Reports have surfaced that Sir Martin Sorrell’s WPP could make the decision to pull all its ads from Channel 4 if it cannot improve the terms of its £200 million a year deal.
Group M, the media buying arm of WPP, is in disagreements with C4 over the cost of TV airtime and could decide not to renew the contract with the broadcaster, which runs out at the end of December.
The Independent has reported that ‘those close to C4 acknowledged that Group M could pull its ads if a deal cannot be reached, although both sides stressed there was still time left.’
Group M, with clients including Barclay’s and BSkyB, accounts for about 27 per cent of C4’s advertising take.
A source said: “It’s a case of who blinks first.”
A C4 spokesman would only confirm to the Independent it is “in the midst of trading season negotiations with media agencies for 2013”. Group M has not commented.