Ofcom Publishes Second Phase of PSB Review
Ofcom has today published the second phase of its review into Public Service Broadcasting (PSB), unveiling plans for an extra £145 – 235 million in replacement funding by 2012.
The review found that in order to sustain PSB programmes on channels other than the BBC, “replacement direct or indirect funding is likely to be necessary”.
Ofcom also revealed findings of strong audience support for alternative public service provision to complement the BBC – “Audiences value the BBC very highly, but virtually nobody favoured it becoming the only provider of public service content.”
The second phase review supported Channel 4’s argument for extra PSB money, predicting that the broadcaster will need additional funding of around £60 – 100 million to sustain investment in public service content.
However, it also stated that the estimated amount excluded the cost of “its ambitious Next on 4 proposals.”
The published review comes just a week after Ed Richards, Ofcom’s chief executive, warned that Channel 4 faced a £100 million a year funding gap by 2012 because of the “external situation” in the market (see Ofcom Warns That Channel 4 Faces £100m Funding Gap).
Speaking before the Royal Television Society last Wednesday, Richards said: “To break even, Channel 4 would need to cut its investment in public service content year on year to 2012.”
However, the review suggested that Channel 4 would receive the extra funding it requires to “have an extended remit to innovate and provide distinctive public service content across platforms.”
The review also proposed reducing the PSB obligations on ITV and Five next year so they can concentrate on British content and news until their licences expire in 2014.
The biggest changes to ITV, which prioritise peak time coverage, involve a restructuring of ITV’s regional news services in England and the Scottish borders.
ITV released a statement welcoming Ofcom’s phase two paper, saying: “We have consistently argued that the regulatory costs and commercial benefits of holding the ITV plc licences need to be re-balanced between now and analogue switch off in 2012.
“The outcome of these reviews is also of crucial importance to ITV plc’s ability to sustain investment in UK production.”
Ofcom: 020 7981 3040 www.ofcom.org.uk