Broadcasters seek more TV ad time to fight streaming services

Aug 20, 2019 | Video

Mainstream TV channels could soon be allowed to show more adverts as part of government efforts to help them in their battle with online rivals.

According to The Times, talks have begun between public service broadcasters, including Channel 4 and ITV, and the Department for Culture, Media and Sport (DCMS) to discuss lifting the cap limiting the number of adverts allowed per hour, which currently stands at seven.

The move comes as the broadcasters face fierce competition from subscription streaming services such as Netflix and Amazon, which are growing their share of TV viewing time. It could benefit ITV most, which saw its total advertising revenues fall by 5% during the first half of the year.

But the PSBs are also facing a squeeze on their advertising revenue amid pressure from tech giants such as Facebook and Google. TV advertising revenue is set to decline three per cent over the year, according to analysts at Enders.

Under current rules laid out by regulator Ofcom, adverts on ITV, Channel 4 and Channel 5 are limited to an average of seven minutes per hour in off-peak times, while commercial rivals such as Sky have a higher cap of nine minutes.

The UK’s proposals are less strict than European limits, which place a 12-minute cap on ad breaks.

A spokesperson for DCMS said: “The government is consulting on a range of issues in the broadcasting market, including in relation to advertising. We already have strict limits in place on advertising and we have been clear that we have no plans to make legislative changes in this area.”

However, they may pose a challenge to viewers – earlier this year, an Ofcom report revealed that over half of viewers were unhappy with the current level of TV advertising.

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