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Michael Grade appeared to have won a major victory today as the Office of Fair Trading told the Competition Commission that it must take another look at the rules it set up to protect advertisers when ITV was formed through the merger of Granada and Carlton in 2003.
The so-called Contract Rights Renewal ensured that ITV could not force up airtime prices once it had a virtual monopoly and guaranteed that ad rates fell if audiences declined. As satellite, Freeview and cable have brought many extra channels, the flagship ITV1's audience has fallen sharply. John Fingleton OFT chief executive said: "Changes in ITV1's market position and programme delivery mean it is time to take another look. We recommend retaining some protection for advertisers and media buyers so that all parties have an equal playing field."
ITV said it welcomed the reference to the Competition Commission and said it planned to produce plenty of evidence in support of its campaign to scrap the system. The Commission is expected to take at least six months by which time Grade will have relinquished his executive role as chairman.
