Changes could be made to ITV’s CRR

The OFT has advised the Competition Commission to consider changes to ITV’s Contract Rights Renewal (CRR) mechanism, which was introduced as a condition for the merger of Carlton and Granada in 2003.

An OFT consultation found that whilst ITV1’s market position has declined, it remains almost the only provider of very large commercial audiences.

However, the OFT noted that there have been changes to the way the ITV1 programme schedule is delivered, including the development of both a high definition and a potential time shifted (+1) channel.

“These changes mean that if the CRR remedy remains in place, the CC should consider updating it to take account of new forms of delivering the ITV1 schedule,” it said in a statement.

CRR is intended to prevent ITV1 taking advantage of its dominant position in the UK TV ad market.

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.