Ofcom says CRR is still on back burner

by Ian Quinn, Media Week 17-Oct-06

Ofcom has rejected calls by MTV sales house Viacom Brand Solutions to reinstate its review of the TV trading system, saying it will not revisit the issue for the time being.

Last week, Media Week reported that Viacom Brand Solutions boss Nick
Bampton had called on the regulator to put the future of contract rights
renewal (CRR) and agency deals back under the microscope, claiming the

existing system was damaging TV advertising.

Yet, despite the call by Viacom and lobbying from ITV to have CRR
ditched, as well as growing support from some agency quarters, Ofcom was
this week insistent it was not for turning, in the short term at
least.

A spokesman for the regulator said: "There were several reasons for the
review to be put on hold when the decision was announced last December,
and there are no current plans for it. That could change in the
future."

In December, Ofcom justified its decision to scrap the review, despite
concerns having been raised by the Competition Commission, on the
grounds that it had "received no complaints regarding the operation of
the television advertising sales market", adding: "There is no strong
evidence of consumer detriment arising from the workings of the market
as currently constituted."

Other broadcasters disagree strongly with VBS's call for an end to
CRR.

Five director of sales Kelly Williams said: "I do not believe that CRR
is damaging the business. I believe that CRR is doing the job it was
brought in to do and that's to stop ITV exploiting its power in the
marketplace.

"The reasons for the state of the TV market are much more complicated
than CRR."

The Ofcom spokesman added that it was down to the Office of Fair Trading
to decide whether to investigate ITV's call for an end to CRR.

Nick Bampton profile, page 18.