Ofcom backs ITV news rationalisation plan

ITV the UK's biggest commercial broadcaster, got backing from the country's media watchdog for plans to cut costs by reducing…

ITV the UK's biggest commercial broadcaster, got backing from the country's media watchdog for plans to cut costs by reducing some programming with a public-service remit including regional news shows.

Some public service programs are "increasingly commercially unattractive," such as "current affairs, nations and regions programming, challenging drama, scripted comedy, and drama and factual programming for children," UK media regulator Ofcom regulator said in a statement today.

The London-based company has said it wants to cut regional programming to save about 40 million pounds ($74 million) a year.

ITV rose as much as 3.75 pence, or 8.9 per cent, to 46 pence in London trading, the highest climb since July 17th.

The shares traded at 45.25 pence as of 9.25am, valuing the company at £1.76 billion. Before today, the stock had dropped 51 per cent this year.

Bloomberg