmes it has not itself complied.
As a result ITV plc is now obliged to take steps to protect itself from exposure to sanctions arising from compliance processes in respect of which it currently has no control, and little visibility.
ITV plc therefore is notifying ITV Network Limited that from today it will be overseeing and verifying the compliance processes undertaken and advice given by any non-ITV plc owned licensee appointed as the Compliance Licensee.
This decision reflects ITV plc’s lack of confidence in the compliance procedures of Channel Television.
This statement also serves to notify independent production companies supplying programming to the ITV Network of our intentions to double comply these programmes, though at no additional cost to the producers themselves. ITV plc is today writing to Ofcom and PACT to alert them both to these new arrangements.
ITV plc regrets that independent producers that choose to use non-ITV plc compliance licensees will have to have their programmes double complied. However, we hope and expect they will understand that this action is taken in the interests of ITV Network viewers and of ITV plc shareholders.
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For further information:
Mike Large/James MacLeod
020 7156 7359/020 7156 7236
