Ofcom shelves plans for TV trading review

Ofcom has dramatically shelved plans for a review of TV trading, while the man charged with policing ITV under contact rights renewal has announced his imminent departure.

Ofcom shelves plans for TV trading review
Ofcom shelves plans for TV trading review

Ofcom has dramatically shelved plans for a review of TV trading, while the man charged with policing ITV under contact rights renewal has announced his imminent departure.

The regulator had been due to launch a probe into the running of the £3bn plus market, with practices such as agency share deals and station average price set to come under scrutiny.

The review was suggested by the Competition Commission which raised concerns over business practices in TV advertising when it looked into the ITV merger.

Up until a week ago, Ofcom was insisting the review would be going ahead next year, despite rumours circulating in the industry that it had been shelved.

But today the regulator said that it had decided there was no case for a full review of TV advertising, claiming it had received no complaints from advertisers or broadcasters about the existing system.

In a statement, it said: "Ofcom has received no complaints regarding the operation of the television advertising sales market. There is no strong evidence of consumer detriment arising from the workings of the market as currently constituted."

One of the main reasons for Ofcom's decision appears to be the desire by advertisers, agencies and rival broadcasters to keep intact the Contract Rights Renewal mechanism, which was put in place to stop ITV abusing its power in the market, with a 40% plus share of sales. An end to agency share deals would effectively have meant CRR would have to have been scrapped or replaced

The CRR "policeman", Television Adjudicator and former Starcom Motive vice president, David Connolly, announced today he intended to step down next year, after three years in the role. Ofcom will begin looking for a replacement in January.

Some had expected Connolly's role to be widened to take into account the outcomes of Ofcom's now shelved review.

Ofcom chief executive, Stephen Carter, said: "The airtime sales market is complex, with multiple players. Our priority is to continue to monitor the CRR remedy and to work with the OFT in the event of any subsequent review."

He added: "I would like to thank David for his work over the last three years, The role of the Adjudicator is-and will remain-an important part of the remedy."

 

 

Have your say...

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Media Week Jobs
Search for more media jobs

Latest

Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up

Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up

Waitrose has joined forces with Channel 4 and produced a Saturday morning lifestyle and cookery programme called 'Weekend Kitchen with Waitrose', with TV presenters Lisa Snowdon and Steve Jones signed up to front it.

Share
Newspaper ABCs: Guardian smashes through 100m browsers in March 2014

Newspaper ABCs: Guardian smashes through 100m browsers in March 2014

The Guardian reached more than 100 million monthly unique browsers for the first time in March, according to Audit Bureau of Circulations figures published today.

Share
Toyota achieves the impossible by calming angry Roman drivers

Toyota achieves the impossible by calming angry Roman drivers

Italians swearing and shouting while sitting behind the wheels of their cars and negotiating the busy streets of Rome could become a thing of the past if they all start driving Toyota's Hybrid vehicles, implies a short film for the car brand.

Share

Get news by email