The review is due to begin in January 2008 and is being carried out in conjunction with Ofcom, the independent communications regulator.
ITV has welcomed the review of the mechanism put in place in 2003 prior to the Granada-Carlton merger. In a general release, ITV announced it would make “the strongest possible representations to the OFT to conclude the processes within a year from now, giving advertisers and commercial broadcaster the certainty needed to contract airtime and plan levels of programme investment for the calendar year 2009”. This is in the hope that amendments made to the CRR can be in place for the beginning of the trading season in October 2008.
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.
In late August, the OFT confirmed that ITV had requested the CRR review.
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