09/12/2009

Economic X Factor Makes Headlines

The outgoing Chairman of ITV has reported that it is a strong possibility that regional news could be phased out in favour of programmes such as X-Factor, I'm a Celebrity, Doc Martin and Coronation Street.

Michael Grade's apparent threat is aimed at any future Conservative government deciding to overturn Ofcom's regional news pilot scheme.

The announcement has come after peaking viewing figures, in which shows like the X Factor are attracting record ratings.

Amending the programme line up could stand to net ITV over £20 million during the Christmas holidays.

In Mr Grade's comment to the Culture, Media and Sport Select Committee, he said: "I think it would improve ITV's ability to compete commercially and there will be a gain for viewers because we will be able to continue to invest the same amount in domestic productions."

The regional news was described as "unviable" in relation to gaining viewing figures like that of the X Factor which now draws in an average of 10 million viewers.

Marked as an 'essential move to feed viewers what they want', he said it was the "future health of broadcasting".

The move questions whether audiences over-indulging in more of the same 'high calorie' programming will however leave many 'sick and unfulfilled' with the new programming.

After cutting the regional news budget by up to a third, Grade - who will be replaced by Archie Norman, former Chief Executive of Asda - described how ITV's could still face a shortfall of £77m in 2012 with its current obligations to regional news.

He told MPs: "In the main, they want us to deliver hugely popular drama and entertainment, made by British producers.

"If we have to denude the network schedules to pay for loss-making regional news I have to say viewers would suffer. I certainly would not rule out further cost-cutting in regional news but I don't think it's a foregone conclusion."

The cut would leave BBC as the sole broadcaster of regional news. Mr Grade said that ITV would, however remain competitive to BBC One, and would "strive to do impartial national and international news".

Ofcom is set to launch three regional news pilots run by independent consortia from next February in Wales, Scotland and the north east of England, with each will providing news for ITV1. If they prove successful, the pilot could be rolled out nationwide, to the economic delight of ITV.

Mr Grade added that if a Conservative government were to overturn the scheme, ITV would have to undertake a "package of measures" including a widespread efficiency review to make sure the books were balanced.

(BMcN/BMcC)

Related UK National News Stories
Click here for the latest headlines.

14 December 2005
Dedicated ITV News Channel axed
ITV has announced that following a "strategic review" it is to invest £2 million in its news programming but the axe has fallen on its 24-hour rolling ITV News Channel. The company said that the decision came after a review of the network’s news services as part of an evaluation of the future requirements for ITV news up to 2010 and beyond.
30 October 2009
New Look For ITN
ITV News will unveil a new look across all of its national programmes from Monday, which will be supported by a major on and off-air marketing campaign promoting news throughout the schedule.
24 November 2011
'Questions Remain' Despite Murdoch Jnr Resignation
Labour's Media Secretary has said that James Murdoch still had questions to answer despite stepping down from the board of News Group Newspapers. News International, a News Corp.
22 January 2009
Regional News Output Will Be Slashed, Says Ofcom
As anticipated, a huge drop in the required level of regional news broadcasting is being proposed by the final Public Service Broadcasting review document, just produced by the regulator.
27 September 2012
ITV Cut 45 Regional News Jobs
ITV have announced they are cutting 45 jobs from its regional news operation, mainly technical and support roles, with a second round of cuts expected to hit editorial roles. The first round of cuts amounts to just less than 8% of the 600 staff employed in ITV regional news.