Plans to ban junk food ads for children means unhealthy profits for broadcasters

by Sarah Woods Brand Republic 13-Jun-06, 12:30

LONDON - Television companies are at risk of losing £140.8m of the total £5.6bn UK TV ad revenue, if plans to ban the advertising of food and drink to children before 9pm are approved.

The proposals, outlined in a report by media watchdog Ofcom and which include options based on restricting the content, timing, sponsorship and volume of food and drink ads, could lead to broadcasters losing out on advertising, sponsorship and subscription revenue.

According to Ofcom figures, terrestrial TV including GMTV, ITV, Channel 4, S4C and Five would suffer a loss of 3.9%, equaling a decrease of £113.8m in revenues during children's airtime as part of a total £2.9bn revenue brought in by the terrestrial channels.

GMTV would be the biggest loser of the terrestrial channels with 6.7% of revenue at risk, compared with the lowest drop of 0.2% for S4C.

Children's channels such as Cartoon Network, Trouble, Nickelodeon, Nicktoons, Boomerang and Nick Jr face a loss of 3.7%, with total TV revenues down £4.4m during children's airtime.

Nicktoons would take the full impact of the children's channels' loss with a 7.4% loss, compared with 2.3% for Nick Jr.

Ofcom says that action against advertising junk food to children is appropriate and necessary against a background of public health concerns over rising childhood obesity due to the over-consumption of unhealthy foods.

The figures are revealed as part of a public consultation that closes on June 30, with decision on whether to ban junk food advertising before 9pm made soon after.

Last month, education secretary Alan Johnson published nutrition guidelines to ensure healthier eating in schools and will also ban meals containing low quality meat.

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