ITV freezes programming budget

ITV is reported to have frozen next year's programming budget due to the advertising slowdown.

ITV sources have confirmed the budget will stay flat at £747m.

The news comes amid a flurry of negative publicity for the main powerbrokers in ITV, Granada and Carlton Communications.

Britain's media companies have been battered by a depressed advertising market, which is the financial lifeline for the majority of broadcasters and publishers.

Carlton's shares have fallen to 135p, against a year-high of 670p; while Granada's stock is hovering around 100p, compared with a recent peak of 248p.

ITV has been one of the most prominent victims of the slowdown in advertising.

This year's advertising takings are expected to be 16% down on last year's total, representing a shortfall of £330m.

Advertising revenue was down by 15% in September.

Granada and Carlton admit their ITV Digital operation will have cost £1.1bn by the time it breaks even in 2004.