[Scarlett.]

cotland's TV audiences could be denied access to some of the UK's most popular programmes if a dramatic overhaul of the broadcasting industry takes place.

ITV chief Michael Grade warned yesterday that the independent broadcaster could be forced to give up its public service commitments as it costs too much.

The network could cut back its news and current affairs output and regional programming in a bid to save money if it was allowed to give up its Public Service Broadcasting (PSB) status, which it is contracted to hold until 2012.

The move would not affect news output on its Scottish franchise STV, as it runs under its own PSB licence, but could affect how the channel buys programmes such as Coronation Street. Access rights, and lower prices, for the top shows would be lost if ITV ceased to be a PSB network.

Vicky Nash, director of broadcast regulator Ofcom Scotland, said: "It is important to remember that STV takes a lot of programming from the network. If the network is no longer available, you have to consider what impact that would have on STV.

"Shows like Coronation Street and other soaps attract people to STV, but I think they would be placed in a very difficult position if ITV was to hand its licence back."

Ofcom is carrying out its review of public service broadcasting.

Mr Grade's warning came before the network announced a drop in profits of more than £36m over the year. He said: "If we can't get quick resolution, obviously, as Ofcom itself outlined in its recent consultation paper, there is an option for ITV to give up its public service status."

An STV spokeswoman said: "Any decision that ITV makes on their licence is a matter for them. It is clear that in a digital age the key commercial broadcasters cannot sustain the current level of PSB."