Ofcom proposes new service to incetivise PSB

net1

UK media watchdog Ofcom has published the second phase of its review of public service broadcasting, which includes a completely new public service TV channel to keep the BBC in check. The channel which could be run by Channel 4, ITV or any other group including a newspaper firm. The BBC will be barred from running the service. Ofcom says the competition from a new Channel 4-type operation is needed to help incentivise the BBC to continue operating as a public service broadcaster when analogue TV is phased out in 2012. The new channel will reportedly have a budget of £300 million - nearly twice that of Five and two-thirds of Channel 4's - and could launch as soon as 2012. The money will come from either increased licence fee, a World Service-style government grant, or a tax of the turnover of UK broadcasters.
The report highlights that the existing analogue model of public service broadcasting, which has been sustained for many years by a combination of institutions, funding and regulation, will not survive the transition to digital and may erode rapidly prior to 2012. Ofcom is therefore proposing a new settlement be put in place in order to secure competition for quality before the old model has completely eroded.

The framework has seven proposals:

1. The increasing importance of a strong, independent, fully-funded and public service focused BBC ; funded through a licence-fee model.

2. Channel 4, as a critical second provider of public service broadcasting, to remain as a primarily not-for-profit free-to-air broadcaster, free to form alliances, joint ventures and partnerships with other organisations, with the possibility of asset transfer as a route to create scale and public service impact.

3. ITV1 to play to its strengths in public service broadcasting, contributing through high-quality, UK-originated production, investment in news, regional news and current affairs, with a proposed initial reduction in, then phased withdrawal of, regional non-news obligations. Ofcom also proposes using the greater flexibility afforded by the Communications Act in assessing the delivery of ITV1's obligations such as arts, children's and religious programming.

4. A new approach to programming for the Nations and Regions, with regional production on ITV1 and a rebalancing of some non-news regional responsibilities to the BBC.
5. Channel Five committed to UK-originated programming and acting as a market-led public service broadcaster.

6. A strong independent production sector based on the successful implementation of the new Codes of Practice introduced by Ofcom earlier this year. However, if the programme supply market is not working more efficiently 12 months from now, Ofcom will take further action.

7. A new concept to stimulate innovation and plurality: a competition to run a new Public Service Publisher (PSP) using new technologies and distribution systems to meet audience needs in the digital age. A winning bid could come from any current broadcaster, any media company (except the BBC), an independent producer, infrastructure operator - or a consortium of such companies.

The report also recommends that the BBC's licence fee should be retained until 2016 but there should be a mid-term review in 2011.