ITV considers handing back its public service licence as profits drop by a third

Big budget drama and high profile talent deals are in jeopardy at ITV after the company saw profits slump by close to a third in the past year. Executive chairman Michael Grade warned the £1bn programme budget would be reduced next year unless some of its regulatory burden – including the provision of current affairs and local news was reduced. He hit out at the 'nanny state regulation' and warned it could lead to the broadcaster renouncing its public service status. Insiders warned that unless watchdog Ofcom intervened and rid ITV of its commitment to provide programming in less profitable genres – then significant cuts would have to be made to the overall pot in the short term. Grade has already said he will make an extra £35 million of cost savings in production and broadcasting by the end of 2010. This is on top of £81... [read full story]