ITV bosses clashed with ISBA this week after they claimed that the
creation of a single ITV company would be good for advertisers.
Mick Desmond, the managing director of Granada Broadcasting Enterprises,
told the Commons Culture Select Committee that advertising rates had not
risen in the past 18 months, despite predictions this would happen after
the number of sales houses was cut from three to two.
He said that, in a very competitive advertising market, a consolidated
ITV would cut duplication and enable ITV to strengthen its
schedules.
This would deliver more for advertisers by attracting higher
audiences.
Clive Jones, the chief executive of Carlton Channels, told the committee
that a single ITV company - an idea backed by the Government despite
objections from advertisers - would enable ITV to compete on the
European stage but said it was "a long way behind" in the world
league.
He added that allowing the BBC to run just one minute of ads "would
destroy ITV". He said: "It would have such potent force that it would
upset the complete apple cart."
ISBA attacked the claim that a merger of Carlton and Granada would boost
advertisers. Ian Twinn, ISBA's director of public affairs, said: "A
single ITV company would not be good for advertisers. We fear that a
monopoly supplier would create real problems for us and would ratchet up
prices year on year."
Twinn insisted that costs had not risen since the recent consolidation
within ITV because the economic slowdown had forced ITV to offer
advertisers better deals. "If we had one sales house, ITV would be able
to get up to its old tricks," he said.