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BECTU
response to Carlton Communications/Granada merger inquiry
7 April 2003
BECTU response to
the Competition
Commission Carlton Communications/Granada merger inquiry
- BECTU is the trade union for
technical, production and administrative staff in the audiovisual
and live entertainment sectors. We have full recognition for purposes
of collective bargaining at both Carlton and Granada in respect of their
broadcasting activities. We therefore represent the relevant sections
of the workforce in both companies.
- Our response to the Competition
Commission's Inquiry on this issue is set out below. Our comments
will be brief and limited to our own priority interests.
Regional ITV production
- Our overriding concern is to
protect the strong heritage of ITV regional production. This is of
course, a highly topical issue in the context of the current Communications
Bill.
- We believe regional programme
production has been and should remain the defining characteristic
of ITV. The advantages have been enormous.
- programming on regional themes
of great interest to local viewers
- programming of excellence produced
regionally for the national ITV network
- significant benefits for regional
economies in skilled jobs and business
opportunities both directly
in television and indirectly in the supporting infrastructure (confirmed
by numerous business studies and summarised in the ITC's 'Television
in the Nations and Regions').
- We recognise that the Communications
Bill proposes the removal of the previous restrictions on concentration
of ownership in ITV and thereby on the proposed Carlton/Granada merger.
Our response on the Bill, and to this Inquiry, is not to focus on ownership
in itself but on the requirements and strength of commitment on original
regional programme production (specifically including regional production
for the ITV network).
- We seek from the Government,
strong regulations requiring regional production and from the companies,
a strong long term commitment to regional production, including:
- a broad range of regionally-originated
programming of high quality
- the use of the full range of
regionally-based staff, freelances and production facilities
- the maintenance of a wide spread
of regional studio facilities and the avoidance of any further studio
closures
- We believe this reflects not
just the interests of those who work in regional ITV but also a broader
public interest on behalf of viewers who have consistently expressed
support (in audience figures and in survey responses) for a strong regional
ITV presence.
- Our attitude to the proposed
merger is directly related to the companies' commitments in this area,
rather than a view on the ownership structure per se. If there is
a strong long term commitment to regional production in these terms
from the two companies involved we would not in principle be opposed
to the merger. Our attitude is therefore entirely conditional on strong
safeguards for and commitments to regional ITV production.
The TV advertising market
- We note that the proposed merger
would create a combined advertising sales house with over 50% of national
TV advertising revenue.
- We also note, however, that
the proportion of the total TV advertising market held by ITV is decreasing
over time, with the growth of alternative channels. Furthermore, there
is already very limited competition for regionally-based TV sales -
with meaningful competition essentially limited to London.
- Our concern, ultimately is
less with the issue of the combined sales house, than with the flow of ITV
advertising revenue overall. We are interested in the maintenance of a strong
revenue base for ITV to fund its future programme-making capacity. If a
single sales house (combined with the common programme schedule required
by the regulator) is an efficient means of achieving this, we have no objection
in principle. This represents a development of our own views on this point
in the light of the growth of alternative advertising funded channels to
ITV.
Conclusion
- Our prime concern is not with
the merger in itself but with the long term future of regional ITV
as a strong source of original programme production. Our focus is therefore
on seeking firm commitments to this end rather than opposing the merger
in abstract principle.
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