Viacom axes PHD as Omnicom Channel 5 blackout continues
MTV owner Viacom has ended its deal with media agency PHD after five years as sub brand Channel 5’s dispute with Omnicom Media Group continues.
The media shop won the broadcaster’s UK £2m business in 2010 from Equinox without a pitch before assuming responsibility for sister channel Comedy Central three years later. Its remit covered communications strategy and buying across MTV’s channels in the region that saw it work alongside the company’s creative shops.
Viacom confirmed the split to The Drum but refused to be drawn on how much its decision had been influenced by the ongoing dispute between Channel 5, which it acquired from Northern & Shell for £460m last year, and PHD’s owner Omnicom.
The advertising network stripped £30m worth of TV advertising from the channel last summer that has meant big ad spenders such as McDonald’s and Apple will not appear on the channel until the blackout ends.
It is likely that Viacom will now seek out a new agency.
The broadcaster’s decision to walk away from PHD comes as it looks to mastermind Channel 5’s growth spurt amid intense competition for eyeballs from rival broadcasters, streaming services such as Netflix and online platforms such as YouTube.
Viacom sees Channel 5 as a portal into the valuable UK media market and has vowed to invest in its stable of brands which also includes Five USA and Five Star. At the time of the purchase, the broadcaster said the channel was the only commercial public service broadcaster to grow viewer share consistently in recent quarters.