ITV loses advertising charge ruling

ITV's mass audience appeal means that rules governing how much it can charge advertisers must stay in place, the competition watchdog ruled today.

The broadcaster had called for the scrapping of the Contract Rights Renewal (CRR) system, which was introduced to protect advertisers from the firm's dominant position when Carlton and Granada merged to form ITV in 2003.

The Competition Commission today delivered its formal rejection of the request and said there had been "virtual unanimity" among advertisers, media agencies and other broadcaster that CRR is retained in some form.

Commission chairman Diana Guy said: "ITV remains a must-have for certain advertisers and certain types of campaign. Despite all the changes in this market, no other channel or medium can come close to matching the size of audience that ITV regularly provides."

She said the commission has no wish for CRR to remain in place forever and added it is time for a wider review of the whole system for selling television advertising.

CRR cuts the amount advertisers have to pay if ITV1's audience shrinks, which has hit ITV hard in recent years, adding to an already depressed ad market.

ITV wants the rules to be scrapped altogether, arguing that they are no longer appropriate in a world of digital TV and leads to a risk-averse attitude among programmers and production teams.

The broadcaster - home to shows such as X Factor and Coronation Street - accounted for 982 of the top 1,000 most-watched programmes on commercial television last year, the Competition Commission said.

The watchdog said it believes ITV has overstated the cost and distortions imposed by the CRR mechanism.

Ms Guy added: "When it succeeds in making popular programmes which attract large audiences, CRR does not prevent ITV from reaping the rewards."

However, the commission has agreed that the definition of ITV1 should be widened to include any future ITV1 time-shift channel and high definition.

Ms Guy said: "Many participants have told us that the system of selling television airtime is far from perfect and we repeat our concerns, also raised in 2003, about the potential anti-competitive effects of 'share of broadcasting' and agency 'umbrella' deals between broadcasters and media agencies."

Start your day with The Independent, sign up for daily news emails
Have you tried new the Independent Digital Edition apps?
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Media

Guru Careers: Lead Systems Developer / Software Developer

COMPETITIVE + Excellent Benefits: Guru Careers: A Lead Systems Developer / Sof...

Recruitment Genius: Social Media & Engagement Manager - French or German Speaker

Negotiable: Recruitment Genius: The world's leading financial services careers...

Recruitment Genius: Digital Marketing Executive - 6 Months Contract

£28000 - £30000 per annum: Recruitment Genius: The Digital Marketing Executive...

Guru Careers: Account Manager / Senior Account Manager

40-45K DOE + Benefits: Guru Careers: An Account Manager / Senior Account Manag...

Day In a Page

The Silk Roads that trace civilisation: Long before the West rose to power, Asian pathways were connecting peoples and places

The Silk Roads that trace civilisation

Long before the West rose to power, Asian pathways were connecting peoples and places
House of Lords: Outcry as donors, fixers and MPs caught up in expenses scandal are ennobled

The honours that shame Britain

Outcry as donors, fixers and MPs caught up in expenses scandal are ennobled
When it comes to street harassment, we need to talk about race

'When it comes to street harassment, we need to talk about race'

Why are black men living the stereotypes and why are we letting them get away with it?
International Tap Festival: Forget Fred Astaire and Ginger Rogers - this dancing is improvised, spontaneous and rhythmic

International Tap Festival comes to the UK

Forget Fred Astaire and Ginger Rogers - this dancing is improvised, spontaneous and rhythmic
War with Isis: Is Turkey's buffer zone in Syria a matter of self-defence – or just anti-Kurd?

Turkey's buffer zone in Syria: self-defence – or just anti-Kurd?

Ankara accused of exacerbating racial division by allowing Turkmen minority to cross the border
Doris Lessing: Acclaimed novelist was kept under MI5 observation for 18 years, newly released papers show

'A subversive brothel keeper and Communist'

Acclaimed novelist Doris Lessing was kept under MI5 observation for 18 years, newly released papers show
Big Blue Live: BBC's Springwatch offshoot swaps back gardens for California's Monterey Bay

BBC heads to the Californian coast

The Big Blue Live crew is preparing for the first of three episodes on Sunday night, filming from boats, planes and an aquarium studio
Austin Bidwell: The Victorian fraudster who shook the Bank of England with the most daring forgery the world had known

Victorian fraudster who shook the Bank of England

Conman Austin Bidwell. was a heartless cad who carried out the most daring forgery the world had known
Car hacking scandal: Security designed to stop thieves hot-wiring almost every modern motor has been cracked

Car hacking scandal

Security designed to stop thieves hot-wiring almost every modern motor has been cracked
10 best placemats

Take your seat: 10 best placemats

Protect your table and dine in style with a bold new accessory
Ashes 2015: Alastair Cook not the only one to be caught in The Oval mindwarp

Cook not the only one to be caught in The Oval mindwarp

Aussie skipper Michael Clarke was lured into believing that what we witnessed at Edgbaston and Trent Bridge would continue in London, says Kevin Garside
Can Rafael Benitez get the best out of Gareth Bale at Real Madrid?

Can Benitez get the best out of Bale?

Back at the club he watched as a boy, the pressure is on Benitez to find a winning blend from Real's multiple talents. As La Liga begins, Pete Jenson asks if it will be enough to stop Barcelona
Athletics World Championships 2015: Beijing witnesses new stage in the Jessica Ennis-Hill and Katarina Johnson-Thompson heptathlon rivalry

Beijing witnesses new stage in the Jess and Kat rivalry

The last time the two British heptathletes competed, Ennis-Hill was on the way to Olympic gold and Johnson-Thompson was just a promising teenager. But a lot has happened in the following three years
Jeremy Corbyn: Joining a shrewd operator desperate for power as he visits the North East

Jeremy Corbyn interview: A shrewd operator desperate for power

His radical anti-austerity agenda has caught the imagination of the left and politically disaffected and set a staid Labour leadership election alight
Isis executes Palmyra antiquities chief: Defender of ancient city's past was killed for protecting its future

Isis executes Palmyra antiquities chief

Robert Fisk on the defender of the ancient city's past who was killed for protecting its future