Burnham rejects product placement

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Broadcasters, producers and politicians have accused media secretary Andy Burnham of trying to kill product placement in the UK before it has been properly debated. 

Burnham yesterday ruled out relaxing UK rules on the issue ahead of a formal consultation this summer, telling the cross-industry Convergence Think Tank that product placement was a "line that we should not cross".

"There is a risk that product placement exacerbates declining trust," he said. "There is a risk that, at the very moment when TV needs to do all it can to show it is bona fide, we elide the distinction between programmes and adverts. As a viewer, I don't want to feel the script has been written by a commercial marketing director."

Shadow culture secretary Jeremy Hunt was blunt in his criticism of Burnham's stance: "It seems that while a consultation may take place, the secretary of state has jumped the gun and ruled things out even before it has reported its findings."

Burnham's comments are a major blow for ITV, which has been lobbying for some product placement to help balance the decline in spot ads. A spokesman said it would take "an active part" in the consultation and it was important that everyone retained an open mind.

But one ITV insider was more critical: "It's disappointing that the government appears to have set out its stall ahead of the public debate even beginning."

RDF group commercial director Debbie Manners also criticised Burnham's "knee-jerk reaction" to a complex issue. "It's easier to say a flat no than to think about how to do it well," she said. "If we don't find new ways of funding content, we risk money moving to the web or European countries that approve it."

Ofcom has estimated that product placement could be worth up to £35m over five years. Channel 4 said that while product placement would help, its contribution was too small to be worth lobbying over. Five declined to comment.

The government has until next year to respond to an EU directive that seeks to extend the US practice of product placement to Europe. If product placement in the UK is ruled out, new legislation would be needed by the end of 2009.

A DCMS consultation will take place this summer, but Burnham's comments suggest he will not be easily moved. A spokesman said: "The door isn't closed, but he hasn't heard any compelling arguments for it yet."