OFT Recommends Relaxed Ad Rules for ITV

LONDON: The Office of Fair Trade (OFT) has advised the Competition Commission to consider changes to ITV’s Contract Rights Renewal (CRR) rules, which were introduced as a condition for the merger of Carlton and Granada in 2003.

After a review and consultation into CRR, conducted with the assistance of Ofcom,
the OFT found that while ITV1’s market position has declined, it is the only commercial broadcaster with very large commercial audiences, which are of particular value to some advertisers. Though the harmful effects of the merger on the ad market seem to have been reduced, they may not disappeared completely. The OFT is recommending that the Competition Commission consider whether any alternatives to the current solution would now be effective or if CRR should stay as it is.

There have been changes in the way the ITV1 program schedule is delivered, including the development a high-definition and a potential time-shifted channel. These changes mean that if the CRR remedy remains in place, the Competition Commission should consider updating it to account for these new forms of delivery.

The Competition Commission will now make the final decision on whether the CRR needs to be changed and, if so, what form it should take.



John Fingleton, the OFT’s chief executive, said:
"Changes in ITV1’s market position and program delivery since CRR was introduced in 2003 mean it is now time to take another look at it. We recommend retaining some protection for advertisers and media buyers so that all parties have an equal playing field in what are challenging economic circumstances."