NUJ NOTES OF ITV WALES GIVING EVIDENCE TO
WELSH ASSEMBLY CULTURE COMMITTEE,
23^TH SEPTEMBER 2004

Clive Jones:

The 10 hours now transmitted compares to the ‘golden age’ of HTV in the 70s and 80s when the station only transmitted 8 hours of local programmes a week. Means we now do 520 hours a year for the franchise service in Wales. That despite the commercial challenges.

Since 2000, ITV has lost revenues of £300 million because of the advertising recession (down from £2bn to £1.7bn). Company has a far more prescriptive remit of what it has to broadcast than any other channel. Now pays £9 million a year for Wales and West franchise.

News is the core of the ITV Wales service. We intend to invest in a new digital base in the “very near future”. We are the only ITV company which continues to fund regional drama. We are still the most watched in peak. In north-east Wales, viewers can now see Welsh tv on satellite (rather than Granada) because of the company’s work

Double pressure on the company because viewers for PSB and advertising both in decline.

Last year BBC got (estimated) £25.5 million for English language programmes in Wales (even though there are more regional programmes on ITV 1 than BBC1 Wales); S4C got £86 million. Channel 5 pays £20 million licence fee but with no regional and few national PSB commitments, so:

BBC Wales gets £10 for every viewer in Wales,
S4C gets £30.
ITV nothing --- but has to pay for the privilege of broadcasting.

So unless there is a reduction in the licence, Wales looks increasingly unattractive. We are proud to be a PSB, we don’t think we should have to pay to be a PSB.

Laura Jones (Con): It seems to be incredibly unfair to have to pay. Asks how our contribution compares to the BBC. Elis says it’s always been praised by ITV

Lorraine Barrett (Lab) asks questions re ad revenues. CJ says: We are hoping that the advertising recession is coming to an end. Growth been seen for first time in years. But digital penetration a problem. ITV gets :

32% peak time audiences in analogue homes
23.4% in freeview equipped homes
19% in Sky homes.

So come digital switchoff we are likely to see even greater decline in audiences.

Elis: Wales got highest digital penetration in UK: 63%

Owen John Thomas (Plaid) asks whether it would be practicable for the govt to charge Sky a levy to relieve the burden on ITV; (not answered). How many hours we make for S4C: 150 hours a year (on top of the 520 hours in English).

Leighton Andrews (Lab/ex BBC press officer). We all value what we get from HTV including those made for the Assembly. Notes licence fee reduced in 1999 from £26 million because of predicted reduction in advertising (quotes Welsh select committee, Nov98). Therefore, that problem already allowed for in current licence payments

Clive: Nobody forsaw how bad the ad recession would be. There is a recovery but it will be many years before we get back where we were. Also, the last reduction was because of a previous review: now entering into a new review in a very different marketplace.

We want to continue to be a major public service broadcaster. I think it’s a vital aspect of govt policy in the UK that there should be a competitive supply of programmes. Don’t think anyone thinks that the BBC should be the sole supplier of news sports or current affairs. All we are looking for is a level playing field.

Leighton insists that ITV entered into a commitment with the ITC to supply certain programmes in return for the previous licence reduction. There may now be less of a monopoly of tv advertising, but ITV still enjoys a privileged position on the satellite listings (and should therefore continue to pay). Where does this end? In 99 you made a commitment for significant drama for Wales. Your drama has declined. Who holds you to account? Why are you wriggling out of these commitments?

Elis refers to the praise of the ITC in annual reports. Refutes ‘wriggling’. Says new drama, ‘Chosen’, going out, albeit at 11pm. Company also helped to make a film that is touring film festivals at moment and will be show on ITV. It’s difficult but we are the only ITV region doing drama. It’s declined because the money isn’t there.

Clive: Also denies wriggling out of commitments. Says they have all been honoured. Only seeking change now because there is a licence renewal and the commitment to do drama (and other designated programme genres) went away and were replaced by a more general requirement to ensure range and diversity.

Leighton questions the threat to walk away from the licences (contained in ITV briefing document).

Clive: It’s a major decision (for policy makers): do you want a plurality of broadcasting. Come analogue switchoff there has to be a serious debate and the govt needs to decide how it is going to ensure PSB continues. ITV will continue to have all its popular progs (Corrie, etc)

Leighton accepts the company can walk away from analogue and commitments, but won’t it want to keep its privileged position on channel 103?

Clive: We don’t wish to get out of our commitments.

Owen John Thomas: It’s clear to me that the government should be making it easier for you to compete and I will make sure that the govt is encouraged to protect the service and the jobs.

Elis: We all want plurality but the BBC and ITV Wales are the only English lang broadcasters.

Lisa Francis (Con) asks for more info about the proposed ITV Wales digital news centre, given recent concerns about jobs and the future of Culver.

Clive: CX is one of the most horrible buildings in the whole of ITV, It’s not a very nice environment for our staff, not what’s needed for a modern broadcaster. We would look to spend millions of £s on a new facility, (explains problem with United News/CX lease). Would continue to have a studio in the Assembly but, for the new complex, might look at some of the areas (in south Wales) that need to be rejuvenated. I’m well aware the media companies can create economic clusters so would look at a site outside Cardiff.

Says there could be job losses but not on the scale of Meridian or Carlton.

Leighton explores whether any other broadcaster would take over the analogue commitments if ITV walked away from them, in order to get the advantage of prominence in the programme lists.

Clive say he hopes not to be in that circumstance, But: “I hope there will be a major political debate about how (the govt) maintains a competitive supply of PSB.” Believes analogue switchoff will be a lot later than 2012 because no govt will risk ditching analogue viewers.
Leighton asks for value of ITV Wales S4C business. Elis: £4-7 million depending on how much drama commissioned.

Leighton: Outside usage of archive? Clive: 86-90% of programme makers archive requests relate to previous 2 years of material, Means there’s scope to give older stuff to outside not for profit group that can release it to other charities, but retain access to ITV (and allow ITV to keep on earning from sales to other commercial sources). Scheme being discussed (underway?) in Nottingham. Would be quite happy to consider similar scheme in Wales.

Rosemary Butler asks about slots late at night and expresses concern about difficulty of attracting audience. Suggests that DCMS should ensure that quality regional progs are shown in peak. Also asks whether we will end up with same sized base as Nottingham.

Clive: no, Nottingham is a smaller news gathering operation. Wales would still be a “major production centre.”

Rosemary expresses concern about the economic impact of reductions in service and the quality of programmes.

Elis answers earlier question about slots. Says Wales gets a lot more regional slots in peak than England: over 100 slots a year (150 near peak) against 60 half hour peak slots in England. “We are doing better than anybody else”. We have as many slots in peak as BBC 1 Wales.

Clive: company filming a major network drama in Swansea starting in the new year.

Clive: Two significant things going to happen in next couple of months: Ofcom will make results of PSB review. This will include their offer on the number of hours which will be broadcast in the nations and regions. We are only weeks away from seeing that. Whatever the result, we firmly believe that there has to be a difference (ie more hours) for the nations. We also need to be aware that the digntal replacement licences come in at the end of the year, and the PSB commitments will depend on the current review. In January, Ofcom will publish the licence renewal terms to be decided by July.

Clive: ITV generally wants to stay in PSB. Regional services have always been part of ITV. I don’t want a special position, but a position where these services are sustainable. Hope this committee and government will lead the debate on how we keep the plurality and have a strong ITV Wales and a BBC. “Let lots of flowers bloom as long as they are blooming from a level carpet.”

(ends)