Ofcom said that ITV should focus on peak-time news, programmes made in the UK and regional news. Ofcom has given the all clear for the broadcaster to reduce the volume of news during the daytime and allow content to be shared between various regions.
Ofcom has said that ITV can reduce the minimum quota for regional non-news programmes from 30 minutes to 15 minutes on average per week.
In ITV Wales/STV/UTV peak-time news output remains unchanged, but the minimum volume of "non-news" programmes in Wales, Scotland and Northern Ireland from 2009 would be slashed from three hours to one and a half hours per week.
ITV will also be allowed to reduce its off-peak current affairs output by 40 minutes per week and the quota for programmes produced outside of London would reduce from 50% to 35%.
Ed Richards, Ofcom chief executive, said: "Audiences value public service programming highly, but strong digital TV take-up means it is becoming harder for our leading commercial broadcasters to provide this.
"We have provided a clear set of choices for maintaining and strengthening public service broadcasting in the future. Along with our proposals in the short term, timely decisions by government and Parliament will be critical."
The regulator said its changes to ITV's remit would make the provision of such PSB programmes more sustainable until the initial expiry date of the existing licences in 2014.
It said its research showed that most people do not want the BBC to be the only provider of public service television. Further more it said people would be willing to pay for such content.
Prior to the announcement it had been estimated by unions that more than 200 could go.
In August ITV warned staff of more job losses as part of a £40m cost-cutting exercise due to a steep drop in advertising revenue. Numis Securities predicts ITV's advertising revenue will be down 8% in the second half of 2008.
It is feared that the broadcaster's 6000-strong headcount could be reduced by as much as 10% after the Boston Consulting Group was drafted in to assess efficiency at ITV's content and commercial divisions.
The other key points today in Ofcom's second consultation into the future of public service broadcasting were:
- £145m-£235m of replacement public funding needed by 2012 to keep public service programmes in addition to the BBC.
- New research shows the high value which audiences put on having more than one PSB provider.
- Proposals to reduce PSB obligations on ITV from next year to sustain viewers' priorities until 2014.
Ofcom said its research showed audiences placed a high value on public service content "outside the BBC even when faced with the possibility of having to pay for it".
It said that audiences demanded choice of public service content in the long term.
Key findings from its audience research show that:
- Nine out of ten people do not want the BBC to be the only provider of public service content in the future.
- Audiences value highly PSB alternatives to complement the BBC. Three quarters of people are willing to pay on average up to £3.50 per month for PSB services on ITV, Channel 4 and five
- A majority of people want ITV1 to continue to provide regions and nations news to complement the BBC.
Channel 4
Ofcom said that its analysis shows that by 2012 Channel 4 will need replacement funding of around £60-100m if it is to sustain investment in public service content. It said it was now a priority to clarify Channel 4's future role and economic model.
Next steps
Ofcom's consultation closes on 4 December 2008. Ofcom expects to publish a final statement in early 2009. Government and Parliament will make a final decision on the future funding of PSBs and, if appropriate, legislation by 2011.
Comment: Who are these people who Ofcom thinks are going to pay for PSB? I don't think they exist. Read Gordon's Republic blog post.
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