Channel 4 considers breaking ties with ITV

CHANNEL 4's board is to consider whether to mount a campaign for independence from ITV in an attempt to avoid paying the latter rising annual subsidies.

Next Monday, the day before it releases its annual results for 1993, it will formally consider a 'declaration of independence'.

Earlier this year, Channel 4 gave pounds 38.2m to ITV after publishing its annual accounts. Under the 1990 Broadcasting Act it has to give half its income above 14 per cent of net terrestrial television revenue to ITV. In 1993, its first year of selling its own advertising airtime directly, Channel 4 attracted revenue of pounds 330m, compared with pounds 243m in 1992. It expects to pay ITV pounds 50m for 1994.

Sir Michael Bishop, chairman of Channel 4, has pointed out that the payments significantly exceed the value of ITV's cross-promotion of its programmes.

Channel 4 also argues that the formula fails because its real competition for revenue and audiences comes not from ITV, but from their common rivals, cable and satellite television.