The OFT said it hoped to have a decision on whether a review will proceed by the end of the summer and confirmed that ITV had requested the reassessment. The independent communications regulator Ofcom is expected to conduct the review if the OFT deems one necessary.
The CRR capping mechanism was introduced in 2004 to prevent the broadcaster monopolising the marketplace after Carlton and Granada linked up to form a newly merged ITV. CRR limits how much ITV can charge advertisers for airtime on its flagship channel ITV1, but does not cover its digital portfolio.
If a review went ahead, any amendments are not expected to come into practice until the 2009 trading season. ITV1 has yet to end a year with a positive CRR position, but its positive July results, which saw its all-adults viewing impacts rise by 23% year on year, has led to speculation that 2007 may be the first year ITV1 avoids losing advertising spend.
The CRR capping mechanism was introduced in 2004 to prevent the broadcaster monopolising the marketplace after Carlton and Granada linked up to form a newly merged ITV. CRR limits how much ITV can charge advertisers for airtime on its flagship channel ITV1, but does not cover its digital portfolio.
If a review went ahead, any amendments are not expected to come into practice until the 2009 trading season. ITV1 has yet to end a year with a positive CRR position, but its positive July results, which saw its all-adults viewing impacts rise by 23% year on year, has led to speculation that 2007 may be the first year ITV1 avoids losing advertising spend.
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