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06|12|05

Ofcom publishes its review of cross-promotion rules

Ofcom today publishes proposals for the future regulation of cross-promotional activities by the commercial television broadcasters.

Cross-promotion is the promotion on one television channel of another channel or service, such as ITV1 promoting programmes on ITV3 or Channel 4 promoting E4 or E4's availability on cable, satellite and Freeview.

Ofcom inherited the current rules from the Independent Television Commission (ITC) and has a duty to review them in order to ensure that they remain relevant and appropriate.

Ofcom has considered whether it remains appropriate to regulate cross-promotion on both a content and competition basis. The preliminary conclusions of its analysis are that, with the exception of two specific areas, it is appropriate to de-regulate and remove the current rules. In particular, Ofcom is proposing to remove the 30% shareholding requirement (where the promoting channel must have a shareholding of at least 30% in the promoted channel or service) and replacing it with more flexible guidance. As far as the content of cross-promotions is concerned, Ofcom proposes to use the Broadcasting Code wherever appropriate, rather than separate dedicated rules.

Ofcom proposes the following two rules:

• a requirement on all commercial television licensees to limit the subject of cross-promotions to broadcasting-related services. This is necessary in order to protect consumers from promotions that provide no benefit to their viewing experience and might resemble advertising.
• a requirement on ITV1, Channel 4 and Five to maintain neutrality between digital retail television services and digital platforms. This is particularly important as analogue-only homes must make choices about digital television services in the run up to digital switchover. Consumers should have the opportunity to make informed decisions about their choice of digital retail television service or digital platform.

Cross-promotion by the BBC

Ofcom has no powers to regulate the BBC's cross-promotional activities and the review makes no proposals in respect of the BBC. However, Ofcom considers that the analysis and proposals for regulation set out in its consultation document have equal application to the BBC as to commercial broadcasters. Ofcom has discussed its views with the Department of Culture, Media & Sport (DCMS) which is in the process of its BBC Charter review. Ofcom considers it important that the White Paper should require the BBC to adhere to the same set of requirements as that imposed on ITV1, Channel 4 and Five.

Ofcom’s consultation on the review of the cross-promotion rules closes on 17 February 2006. The consultation document can be found at:

http://www.ofcom.org.uk/consult/condocs/promotion/

Ofcom today also publishes two research reports that were undertaken to inform the review: Television promotions – what the viewers think; and Analysis of current promotional activity on television. They can be found at:

http://www.ofcom.org.uk/research/tv/reports/promotion

Ends.

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