FT Digital Media & Broadcasting Conference: Ed Richards supports the BBC’s strategic review
Ofcom CEO Ed Richards was quick to support the BBC’s new strategic review at this morning’s FT Digital Media & Broadcasting Conference.
The corporation’s latest bid to appease commercial rivals and a potential incoming Tory government is “hard to argue with”, according to Richards, who believes the review offers some “positive suggestions”.
To Richards, the BBC’s pledge to spend more money on content and less on overheads makes sense, although he admits the document is likely to raise as many questions as provide answers. Despite this, Richards praised the BBC for asking its own questions about scope and boundaries.
In terms of Ofcom’s role in all this, Richards said the regulator hasn’t asked whether the BBC is too big or not. Although previous reviews of the public service broadcaster haven’t found evidence that the BBC is overcrowding the market, according to the CEO.
Around 3 or 4 years ago, the media industry regulator looked at whether the pay-TV market was losing out as a result of the BBC. At the time, subscriptions to pay-TV services were not lower than in European markets, despite having a strong PSB [the BBC] in the UK, Richards said.
However, he is aware that it may be different on an individual level, especially when it comes to advertising. When asked whether maybe it was time for a proper review of the BBC, Richards told delegates that one is scheduled in another 3 or 4 years time and wouldn’t necessarily be moved forward
Despite his support for the BBC, which he calls the cornerstone of public service broadcasting, Richards claims to understand the need for a healthy set of commercial networks. As a result, the BBC, which Richards admits is “very generously funded”, needs to show care and consideration of their PSB remit in the commercial market.
Although when asked whether this means the BBC should redistribute money to rival broadcasters, such as Channel 4, Richards passed the buck – “it’s a matter for the government”, he said.
On consolidation, a topic that was discussed on several occasions today, the Ofcom chief said a Channel 4 and Five merger was still a possibility, although would be “challenging”.