Watchdog refuses to scrap TV advertising rules

The competition watchdog today dashed ITV's hopes that onerous rules over advertising would be scrapped, but said it was considering relaxing the regime.

The Competition Commission said changes "might be justified" on the Contract Rights Renewal (CRR) system - introduced when Carlton and Granada merged to form ITV in 2003 to protect advertisers from its dominant position.

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

ITV had been calling for the rules to be removed altogether, arguing that it is inappropriate in a world of digital TV and leads to a risk averse attitude among programmers and production teams.



The Competition Commission (CC), which reviewed CRR after a request from the Office of Fair Trading in May, is suggesting changes to CRR, in particular updating the definition of ITV1 to include time-shift and high definition channels.

But it found ITV continued to enjoy a dominant position in the market, in spite of a falling audience.

It said: "ITV1 has seen a decline in its share of both viewers and advertising revenues since 2003 and there are now more alternatives for advertisers.

"However, ITV remains crucial for advertisers looking to reach large number of viewers, particularly if this needs to be done rapidly."

It added that changes in television advertising market had not increased the bargaining strength of media buying agencies, through which the vast majority of TV advertising is bought.

If they reduce their spend on ITV1, they could be faced with "significantly less attractive terms" for their remaining ITV1 business, found the Commission.

"It is therefore our view that a remedy needs to stay in place," it said.

ITV welcomed proposals to amend CRR, despite the provisional decision against complete removal.

Michael Grade, executive chairman, said: "We look forward to engaging with the Competition Commission over the next three weeks to identify which post-CRR option best serves the interests of ITV plc, its viewers and advertisers."

ITV - home to shows such as X-Factor and I'm a Celebrity... Get Me Out Of Here! - has suffered plunging advertising revenues, reporting a 15% fall in the first quarter and forecasting worse to come.

It has been slashing costs and cutting jobs to tackle the tough conditions.

Start your day with The Independent, sign up for daily news emails
Have you tried new the Independent Digital Edition apps?
ebooks
ebooksA special investigation by Andy McSmith
News
Andy Davidhazy at the beginning (left) and end (right) of his hike
video
News
Taylor Swift is applying to trademark song lyrics from 1989
people
Voices
The popularity of TV shows such as The Liver Birds encouraged Liverpudlians to exaggerate their Scouse accent
voicesWe exaggerate regional traits and turn them into jokes - and those on the receiving end are in on it too, says DJ Taylor
Life and Style
Parker says: 'I once had a taster use the phrase 'smells like the sex glands of a lemming'. Who in the world can relate to that?'
food + drinkRobert Parker's 100-point scale is a benchmark of achievement for wine-makers everywhere
News
i100
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

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

iJobs Job Widget
iJobs Media

Ashdown Group: Web Developer - ASP.NET, C#, MVC - London

£45000 - £55000 per annum + Excellent benefits: Ashdown Group: Web Developer -...

Ashdown Group: .NET Developer : ASP.NET , C# , MVC , web development

£40000 - £50000 per annum + Excellent benefits - see advert: Ashdown Group: .N...

Guru Careers: 3D Package Designer / 3D Designer

£25 - 30K: Guru Careers: We are seeking an exceptional 3D Package Designer / 3...

Guru Careers: Interior Designer

£Competitive: Guru Careers: We are seeking a strong Middleweight / Senior Inte...

Day In a Page

Election 2015: How many of the Government's coalition agreement promises have been kept?

Promises, promises

But how many coalition agreement pledges have been kept?
The Gaza fisherman who built his own reef - and was shot dead there by an Israeli gunboat

The death of a Gaza fisherman

He built his own reef, and was fatally shot there by an Israeli gunboat
Saudi Arabia's airstrikes in Yemen are fuelling the Gulf's fire

Saudi airstrikes are fuelling the Gulf's fire

Arab intervention in Yemen risks entrenching Sunni-Shia divide and handing a victory to Isis, says Patrick Cockburn
Zayn Malik's departure from One Direction shows the perils of fame in the age of social media

The only direction Zayn could go

We wince at the anguish of One Direction's fans, but Malik's departure shows the perils of fame in the age of social media
Young Magician of the Year 2015: Meet the schoolgirl from Newcastle who has her heart set on being the competition's first female winner

Spells like teen spirit

A 16-year-old from Newcastle has set her heart on being the first female to win Young Magician of the Year. Jonathan Owen meets her
Jonathan Anderson: If fashion is a cycle, this young man knows just how to ride it

If fashion is a cycle, this young man knows just how to ride it

British designer Jonathan Anderson is putting his stamp on venerable house Loewe
Number plates scheme could provide a licence to offend in the land of the free

Licence to offend in the land of the free

Cash-strapped states have hit on a way of making money out of drivers that may be in collision with the First Amendment, says Rupert Cornwell
From farm to fork: Meet the Cornish fishermen, vegetable-growers and butchers causing a stir in London's top restaurants

From farm to fork in Cornwall

One man is bringing together Cornwall's most accomplished growers, fishermen and butchers with London's best chefs to put the finest, freshest produce on the plates of some of the country’s best restaurants
Robert Parker interview: The world's top wine critic on tasting 10,000 bottles a year, absurd drinking notes and New World wannabes

Robert Parker interview

The world's top wine critic on tasting 10,000 bottles a year, absurd drinking notes and New World wannabes
Don't believe the stereotype - or should you?

Don't believe the stereotype - or should you?

We exaggerate regional traits and turn them into jokes - and those on the receiving end are in on it too, says DJ Taylor
How to make your own Easter egg: Willie Harcourt-Cooze shares his chocolate recipes

How to make your own Easter egg

Willie Harcourt-Cooze talks about his love affair with 'cacao' - and creates an Easter egg especially for The Independent on Sunday
Bill Granger recipes: Our chef declares barbecue season open with his twist on a tradtional Easter Sunday lamb lunch

Bill Granger's twist on Easter Sunday lunch

Next weekend, our chef plans to return to his Aussie roots by firing up the barbecue
Joe Marler: 'It's the way I think the game should be played'

Joe Marler: 'It's the way I think the game should be played'

The England prop relives the highs and lows of last Saturday's remarkable afternoon of Six Nations rugby
Cricket World Cup 2015: Has the success of the tournament spelt the end for Test matches?

Cricket World Cup 2015

Has the success of the tournament spelt the end for Test matches?
The Last Word: Justin Gatlin knows the price of everything, the value of nothing

Michael Calvin's Last Word

Justin Gatlin knows the price of everything, the value of nothing