Introduction
Ofcom's considerations


Introduction

Ofcom is seeking views on whether they should remove some or all the stricter advertising rules that apply to commercially funded public service broadcasters.

Ofcom explains that all UK broadcasters are subject to restrictions on the quantity and scheduling of advertising on their channels. However, under rules introduced over 30 years ago, the public service broadcasting (PSB) channels (ie, ITV, STV, Channel 4, S4C and Channel 5) are subject to tighter advertising restrictions than non-PSB commercial channels (eg, ITV2, 5USA and Pick).

Ofcom's considerations

Following a call for evidence last year, and having considered the potential impact on audiences and the wider market, Ofcom has provisionally concluded that stricter advertising restrictions on PSB channels are no longer justified or proportionate.

Ofcom is now consulting on two options, to bring PSB advertising rules:

  • fully into line with those for non-PSB channels; or
  • into line with those for non-PSB channels, while retaining safeguards that limit the number of internal breaks allowed in programmes. This is Ofcom's preferred option.

Ofcom explains that under both options, all PSB and non-PSB channels would be subject to the same limit of showing no more than an average of 12 minutes of television advertising and teleshopping spots per hour, of which no more than nine minutes may be television advertising. In each case, existing restrictions on the frequency of advertising in films, news and children's programmes would be kept in place.

Under the second option, the PSB channels would remain subject to stricter rules on the number of internal breaks permitted in programmes. This would mean, for example, that a half-hour programme on a PSB channel would still only be allowed one advertising break, while a half-hour programme on a non-PSB channel would continue to be allowed two breaks.

Subject to responses to its consultation, Ofcom says that it may also consider maintaining the status quo.

Ofcom says that it is considering these modifications due to the significant changes that have taken place in how television is distributed and watched, since these rules were first introduced three decades ago. There is already a vast choice of alternatives to linear broadcast television, including subscription video on-demand services and free advertising-supported television channels that are increasingly drawing audiences' attention.

It is Ofcom's current view that providing PSB channels with the same freedom in advertising minutage and scheduling as other commercial channels would not significantly affect the range of services available to viewers, or materially affect audiences' perceptions of their quality. Ofcom also considers that its other regulatory tools, such as setting licence obligations, are an effective means of maintaining the high levels of quality that audiences expect from PSB services.

Ofcom says that allowing the PSB channels slightly more flexibility in the scheduling of advertising may also strengthen their commercial position as they continue to manage their transition to digital-led organisations and afford them greater opportunity to monetise their content.

According to Ofcom research, most people have limited awareness of the current differences in the amount and frequency of advertising shown on PSB channels versus other commercial channels. Similarly, viewers have not necessarily noticed an increase in advertising minutes on PSB channels following the period of national mourning when they were allowed the same advertising limits as non-PSB channels so that they could recoup lost minutage.

The research also showed that audiences are more likely to tolerate additional advertising if they are assured that the additional revenue generated will be invested in content. Similarly, viewers are more accepting of the potential changes when they recognise that it might not be as disruptive to their viewing experience as they initially feared.

However, Ofcom's findings indicate that an increase in the frequency of advertising breaks on the PSB channels may be more of a concern. This is why Ofcom's preferred option for consultation is to retain limits on the frequency of in-programme ad breaks.

The deadline for responding to the consultation is 31 May 2023.

For further information on this topic please contact Sarah MacDonald at Wiggin by telephone (+44 1242 224 114) or email ([email protected]). The Wiggin website can be accessed at www.wiggin.co.uk.