Commercial Communications post AVMS Old Issues, New Problems

Transcription

1 Commercial Communications post AVMS Old Issues, New Problems EPRA, Tallinn 7 th May 2009 Chris Banatvala Director of Content & Standards

2 Contents 1. Implementing the AVMS in the UK 2. Audiovisual Commercial Communications 3. Old Issues, New Problems 4. Conclusions

3 Implementing AVMS - The process 11 March policy statement from Minister Legislative Order published late July Ofcom consultations Broadcasting Code in June Co-regulatory arrangements in September Legislation comes into force on 19 December

4 Implementing AVMS The policy approach for VOD Narrow definition of VOD services Focus on content editors Exclusion of aggregators Co-regulatory system for VOD Content Industry-led Responsible for content regulation (incl. product placement and sponsorship) Guidance on scope criteria Co-regulatory system for VOD Advertising: Advertising Standards Association Ofcom to retain backstop powers

5 Contents 1. Implementing the AVMS in the UK 2. Audiovisual Commercial Communications 3. Old Issues, New Problems 4. Conclusions

6 ACC - Amount of advertising on television Current rules stricter than TVWF: Non-PSBs: 9m an hour average PSBs: 7m an hour average but no more than 8m an hour average between 6pm - 11pm Following AVMS: New insertion rules: 20m rule removed Considering relaxing limits on teleshopping Consulting on new minutage rules: Maintain status quo More advertising: allowing PSBs same amount as non-psbs allowing PSBs to schedule more advertising between 6pm and 11pm Less advertising: cutting non-psb minutage to the level of PSB minutage 5

7 ACC Product placement Currently prohibited After AVMS: Not permitted in programmes made by/for UK broadcasters Permitted in VOD and in UK broadcast of acquired programmes No undue prominence Prop placement permitted, subject to significant value test

8 Contents 1. Implementing the AVMS in the UK 2. Audiovisual Commercial Communications 3. Old Issues, New Problems 4. Conclusions

9 Value of being a PSB is in decline 520m 390m Regulatory Assets - Spectrum - Access to DTT and EPG position 185m 2003/ / /13 Source: Ofcom estimates

10 The internet is taking a growing share of the shrinking advertising pie Advertising spend by medium (nominal prices) Advertising spend ( bn) Other Internet Radio Television Newspaper Growth 5 year Annual CAGR -6.8% -2.0% 17.3% -8.7% -4.9% -12.0% 48.0% -2.9% 0.5% -3.3% Source: Advertising Association statistics published by Note: CAGR = compound annual growth rate. All figures are nominal. 9

11 Viewing on new platforms is growing fast Over 1/3bn iplayer programmes requests in 2008 Million requests at end of each month 400 Total: 362m (est) /04 iplayer launched on Virgin Media iplayer requests via Virgin Media iplayer requests online 0 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Source: BBC/Virgin Media press releases/ofcom Notes: Virgin Media figures for November and December are estimates. Programme requests do not include radio shows, or requests made via games consoles or mobile devices. 10

12 Old Issues, New Problems sponsorship credits Blurring of boundaries Pushing the boundaries One such example is sponsor credits: QUESTION: When does a sponsor credit become an advertisement? Ofcom rules: sponsored programmes must be clearly identified as such by reference to the name/and or logo [ ] at the beginning and/or end of the programme Credits must be clearly separated from programmes and not contain advertising messages or calls to action. In particular, credits must not encourage the purchase or rental of products or services of the sponsor or third parties.

13 Let s look at some examples 1. Virgin Media sponsoring Channel 4 Big Brother 2. Nestle Cereals sponsoring GMTV Weather 3. Carphone Warehouse sponsoring ITV The X Factor

14 Old Issues, New Problems sponsorship by non-commercial organisations AVMS Definition of sponsorship: Any contribution made by a public or private undertaking or natural person who is funding a programme with a view to promoting its name, its trade mark, its image, its activities or its products Appears to include funding of programmes by non-commercial organisations (e.g. government departments, charities). AVMS rules (like TVWF) do not allow programmes to encourage purchase or rental of the sponsors products/services BUT do not specifically refer to the promotion of, name, trade mark, image and activities (as per definition). QUESTION: Does this mean that sponsorship is about economic activity and the rules do not apply to non-commercial organisations?

15 Let s look at one example ITV Beat: Life on the Street

16 Contents 1. Implementing the AVMS in the UK 2. Audiovisual Commercial Communications 3. Old Issues, New Problems 4. Conclusions

17 Conclusions Broadcasters looking for new funding models Product Placement ban = restrict sponsor references in programmes Ofcom Broadcasting Code review radio research More pressure on traditional broadcasters Growth of VoD with a more favourable regulatory regime Level playing regulatory field?