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15/12/2011

UK TV Gain Ofcom Approval

An independent regulator has given a clean bill of health to the UK TV market following a review into advertising trading and the quantity of TV on UK screens.
Ofcom, Independent regulator and competition authority for the UK communications industries, announced in regard to the review that "no concerns" had emerged.
The regulator examined the way TV advertising is bought and sold, and said that it found no clear evidence of harm to consumers. That is whether they were TV viewers, advertisers or end users of products advertised on TV.
Under the review it was also decided that there was no need for the UK TV industry to be referred to the competition commission. They said it would not be 'proportionate' to refer the UK TV advertising market to the country’s Competition Commission.
The regulator launched the competition review of the TV advertising trading mechanism earlier in the year . They believed it was the right time to conduct a competition review given that the sector appeared to have stabilised following a protracted period of revenue decline and significant changes of ownership.
In addition, a number of developments in viewing and content delivery have occurred over the last decade or so leading to concerns by observers about the structure and operation of the TV advertising trading model.
Ofcom concluded: "In respect of media buyers and broadcasters, given their size and sophistication we found that media buyers understand the terms of their deal with broadcasters and there appears to be no basis for concern. This is consistent with responses from most broadcasters, media buyers and advertisers."
(LB)
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