UTV HAS warned the North's broadcasting authority that it is losing viewers to TV3 because both channels simultaneously broadcast programmes made by Britain's biggest commercial television network ITV.
The Belfast based media group has told Ofcom - the Office of Communications - that competition from TV3 is one of the key reasons why it is about to go into battle with ITV over costs.
UTV and TV3 both broadcast popular television soaps such as Coronation Street and Emmerdale on both sides of the Border.
UTV is one of three independent companies which operate the ITV franchise in certain regions. The other two operate in Scotland and the Channel Islands.
ITV currently charges UTV and the other non-ITV plc companies a fixed amount to broadcast its programmes as part of a historical agreement.
TV3 purchases the programmes in the open market.
Industry sources suggest TV3 last January paid an estimated £8 million (€10 million) for the rights to use ITV programmes in its schedules.
ITV plc has said it wants to look at ways of increasing the fees it charges UTV and other franchise holders to broadcast their programmes.
ITV's executive chairman Michael Grade claims the network is subsidising non-ITV plc companies, including UTV, to the tune of £25 million per annum.
UTV has angrily refuted the claim.
The Belfast-based media group contributes about £10 million to ITV's annual programme budget.
Mr Grade says this is not enough and has asked Ofcom to investigate the matter.
But it has emerged that UTV has also contacted Ofcom in the North to put its side of the argument to the local watchdog.
The Irish Timeshas obtained a confidential letter from UTV to Denis Wolinski, the director of Ofcom Northern Ireland.
In it, UTV says ITV has taken a position that is "unjustifiable" and fails to take into account the market rate of the programmes UTV receives from the ITV network.
The Belfast group says ITV plc decides how the ITV network programme budget is spent and it is often on programmes such as the Oxford v Cambridge Boat Race which, the Northern station says, are not relevant to its audience.
UTV also accuses ITV of "actively excluding the audience in our region" when it is commissioning programming.
The Northern Ireland media group claims it is being charged a far higher rate for ITV programming than it would pay for it if it were to buy it on the open market.
It has also told the regulator that, because TV3 is now available in the North, UTV is losing audience to a rival channel.
Industry sources say UTV is determined not to pay ITV any more for the content it provides to the channel and is appealing to Ofcom to sanction a reduction in the fees - not an increase.
