ITV sales house merger talks fail to sway adland

June 26, 2003

How long?

1 minute

ITV sales house merger talks fail to sway adland

Advertisers and agencies fear the Competition Commission is poised to push through a merger of ITV's sales houses, allowing the network more than 50% of the airtime market, after negotiations to reach an acceptable remedy failed this week.

The Institute of Practitioners in Advertising and Incorporated Society of British Advertisers have rejected the proposals (Marketing, June 19), leaving negotiations deadlocked. Unless ITV comes up with more proposals, the Commission will be left to make a judgment on August 26.

ITV has threatened to call off its merger if the Commission blocks a merger of its sales houses. Advertisers fear the Commission will allow an ITV merger in return for a deal allowing a roll-over of annual contracts on the same terms, yet enable advertisers to reduce budget share commitments in line with falls in ITV audiences.

Jim Marshall, MediaVest chief executive and IPA representative in the negotiations, commented: "The remedies are unimaginative and do not allow for any future developments."

Topics

Marketing