New online advertising rules

More ads in internet television on demand will stimulate the market, says Brussels

Video one demand will now contain more advertising

The European Commission has agreed on new rules for advertising within online 'televeision on demand' content.

The new Audiovisual Media Services Directive is due to take effect by the end of this year. It will allow more advertising and product placement, as long as viewers are informed.

The aim is to make the market more competitive for advertisers.

The directive still allows countries some flexibility to set stricter national rules.

The UK's Creative Industries Minister Shaun Woodward welcomes the deal. It avoids too much regulation and will lead to more television and online services, he says.

Broadcasters will remain limited to 12 minutes of advertising per hour, but the directive scraps the current limit of three hours per day.

EU Media Commissioner Viviane Reding says the new legislation would bring Europe's audiovisual policies into the 21st Century.

'It promises less regulation, better financing for European content and higher visibility to Europe's key values, cultural diversity and the protection of minors,' she said.