ITV is likely see a 20% fall in advertising revenues this year as a result of the advertising downturn and there are concerns that the broadcaster's programming budget could suffer as a result.
Earlier this week, commercial TV regulator the ITC urged the government to allow the merger of the two main ITV companies, giving them 90% control of the station.
ITC chairman Sir Robin Biggam argued that ITV was struggling to compete with the BBC, which in 1999 secured a licence-fee increase if it made significant £200m-a-year cost savings by 2006.
The government is currently pushing an introduction to its communications bill through parliament to pave the way for the creation of communications super-regulator Ofcom.
The ITC, Carlton and Granada would like to see plans for their merger included in the bill, as well as a reduction to their year broadcasting licence fees, which were agreed before the global advertising market took a turn for the worse.
Back in June, Carlton appealed to the government to cut the £300m-a-year Channel 3 broadcasting licences to help offset the cost of financing ailing digital terrestrial broadcaster ITV Digital, which its jointly owns with Granada.
Meanwhile, Carlton and Granada's merger plans are facing increasing hostility from the advertising industry. Yesterday, the ISBA wrote to the government to reinforce its opposition to the merger on the grounds that it would lead to an increase in the price of airtime.
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