ITV attacks government ban on product placement

ITV chief executive Michael Grade has attacked the government’s decision to rule out product placement on UK television.

Grade said: “Given the extraordinary economic pressures ITV, and others, face, we can’t let a decision like this simply go through without trying to fight it.

“We are considering our next steps and I am consulting my legal team as to whether we have a strong case for judicial review.

“I shall also be writing to the chief executive of Ofcom to ask what measures he intends to introduce to ‘protect’ viewers from those programmes and films that already contain product placement and which have been broadcast on British television for many years. The government should at least be taking a consistent position.”

He added: “Our audiences are savvier than the government thinks. It is simply not in our interest to ‘contaminate’ programmes with product placement which would irritate them and prompt them to switch over.

“We believe that considered product placement, in the context of the robust regulatory framework proposed in the AVMS Directive [the European parliament’s 2007 directive on audiovisual media services], would bring more realism to programming, portraying a world that is recognisable and relevant.”

Last week the broadcaster unveiled plans to slash 600 jobs and cut £65 million from its programme budget as it revealed an overall loss of £2.7 billion for 2008, with a 4% fall in net ad revenue to £1.4 billion (see ITV’s profits down by 41%).

Channel 4 chief executive Andy Duncan supported the decision, however. He said: “Channel 4 supports the decision on product placement. We have consistently taken the view that confusing the lines between editorial and advertising raises serious issues of trust for viewers.

“Relaxing the rules would deliver a marginal commercial benefit and do little to redress the growing funding imbalance between state and advertising funded broadcasting. It is essential this is properly addressed in the Digital Britain report if levels of investment in original British content are to be maintained.”