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Lords Communications Committee announces inquiry into regulation of television advertising

27 July 2010

The House of Lords Communications Committee has today issued a call for evidence for an inquiry into the regulation of television advertising

The background to the inquiry is the recent decline in revenues of commercial television companies from the sale of advertising, and its implications for public sector broadcasting. The Committee will look at the regulation of television advertising, paying particular attention to the Contract Rights Renewal (CRR) mechanism.

The Committee will investigate regulatory changes currently under discussion – including product placement and rules on scheduling and sales of advertising.   As part of its inquiry, the Committee will examine how much of the recent decline in television advertising was due to the impact of the economic recession and how much was the result of migration of advertising to the internet, and other causes.

The Committee invites written evidence on areas including:

  • Whether the current level of regulation of television advertising is appropriate
  • What the financial impact might be on television companies if changes are made to the regulation of scheduling and sales of television advertising or if product placement is introduced
  • The extent to which the reduction or removal of the CRR undertakings would affect the commercial public broadcasting sector
  • Whether current arrangements reflect the public interest.

Commenting on the new inquiry, the Earl of Onslow said: “The advertising-funded broadcasting model has served public service broadcasting well.  It is important that, as the media develop, the regulation of television advertising adapts to the times and that the right regulations are in force for the benefit of the industries as well as for the public.

“In this inquiry we want to see how potential regulatory changes and the increasing competition from the internet and other media might affect commercial broadcasting.  CRR has significant commercial implications for the sector and will form an important part of our discussions."

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