Interesting to note that automatic renewal of the ITV and Channel 5 licences is not the only option being considered for the licences that expire on 31-Dec-2014. A report requested by the SoS CMOS has been prepared by Ofcom.
Maybe, just maybe a new franchise round could be around the corner
The report makes clear there are three options. They were specifically asked by the DCMS to explain the pros and cons of each of the main theoretical options.
*A licence renewal process for the existing holders, which is Ofcom's preferred option. This would mean tidying up and modifying the system. For instance 24 hour licences, an end to the old regional licensing system with one licence for England and so on.
*Simply extending the current licences but no fundamental change. Ofcom argues against this, fearing the current terms and conditions are unsustainable so could simply get ITVplc to hand its licences back.
*Putting the licences out to tender. But as Ofcom points out there are huge risks to this... especially as this would be the most likely way of getting ITVplc and 5 out of any form of PSB.
The only way some kind of franchise round will happen will be if ITVplc decides it doesn't want to be part of C3. And if ITV does this, off ITV1 will go to another channel number along with every significant network programme.
Does anyone seriously believe that someone other than ITVplc in charge of England and Wales would lead to a more popular network schedule on C3... or that going back to 15 regional companies would be sustainable now... or that ITVplc could have a few regions but Westcountry and Tyne Tees could have different licencees. Dream on. This isn't the 1970s or even the early 90s. This is not about the allocation of a scarce and precious resource. It's about how some form of PSB can be maintained outside the BBC and C4.
Very interesting. I have to ask who would bid for them? Could any one actually do a better job.
There was a surprising amount of interest in the Channel 6 proposals. I'd love OFCOM to stand up to ITV Plc for once and threaten to pull the rug from under their feet as I suspect they'd certainly be quick to reevaluate the "costs" of PSB broadcasting.
The best solution really is the compromise of allowing ITV Plc to remain the network provider and then offer regional franchises on an affiliate basis to provide local news content and a set quota of regional programming, with ITV Plc having to ensure opt out slots (in primetime) are provided. Scotland, Northern Ireland and Wales should then be offered on a traditional franchise basis as STV and UTV are now.
The only flaw in that argument (Aberdeen Boy's) is that any displaced ITV would lose Freeview Lite coverage as the mux space it occupies on muxes D3&4 and BBC B HD is linked with the Ch3 licence. It's space going to the new licencees in each area so acquired. Any continuing ITV would need to acquire space on the Commercial Muxes to continue to use the platform.
Anyway it does seem that we
COULD
be nearer to a refranchise exercise than we have been in the last twenty years. I don't recall such a SoS DCMS request being made before licence renewals previously.
Remember that if ITVplc gave up on C3, the loss of Freeview Light viewers in England and Wales could be balanced out by the fact ITV1 would be openly available in Scotland and Northern Ireland.
Remember ITV2+1, ITV3, ITV4 and CITV are on Freeview Light... and a relatively high proportion of people in Freeview Light areas have got satellite as they didn't want to wait until switchover for digital. How many people are actually watching Freeview Light on their main sets? Probably less than 5% of the population. And how many of the people with Freeview Light are actually big viewers?
If ITV gave, say, 18 months warning that ITV1 would not be available in particular locations then I'm sure the Sky and Freesat marketing departments would go into overdrive.
Having said that, we already know that Jeremy Hunt is minded to remove the legal obligation on C3 to provide regional programmes in England come the end of the current licences. He said so at the TV Festival last year. And if ITVplc makes a real threat to give up C3, I can imagine Ofcom doing all they can to try to persuade them to stay: ie relax yet more obligations.
If ITV Plc did opt out of Channel 3 all together how would that affect sports rights - are they won in the name of the ITV network or ITV Plc?
Even if OFCOM did put the franchises out to tender on a traditional region by region basis I suspect ITV Plc would cling on to the big regions anyway, so still play a part in the network (then probably have history repeat itself with a new round of cannibalism). Of course though if C5 was also put out to tender ITV Plc might simply look at obtaining that instead and promote it to viewers as simply a channel switch.
:-(
A former member
Maybe a dumb question, but under the terms of the C3 license, how do ITVs 2, 3 and 4 stand? If ITV lost the C3 license, would they have to surrender these slots on Freeview, or could they just shift their schedules along a notch - ie ITV2 becomes ITV1, ITV1+1 becomes ITV4?
As stated above the slots currently used on D3&4 for ITV1, ITV1+1, ITV2 and the shortly to arrive fourth slot would be lost to the new licencee as would the ITV1HD bandwidth on BBC B HD. (Post DSO Configuration in England)
As stated above the slots currently used on D3&4 for ITV1, ITV1+1, ITV2 and the shortly to arrive fourth slot would be lost to the new licencee as would the ITV1HD bandwidth on BBC B HD. (Post DSO Configuration in England)
Got you! I read ITV as meaning ITV1, not its family of channels. It does, of course, make sense.
Realistically, the only way there will be a C3 licence round will be if ITVplc decides it no longer wants the C3 licences for England and Wales. Ofcom merely explained all the theoretical possibilities to the DCMS in that document but we already know Ofcom's preferred solution and that the UK government seems minded to broadly go along with that.
If ITVplc gave up its C3 licence it would be with a view to delivering an ITV1 branded service by some other means to the WHOLE of the UK and maybe even Ireland too. It would lose its space on the PSB multiplex but not its others slots on the EPG.
Implications are....
*SKY AND CABLE. Few, if any, except that the carriage deals may change and ITV1's slot would probably change with potential knock-on effects on other ITV channels.
*FREEVIEW. Much more interesting. ITVplc would lose the capacity which currently carries ITV1+1 and ITV2 - and the fourth slot if they get that back. But they still have the capacity for ITV2+1, ITV3, ITV4 and CITV. And they would still have all their EPG positions other than 3 - only slots 1 to 5 are regulated. ITVplc owns the SDN multiplex so - with 18 months warning or whatever - they could probably get all the space they needed. Implications are really for ITV1's slot - which would probably become 6 - and the loss of the service in Freeview Light areas.
*SCOTLAND AND NI. STV and UTV could still be in a networking arrangement with the new C3 licence holder but ITVplc will have taken all the ITV Studios content - and probably a lot of the independent commissions - with them to their new, national ITV1 channel. Whatever's left on C3 will be nothing like ITV1 as we know it.
Neither Ofcom or the UK Government would actually want ITVplc to give up on being a PSB. They'll almost certainly work together to address whatever concerns ITVplc might have on regulations or obligations to prevent this happening.