Rules around sponsorship and product placement within programmes could be updated to reflect the modern broadcasting landscape following calls by the nation’s biggest commercial broadcasters.
Media regulator Ofcom has agreed to hold a consultation “by the end of March 2027” after Sky, ITV, STV and Channel 4 said current rules are putting them at a disadvantage compared to US owned streaming services.
The channels’ comments were made in response to an Ofcom call for views on which broadcasting regulations it should review.
Responding to that call, Channel 4 wrote: “The rules around product placement, sponsorship and advertiser funded programming in Section 9 of the Broadcasting Code apply only to UK broadcasters, and not to major online content services and online platforms with whom PSBs and other UK broadcasters are in fierce competition for audience attention and advertising revenues programmes on traditional broadcasters and not to content on streaming services and YouTube.”
Similar points were made by Sky in its response and by ITV and STV which submitted a joint response as the holders of the Channel 3 licence across the UK.
The joint ITV/STV response also states: “There is now a huge volume of US content available to UK audiences where the makers of those programmes face no constraint under product placement rules.
“There does not seem to be any particular concern from UK audiences in relation to this content, indeed, the reverse, they are consuming it in large volumes.”
Both they and Sky suggested that rules which mandate the use of an on-air logo to denote the presence of product placement should also be relaxed.
Sky’s submission says that moving to a simple text-based warning, as happens on streaming services, would be better as there is “likely low understanding / awareness” of the currently mandated logo.
All of the submissions also expressed unhappiness at rules restricting the prominence of sponsors, with Channel 4 setting out how they’d prevented it from keeping Lego Masters on air.
The show, which was not sponsored by Lego, aired for two series. When the broadcaster decided it was too expensive to keep airing, Lego offered to part fund further runs.
However Channel 4 said: “We were unable to recommission the programme under this arrangement because the current rules on undue prominence and product placement restrict the extent to which we can feature the product of a sponsor or funder of the programme.
“This is the case even if they had no editorial influence and the programme was commissioned without their input.”
In its response Sky highlighted how its sports coverage regularly includes sponsorship messages and branding within stadiums and on team kits but that it “is unable to show on-screen graphics from the same brands.”
Ofcom says plans to hold a consult “on proposed changes to advertising, sponsorship and product placement rules” are part of its efforts to ensure viewers continue to benefit from “a sustainable” broadcasting sector.