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Companies in the U.K. will now be allowed to sponsor entire television channels and radio stations for the first time, thanks to new laws unveiled by media regulator Ofcom.
The move will help radio and television groups to earn increased advertising revenue amidst increased competition from the internet and declines in viewing figures for traditional channels, writes The Times.
Broadcasters cannot name channels after their sponsor, however, and a sponsor’s presence on the channel should not be “unduly prominent,” according to Ofcom. News and current affairs programs are prohibited from sponsorship. Specific product categories are also prohibited from sponsoring certain kinds of programming. For instance, alcohol brands may not sponsor children’s programs.
Viewers must be made aware of the sponsorship agreement.
The decision followed consultation with the industry earlier this year, Ofcom has said.
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