Government Reiterates Cross-Media Relaxation Plans

The Government has reiterated its intention to relax the cross-media ownership regulations in the forthcoming Communications Bill.

Speaking at the culture, media and sport select committee yesterday, Culture Secretary, Tessa Jowell confirmed that the Government intended to raise the threshold that prevents any one ITV company from having more than 15% of the total audience share. She said: “We have signalled our intention to lift that rule.”

The regulation prevents the merger of Carlton and Granada into a single ITV company (see Carlton And Granada End Merger Talks), which analysts believe is inevitable. Jowell emphasised that any merger or take-over that followed a relaxation of the regulations would still be subject to existing competition laws.

However, Jowell failed to clarify the Government’s position on a further clause that prevents the owner of a national newspaper from holding more than 20% of a terrestrial channel. The rule currently prohibits News Corporation, which owns The Sun and the Times, or its satellite broadcasting company BSkyB, from making a bid for Carlton, Granada or Channel 5 (see BSkyB To Buy Into Channel 5?).

Jowell told MPs that the final version of the Communications Bill would receive a parliamentary reading by the end of this year and estimated that it would become law by the following year.

Earlier in the week, speculation suggested that new rules governing cross-media ownership could could set an upper limit of five “prime media assets” on UK companies. The proposals put forward by Scottish Media Group include the compilation of a list of some 31 media UK companies felt to be of national importance. Under the proposals, no company would be able to own more than five of these “prime assets” (see Communications Bill Could Limit Prime Media Assets).

DCMS: 020 7211 6200 www.culture.gov.uk

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