Advertising Concern Over TV Mergers

The Incorporated Society of British Advertisers has written to the Office of Fair Trading calling for it to intervene in the television take over activities.

ISBA is worried that there could be a concentration of sales power if the proposed mergers take place. At present the ITC rules that no company may sell more than 25% of total advertising revenue; however there have been calls for this rule to be revoked, with the ITC under pressure to change the rule.

The ISBA director general Kenneth Miles told MediaTel that the OFT had been informed that they do not want sales to merge, and that they want the OFT to impose a monitoring regime to ensure fair competition. ISBA has also written to the ITC.

Despite this, Ray Kelly chief executive of Carat UK told the Financial Times that advertisers want to see the quality of programming maintained. TV companies are “only really going to be capable of continuing to do that if they’re strong companies…there is an absolute need for them to start doing what they’re doing now, which is to merge.”

Christine Walker, chief executive of Zenith told the Financial Times that TV Ownership and sales house arrangements were distinct; “A stronger ITV financially is a better ITV for the advertisers”.