European Commission to change rules on public funding for broadcasters

The European Commission has revised the rules on public funding for broadcasters to ensure that commercial broadcasters are not at a disadvantage.

Commercial broadcasters have argued for more public money in recent months to offset the decline in ad revenues, which has had an impact on the industry across Europe.

Additional funding is a necessity for most broadcasters to carry out their obligations through the digital switchover period, however, the government has already turned down Channel 4’s request to finance the digital switchover with BBC licence fee money.

The EC’s changes are set to include more control of new services that are launched by public service broadcasters, as well as clarifications over the inclusion of pay services in the PSB remit.

The new rules will also focus on accountability and transparent evaluation of the overall impact of new publicly funded media services.

Neelie Kroes from the Competition Commission, said: “The new Communication strikes the right balance between the interests of public and private media, to ensure healthy competition in the very rapidly evolving media environment, to the benefit of Europe’s citizens.

“Public broadcasters will be able to take advantage of the development of digital technology and internet-based services to offer high quality services on all platforms, without unduly distorting competition at the expense of other media operators.”

Information Society and Media Commissioner Viviane Reding added: “The adoption of this Communication will give additional legal certainty to the media sector in Europe and ensure a fair competition between public broadcasting and private media.”

European public service broadcasters currently receive over £22 billion a year from licence fees or direct government funding.