Dame Carolyn McCall, CEO of ITV, has expressed strong opposition to the impending ban on junk food advertisements before 9pm, set to take effect in October 2025. Speaking at the Royal Television Society convention in London, McCall warned that this measure could force the broadcaster to make significant cuts to its programming budget.
The ban, initially proposed in 2021 under Boris Johnson's government and recently confirmed by Health Minister Andrew Gwynne, aims to combat childhood obesity and reduce pressure on the NHS. However, McCall argues that the policy will have minimal impact on its intended goal while causing substantial financial harm to broadcasters.
"We've done loads of research to say this is not going to make a dent in childhood obesity. But it is a political thing and so we're going to have to mitigate it in any way we can."
McCall emphasized that the majority of TV audiences before 9pm are adults, noting that children primarily watch content on platforms like YouTube. The new regulations also include a complete prohibition on online junk food advertisements, further complicating the advertising landscape for broadcasters.
The financial implications of this ban are significant, with analysts estimating that commercial broadcasters such as ITV, Channel 4, and Sky could face annual losses of up to £200 million. This comes at a challenging time for the industry, which is already grappling with a broader downturn in the advertising market due to inflationary pressures.
In response to these financial pressures, both ITV and Channel 4 announced job cuts earlier this year and have reduced their commissioning budgets. The television production industry reportedly experienced a £400 million setback last year as broadcasters curtailed spending on new shows.
Despite describing 2023 as a "really, really tough year," McCall indicated that the advertising market has begun to show signs of recovery. However, she also mentioned that ITV would continue to review its channel portfolio, assessing the profitability and strategic value of each offering.
ITV, founded in 1955 as Britain's first commercial television network, has a rich history of adapting to changing market conditions. The current challenges echo the network's past struggles and transformations, highlighting the ongoing evolution of the broadcasting landscape in the face of regulatory changes and shifting viewer habits.
As the debate over the junk food ad ban continues, it remains to be seen how broadcasters like ITV will navigate these new restrictions while maintaining the quality and diversity of their programming. The outcome of this policy could have far-reaching implications for the future of commercial television in the UK and the broader fight against childhood obesity.