MediaCom and ITV resolve trading dispute

MediaCom is believed to have resolved its trading dispute with ITV.

It is understood that ITV and MediaCom had disagreed about the volume of TV ad budget to be allocated to ITV2. This is contrary to early reports that claimed the disagreement centred on terms for MediaCom's new-business wins such as Boots and Churchill Insurance.

Sources say MediaCom did not want to commit as large a proportion of its clients' budgets to ITV2 as ITV demanded. Because the two parties could not resolve the disagreement MediaCom called in the Ofcom adjudicator, David Connolly, to judge the terms of the deal that ITV had presented to it.

It is understood that a compromise has been reached and that ITV2 will now carry some advertising from Media-Com clients.

Before the Carlton and Granada sales houses merged, ITV2 was sold separately but it has now been absorbed into the main sales team. However, ITV is still forbidden to conditionally sell the two stations and negotiations must remain separate.

Despite this, there is always confrontation between agencies and ITV over the levels of commitment they give to the channel. Sources said that some agencies had been forced to increase their commitment to ITV2 this year in order to pay back debts caused by the channel over-delivering on audience last year.

A spokeswoman for ITV Sales said that, as the organisation was bound by the terms of the Contract Rights Renewal procedure, she would be unable to comment, and no-one at MediaCom was available to comment as Campaign went to press.

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