Ofcom Launches Product Placement Consultation

British media regulator Ofcom has launched a consultation on product placement within UK television, gathering feedback from the industry on its possible introduction as an alternative revenue source for broadcasters.

Product placement is currently prohibited under European regulations, although a draft revision published earlier this year proposed a liberalisation of the law.

The new regulations could enable broadcasters to cash in on placements within a wide range of programmes, although Ofcom believes that a cautious approach to the introduction of any new revenue generators is the best course of action.

“New developments in the television market such as personal video recorders (PVRs), audience fragmentation and video on demand have challenged the value of traditional spot-advertising,” the watchdog explained today.

“Future funding of programming is therefore a legitimate concern to commercial broadcasters, particularly those free-to-air broadcasters who do not benefit from subscription revenues.”

The consultation closes on 13 March 2006, with all interested parties required to make their submission on the subject before that date.

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