UK Broadcasters will soon be able to accept payment for featuring branded goods in their programmes for the first time. Ben Bradshaw, the culture minister, said the government would legislate to allow TV product placement, calling it an “important departure”.

Estimates of the annual revenue generated for broadcasters such as ITV from product placement range between £25 million (E28.5m) and £100 million, while the £3 billion market in TV advertising is forecast to continue its decline until 2012. “Continuing the ban would restrict a new income stream “at a time when this crucial part of our creative industries needs all the support we can give it” said Bradshaw.

As expected, the government will ban paid inclusion of alcoholic drinks, foods that have high levels of fat, salt or sugar, over-the-counter medicines, baby milk, gambling and smoking. Shows aimed at children will be exempt from product placement.

Denmark is now the only EU member state to resist introducing product placement.

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