TV giants 'to forge closer ties'

ITV GIANTS Carlton Communications and Granada are reportedly to forge closer ties in an attempt to cut costs and win more advertising. The pair, who have long been touted as possible merger partners, are planning to combine large parts of their operations.

Granada and Carlton operate most of the ITV network but are under pressure because of the advertising slowdown and increased competition.

Carlton chief executive Gerry Murphy said the pair would pool back-office operations and mount a joint effort to win new advertising contracts this autumn. Although the broadcasters cannot combine their sales forces, the move would see the creation of a 'virtual enterprise' in marketing, programme making and advertising promotion.

It is thought that Carlton and Granada will begin by making joint presentations to advertisers of next year's programme schedules. The tie-up could mean more effective pitches to advertisers such as Ford and Proctor & Gamble involving schedulers as well as marketing staff.

'We are marketing together for the first time ever for 2003 and sales, commissioning, marketing and (programme) scheduling will be presented and pitched to advertisers together,' Murphy told the Financial Times.

Carlton currently has five regional franchises, including HTV and Central, while Granada's portfolio includes Meridian and Anglia. The pair failed to progress merger talks earlier this year amid concerns that a deal might be blocked on competition grounds.