An announcement is due to be made on Wednesday when the Independent Television Commission announces new contracts for 11 TV stations.

Media Correspondent Nick Higham: "Companies will have more money to spend on programmes"

Broadcasting analysts expect United News & Media PLC, which owns the HTV, Meridian and Anglia stations, will emerge as the largest single beneficiary of the changes.

It is predicted to save up to £29m in payments for its three licences.

The ITC will grant more new licences in 2001

Granada Group PLC, is expected to gain reductions in its Yorkshire Tyne Tees Television licence, which could save the company £12m-£15m in 1999.

The company, however, did not apply for early renewal on its licence for two other stations, London Weekend Television and Granada. Payments for those two will remain unchanged up to 2001, the last possible date for renewal.

Carlton Communications PLC submitted each of its Carlton, Central and West Country licences for renewal.

However, it is only expected to accept the revised terms in the case of West Country and Carlton, while leaving the acceptance of new terms for low-paying Central until 2001.

Scottish Media Group PLC has not applied for early renewal of its Grampian or Scottish TV licences, though it will benefit from the renewal of the licence for GMTV licence, in which it holds a 20% stake.