Ofcom to reconsider relaxing TV ad rules

Ofcom is considering relaxing television advertising rules in a bid to remove “unnecessary burdens” from broadcasters.

The media regulator is due to re-examine rules that force ITV, Channel 4 and Five to sell all their advertising minutes at any cost, which stops the broadcasters from being able to boost prices by reducing available ad slots.

In a statement, Ofcom said: “We will consider whether the requirement that PSB broadcasters sell all their advertising minutage is still appropriate and on whether advertising minutage rules for PSBs and other channels should be harmonised.”

If the move goes ahead, the broadcasters could make as much as tens of millions of pounds extra ad revenue each year, according to reports.

Ed Richards, Ofcom’s chief executive, said: “Ofcom is committed to reducing its regulatory burdens. Underpinning all our work is a desire to remove unnecessary regulations.

“In the last few years the TV sector has moved on with substantial increases in the take-up of digital services and in the number of available channels, and consolidation in the advertising buying sector. If regulations have no public interest then they should be removed. That is what we will be considering here.”

Ofcom is also due to reconsider allowing public service broadcasters to run an extra 20 minutes of adverts during some evening peak-time slots.

Last year, the regulator looked at the proposal following discussions over PSBs ad time compared to non-PSBs but rejected the plan.  It would have allowed broadcasters to be more flexible with their 40 minutes per night average peak allowance, saving them for hit weekend shows, for example.

However, the new review is expected to cover ad-time and if the regulator does go against its original decision, a new system could be implemented in time for next year’s trading season.  It is thought it could give PSBs an extra £40 million a year.

In response to Ofcom’s announcement today, ITV said: “ITV welcomes Ofcom’s proposed review of the advertising sales and scheduling rules and its recognition that further deregulation may be necessary given the substantial changes in the TV sector.”

Channel 4 said it also “welcomes Ofcom’s decision to review the existing Airtime Sales Rules and look[s] forward to engaging with its consultation in due course”.

Ofcom’s consultation will run until February 17.