Channel TV opts to 'watch and wait'

CHANNEL TELEVISION is closely monitoring a situation that could threaten its future news service.

Watchdog Ofcom has warned that the cost of licences that allow ITV to broadcast regional news in the UK will outweigh the benefits by 2012.

This is because of the many digital TV channels that can broadcast news without the need for licences.

CTV managing director Karen Rankine (pictured) said it was very much a 'watch and wait' game at the moment as there were so many different agencies involved in the issue.

'Channel Television, in common with all other ITV licensees, has been following the debate closely and is considering the impact of the decline in traditional advertising revenues for the channel as a whole,' she said.

'We are not immune from the issues facing the industry and have been in discussion with Ofcom and the Government on this issue.

'We are currently waiting for the UK Government to announce their conclusions on future funding provision and at that stage we hope it will be clearer how this may affect Channel Television.'

Ofcom has warned that new funding will be required if regional news is to be maintained on ITV.

Ms Rankine said the future funding of regional news right across the UK had been under the spotlight for the past 18 months.