ITC Publishes Revised Airtime Sales Rules

The ITC published its revised rules on airtime sale arrangements yesterday, the revised results provide a more streamlined approach to the regulation of this sector.

The ITC’s deputy director of advertising and sponsorship, 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 in its ruling of September which removed the 25% limit on net advertising revenue.
• Smaller national licensees will be able to sell jointly or with any other national licensee (Channel 4, 5 and BSkyB still should not be 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 is to remain.
• ‘Share for ITV’ sales are prohibited

The revised set of rules is designed to help establish a more competitive market and to bring the ITC in line with last year’s decision by the Competition Commission, which concluded that further consolidation of ITV was not necessarily in conflict with public opinion.

Since the ITC’s previous consolidation statement in 1996 the structure of commercial television and of the television advertising market has changed significantly with increased consolidation in the sale of airtime emerging as a result.

ITC: 020 7255 3000 www.itc.org.uk

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