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ITV today gave a cautious welcome to reports that MPs could soon relax or even abolish Contract Rights Renewal, the tough regulations on advertising prices at Britain's biggest commercial terrestrial broadcaster.
The Competition Commission, which is completing a review into CRR, has opposed abolition.
But the X Factor broadcaster's hopes have been raised after Labour Chief Whip Lord Davies said the government could have the power to overrule the commission without passing new legislation.
Those close to ITV said signals from Labour and the Tories offered a “glimmer of hope”. A spokesman said: “ITV is firmly of the view that CRR is outdated, disproportionate and unnecessary.”
CRR, introduced after the 2003 merger of ITV companies Carlton and Granada to restrict the power of the biggest TV channel, can put a cap on advertising rates and allows ad buyers to keep beneficial terms rather than renegotiate.
Paul Richards, analyst at Numis Securities, said news that the Government could overrule the commission was “pretty extraordinary”.
Richards said the end of CRR would mean a “gradual reflation in ITV's ad rates”, but “not double-digit increases”.
