Latest news with #JohnWhittingdale
Telegraph
09-04-2025
- Business
- Telegraph
ITV break-up talks spark alarm over local news
Moves towards a break-up of ITV have sparked fears the broadcaster's local news programming would be put at risk of cuts. ITV is currently in discussions over a potential deal with All3Media, the maker of shows including The Traitors and Race Across The World, that would create a new £3bn British production powerhouse. A tie-up with All3Media, which is owned by the Abu Dhabi fund RedBird IMI, could see ITV Studios spun out into a new company listed on the London Stock Exchange, leaving its broadcasting arm as a standalone entity. RedBird IMI is also owner of an option to take control of The Telegraph but has been blocked from doing so by a ban on foreign state ownership of newspapers. The fund promised ministers it would sell up a year ago but has so far failed to meet the pledge. Its talks over ITV have now triggered concerns about the sustainability of the broadcaster's traditional TV business amid a decline in advertising revenues and as audiences flock to streaming rivals. Damian Collins, former chairman of the culture select committee, drew comparisons with Channel 4, which last year posted a record £52m deficit as it grappled with an advertising slowdown. He said: 'If ITV switched to a system where the core channels and the public service remit is delivered by a purely ad-funded company, then the concern would be that that will be not sustainable. 'In the short-term, ITV have got to meet their obligations to their licence, in the longer run there's a concern as to whether companies like ITV wish to remain public broadcasters.' John Whittingdale, the former media minister, said: 'I still believe that it is very difficult to sustain a purely advertising-funded channel with public service broadcasting obligations as the world changes. 'ITV have been very successful at developing their production arm, which has generated a large chunk of their revenues. But if they get rid of it, then they're sort of back to square one.' ITV's public service obligations require it deliver a variety of UK-made programming in the public interest, including its national and local news output. In exchange, it receives access to spectrum and holds the channel three slot, guaranteeing it prominence on TV programme guides. The broadcaster renewed its licence last year, meaning it is committed to these obligations until the end of 2034. However, industry observers fear ITV may choose not to retain its public service broadcasting status beyond this date as the benefits of a prominent channel slot wane in the streaming world. Any such move would spell uncertainty for ITV's regional news programming, which is thought to cost the broadcaster in the region of £100m per year. Mr Collins added: 'The problem for a TV channel is if you're relying on a TV ad market that is dwindling, and you've got to start making cuts, where are you going to start making them? Probably on the things that are making less money.' 'Real threat' Regional news is a costly but crucial component of broadcasters' public service remit, particularly amid a sharp decline in the number of local newspapers across the country. It also has vocal support from MPs, who view it as a key way of gaining coverage and reaching their constituents. ITV, which was formed through a merger of scores of regional franchises, explored plans to abandon its regional news output entirely in 2009, with programming to be provided instead by a number of independently funded news consortia. However, the plans were abandoned following opposition from MPs. The future of ITV's local news output will be cast into further doubt as ministers explore plans for a switch-off of terrestrial TV, which is currently also slated for 2034. Stewart Purvis, the former chief executive of ITN and Channel 4 board member, said ITV would continue to broadcast local news while it had a regional terrestrial TV network. But he added: 'In a decade's time when terrestrial TV may be turned off I think there's a real threat to local news.' The shift to streaming has prompted uncertainty over the future of public service broadcasting. New laws introduced last year will require apps and programmes from channels such as the BBC, ITV and Channel 4 to be shown prominently on smart TVs and streaming sticks. However, it is still unclear how exactly this will work and how much it will benefit broadcasters. Sources close to ITV said the broadcaster's decision to renew its public service licence provided certainty for the next decade. They added that the company's total advertising revenue rose 2pc last year. ITV has invested heavily in its production business, which is behind hits including Mr Bates vs The Post Office and Love Island. The division, which reported record profits last year, now accounts for roughly half the group's revenues. Chief executive Dame Carolyn McCall has been exploring a potential sale or spin-off of the studio business amid concerns the company is undervalued. Early-stage discussions have taken place between ITV and RedBird IMI, the UAE fund that bought production giant All3Media for £1.2bn last year. The talks have drawn criticism from Conservative MPs given RedBird IMI's botched takeover of The Telegraph and its failure to find a new buyer a year after it told ministers it would. The Liberal Democrat leader Ed Davey in February said 'their priority should be getting that sorted and sold before turning their attention elsewhere'.
