Ofcom estimates ITV’s news losses up to £64m by 2012

Ofcom has warned that ITV’s regional news output could be incurring a loss of between £38m (€42m) and £64m a year by 2012. The UK communications regulator released its finding, which are part of a wider review into delivering regional TV news, for the UK Department of Culture, Media and Sport.

Ofcom stated that the cost of the various regional ITV licences will considerably outweigh the benefits  by 2012. The licences require the holders to comply with certain public service broadcasting agreements. The most expensive of these is an obligation to provide regional news. The regulator said new funding will be needed if the current stipulations are to remain in place. It is recommending that an independent news group is chosen to provide local news.