Broadcasters in product placement outcry

Ian Darby, Campaign 12-Jun-08, 07:00

LONDON - Broadcasters have appealed to the Government to keep an open mind on the issue of product placement, following the Culture Secretary Andy Burnham's comments that it would "contaminate" programming and lead to a "decline in trust" among viewers.

Appearing to rule out a relaxation of UK rules banning product placement, Burnham said that while the Government would consult on the issue after a new European directive opened the way for liberalisation, product placement was a line that we should not cross.

Reacting to the remarks, ITV said: We welcome the forthcoming consultation process and will take an active part in that debate. As with any consultation process, we would expect all parties to
approach this with an open mind.

Privately, however, ITV sources are disappointed that Burnham has adopted such a hard line.

Ofcom has estimated that a relaxation of UK rules on product placement would generate around £100 million a year in extra revenue for broadcasters.

ITV’s share price was hit following Burnham’s speech.

Agencies expressed concern over the comments. Mark Eaves, the managing director of the content agency Drum PHD, said: This feels a retrogressive step for the UK when, actually, positive regulation would deliver greater transparency to the viewer.

Comments

Colin Donald - 12/06/2008

There is a clear contradiction in government policy here. The culture secretary wants to maintain the ban on television product placement. He also wants to extend regulation to include Internet video content. Futurescape's research indicates that product integration is a crucial source of funding for Web shows such Endemol’s The Gap Year on Bebo, with Sony, Canon and the RAF all signed up. Extending the same regulations from broadcast TV to online video would lead to a product placement ban. Yet the minister also has a responsibility to support the creative economy and a ban would seriously harm a new sector, Web shows, that benefits advertisers, agencies, new media companies and TV indies. The minister needs to clarify in what ways TV and online video are similar and so need the same regulatory regime – and in what ways online video is to be left alone.