Industry pleads for product placement

Responses to the Department for Culture, Media and Sport's consultation into product placement officially closed at the end of last week and will inform the government's response to a European Union directive to extend the US practice to Europe.

ITV executive chairman Michael Grade continued his campaign to overturn the ban on the practice in the UK. He said the Ofcom code had “no coherence”, describing it as “complete nonsense” because broadcasters can show films featuring placed products, such as the James Bond series, as well as US series with product placement.

Fears of compromising editorial integrity, raised by culture secretary Andy Burnham when the consultation opened in June, were unfounded, Grade said.

Five wants product placement introduced in all of the permitted genres: everything except news and children's.

It said revenues would be “modest” and would take years to fulfil, and suggested the products featured in a programme should be listed in the end credits or online.

A Virgin spokesman said there was “pretty widespread” backing among commercial broadcasters for a relaxation in the law.

The only note of caution came from Channel 4, which is finalising its submission after being granted a week's extension. It is said to be “lukewarm” because it does not make its own programmes.

“It's one thing for Cadbury to sponsor Coronation Street but product placement opens up a whole different game,” said chief executive Andy Duncan.

“For a relatively small benefit, is it going to be worth opening our programming up to this potential compromise?”

Product placement is estimated to be worth up to£35m a year after five years. If the UK opts out, new legislation would be needed by the end of 2009.

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