Thames may abandon plans

THAMES Television, which will lose its ITV franchise at the end of the year, may abandon its plans to turn itself into an independent programme producer.

The move could restrict Thames's ability to sell programmes to both the ITV network and the BBC.

The decision has been forced on Thames by the onerous rules of the new broadcasting regime which prevent an independent producer owning more than 15 per cent of a broadcaster.

Thames is leading the consortium which put forward the only bid for the Channel 5 licence and is considering launching a satellite channel in conjunction with the BBC.

The company has been lobbying both the Heritage Ministry and the Independent Television Commission in the hope of getting the rules changed.

But senior executives at both Thames and Thorn EMI, which owns 56 per cent of Thames's shares, are losing hope that the rules will be changed.

Richard Dunn, Thames's managing director, originally proposed that the group could be the UK's largest independent producer, with a staff of 400 and a list of programme which includes such stalwarts as The Bill and This Is Your Life.

Depite a deal with ITV to supply pounds 29m of programmes in the first eight months of next year, Thames has come to realise that the independent producer route may not be feasible.

Thames argues that many of its programmes would still be bought by ITV if it were not an independent, although the programmes would not count towards the quota set down by the Government specifying that 25 per cent of all programmes should come from independents.

It may also decide to sell some of its programme-making subsidiaries - such as Euston Films, which makes Minder, or the animation group Cosgrove Hall - to their management and license programmes though them which would qualify as independent productions.

However, the move could mean that it would be particularly difficult for Thames to sell programmes to the BBC or persuade ITV to take new programmes which could be made by rivals that actually were independent.