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Broadcasters force MPG to pay upfront for TV airtime deals.(Media Planning Group)(Brief Article)
The dispute between commercial TV broadcasters and media agencies has come to a head, with Media Planning Group electing to pre-pay for media rather than submit to demands to increase its levels of bank guarantees.
The disagreement originally surfaced in May when ITV Network Limited - a consortium comprising Channel 4, Channel 5 and ITV - demanded agencies increase their credit insurance to cover the cost of their clients' TV spend (Campaign, 3 May).
The broadcasters wanted each agency to have a debt-to-equity ratio of one to one, in order to reduce their exposure to debt in the event of an ...
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