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Update Spain's advertisers don't want TV mergers - 04-March-2009, 14:30

Spain's advertisers don't want TV mergers

Spain's advertising market does not want broadcasters to merge after the government has approved a new law allowing them to do so, in order to fight the media crisis. TV advertisers argue the new law will limit negotiations for buying ad space on TV.

"The law goes against the principles of free competition and at the same time means for the advertisers serious problems when optimizing their advertising investments," said Juan Ramn Plana, Advertisers Spanish Association's general director. "We want our advertising messages to be transmitted in the freer and most economic way but this law goes against the free competition. The advertisers need an open market, more plural and with people who negotiate the contracts with".

The Association wants 12 minutes of ads per hour of programming in the next Audiovisual General Law the government plans to launch in Spring, as it announced last year.

Approved on February 20, the new law has cleared the way for the private broadcasters to merge. It shows the lack of a clear television business model, according to the Association. The previous law dating from 2005 was the contrary to this new one since it tried to diversify the channel offerings. This is how the government of that time pushed the DTT law but now it seems to draw back from that philosophy.
   
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