THE HAGUE, 07/10/06 - TV stations are to be given more freedom for sponsorship of programmes by companies.

The cabinet decided Friday "to ease the possibilities for title sponsorship and merchandising for public broadcasters in programmes relating to culture, sport and charity. For commercial stations, title sponsorship will be allowed without restrictions, with the exception of news and current affairs programmes".

The cabinet embraced the conclusion of the Commissariat for the Media (Commissariaat voor de Media) that "title sponsoring and merchandising, as well as being a source of income, are also means to strengthen the bond between public and programme. These possibilities are permitted within the existing media law." A more far-reaching relaxation of the sponsorship regime for public broadcasting is also possible, but "this is a matter for the next cabinet".

The cabinet is aiming "to create a level playing-field between commercial stations active on the Dutch market, regardless of the country from which they broadcast." This is being done "by permitting or increasing the possibilities such as split-screen advertising, accepting 'slogans' and the minimum length of advertising blocks." Some commercial stations broadcast from Luxembourg.

Research bureau TNO has calculated for the cabinet that the total television advertising spend in the Dutch market will grow from 850 million euros in 2005 to 1.2 billion in 2012. The absolute share in television income of public broadcasting will grow slightly to 2007 and then stabilise at 175 million euros, it predicts. "This offers a financial framework for the public broadcasters sufficient to continue their public task," according to the cabinet.