http://www.iht.com/articles/2009/03/11/business/place.php?WT.mc_id=techalert

Britain retains ban on product placement in TV shows

Reuters
Wednesday, March 11, 2009
LONDON: Britain will not allow broadcasters to use product placements
in their programming despite the collapse of traditional advertising
revenues, the government said on Wednesday.

The decision provoked a sharp response from ITV, the biggest
commercial free-to-air broadcaster in Britain, which described the
ruling as perverse and baffling and said it would examine whether
there was a case for judicial review.

The culture minister, Andy Burnham, said the government had examined
the idea of introducing branded products on screen — as is
increasingly common in the United States — but had decided to keep its
current ban in place.

"I am well aware that a number of commercial broadcasters are facing
difficult economic times and I will continue to work with the industry
to explore ways we can support them," Burnham said. "But my preference
is to consider all other avenues before allowing product placement.

Burnham added, "There is a lack of evidence of economic benefits,
along with very serious concerns about blurring the boundaries between
advertising and editorial."

Under the rules, product placement will continue to be banned in
programs made by and for British television broadcasters. It will
continue to be allowed in video-on-demand programs, and in films and
television programs acquired from outside Britain, subject to
limitations and safeguards.

British broadcasters have been hit in recent years by an outflow of
advertisers and viewers to the Internet and niche digital channels.

ITV said last week its advertising revenues slumped almost 20 percent
in the first quarter, leading it to cut 600 jobs and sell assets.

"Given the extraordinary economic pressures ITV, and others, face, we
can't let a decision like this simply go through without trying to
fight it," said Michael Grade, the executive chairman of ITV.

A smaller broadcaster, Channel 4, however, said it welcomed the ruling
and agreed that product placement could confuse the lines between
editorial storylines and advertising. Burnham said the government
would review the position on television product placement again in
2011-2012.

Voice of the Listener & Viewer, a consumer interest group, welcomed
the continued ban, saying it had been urging the government "to stand
firm against pleas from the television industry to permit product
placement, and on behalf of the television viewers we represent we
congratulate him for doing the right thing on a difficult issue."


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