Government Orders BBC To Redefine Online Services
The Government has ordered the BBC to redefine its £111 million a year online services following the conclusion of a wide-ranging review carried out by former Trinity Mirror chief executive, Philip Graf.
The review, which was commissioned by the Department for Culture, Media and Sport, gave the Corporation four months to respond to criticism that its vast internet operations do not fit within its general public service obligations.
It found that certain sites such as fantasy football, television listings and those devoted to games were not sufficiently distinct from commercial alternatives, or were inadequately associated with public service purposes to justify their remit.
Culture Secretary, Tessa Jowell, welcomed the review was authoritative and constructive. She said: “It is now up to the governors to respond on how they plan to redefine the purposes and aims of BBC Online, so that they are more closely aligned to the public service remit of the BBC.”
Jowell commissioned the investigation last year following claims from the commercial sector that BBC Online distorts the market for internet services and impoverishes the choice and diversity in the overall online ecology (see ISBA Urges Government To Go Further With BBC Online Review).
Bob Wootton, ISBA’s director of media and advertising, said: “The ability of commercial publishers to compete for audiences is likely to continue to be greatly limited as long as the BBC is allowed to exist unchecked in this market.”
Newspaper groups, such as the Guardian and Telegraph, have also been critical of the BBC’s online expansion. The Corporation’s internet services currently benefit from heavy cross-promotion on other BBC media channels to the tune of between £14 million and £85 million.
The review suggests that BBC Online may have an adverse impact on competition in the UK internet market by deterring investment from commercial operators. However, no hard evidence to support this theory was uncovered.
The report recommends that BBC Online should be overseen by two specially appointed governors, who should have access to independent analytical advice on issue such as market impact. It also suggests that at least 25% of online content, excluding news, should be supplied by independent companies.
Graf said: “The online review found that BBC Online delivers high quality material in an effective and user-friendly manner. There are, however, a number of changes, which could improve the experience for users, deliver efficiency, and ensure that the site effectively reflects BBC Online’s priorities.”
The online report will feed into the on-going wider review of the BBC’s royal charter, which runs out in 2006. Last month the Corporation published a detailed vision for how it should operate in the twenty first century (see BBC To Outline Future Role In Charter Review).
BBC: 020 8743 8000 www.bbc.co.uk
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