Consumer watchdog will not oppose Adstream’s acquisition of Dubsat
The Australian Competition and Consumer Commission will not oppose AdStream’s proposed acquisition of Dubsat.
Dubsat offers a number of services including Mediapro, Mediafront, Adsend, Adgate and Mediaportal.
Both Adstream and Dubsat were early pioneers in changing the logistics of handling creative, shifting the service to a digital and satellite program that allowed agencies to transmit creative instantaneously to broadcasters and publishers, rather than sending tapes and proofs through couriers and other methods that would often take days.
The ACCC’s review focused on Adstream’s and Dubsat’s overlap in the electronic delivery of advertising content to print publishers, television broadcasters and radio stations with the review particularly considering the impact of the transaction on magazines and brands that do national or large scale print advertising.
ACCC commissioner, Roger Featherston, said: “Some market participants raised concerns that the acquisition would remove the only alternative third-party supplier of print advertising delivery services, which could lead to higher prices.”
However the review found that the majority of print advertising is already delivered directly to publishers without using the services of Adstream or Dubsat.
“Adstream and Dubsat are also part of a dynamic industry where the options for direct delivery are likely to further improve with technological advancements,” Featherston said.
“The ACCC took into account the changes affecting the print advertising industry and its decline. We believe most publishers will be receptive to advertising content being delivered by direct methods if brands are dissatisfied with Adstream’s prices or service.”
“The ACCC also considered the increasing ability of advertisers to reach audiences outside of traditional media, including digital platforms, that don’t rely on the delivery services of Adstream and Dubsat.”
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