ITV 'is set for extra millions' from new Ofcom rules

By JON REES
Updated:

 

Commercial broadcasters could boost profits by tens of millions of pounds a year under plans to be unveiled this week, which would mean they are no longer forced to sell all their advertising airtime.

Ed Richards, chief executive of media regulator Ofcom, will say that he believes they should be allowed to restrict the sale of advertising airtime, which could drive up prices.

ITV, Channel 4, Five and S4C are required by law to sell an average of seven minutes of airtime each hour with a maximum of 12 minutes.

ITV's Dancing on Ice

Showstopper: ITV sometimes uses all its advertising slots for popular shows like Dancing on Ice and are left with no slots for other programmes

These broadcasters sometimes use their maximum permitted advertising slots for top-rated shows and are left with no slots for other programmes. Other broadcasters, such as pay-TV service BSkyB, can sell an average of nine minutes and a maximum of 12 minutes an hour.

Richards aims to have new plans in place by the autumn and these will be brought into effect next year.

ITV wants greater flexibility in the distribution of advertising airtime across the entire week rather than being restricted by having to maintain an average over each day.

Flexibility would at present be of only limited use to ITV as it its advertising charges are capped.

But there have been suggestions that an incoming Conservative government would scrap these curbs.

Separately, ITV has agreed a deal to reduce its £550 million pension deficit by £124 million using money from its SDN transmission business.

Meanwhile, Ofcom is on Tuesday expected to demand that BSkyB offers its premium sports and film channels - including live Premier League football - to its pay-TV rivals at a regulated wholesale price.


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