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The Independent Television Commission (ITC) has issued a consultation paper for the procedure it intends to follow when considering applications from ITV licensees to renew their licences. Channel 3 licensees, including GMTV and Teletext, can, if they wish, apply to have their licences renewed with effect from 1 January 1999. This is despite the fact that existing licences do not expire until 2002, but section 20 of the Broadcasting Act 1990 states that it is up to the ITC to decide whether to renew the existing licences or to advertise new ones. Setting the financial terms for renewal is the key...

In a letter to ITC Chairman Sir Robin Biggam, Mr Chris Smith, the Secretary of State for Culture, Media and Sport (the former Department of National Heritage) announced that there is no continuing need, or real justification, for the Channel 4 Funding Formula now that Channel 4 is a well-established broadcaster with a steady income stream. The 1990 Broadcasting Act contains a safety net mechanism by which Channel 4 is guaranteed funding from the Channel 3 companies should its income from advertising revenue fall below 14 per cent of Total National Advertising Revenues (TNAR). The 14 per cent threshold...

Amendments to the rules on advertising breaks have been announced by the Independent Television Commission which will allow cable, satellite and digital stations to carry more teleshopping advertising. The changes will also open up the possibility of licensing for self-promotional channels and will come into effect immediately. The following changes are made: Teleshopping The EC "Television Without Frontiers (TWF)" Directive has been revised (see IRIS 1997-7: 6-7) to allow up to a maximum of eight teleshopping 'windows' per day. A teleshopping window can last for a maximum duration of fifteen minutes...

The Broadcasting Act 1990 (s. 43) made a distinction between domestic, non-domestic and foreign satellite services. The first two required a licence from the Independent Television Commission (ITC) and there were several restrictions on the ownership of licenses to provide domestic satellite services. However the Court of Justice of the EC found, in a judgement dated 10 September 1996 (Case C-222/94, see IRIS 1996-10: 5-6 and IRIS 1997-3: 14), that the UK had failed to fulfil its obligations under the `Television without Frontiers' Directive by misinterpreting the basis on which satellite broadcasters...

The Chancellor has announced in his first Budget a new tax relief for British films. This will allow 100% write off for the expenditure of a British film which costs £15 million or less to make, when the film is completed. This applies to production costs incurred or acquisition costs of a film completed and acquired after 2nd July 1997, even if a film started before that date. A qualifying British film is a film certified under the Films Act 1985 by the Department for Culture, Media and Sport (the former Department of National Heritage) as a British film. There are detailed criteria to be met...