Channel Revenue To Fall With Junk Ad Ban

Ofcom has predicted that commercial terrestrial television channels could lose almost 4% of their revenue if the pre-9pm ban on junk food and drink advertising aimed at children is introduced.

The latest figures from the independent communications regulator predict that all commercial channels could lose up to £140 million, highlighting that GMTV could be the worst affected by the ban, potentially losing up to 6.7% of the channel’s revenue.

ITV could also be badly affected, with Ofcom saying the channel stands to shed 4.2% of its revenue after the ban. Channel 4 would not be far behind, possibly dropping 3.4% of its revenue. Five would also suffer, with a likely 3.1% loss.

The figures come after recent warnings from Christy Swords, ITV director of regulatory affairs, who said that independent television programmes could suffer if the ban is introduced (see Ad Ban To Hurt Independent TV Shows).

“ITV spends £25 million per year on producing children’s television programmes rather than acquiring shows from other networks,” he said.

“Ad revenue is vital for the funding of these productions and a pre-watershed ban on all food advertising would result in ITV no longer being able to sustain the production of these shows.

“The problem of child obesity needs to be addressed but it is a wider debate and not just about food advertising on television. The key issue is that regulation must be proportionate and targeted,” he said.

However, last week a delegation of Labour MPs, led by sponsor of the Children’s Food Bill, Mary Creagh, met Ofcom to demand the introduction of the ban on junk food advertising aimed at children (see MPs Demand Junk Ad Ban From Ofcom).

“A 9pm watershed is the only way to stop junk food advertising to children and tackle the time-bomb of childhood obesity,” she said.

Ofcom: 020 7981 3040 www.ofcom.org.uk