ITV-an online strategy for the future away from Public service

Shares in ITV have taken a tumble following this morning's announcement of an interim loss of £1,54b compared to profits of £105m at the previous point.The turnaround was due mainly to the Company taking a £1.6b charge against goodwill from its balance sheet against the merger of Carlton and Granada back in 2004.Before the charge profits fell 20% year on year

Shares have fallen 10% at mid morning to 41.2p.

The results are disappointing for the company which blames the continuing fall in advertising revenue especially as operationally the Company appears to be in good shape.The major loss in revenue comes down to England's failure to qualify for Euro 2008 which cost ITV £29m.

Michael Grade is predicting further cost cutting measures which will inevitably lead to job losses.His biggest gripe though is against what he referred to as the nanny state charges of £300m which the Company take s as part of its obligations towards Oncoming terms of providing regional news coverage,terms with suppliers and commitments to regional production.

Talking on the Today programme Grade said

"A whole host of nanny state regulation, about where we put advertising minutage, how we have to treat our suppliers... the contracts we enter into with independent producers are controlled by a regulator. "This is all Alice in Wonderland, this all belongs 20 years ago. It's so out of date

One option being talked about is whether the Company should simply lose its public service broadcasting commitment


Robert Andrews meanwhile looks at another side of ITV's operations,the online site.

ITV isn't hiding behind the same excuse used by newspapers - that ad spend is migrating to the web. Sales head Rupert Howell: "The growth of the internet as an advertising medium is taking business way from direct marketing, classified and local and regional press but doesn't appear to be taking away from television. What matters is that we outgrow the growth in internet advertising - in the first half of this year, the internet grew as an advertising medium by 24 percent and we grew at 43percent so we're growing at nearly double the rate."