ITC publishes last report ahead of Ofcom take over

The Independent Television Commission has published its final Annual Report, the last, before handing over regulatory responsibility to Ofcom, the converged body which becomes operational at the end of this year.

In the report, ITV comes in for some heavy criticism from the commission over the amount of peak time soaps they broadcast, saying it was a "threat to diversity".

It also said ITV1 gave a 'patchy performance' in 2002 but added it was aware that the network was badly hit by a drop in advertising revenue.

Meanwhile the BBC have been warned it must clarify its public service role if it is to obtain its 2006 public service charter.

The warning came from ITC chief executive Patricia Hodgson who launched the report on Monday April 7 to an industry gathering. Hodgson said that the renewal of the BBC's charter was an important milestone for British broadcasting and that it was essential for the new agency Ofcom to learn what direction the BBC would be taking in the next decade.

"Ofcom's first review of public service performance and the BBC's Charter Renewal process will be the time to address these issues," she said.

"A way forward for the long term is likely to be needed if British viewers are to benefit not only from many new services made possible by technology, but also from the high quality and diversity of British programme-making established over past decades."

The Report for 2002 reviews a volatile year in the commercial television sector and one which saw the culmination of nearly three years of planning to inform and test a new regulatory framework for Ofcom.

Sir Robin Biggam, Chairman of the ITC, said: "The ITC is proud to have contributed to the foundations for Ofcom, and of creating the conditions that have made commercial television a true success story."

The review also marks the achievements of the ITC during a period of dramatic change: the increasing consolidation of ITV ownership, the launch of Channel 5, the expansion of multi-channel television and the onset of digitalisation.

Hodgson added: "It was a tough year for UK broadcasting. Advertising and sponsorship revenues fell by seven per cent, after falls in 2001. In March, ITV Digital went into administration and, for most of the year, cable operators ntl and Telewest were engaged in the difficult task of restructuring their finances.

"But due to its sound underlying structure, the sector proved remarkably resilient, and audiences were better served than might have been expected during such a downturn."

(GMcG)