C4 and Five to carry more breaks in films

Robert De Niro in Taxi Driver

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Channel 4 and Five will introduce an extra ad break in most films from 1 September, potentially generating up to tens of thousands of pounds in extra revenue per movie.

The moves follow the publication of stage one of a review of Ofcom's Rules on the Amount and Distribution of Advertising (RADA). The key changes include allowing films to carry one ad break every 30 minutes, instead of every 45.

The watchdog will also lift restrictions that force broadcasters to place ad breaks within TV programmes at 20 minute intervals, as well as allowing 30-minute documentaries, current affairs shows and religious programmes to carry ad breaks for the first time.

The moves have been unanimously welcomed by ITV, C4 and Five, although an ITV spokeswoman said it was unlikely to increase the number of ads in its movies until 2009, because the 2008 schedule had been decided.

Simon Bevan, head of broadcasting at media agency Vizeum, said the changes would mean broadcasters could "significantly" increase their earnings from sponsorship rights, particularly for movie premieres.

"You are allowing film sponsors to get an extra two buffer spots, which if leveraged correctly could result in substantial revenue increases, particularly for terrestrial movie premieres," Bevan said.

C4 head of airtime Merlin Inkley said the changes - particularly the end of the 20-minute rule - were "extremely sensible", and would allow for more natural ad breaks in programmes.

"It gives audiences a much better viewing experience, rather than cutting to a break soon after the opening credits," he said.

Five head of regulatory affairs Martin Stott said the rules finally gave films a "level playing field" and that the broadcaster would air more of them as a result.

"Because of these restrictions it has made more commercial sense for us to screen two 60-minute dramas or two documentaries, rather than a film, because you couldn't show as many ads," he said.

Ruth Cartwright, TV manager at media agency MediaVest, said that, in the long term, broadcasters could expect to up their yearly revenue from advertising between 5% and 10% thanks to Ofcom's softened approach.

Film advertising in particular is targeted at a younger, more upmarket audience, Cartwright said, creating potential to push revenue further for each channel as advertisers vied for space.

Ofcom will publish a consultation paper on stage two of the RADA review in the autumn which will look at possible changes to the amount of advertising an d teleshopping permitted on television.