Chris Smith Announces Review Into Public Service And Commercial Operation Clash At BBC
The Secretary of State for Culture, Chris Smith, has appointed Dr Whish, professor of Law at King’s College, London to head up the first of three reviews into the commercial aspects of BBC operations, in order to establish whether the BBC is abusing its status as a public service broadcaster by using licence-fee payers’ money to subsidise commercial operations.
The move follows calls from the industry, including commercial online media and information services and magazine publishers. Whish will review the BBC’s commercial policies and fair trading rules to establish whether there is enough separation between the BBC’s public service broadcasting and its commercial arm, BBC Worldwide, which, among other things, advertises its magazines on BBC television.
The review will begin later this year, after the General Election expected in May. It is likely to be followed by two more investigations, described by the Department of Culture, Media and Sport as “formal reviews” of BBC services including News 24 and BBC Online. These new services have been the cause of contention with news providers including ITN, who objected to the BBC offering its news services free to mobile phone operators and websites, gaining what rivals felt was an unfair monopoly (see BBC Makes Promises, ITN Makes Threats).
In an interview with the Financial Times today, which coincides with the deadline for submissions about the communications white paper (see White Paper Paves Way For Communications “Revolution”), Chris Smith stated that the “overwhelming view” on the white paper was that the government “got it right”.
Among the BBC’s newest enterprises is a scheme looking into ways of developing a licence fee-funded service for mobile phone users. The service is likely to be a general information and text messaging service and is part of plans by former Telewest employee Ashley Highfield, who joined the BBC as its first media director last October.
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