Ofcom considers TV ad sales deregulation

Ofcom has revealed plans to deregulate television advertising sales on ITV1, Channel 4 and Five for the first time in seven years.

At a public meeting today, Ofcom chief executive Ed Richards will unveil the regulator's draft Annual Plan for 2010/11, including provision for a relaxation of ad sales rules.

In a speech, Richards will say: "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's consultation will review the Airtime Sales Rules which it retained during the last advertising review in 2003, when Carlton and Granada merged to create the united ITV plc.

Currently enforced under Section 318 of the Communications Act, the Airtime Sales Rules require ITV1, Channel 4 and Five to sell all of their advertising minutes, which means that they are unable to limit the supply of available slots to drive up prices.

The watchdog will now consult on whether ad sales teams at the commercial public service broadcasters should have to operate under such restrictions.

It will also consider the merits of harmonising rules governing advertising minutage and break patterns for PSBs and other broadcasters.

The draft plan says: "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."

Ofcom's ad sales consultation will now run until February 17, followed by further communication on the issue "over the next few months".

Any changes would potentially come into force by autumn to coincide with the time when broadcasters and advertisers start negotiating fresh 12-month contracts to commence on January 1, 2011.