ITV to wait for CRR ruling before launching +1 channel
ITV plans to wait for Competition Commission’s ruling on the contract rights renewal (CRR) system before giving the green-light for its one-hour time-shifted channel ITV1+1.
Ofcom has approved the broadcaster’s request to launch a digital +1 channel for its flagship ITV1 channel in October, however, ITV plans to wait for the Competition Commission’s final review of CRR to be published later this month before deciding whether to go ahead with the launch.
A spokesperson for ITV said: “We continue to explore options with regard to launching ITV1+1. ITV has begun preliminary planning in order that, should the launch of a time-shifted channel be an economically viable option, we would be ready to do so.”
CRR, which was one of the conditions for the Carlton and Granada merger in 2003, was introduced as a means of protecting advertisers from ITV1 being able to abuse its dominant position in the UK TV advertising market.
However, since then, ITV has suffered substantial advertising losses and argues that CRR is an out-of-date system that prevents the channel from competing effectively in today’s market.
In May, the Office of Fair Trading recommended that the Commission should consider relaxing CRR rules to take into account the changes to ITV1’s programme schedule.
At the time, the OFT’s chief executive John Fingleton 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 is expected to deliver its final decision on whether changes to CRR are appropriate or not, and if so, which form they will take within weeks.
If the commercial broadcaster launched its proposed +1 channel under the current CRR regulations it would significantly impact revenues – as it will bring a bigger audience to the ITV overall, which would mean ITV1 would lose share and advertisers could take advantage of this.
However, if the Commission relaxes CRR rules, ITV would have an incentive to not only launch a time-shifted channel but also to invest in high definition channels.