09 December 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)