ITV considers charging for content

Valerie | 03 Jul 2009, 15:02

ITV viewers could soon be forced to pay to watch their favourite shows via an Oyster card system, as the broadcaster considers introducing small charges to view on-demand content in a bid to boost revenues.

Speaking at the Future of Broadcasting Conference, ITV’s director of group development and strategy, Carolyn Fairburn explained that the success of premium content fees and video downloads on Apple’s iTunes had proved viewers would pay for on-demand content.

The vast majority of ITV’s revenue came from advertising. However, Fairbairn said charging for content was an area of focus for the broadcaster:

“Micropayments are absolutely on our agenda. We are part-funding the Digital Britain research into the viability of this.

“We will continue to look for ad-supported models, absolutely. However, the idea people will pay [for content online] is something we should look at and do. We need some kind of payment system and then we will see if it flourishes.”

As the broadcasting industry continues to suffer from the double impact of the changing media landscape and the economic downturn, there is growing concern that the free ad-supported model is no longer working or delivering the returns to TV companies that will sustain them moving forwards.

ITV1 suffered the worst ratings in its 54-year history last week as it slumped to 16.1%. Exploring paid-for options would certainly help to address one of its challenges - its reliance on advertising and is the latest in a series of measures to address how it can monetize its content. Earlier this year, Sir Michael Grade, Executive, then the Chairman of ITV called for a rethink on product placement regulations.

ITV’s brand partnership director Gary Knight believes it could be hard for ITV to switch to micropayments for catch-up, also highlighting how the BBC’s presence would complicate such a move:

“When you’ve given the great British public the iPlayer for free it’s bloody difficult to come along and say the ITV Player’s going to cost you.”

ITV’s plans mark the first time a mainstream broadcaster has attempted to charge for viewing since Channel 4 dropped its 99p fee for 30-day catch-up on 4oD two years ago. As C21Media notes, the debate about free versus pay is set to intensify as the battle between old and new media continues.