British broadcaster ITV has said it will not be spending extra money on programming in 2007, as it announced trading this year was as bad as had been expected, with ITV1 revenues down 12.5%.
ITV, recently the subject of a bid approach, said in a statement its investment in programmes next year would be in line with 2006's level and it should deliver £40m of cost savings by 2008.
Home to the X Factor and Coronation Street, Britain's biggest commercial broadcaster is struggling with a drop in audiences and advertising revenues amid growing competition from digital channels. It received a boost late last month when it poached the BBC's chairman, Michael Grade, to be its new executive chairman.
ITV's troubles led cable firm NTL, whose biggest shareholder is British entrepreneur Richard Branson, to put forwards a bid proposal in November worth £4.7 billion. News of NTL's approach prompted British pay-TV operator BSkyB to buy a 17.9% stake in ITV, a move that is being reviewed by regulators.
