Phone-in confidence fall hits ITV

Some votes for ITV's X-Factor were not counted

ITV has warned a string of high-profile scandals surrounding premium rate phone lines has hit the number of people using the services, knocking revenues.

A lack of consumer confidence had led to a 20% fall in income from the phone lines in March and April, it said.

Tough new rules for TV quiz shows and channels have now been introduced by premium rate phones watchdog Icstis.

ITV also warned advertising revenue at its ITV1 channel were down 9.6% in the first half of 2007 against last year.

The broadcaster added it was the first to have an independent review of premium rate phone lines and that all of its current shows had been cleared.

Revenues hit

The poor execution of these services across the sector has reduced consumer confidence and is having a material impact on premium rate telephone services revenue Michael Grade, ITV Check ITV's shares

Broadcasters began reviewing their premium-rate services following a string of complaints surrounding the use of the services on shows such as ITV's GMTV and the X Factor, Channel Four's Richard and Judy, and the BBC's Saturday Kitchen.

Problems included people entering phone-in competitions which they had no chance of winning and casting votes for events when counting had already closed.

"The poor execution of these services across the sector has reduced consumer confidence and is having a material impact on premium rate telephone services revenue," chief executive Michael Grade said in a statement ahead of the group's annual general meeting (AGM) on Thursday.

He added ITV would publish the findings of its independent review.

In the wake of the scandals, ITV also closed its ITV Play channel but kept the programming on during the night on ITV1 and ITV2.

"The level of revenue now being generated by ITV Play is running at a significant reduction to 2006," it warned.

"Other premium rate telephone services revenue is down by approximately 20% in March and April and concerns remain about when consumer confidence in this area will be restored."

Problems

Two months ago, BBC One's Blue Peter recently apologised for featuring a fake contestant after a technical glitch hit a phone-in competition.

This week its editor resigned, with the BBC saying that the timing of the move was timing was "not entirely coincidental".

New rules from Icstis are designed to rebuild the trust of viewers after a series of complaints about the use of premium-rate phone lines on TV.

Under Icstis rules viewers must now be warned if they spend more than £10 on phone calls and must be told how many other people are calling to try to take part.

The shake-up follows a highly critical report by MPs on the issue.

ITV's shares closed down 0.5% at 119.3 pence.