BroadcastNow! wrote:ITV commercial boss Rupert Howell has admitted the broadcaster is "scrapping for its life" as part of an impassioned eleventh-hour plea for product placement to be permitted in the UK.
Howell said product placement would give a vital cash injection to both ITV and UK indies, and help the broadcaster retain its commitment to its programming budget.
"It probably won't amount to much [to start with], but neither did sponsorship, and that now brings in £50m a year," he said.
"We are scrapping for our lives at the moment. We need every source of revenue possible – I don't care how small it is, we need it. We are counting the pennies, not just pounds. Every little helps."
Howell's plea follows an email to staff from chief operating officer John Cresswell last week in which he said that the advertising downturn was likely to put the commercial broadcaster under "severe strain". Widespread cost-saving measures will be revealed at ITV's 4 March financial results.
The Department of Culture, Media and Sport is finalising a review of the European Union Audiovisual Media Services Directive, which covers product placement. The review is due in the final week of this month.
Media secretary Andy Burnham revealed his concern that product placement would blur the boundaries between programming and commercials when the review was announced in July 2008.
Burnham's antipathy caused consternation in the industry, and independent producers have also been lobbying hard to convince him to change his mind.
Endemol UK's head of corporate development Alastair Roberts said he estimated product placement could be worth £100m to broadcasters and the indie sector.
If it is approved, Endemol will first look to feature products in its non-scripted factual and lifestyle programming. "Those are the areas where, from what we can tell, ad agencies are very, very interested," said Roberts.
"Across the industry, though, drama is under a lot of pressure at the moment, and if producers could receive funding [as a result of] a character driving a certain type of car, it would help enormously."
Roberts said that US shows such as Desperate Housewives and Lost proved that product placement would not damage the integrity of British TV.
"Viewers are savvy, and if a placement is too overt, they will soon find something else to watch," he said.
They'll be asking for sponsors
during programming next (the norm in the US).
Would anyone miss ITV if it were to go to the wall?