STV sues ITV for £35m
November 6, 2009
STV, Scotland’s ITV licensee, has launched a £35m (E39m) legal action against ITV plc that includes claims of abuses in TV ad sales and video-on-demand rights. Also, the company said that the failure to secure a recommission of Taggart across the ITV network meant that the company will take a £2m hit in earnings and it will make it anyway.
The company also reported that it expects national television ad revenues to be up 2% in the fourth quarter with November up 3% and December up 5%. STV also upped the temperature on the £38m legal wrangle with ITV over supposed unpaid network programme budget contributions. STV said it will submit a “robust defence” including a £35m counter-claim against ITV to cover ITV’s action as well as a counter-claim “challenging the practices and transparency of the processes of ITV when operating as STV’s sales agent for national airtime revenue”.
“STV is expecting to file further claims regarding ITV’s abuse of video on demand rights and significant prejudicial behaviour on the part of ITV Network and ITV plc,” said the company. It is understood that at least part of the grievance is that all on-demand shows that are delivered in Scotland are done so heavily branded with the ITV logo and idents.