Ofcom Warns Public Service Programming Could Be Unsustainable
Ofcom today warned that public service programming could become unsustainable in the near future, as it unveiled new proposals that could see the major commercial broadcasters allowed to drop their obligations to such content.
In the regulator’s second review of public service broadcasting (see Ofcom Begins Second Review Of PSB In UK), it warned that the provision of children’s content and programming for the UK could come under threat in the coming years, noting that such content is expensive to produce and is being watched by fewer and fewer viewers.
Research carried out by Ofcom showed there has been a 17% decline in the public service channels’ share of viewing since 2003, increasing to 22% among 16 to 24-year-olds.
With debate focusing around the future public service programming role to be played by ITV, Channel 4 and Five, Ofcom said that the BBC would likely continue making a “strong contribution” in the coming years.
Ofcom unveiled four models for the future of public service programming provision. Chief among these, the BBC, ITV1, Channel 4 and Five could receive funding to help meet their PSB obligations, or, they could have their obligations relaxed.
The regulator also proposed that ITV1, Channel 4 and Five could drop their PSB obligations altogether.
The third option proposes that Channel 4, and other providers, could vie for public funding to provide additional competition to the BBC.
Finally, Ofcom proposes opening up the PSB market to a range of new public service programming providers, in addition to ITV1, Channel 4 and Five.
Last month Ofcom abandoned its plans for a new Public Service Publisher, saying the suggestion had served its purpose in the debate on the future of public service broadcasting by emphasising the importance of digital media (see Ofcom Abandons Plans For PSP).
Chief executive , Ed Richards, said there was an ongoing challenge for delivering PSB on commercial channels. “Overall, the pressure of audience fragmentation, the pressure of alternative media, the pressure on advertising revenues is unlikely to decline,” he added.
The regulator has also today suggested four possible future methods of funding public service broadcasting, such as direct public funding like direct taxation or from the proceeds of spectrum auctions; taking money from the BBC’s licence fee, or “retaining the excess licence fee funding currently ring-fenced for the digital switchover help scheme”, or “using BBC assets to support other providers”; imposing an industry levy; and using regulatory levers such as giving out spectrum at below-market rates or changing advertising minutage rules (see Increase In TV Ad Minutage Would Damage Efficacy).
Ofcom estimates that £130 million of “implicit funding” for PSB output has already disappeared out of the commercial sector, a figure predicted to rise to £300 million by 2012.
The regulator said: “Our preliminary view is that new funds should be found to succeed the declining implicit subsidy for commercial public service broadcasting and to maintain plurality in the delivery of public service content.”
Ofcom warned broadcasters that while viewers are increasingly watching programming online, “it does not currently constitute a substitute for public service broadcasting”, because people still spend more time watching television and not everyone has access to the internet.
The regulator concluded: “It is clear that the regulatory and funding model which supports today’s public service broadcasting framework has had its day. It is too fixed in linear media and too inflexible. As a result, it is unsustainable.”
Richards said: “Public service broadcasting is at a crossroads. Viewers still want a mix of high quality UK-made content, but the traditional television model is not enough to meet all their needs… now is the time for a wide-ranging debate looking carefully and dispassionately at all the options.”
Ofcom is inviting comments on its proposals by 19 June and in the autumn will conduct a second, more detailed consultation on the future of public service programming provision. It will also focus on regional and children’s programming and the future of Channel 4.
Ofcom: 020 7981 3040 www.ofcom.org.uk/