Ofcom provisionally conclude that strict advertising rules are not ‘justified’ or ‘proportionate’.

The potential for fewer restrictions on PSB channels: Ofcom provisionally conclude that rigid advertising limitations are no longer ‘justified or proportionate’

Following a call for evidence last year, Ofcom have provisionally concluded that stricter advertising requirements for commercially-funded PSB channels are no longer ‘justified or proportionate’.

Rules imposing advertising restrictions on PSB channels were introduced over 30 years ago, and set out a framework in which PSB channels (such as ITV, Channel 4 and Channel 5) would be subject to more rigid advertising restrictions than non-PSB channels (such as ITV 2, 5 USA and Pick).

Specifically, PSB channels are only permitted to advertise for an average of 7 minutes per hour, apart from during peak times in which advertising for an average of 8 minutes per hour is permitted. Non-PSB channels, on the other hand, are authorized to broadcast 9 minutes of advertising per hour, as well as an additional 3 minutes of teleshopping.

On 19 April 2023, Ofcom launched a consultation offering two proposals:

1. To bring PSB channel advertising restrictions completely in line with those for non-PSB channels; or
2. To bring PSB channel advertising restrictions in line with those for non-PSB channels, whilst preserving limitations on the number of internal breaks allowed in programmes on PSB channels.

The second option is preferred by Ofcom. Alternatively, Ofcom may also decide to maintain the status quo. The deadline for responses to the consultation is 31 May 2023.

Under both proposals, PSB and non-PSB channels will be subject to the same maximum limit of 12 minutes of television advertisements and teleshopping per hour, of which no more than 9 minutes can be television advertisements. However, under the second option, PSB channels will remain subject to limitations on internal breaks in programmes. For example, under the second proposal, PSB channels would only be permitted to show one advertisement per half-an-hour programme, whereas non-PSB channels would be able to show two.

Ofcom have said that any changes would not “significantly” impact the range of services, or “materially affect” audiences’ perception of the quality of these services. Ofcom have also reassured audiences that other regulatory restrictions (such as licence obligations) are an effective mechanism for maintaining levels of quality that audiences expect from PSB channels.

These changes are being proposed following significant changes in television services over the last 30 years. Indeed, both PSB and non-PSB channels are facing increasing competition from digital streaming platforms (such as Netflix, Amazon Prime Video and Disney +), as well as on-demand television such as ITVX and Channel 4 OD. In light of these developments, the government has introduced a draft Media Bill which sets out a developed regulatory framework for on-demand television, which will (as with PSB and non-PSB channels) be regulated by Ofcom. For further information on the government’s proposals in this respect, please see our blog on the draft Media Bill here.

Next steps

The deadline for responding to the consultation is 31 May 2023. The consultation can be accessed here.

Authored by Oliver Wilson, Alice Russen, and Celine Al Asadi.