Bill Receives Cautious Welcome From ISBA
ISBA has broadly welcomed the publication of this week’s draft Communications Bill (see Draft Communications Bill Relaxes Cross Media Rules), including the fact that it opens up the possibility of non-EU ownership of UK media assets, but has echoed the feelings of the IPA in regretting that regulation of the BBC will not be fully under new regulator Ofcom’s remit (see IPA Gives Limited Welcome To Draft Bill) and expressed some concerns for the effects the new regulation will have on the advertising industry.
Ian Twinn, ISBA’s director of public affairs, said: “There is much in this Bill to support advertiser’s fundamental aims. ISBA strongly welcomes the broad deregulatory stance of the Bill and is happy to support the possibility of non-EU ownership of UK media assets if this provides a path to increased funding and a stronger and more competitive UK commercial media scene. In the context of ITV ownership, it is heartening to see the explicit recognition in the Bill of the need for the application of competition law before any further consolidation could go ahead.”
Twinn went on to say, however, that ISBA is concerned that the chance to create “a level regulatory playing field for commercial media” had been missed because of the BBC decision. “A level field is crucial for the future success of the UK media ecology.” he continued, “It makes no sense for a broadcaster which controls around 40% of UK viewing to be excluded from the ‘single’ regulator.”
In its initial response to the Bill, ISBA has also expressed that, in light of the removal of barriers to a single ITV company, advertisers will expect to see the airtime sales market protected from the potential for monopoly behaviour. It also welcomes the prospect of increased investment for Channel 5 when ownership is opened up, but warns that the prospect of ITV and Channel 5 having the same owner would cause concern on competition grounds.
ISBA also makes the point that as advertisers are the principle funders of commercial media and also customers of the services Ofcom will oversee, the new regulator should “have a demonstrable duty to have regard to the specific interests of advertisers in the exercise of its functions.” Furthermore, it expresses the concern that Ofcom could become “too bureaucratic”, which could prevent the development of the media market place. “Ofcom faces a greater challenge with its new functions than did the ITC.” it warns.
With regard to the prospect of advertisers proposing a system of self-regulation for TV and Radio advertising, ISBA and the Advertising Association have said that they will “take up the challenge of developing proposals.”
ISBA: 020 7499 7502 www.isba.org.uk
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