Brought into place to protect agencies and clients from any abuse of ITV's position in the market following the merger of Carlton and Granada, the CRR, which links ITV's advertising deals to the ratings performance of ITV1, could be ripped up and replaced by a new system in 2006 in a wider review of TV trading being conducted by media regulator, Ofcom.
According to the latest estimates, CRR sees ITV standing to lose up to an estimated £180m in ad revenue from its flagship channel.
With the trading season getting into full flow, ITV's rivals are lining up to take advantage, with the broadcaster desperate to convince agencies that the bulk of the money likely to come out of ITV1 should be ploughed back into its expanding range of digital channels.
The latest report from ex- Starcom Motive vice-president Connolly bills itself as the calm before the storm, pointing to rising tension between ITV and agencies in the run-up to what is a vital period for ITV.
The atmosphere, he said, has been exacerbated by the management shake-up at ITV Sales, which saw the departure of ITV Sales managing director Graham Duff and chief executive of ITV Broadcasting, Mick Desmond.
Although no official complaints were received by the adjudicator in the previous two quarters, Connolly said: "In recent meetings with the adjudicator, certain media agencies have reported a concern over the approach ITV adopts towards day-to-day trading issues in the months leading up to contract renewal.
"Additionally, some agencies have expressed an apprehension regarding the management changes at the broadcaster and the implication this might have for future negotiations."
Although ITV bosses are striving to keep their protests low key, it has been quietly campaigning behind the scenes for an end to the CRR.
Some predict ITV may be persuaded to support an ending of practices, such as agency share deals – which it is widely thought Ofcom disapproves of – in return for CRR disappearing off the agenda.
In its place, ITV wants a system which reflects the growing importance to its proposition of its digital line up.
But the Institute of Practitioners in Advertising has said it is "essential" for CRR to remain.
The Incorporated Society of British Advertisers, which predicts a "turbulent" trading season, added that CRR had been an effective weapon against ITV exploiting its dominance.
ITV Sales managing director Gary Digby said he believed the adjudicators report had been "positive".
Connolly said in the report that ITV's behaviour had been good, but that media agencies had reported its approach becoming more "unforgiving" in recent months.
He said some agencies have complained of overt conditional selling of ITV's digital channels.
"Most [agencies] have commented on a strong sense of 'you're not in our club unless you support our multi-channel offering', presumably with the inference that not adopting such a stance would be detrimental to their business."
As well as the practice of "bundling" its digital channels into its terms, ITV has also clamped down in relation to the penalties for cancellation and deferment of ad campaigns, the report revealed.
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