In January, the OFT, in its preliminary report into CRR, called for a relaxation of contract rights renewal, the mechanism that aims to curb ITV1's dominance of the ad market.
Today, the OFT has advised the Competition Commission "to consider changes" to CRR, although it does not detail exactly how it ought to be changed. CRR was introduced as a condition for the merger of Carlton and Granada in 2003 which formed ITV plc.
The OFT said it found that while ITV1's market position "has declined, it remains almost the only provider of very large commercial audiences, which are of particular value to some advertisers. Thus, while the detrimental effects of the merger on the advertising market appear to have reduced, they may not have been eroded completely."
It adds, however, that CRR is not "without costs and disadvantages and the OFT recommends the CC should consider whether any alternatives to the current remedy would now be effective or if CRR should stay as it is".
The OFT also concluded that given changes in the way the ITV1 programme schedule is delivered - citing the development of both a high definition and a potential time shifted (+1) channel - the CC should consider updating CRR to take account of new forms of delivering the ITV1 schedule.
John Fingleton, OFT chief executive, said: "Changes in ITV1's market position and programme 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."
The Competition Commission will now make the final decision on whether change to CRR is appropriate or not and, if it is, what form it should take.
Be the first to comment