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ITV UK Chairman Lew Grade is threatening to cancel news and other public service broadcasts in part of the country.  He's playing a game of chicken with OFCOM. Ed Richards has just upped the stakes,  threatening to pull ITV's licences and reminding ITV penalties could be as high as eighty million pounds. The Guardian's Maggie Brown also called Richards "toothless" and "bloodless." Government is particularly sensitive about cutting news, the Times suggests, because it "is a big deal at Westminster because this is where MPs can actually get on air."  ITV has different ideas: increasing the advertising... and product placement - getting paid to include branded items in shows."

    Grade clearly believes Richards is bluffing, and is cutting a thousand jobs already. Richards allocated ITV HD spectrum anyway. From the Guardian, the OFCOM statement:  "OFCOM would prefer that ITV retains its licence and provides a continuing public service based on the remaining value of the free spectrum it is gifted. To ensure audience demands are met, we have outlined a way forward for this in our latest PSB proposals. If ITV decides to hand back its licences that is entirely a matter for the company, and we are ready for such an eventuality."