Vericool Finance

Investment Markets » Media

The Great British TV Scam

Britain's television industry is beset with infighting, scuffles and scams. It's not only viewers who are set to lose.

Many disputes in the City are thrashed out behind closed doors. Not so the ongoing war between Virgin Media and BskyB.

Three million Virgin customers awoke to find their favourite Sky shows, including Lost, 24, and The Simpsons, had disappeared – the latest victims in the struggle between Sir Richard Branson and the Murdoch clan. Yet from the point of view of the average viewer, the inconvenience of that particular skirmish pales in comparison to the scandal unravelling elsewhere in the industry.

It centres on the widespread abuse of premium-rate phone-lines, now so serious that an industry-wide regulatory probe is under way. ITV has suspended all its interactive competitions and quizzes, and mothballed its dedicated quiz channel, ITV Play, until further notice.

The row is rapidly becoming known as "the cash for no questions" affair. Even the industry's most trusted brands are embroiled. The investigation was sparked by reports that Richard & Judy's You Say We Pay quiz on Channel 4 had encouraged viewers to call in at £1 a throw, after potential winners had been picked. It turned out to be just the tip of the iceberg.

The list of rip off phone-lines includes shows across most terrestrial channels, such as X Factor, Ant & Dec's Takeaway and the BBC's Saturday Kitchen. A massive swiz has been uncovered and our trust well and truly breached.

Sir Alistair Graham, who heads the phone-line watchdog Icstis, says he believes the debacle may be "more cock-up than conspiracy". Yet some of the more glaring examples would seem to undermine that view. Many of the charges, if proven, are tantamount to fraud. One quiz, which asked viewers to name items found in a woman's handbag, required the answers "balaclava" and "Rawlplugs".

Eckoh, the group that runs many of the call services, is pointing the finger at broadcasters, claiming it warned of potential problems. Meanwhile the costs to the industry are mounting. ITV alone expected to generate £30m from participation programming this year, but the loss of that is nothing to the financial risks the network faces if this PR disaster continues.

Chairman Michael Grade has correctly decided to cut his losses by coming out with his hands up. Other TV networks are merrily giving their phone-in shows a clean bill of health. We suggest they look more closely.

Vericool Related Articles

All articles are free to reproduce on your website as long as you provide a link to the source of the article on the Vericool Finance website.

© Copyright Saritak Ltd 2008