Product Placement Ban To Stay

In a move which the Government press release states is a was of “preserving standards” in British broadcasting, Culture Secretary Andy Burnham confirmed that the ban on product placement within UK programming would remain. However in-programme merchandise plugs will continue to be allowed in video-on-demand series, and in films and television programmes acquired from outside the UK.

Product placement, a regular sight in American movies and television programmes sees advertisers pay for their merchandise to appear within a programme. For example within the ‘American Idol’ singing contest the judges can be seen drinking Coca-Cola from branded glasses.

Secretary of State for Culture, Media and Sport Andy Burnham said: “My priority has always been to make sure we maintain levels of trust between audiences and broadcasters, and protect the standards of broadcasting for which Britain is known worldwide.

“I have listened carefully to the arguments on both sides around product placement, and concluded that it should not be permitted in programmes made for this country. There is a lack of evidence of economic benefits, along with very serious concerns about blurring the boundaries between advertising and editorial.

“Britain is known around the world for the high quality of its broadcasting output. We need to continue to preserve editorial integrity as technology advances.”

The Government has said it will review the position on television product placement in 2011 or 2012, taking into account the conclusions reached by toothless ‘regulator’ Ofcom on the quantity and the distribution of television advertising, changes in viewing habits and any new evidence about the impact and potential benefits of product placement.

The decision will be bad news for ITV, who had hoped a relaxation of the rules may help the struggling broadcaster with a new found revenue route, a spokesperson for the network said:

“The decision not to allow product placement in UK-originated television programmes is perverse but not surprising given the Secretary of State’s hostility to the idea when the consultation was announced. It effectively rules out an important new revenue stream for those who are committed to investing in and making UK-content. It also comes at a time when investment in programming is under increasing threat from a severe advertising recession.”

“This decision flies in the face of the Government’s own analysis from the recently published Digital Britain report, which highlighted the huge challenges facing commercial media in the UK today.

“It’s particularly baffling because our viewers will continue to see product placement in programmes made outside the UK while domestic producers and broadcasters are prevented from competing on a level playing field.”