Channel 4 Opposes ITV’s Record Ad Deal

Channel 4 has lodged a complaint with the ITC over ITV’s £320m advertising deal with Unilever, claiming that it breaks competition rules.

The deal for Unilever to advertise its brands across the ITV network, which was signed in May (see Unilever Signs Record UK Airtime Deal), is the largest in UK history, but Channel 4 believes it breaches the rules that prevent the two main ITV companies, Carlton and Granada, from acting as a single sales house.

Carlton and Granada each own over 50% of the TV advertising market and as such are prevented from acting as a single ITV company. However, Channel 4 suspects that the two companies acted together in order to secure the Unilever deal.

Channel 4 has written to the ITC questioning the validity of the agreement, but is understood to have received an “inadequate” response. A spokesman for the channel said that a variety of options are being considered, which could include taking the matter to the Office of Fair Trading.

Yesterday Channel 4 announced its decision to fold its film production arm FilmFour LTD back into its parent company with the loss of up to 60 jobs (see Channel 4 Calls Time On Film Production Arm). Speaking at an internal meeting earlier in the week Channel 4 chief executive, Mark Thompson also laid down a manifesto for leaner, more imaginative organisation, warning that the next year would be one of “transition” with some “striking changes in the schedule” (see Thompson Warns Of Possible Job Cuts At Channel 4).

Channel Four: 020 7396 4444 www.channel4.com

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