ITV bosses voice concerns about advertising
The joint bosses of ITV today launched a scathing attack on anyone with plans to upset the planned merger of its two biggest stakeholders, Carlton and Granada.
The Competition Commission’s report on the prospective deal -which has been prevented by legal obstacles in the past – was handed to the Trade and Industry Secretary yesterday, and Ms Hewitt is expected to make a final decision in a month’s time.
In an article in the ‘Financial Times’ aimed at David Elstein, the former head of Channel 5 and a man with aspirations to take over Britain’s biggest commercial TV network, the two MDs defended the proposed consolidation, and claimed that Mr. Elstein’s suggestions for the future of ITV would undo “much of the past year’s work”.
In particular Mick Desmond and Clive Jones are concerned that they may be forced to sell off their advertising sales houses because of fears that their combined strength would allow them to dictate market prices.
Ms. Hewitt may offer other options to the company, including the possibility of capping prices on air time.
The merger is seen as vital by Mr. Jones and Mr. Desmond because of the “inherent dysfunctionality of a single national network with multiple ownership”.
But one of the crucial advantages of the deal would be the savings generated by a combined sales system.
Indeed the two men noted that one of the key reasons why the network has been able to cut costs recently has been because of the “narrowing the distance between the advertising sales houses, our advertisers and the process of scheduling”.
ITV’s ratings fell by 5% last year, but the two men at the top claim that the network has now managed to “check the decline” in its peak ratings.
