ITV set to launch online micropayments system

ITV is set to launch a micropayments system and pay-TV HD channels

ITV is planning to launch an online micropayments system as it looks to reduce its dependence on advertising.

The commercial broadcaster said it is exploring new revenue systems, such as micropayments, which would see viewers choose to pay a small amount of money to watch a programme rather than see an advert.

It said that over time it expects to move to a position in which half of ITV’s revenue base will be derived from non-television advertising sources.

“Over the past decade, ITV has seen its core proposition of free-to-air broadcasting steadily eroded by changes in technology and the creation of new content and distribution channels,” said Adam Crozier, chief executive at ITV.

“These market dynamics will continue to evolve and will only gather pace. Addressing them requires significant change, as well as a relentless focus on delivery.”

ITV has also agreed a pay-TV deal with Sky to launch high-definition versions of its successful digital channels as a subscription service on the Sky platform.

From autumn 2010, ITV2 HD, ITV3 HD and ITV4 HD will form part of Sky HD’s subscription package.

“Building new revenue streams by exploiting our content across multiple platforms is a key part of the ITV transformation plan,” added Crozier.