DTI Rules Against Granada

The Department of Trade and Industry has today rejected Granada’s request to exceed the 25% share limit of TV advertising sales and ruled that the company must return its share to the 25% level by August 1995. Granada currently holds a 29% share of all TV advertising revenue through its sales houses the Time Exchange and Laser.

When Granada acquired LWT in February it gave an undertaking that it would keep to the 25% threshold. It then asked the DTI to extend the limit so that the Time Exchange could continue selling for both Grampian and STV in Scotland. Although it is up to Granada how it reduces its limit to 25% it seems likely that STV will be forced to quit the Time Exchange.

Announcing the decision Michael Heseltine, the Secretary of State for Trade and Industry, said he would still be prepared to consider proposals to exceed the threshold by a small amount, if satisfactory selling arrangements cannot otherwise be made for the small ITV licences.