IDS investigation delays deals.

IDS's airtime deal negotiations are hit by Telewest's internal review into 'certain business practices'

Airtime deal negotiations by the Telewest-owned sales division IDS have been hit by the internal investigation into alleged commission payments to agencies.

IDS represents the UKTV suite of channels, as well as Bravo, Living TV and Trouble. At the end of last year, the Nasdaq-listed Telewest announced that it was reviewing 'certain business practices' - understood to refer to pounds 5 million of extra commissions paid by IDS to agencies on top of the 15 per cent industry standard for spending clients' money on its channels.

The investigation couldn't have come at a worse time for IDS, led by its managing director, Mark Howe. After a strong 2004, which saw its impacts increase, partly as a result of an increase in commercial minutage and the launch of plus-one channels, it was expecting an increase in its share of ad budgets in deal negotiations.

However, agencies are now rolling over the terms of their 2004 deals until Telewest completes the investigation, allowing the other commercial broadcasters to benefit from its weak position and take extra share points.

Although additional commission payments, or sur-commissions, are known to exist in other media, particularly outdoor, this is the first time TV has been tainted by them. They can take the form of payment for research ...