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MEPs agree to more frequent TV ads

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Published 09 May 2007
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advertising audiovisual policy Television Without Frontiers
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The Parliament’s culture committee, on 8 May, gave its backing to a compromise text, reached with the German Presidency, that would allow more commercial breaks and US-style product placement in television and other audiovisual broadcasts.

MEPs in Parliament's Culture Committee, on 8 May 2007, backed a compromise deal between its rapporteur and the German Presidency, which will dilute current limitations to advertising on television and in other new audiovisual media services, including on-demand content and internet broadcasts. 

The main elements of the compromise text are: 

  • Product placement, by which branded goods are integrated into TV programmes for advertising and which is currently illegal in most EU member states, is to be allowed, so long as the viewer is informed by a signal at the start and the end of the programme and after commercial breaks. Product placement will nevertheless be banned in news and current affairs programmes, children's TV, documentaries and advice programmes. 
  • Advertising in TV broadcasts will still be limited to a maximum of 12 minutes per hour, but more frequent breaks in films will be allowed – every 30 minutes instead of the current 45 minutes – and only programmes that are less than half an hour long, rather than the current 35 minutes, will be spared from interruption. 
  • Children’s advertising will be subject to a binding code of conduct that, for instance, limits junk food commercials aimed at children (advertising food that is high in fat, sugar or salt). Member states will have the right to block youth-endangering content on the internet. 
  • Ensuring TV access for disabled people will also be an obligation. 
Positions: 

Ruth Hieronymi MEP, EPP-ED spokesperson on media affairs and rapporteur on the Directive, said that she would recommend that the plenary adopt the common text without amendment, adding: "This is a good opportunity to guarantee television in the future both as a cultural and an economic good." The new compromise she said would both ensure the protection of minors and promote cultural variety. 

But shadow rapporteur, Helga Trüpel (Greens/EFA)  criticised Hieronymi for undermining the democratic role of the Parliament by attempting to "fast-track this back door agreement", which she says will lead to audiovisual media across Europe "falling victim to American-style advertising and product placement". 

"Under the compromise, EU audiovisual media will be exposed to much more pervasive advertising than ever before. No programmes will be spared with all forms of broadcast - from news to films to children's programmes - being overrun by advertising. The introduction of a legal framework for product placement for the first time means there will be no escaping the creeping commercial incursion into private life. It goes completely against the principles of the UNESCO convention on cultural diversity that the European Union strongly supports and so do the Greens. Therefore, we will continue to try and convince MEPs not to endorse this regrettable compromise in plenary." 

European Broadcasting Union (EBU) Secretary-General Jean Réveillon welcomed the compromise text, saying that it would ensure a level playing-field for all actors in the market. He added: "The Audiovisual Directive, which covers all audiovisual media services, reflects today's reality and a vision for the future. It will contribute to the development of Europe's audiovisual landscape." 

Next steps: 
  • 24 May 2007: The 27 EU ministers in charge of media and culture are expected to back the compromise 
  • July 2007: Possible second reading vote in plenary on the compromise text. 
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Background: 

On 13 December 2005, the Commission proposed revising EU rules on television broadcasts – and, in particular on advertising – currently enshrined in the 1989 Television without Frontiers Directive, last revised in 1997. 

The Commission says that changes are justified by the emergence of new technologies such as TV-on-demand, internet television and digital, hard-disk-based recorders, which are capable of automatically suppressing advertising blocks. Television companies fear that these developments, together with changing viewing habits, will threaten their most important source of revenue, namely the advertising time sold to producers of consumer goods. 

Following a first reading in Parliament and Council, German Conservative Ruth Hieronymi, rapporteur for the culture committee, has hammered out a compromise text with the German presidency, which must still get final approval from the full Parliament and 27 member states. 

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