ITV faces contract changes

15th Sep 2009 07:26

Shares in ITV dropped after the Competition Commission decided that rules on how much the broadcaster can charge advertisers cannot be removed, though it indicated it was willing to alter the terms of the broadcaster's Contract Rights Renewal (CRR) Undertakings. CCR Undertakings were given to protect advertisers from the loss of competition in the sale of TV advertising, following the merger of Carlton and Granada in 2003/4. 'ITV1 has seen a decline in its share of both viewers and advertising revenues since 2003 and there are now more alternatives for advertisers. However, ITV remains crucial for advertisers looking to reach large number of viewers, particularly if this needs to be done rapidly,' said Diana Guy, the Commission's deputy chairman. Possible changes include a proposal to widen the definition of ITV1 to include any ITV+1 or ITV1 High Definition channel that ITV decides to launch. The Commission added it is also seeking views on other ways to address the competition concerns and possible measures to address the unintended effects that may have arisen as a result of the CRR Undertakings.