STV likely to bring further suit in scrap with ITV

Published on Sunday 21 February 2010 20:40

STV is expected to raise the stakes in its dispute with ITV this week by launching yet another suit in its multi-million pound legal case against the broadcaster.

The Glasgow-based TV channel is preparing to sue ITV over "prejudicial behaviour" in its airing of spin-offs from shows such as The X-Factor and Britain's Got Talent on ITV2, from which STV receives no income. The broadcaster believes it is due 5 million to 15m in compensation.

The escalation in hostility between the channel three network and its Scottish franchisee comes just days after STV confirmed it had reached a deal with ITV to produce another six episodes of the popular cop drama Taggart.

Strains between STV and ITV have intensified since Rob Woodward, chief executive of STV, last year launched a strategy of transmitting more locally-made programmes instead of ITV-made favourites such as The Bill.

ITV announced last September it was suing STV for 38m to recoup money it claims it was owed in fees for the programmes STV had decided not to show. STV launched a counterclaim for 35m of advertising revenue it claimed had not been evenly distributed.

In November, the Scottish broadcaster launched further legal action, claiming it was owed up to 12m following ITV's decision to broadcast network programmes in Scotland through cable providers BT Vision and Virgin Media without obtaining the consent of licence-holders STV Central and STV North.

Analysts warned STV risked the health of its balance sheet if its claims were unsuccessful.

On Thursday, STV is expected to show a recovery in advertising revenues when it reveals its results for 2009. But analysts have predicted a 50 per cent drop in pre-tax profits to between 4.5m and 5.5m, down from 12m in 2008.