ITV digital deal threatened by OFT investigation

LONDON – The £134m acquisition by ITV of channel operator SDN, which will give the network 10 channels on Freeview, is being investigated by the Office of Fair Trading to see whether it is uncompetitive.

ITV agreed to acquire channel operator SDN for £134m in April, giving it control over the digital multiplex that broadcasts 10 digital channels on Freeview including Five and Disney and the potential to launch new ITV digital channels.

The acquisition would give ITV a new source of revenue from the channels occupying the multiplex, which also include UKTV Gold, QVC, Discovery and Cartoon Network.

The OFT yesterday invited concerned parties to send written expressions about the deal.

If the merger was found to be anti-competitive, it will be referred to the Competition Commission.

If the deal is referred, it would see ITV having to rethink its digital future. After a failed ITV Digital in 2002, the network is hoping for smoother sailing this time. 

ITV chief executive Charles Allen hit home the importance of SDN to ITV's digital future when the deal was announced earlier this year.

"Initially, ITV will benefit from a new source of revenue but critically, this ensures that ITV has the opportunity for future capacity on the digital platform where its highly successful family of channels performs best," he said.

ITV currently has five channel slots on Freeview, including ITV News, after it paid in the region of £5m to buy an extra channel slot from Crown Castle. ITV will launch ITV4 as a rebranded version of Men & Motors later this year.

If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .

Topics

Market Reports

Get unprecedented new-business intelligence with access to ±±¾©Èü³µpk10’s new Market Reports.

Find out more

Enjoying ±±¾©Èü³µpk10’s content?

 Get unlimited access to ±±¾©Èü³µpk10’s premium content for your whole company with a corporate licence.

Upgrade access

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an alert now

Partner content