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ITV Suspends SMS, iTV Interactivity; Brings In-House; Takes A $36 Million Hit

From our sister site paidContent:UK: As the UK’s call-TV scandal rolls on, ITV (LSE: ITV) has suspended viewers’ SMS and red-button interactive-TV participation in its live programmes after a Deloitte review in to its premium-rate activities found “serious editorial issues” in three shows. Deloitte said procedures, controls and relationships between producers and vendors were inconsistent, while “supporting technology, in the most part supplied by third party suppliers, lacks the reliability and resilience consistently to deliver the required level of service“.

Executive chairman Michael Grade, in a regulatory statement, said ITV is bringing all telephony provision in-house for productions made by the network itself, and is working with BT (NYSE: BT) to develop a solution that will allow it to manage all interactive services itself, reducing reliance on third-party suppliers in a move that is likely to see some of their contracts dry up. Call charges totaling £7.8 million ($15.88 million), paid by viewers for uncounted votes or competition entries, will be reimbursed or donated to charity and ITV will incur an £18 million ($36 million) exceptional charge in full-year earnings.More on PCUK