ITV Files Suit Against STV

LONDON: ITV plc has initiated legal proceedings against Scottish broadcaster STV, alleging non-payment of £38 million in network program budget contributions.

ITV maintains that STV—which holds the ITV1 license in parts of Scotland—is not honoring its contractual contributions towards the network program budget. ITV says that STV is attempting to opt out a number of peak-time programs, in contravention of existing agreements. ITV adds that STV is "also wrongly attempting to claim a rebate against programs which have been “written off”. We are currently withholding monies from STV against this debt and currently believe the net debt is approximately £15 million to £20 million."

The ITV statement concludes: "We have been attempting to resolve this matter for more than a year but unfortunately our efforts have been unsuccessful. Given that we are a commercial organization, with responsibilities to our shareholders, we are left with no option but to take legal action to recover this sizeable debt."