Yahoo
08-02-2025
- Business
- Yahoo
BBC must ‘adapt or die', warn former Tory ministers
emb 10pm HL: BBC must 'adapt or die', warn former Tory ministers SF: 'Licence fee model cannot be sustained' in face of competition from streaming rivals By Charles Hymas home affairs Editor The BBC must reform the way it is funded or risk being squeezed out of existence by streaming rivals, two senior former ministers have warned. Sir John Hayes, a former security minister, and Sir John Whittingdale, a former culture secretary, said the licence fee was no longer fit for purpose in face of competition from streaming services such as Netflix, Amazon Prime and Disney+. They backed a report, published this weekend, which recommended that the BBC should instead switch to become a subscription service and be allowed to take adverts to counter a growing public backlash against the licence fee. The report, by Defund the BBC, an organisation set up to campaign for decriminalisation of non-payment of the licence fee, said mutualisation, an option put forward by Lisa Nandy, Labour's Culture Secretary, would not go far enough. Sir Keir Starmer has also delayed any reform for at least three years by saying his Government remains committed to the licence fee until 2027. However, Sir John, chairman of the Common Sense group of Tory MPs, said: 'It just can't be ignored, therefore, that the BBC finds itself at a critical juncture. Perhaps, it is facing an 'adapt or die' moment. 'Ballooning government debt accelerates this urgent need for reform because increasingly the taxpayer questions the value in continually pumping money into a BBC which does not reflect their viewing habits. The TV licence is, for all intents and purposes, another tax many are unenthusiastic about paying. 'Surely the final destination must be a BBC which reflects the expectations of the public in both value and product, and above all, offers British excellence. For only then will it survive for another century and beyond.' Sir John Whittingdale said: 'The broadcasting landscape has changed dramatically since the last BBC Charter Review with more and more people choosing to subscribe to streaming services. At the same time, the number refusing to pay a licence fee is growing each year, putting increasing pressure on the BBC's finances. 'It is plain that the compulsory licence fee model cannot be sustained for much longer and that we need to begin the debate now about the role of the BBC going forward and how best to fund it. I very much welcome this [Defund the BBC] report as a powerful contribution to that debate.' The report said that despite the BBC's huge income and potential budget, it still outspent what it made. 'This does not have to be the case. Indeed, if the BBC is moved away from mandatory taxpayer funding, one would hope that it would become better run financially as the chances of a bailout becomes less likely,' it said. The young in particular were turning away from the BBC, it said. Among 16- to 24-year-olds, weekly reach for traditional broadcast was down from 82 per cent in 2017 to 54 per cent in 2022. For children aged four to 15 it fell from 87 per cent in 2017 to 60 per cent in 2022. Although BBC One remained the most popular channel in the UK by weekly reach, its dominance was also waning, with its reach falling to 58 per, 12 percentage points lower than in 2017 A ComRes poll for Defund the BBC found 51 per cent of British adults considered the BBC bad value, with a third describing it as 'very bad value'. Sixty per cent felt the licence fee as a funding model was unsustainable. 'Firstly, it should be allowed to start accepting advertisements. Secondly, as part of the move to a more commercialised structure, access to Iplayer could be properly locked behind payment of the licence fee,' he report said. 'Instead of the current pointless popup – it could be replaced by a sign in system that is linked to your payment of the licence fee. This change would allow a gradual shift of the licence fee infrastructure away from a compulsory fee towards a voluntary subscription fee model, similar to that of paid for channels such as Sky or streaming services such as Netflix.'. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
The Independent
08-02-2025
- Business
- The Independent
Former culture secretary warns Netflix revolution has made BBC licence fee unsustainable
The last culture secretary to renegotiate the BBC charter has claimed that the licence fee is now 'unsustainable' and must be replaced by an alternative form of funding. Sir John Whittingdale has responded to a new report which suggests that viewers have turned off from the BBC and moved to streaming services such as Netflix and Amazon. It comes just ahead of the Labour government opening talks for the next charter renewal. While Sir John has not specified a preferred option, theBBC could turn to advertising or a new version of the licence fee. One of the options understood to be on the table is that viewers of Netflix, Amazon and Disney Plus who do not watch the BBC may be forced to pay the licence fee in the future. The former Tory minister said: 'The broadcasting landscape has changed dramatically since the last BBC charter review with more and more people choosing to subscribe to streaming services. At the same time, the number refusing to pay a licence fee is growing each year putting increasing pressure on the BBC's finances. 'It is plain that the compulsory licence fee model cannot be sustained for much longer and that we need to begin the debate now about the role of the BBC going forward and how best to fund it." He was responding to the report 'Outdated, Outpaced and Out of Touch: The Future of the BBC Licence Fee ', from Defund the BBC, warning that the BBC is a 'shadow of its former self' with serious doubts over the licence fee model being 'in the best interests of the taxpaying public' and 'unsustainable' in the modern age. Analysis suggests that, in a record first, Brits will spend more on streaming services than traditional TV packages in 2025. If this proves accurate, it will have taken only 13 years for streaming platforms to have eclipsed traditional broadcast media. It also claimed that the BBC reputation for impartiality has been damaged with only 25 per cent believing it is neutral now. However, the BBC has hit back at the criticism. A BBC spokesperson said: 'This report contains inaccuracies and selective use of out-of-date statistics. 'The BBC is the most used media brand in the UK, BBC iPlayer is the country's fastest growing streaming service, and more than 80 per cent of adults use the BBC on average each week. 'The public cares about the BBC and this year, we will launch our biggest ever public engagement exercise so audiences can help drive and shape what they want from a universal and independent BBC in the future. We want to continue to reform and evolve and look forward to engaging with government on the next Charter and securing the long term future of the BBC.'
