ITV ad contract rules 'should be reviewed'

The Office of Fair Trading has recommended that ITV's contract rights renewal mechanism be reviewed in light of the broadcaster's multiplatform presence and reduced market share.

ITV has said that the relaxation of CRR, which was put in place at the time of the ITV plc-creating merger of Granada and Carlton and is designed to protect advertisers against any possible abuses of ITV's dominant position in the ad market by reducing the amount of money they have to commit to ITV1 on an annual basis, is essential to its survival.

"The OFT remains of the view, endorsed by most respondents, that it is necessary to remit this matter to the Competition Commission in order to amend the definition of ITV1 in the remedy to take account of various ways in which the programme schedule is delivered," the Office said, referring to ITV1's presence on cable and satellite.

"We recommend that the Competition Commission should also consider whether the decline in ITV1's market position means that it is now possible to find a more proportionate remedy, which creates less costs and distortions than CRR but would nevertheless address any remaining detrimental effects of the merger arising from ITV1's unique position in the supply of mass audiences."

The OFT commenced a review of CRR with Ofcom in January 2008.