The ITC published its revised rules on airtime sale arrangements yesterday, revealing a more streamlined approach to the regulation of this sector.
Deputy director of advertising and sponsorship at the ITC, Ian Blair, said today: “The rules will be kept under periodic review to ensure that they continue to reflect the rapid changes within the advertising market. These revised rules address the areas where there might be potential for anti-competitive behaviour.”
The Key changes to the guidelines are as follows:
Adjustment to the rules regarding Channel 3 to reflect the findings of the Competition Commission on its ruling of September 2000 which removed the 25% limit on net advertising revenue (NAR).
Smaller national licensees will be able to sell jointly with each other or with any other national licencee (although Channel 4, 5 and BSkyB are still not allowed to sell airtime together).
GMTV will now be able to sell airtime jointly with either of the Channel 3 sales houses.
Relaxations and amendments to the rules:
National licensees with a NAR share of 5% or less may sell airtime jointly with each other or with any other national licensee.
National licensees with a market share equivalent to GMTV or less may resell their airtime jointly with either of the two main Channel 3 airtime sales houses.
Small Channel 3 licensees with 5% or less of UK NAR may sell their airtime with any national licensees.
Prohibitions:
The joint selling of airtime by Granada and Carlton will be prohibited.
The ban on the two London Channel 3 licensees selling their airtime together will remain.
‘Share for ITV’ sales are prohibited.
The revised set of rules is designed help to establish a more competitive market and bring ITC in line with the decision made last year by the Competition Commission which concluded that further consolidation of ITV was not necessarily in conflict with public opinion.
