ITV: Broadcasting reform is urgent
ITV has launched a plea to the government to overhaul the “archaic” regulatory system it says is strangling the industry.
Chairman Archie Norman used the firm’s annual Parliamentary Reception to implore MPs to tear up the broadcasting rule-book.
Norman said: “You must be wondering why we have put on this party when we can’t afford to pay a dividend. There is an underlying motive… We are working under an archaic regulatory system. We are the second biggest investor in programing after the BBC and we want to be able to continue to invest in quality drama, sports and entertainment programing.”
Culture secretary Jeremy Hunt said: “The regulatory framework in place was developed in a time before Google had a higher turnover than ITV. It is a changing media landscape and we will look at ways of updating regulation to allow outlets like ITV to continue to produce quality programing.”
He made specific reference to the announcement last month that product placement rules will be overhauled, which analysts estimate could net ITV an additional £100m a year.
Ofcom says it will allow paid-for product placement in some programing but will restrict the types of products that can be placed.
Companies advertising gambling, tobacco, alcohol, baby milk and medicines will be banned from product placement, as will sellers of salty and sugary food. It also said product placement will be banned in all children’s, news and current affairs programmes.
The proposals also include a requirement for broadcasters to let viewers know which programmes contain product placement through the use of an on-air symbol at the start and end of shows.