LONDON (Brand Republic) – Broadcasting legislation currently blocking the two main ITV companies, Carlton and Granada, forming a single company is expected to remain in place after the government releases its communications white paper next month.
Industry observers had speculated that the government would clear the way for the two to combine by removing the regulation which prevents one company controlling more than 15% of the ITV audience.
Although the 15% audience ownership rule is being abolished, the government has left in place legislation which prevents a single ITV company holding the London weekday licence and the London weekend franchise.
Carlton currently holds the weekday London franchise, while Granada owns LWT, the holder of the weekend licence.
The white paper is also not expected to give a clear ruling on whether newspaper groups will be given more freedom to invest in TV and radio companies.
Newspaper publishers that control 30% or more of national newspaper circulation are currently only allowed to own up to 20% of terrestrial TV or radio companies.
News International, owner of The Times and The Sun, and Trinity Mirror, owner of The Mirror and The People, are expected to be most effected by this rule.
The government is expected to demand further consultation on this subject. The white paper has been put together by the Department for Culture, Media and Sport in conjunction with the Department of Trade and Industry.