How soaps spell serious money at ITV

CHARLES Allen, boss of ITV, could claw back up to £250m in savings after Culture Secretary Tessa Jowell appeared to accept his claims that popular entertainment shows counted as public service broadcasting, allowing ITV to end its commitment to high-brow television.

Jowell surprised the industry last week by saying that reality TV shows such as Big Brother were within the 'broader remit' of public service broadcasting.

ITV has been lobbying media regulator Ofcom for entertainment shows and soap operas such as Coronation Street to be classed as public service broadcasting because it wants to ditch its existing public service commitments, which include broadcasting programmes on the arts and religion.

ITV reckons its public service obligations cost it over £250m a year in production bills and lost advertising revenue because such programmes are less attractive to viewers.

Jowell's view that programmes that become a 'national talking point' could come under the public service remit will be a significant boost to Allen's case.

He has already promised £100m savings following the creation of ITV through the £5bn merger of Carlton and Granada. But if he wins his case on public service broadcasting, that figure will rise substantially. Allen himself has described the issue as one of the most important he faces at ITV.

Such a victory would also strengthen his own position as chief executive, which has come under persistent threat since he was appointed last year before ITV listed on the stock market in February.