Product placement to be allowed on British television in lifeline to struggling broadcasters
Product placement could be allowed for the first time on British television as the Government throws a lifeline to struggling broadcasters.
Ministers hope lifting the ban could be worth up to £100 million to commercial channels which have been badly hit by plummeting advertising revenues during the recession.
The move - which is likely to prove highly controversial and could be announced as early as this week - represents a major U-turn.
Placement: Pierce Brosnan as 007, complete with Omega watch. Product placement could now be allowed on British commercial television
But the Government is understood to believe that the ‘climate has changed’ and product placement should now be allowed ‘in certain circumstances’.
The shift in the rules will only apply to commercial broadcasters, with the BBC still prevented from promoting products even when programmes are made by independent production companies.
An ITV spokesman welcomed the move. He said: ‘ITV plc has led the campaign for product placement in the UK, which could be an important new revenue stream - as it already is in Europe.
‘Reforming the UK prohibition would also be a welcome acknowledgement of the pressures currently faced by an industry in transition.
‘New sources of revenue means better funded content - which can only be good news for viewers.’
It is understood the ban will also remain in force for all children’s programmes across all networks.
Message from the sponsors: Will Smith as Del Spooner in the 2004 film I, Robot, which features several product placements
A European Parliament directive which came into force almost two years ago allowed product placement in sport and light entertainment programmes, if national governments allowed it.
Most other EU nations have now decided to lift restrictions.
In March, then culture secretary Andy Burnham insisted the ban would remain, warning that lifting it would raise ‘very serious concerns’ about ‘blurring the boundaries’ between advertising and editorial.
But his successor Ben Bradshaw - a former BBC reporter - is poised to announced that the Government has accepted the need to lift the ban ‘in principle’.
Former broadcasting minister Janet Anderson told the Sunday Telegraph: ‘There is nothing to fear from product placement on British television.
‘I don’t think anyone suggests our enjoyment of James Bond films is any less because of the impact of product placement.
‘Allowing it would throw an invaluable lifeline to independent television. I’m glad the Government now appears to have changed its mind on the issue.’
Rife: Judges in the hit U.S. show American Idol with Coca Cola cups, but the logos are currently blacked out on British television
Both the Tories and the Lib Dems have backed changing the rules.
Under current British law, programmes are allowed to use products such as laptops and clothing as props, but are forbidden from receiving payment for the placement.
In the U.S., product placement is rife. American Idol, the most watched show on U.S. TV, includes Coca-Cola logos on the cups of judges, and Ford gives the show’s winners cars.
The logos are blacked out when American Idol is shown in the UK.
Peter Bazalgette, creator of Big Brother, told the Sunday Mirror: ‘My prediction is that it could be worth £100 million a year to commercial TV.
‘Product placement needs to be done transparently, with credits that make it clear it has taken place.
‘But you have to trust the consumer. If it’s overdone or tasteless viewers will switch off.
‘And it’s rife in British television anyway. There’s product placement in movies that go on television and in imported American TV shows and dramas.
‘And what about those sports events where sponsors’ logos are worn on shirts? Product placement won’t dramatically change the way we watch TV.’
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