John
09-13-2009, 07:24 PM
Culture Secretary Ben Bradshaw is expected to announce the move, which could be worth £100m a year to commercial TV, in a speech this week.
It represents a U-turn by the Government, which previously thought product placement was "blurring the boundaries" between advertising and editorial content.
But the financial problems faced by ITV and other commercial broadcasters as the recession hit advertising revenue forced ministers to rethink the rules.
Mr Bradshaw is now poised to announce that the "climate has changed", and placement should now be allowed "in certain circumstances".
An ITV spokesman said the company "warmly welcomed" the move and believed it would benefit viewers.
He said: "ITV plc has led the campaign for product placement in the UK, which could be an important new revenue stream - as it already is in Europe.
"Reforming the UK prohibition would also be a welcome acknowledgement of the pressures currently faced by an industry in transition.
"New sources of revenue means better funded content - which can only be good news for viewers."
Peter Bazalgette, the creator of Big Brother, said the introduction of product placement was "hugely overdue".
Writing in the Sunday Mirror he said: "My prediction is that it could be worth £100 million a year to commercial TV.
"Product placement needs to be done transparently, with credits that make it clear it has taken place.
"But you have to trust the consumer. If it's overdone or tasteless viewers will switch off."
The new rules will not apply to the BBC, which will remain banned from promoting products, even on shows made by independent production companies.
Children's programmes will not be affected either, with the ban understood to be staying in place across all networks.
Under the current law, programmes are allowed to use products such as laptops and clothing as props, but are forbidden from receiving payment for the placement.
This is in stark contrast to US television where product placement is common, including on American Idol, the country's most-watched show.
The judges on the talent contest sit behind a desk with drinks glasses bearing the Coca-Cola logo, which is blacked out when the programme is shown on UK TV.
It represents a U-turn by the Government, which previously thought product placement was "blurring the boundaries" between advertising and editorial content.
But the financial problems faced by ITV and other commercial broadcasters as the recession hit advertising revenue forced ministers to rethink the rules.
Mr Bradshaw is now poised to announce that the "climate has changed", and placement should now be allowed "in certain circumstances".
An ITV spokesman said the company "warmly welcomed" the move and believed it would benefit viewers.
He said: "ITV plc has led the campaign for product placement in the UK, which could be an important new revenue stream - as it already is in Europe.
"Reforming the UK prohibition would also be a welcome acknowledgement of the pressures currently faced by an industry in transition.
"New sources of revenue means better funded content - which can only be good news for viewers."
Peter Bazalgette, the creator of Big Brother, said the introduction of product placement was "hugely overdue".
Writing in the Sunday Mirror he said: "My prediction is that it could be worth £100 million a year to commercial TV.
"Product placement needs to be done transparently, with credits that make it clear it has taken place.
"But you have to trust the consumer. If it's overdone or tasteless viewers will switch off."
The new rules will not apply to the BBC, which will remain banned from promoting products, even on shows made by independent production companies.
Children's programmes will not be affected either, with the ban understood to be staying in place across all networks.
Under the current law, programmes are allowed to use products such as laptops and clothing as props, but are forbidden from receiving payment for the placement.
This is in stark contrast to US television where product placement is common, including on American Idol, the country's most-watched show.
The judges on the talent contest sit behind a desk with drinks glasses bearing the Coca-Cola logo, which is blacked out when the programme is shown on UK TV.