News International pulls ads off ITV

LONDON - News International and News Group Newspapers have pulled all advertising from ITV in a stand-off over price.

The Murdoch-owned group, whose titles include The Times, The Sunday Times, The Sun and News of the World, has not spent any money on ITV since March.

Until that point, according to industry sources, ITV benefited from up to 60% of the group's total TV spend which in 2001 totalled around £20m.

Market estimates suggest that the papers spent £1.2m on ITV in January, £1.7 m in February (traditionally high-spending months for newspapers) and just £23,000 in March. Since March no money has been spent on ITV although money continued to be spent on Channel 4, Channel 5 and BSkyB, in which Murdoch has a 40% stake. Radio is also thought to have benefited.

The dispute is believed to centre on the fact that newspapers are traditionally penalised by TV contractors, in some cases paying up to 20% above station average price (ITV's ratecard), because of their need to place 'short term' advertising after the advanced booking deadlines have passed in order to promote offers.

It is possible that the Murdoch titles may have used the fact that their contract with ITV is up for renewal, together with the channel's recent poor audience performance, to negotiate a better deal.

Nick Canning, marketing director of The Sun and News of the World said: "We are currently in negotiations with ITV, we have no intention of not using it in the future."

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