ISBA Warns Of Digital Monopoly
ISBA has warned that the closure of ITV Digital could have long-term damaging effects on advertisers unless the Government takes action to prevent BSkyB gaining a monopoly in digital broadcasting.
ITV Digital went into administration last week after talks to resolve an ongoing dispute with the Football League over TV rights collapsed (see Administration For ITV Digital Confirmed). The closure of the trouble pay-TV platform has long been expected, however ISBA argues that the absence of a digital terrestrial broadcaster will have serious implications for UK broadcasting as it will limit the options available to consumers and advertisers.
According to ISBA, the closure of ITV Digital will, in the short-term, allow its owners, Carlton and Granada, to concentrate on their prime asset, ITV1, which has been hit by the advertising downturn and BBC1’s increasingly mass-market approach to programming (see Feature: Playing The Ratings Game).
Bob Wootton, ISBA’s director of media and advertising affairs, said: “The possible closure of ITV Digital may release funds which could be re-allocated to invest into further improvements in programming. This would be good news for advertisers who view ITV1 as a key marketing tool and continue to call for increased programming investment for ITV1 to compete with the BBC’s licence-fee funded channels.
He added: “However, in the longer term, closure of ITV Digital could represent problems for advertisers. ISBA shares the Government’s views that UK media would benefit from operating in a highly competitive environment into the future. The closure of ITV Digital would represent a major setback for competition in the digital television arena with the emergence of a possible Sky monopoly on advertising access to this key medium.”
“A situation in which a single company could veto advertiser access to an entire swathe of media would be of great concern. If ITV Digital was to close, UK advertisers would welcome the intervention of a firm and steady hand from the Government to help avert the dangers of a digital TV monopoly,” he said.
According to press reports, ITV Digital is considering increasing its offer to the Football League to between £70m and £90m in an attempt to avoid going into liquidation. It is thought that if attempts to reduce ITV Digital’s costs fail, the service could be shut down within two weeks.
ISBA: 020 7499 7502 www.isba.org.uk ITV Digital: 0808 100 0101 www.itv-digital.co.uk
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