Companies will be allowed to sponsor entire television channels and radio stations for the first time under new rules unveiled today by Ofcom, the media regulator.

The move will broaden the opportunity for radio and television groups to earn advertising revenues amid increased competition from the internet and steep declines in viewing figures for traditional channels.

The new rules expand the previous code, which allowed the sponsorship of individual programmes for the past 15 years.

However, the measures will subject to a strict set of rules. Broadcasters will be unable to name channels after the sponsor, and Ofcom has ruled that a "sponsor's presence on the channel should not be unduly prominent".

The regulator will also prohibit the sponsorship of news and, for television, current affairs programmes.

It has also prohibited specific product categories from sponsoring certain kinds of programmes. For example, alcohol brands are not allowed to sponsor children's programmes and gambling companies may not sponsor programmes aimed at under 18s.

Ofcom said in a statement: "Channel sponsorship represents a new opportunity for broadcasters, however it is important that transparency, editorial independence and appropriate protection for the audience are maintained."

Ofcom said the decision to expand the rules governing sponsorship, which had previously limited companies to sponsoring individual programmes, followed consultation with the industry earlier this year.

It added that viewers must be made aware of the sponsorship arrangement and the sponsor's credits must be separated from all other editorial and advertising content on the channel.

Times Recommends

• C&G axed - 1,660 jobs to be lost
• UK house prices rise 1.1% as buyers return
• Mixed reaction to US banks repaying bailouts