ITV considers charging for digital channels

LONDON - ITV is reported to have held talks with Sky as it considers moving its free-to-air digital channels to subscription only.

ITV considers charging for digital channels

Its advertiser-funded digital channels include ITV2, ITV3 and ITV4. If these were to become subscription-only channels they would no longer be available to Freeview viewers.

The broadcaster has been struggling against the worst advertising downturn in its 54-year history. The UK TV ad market has fallen by 4.8% year-on-year in 2008. However, while ITVs profits have plummeted, the revenue from its digital channels was up by £33m to £242m.

ITV2, the youth targeted entertainment channel, is the most watched non-sports digital channel in the UK, largely owing to the success of programmes such as Britain's Got More Talent and American Idol.

BSkyB is ITV's largest shareholder, owning 17.9% of the company. It has been told by competition regulators to reduce its stake to less than 7.5%.

ITV has estimated ad revenues will be down about 16% year on year in the first six months of 2009.

Both ITV and Sky refused to comment.

 

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