Industry Gives Cautious Welcome To White Paper
Yesterday’s Communications White Paper produced a mixed response from the media industry. The blueprint for the regulation of communications in the digital age was welcomed with caution by most industry bodies, and drew criticism for dodging important issues such as cross-media ownership and the creation of an independent regulator for the BBC.
While ITV companies welcomed the move for further consolidation in the TV industry, advertising bodies, ISBA and the IPA, the Institute Of Practitioners in Advertising, are concerned that advertising rates will increase if the ITV is allowed to become a single broadcasting company.
“The writing was probably on the wall with regard to the old regulations as soon as the Competition Commission made its ruling in the Carlton/United/Granada debate,” said Jim Marshall, chairman of the IPA’s media policy group. “However, what replaces these controls is vitally important. While the White Paper cites that most EU member states agree there is a need for specific rules additional to those enshrined in competition law, it is by no means clear what these might be – or how they would work. These things are not just important but critical in preserving an open and competitive market place for advertisers.”
The Incorporated Society of British Advertisers (ISBA) welcomed the “general thrust” of the paper but expressed concerns over “the low level of significance” it gave to advertisers.
Malcolm Earnshaw, ISBA’s director general, said: “This Paper could in many ways prove to be an “opportunity missed” by the Government to take a fuller account of the place advertisers and consumer need at the centre of the future media environment.”
It pointed out the failure of the Paper to bring the BBC under the control of the same single regulatory body as the commercial sector. Although the BBC’s public service remit will be liable to more stringent regulation when the new single regulatory body Ofcom comes into effect, the powers of the corporation’s board of Governors will remain virtually untouched.
Radio groups were also annoyed that the complex points system which regulates the industry was left untouched, although plans for scrapping it are to be raised. Chief executive of GWR, Ralph Bernard, a long-time critic of the system welcomed the proposals, but called for speed in their implementation: “All of the industry and our regulator, the Radio Authority, argued for the restrictive radio points system to be abolished and replaced by competition law. The Government must accept this unanimous view and move to a simpler, and fairer, regime with utmost speed.”
The British Internet Publishers’ Alliance was critical of the failure of the Paper to clarify the role of the BBC online. While welcoming the inclusion of internet regulation under Ofcom, Rob Hersov, chairman of BIPA, said: “We need urgent clarification as to whether regulation of the BBC’s new internet activities remains with the DCMS. We are as yet unclear as to how the new regulatory framework will impact upon the internet and our concerns will remain until we discover how scrutiny on new and existing BBC online services will be dealt with.”
The BBC has come in for criticism regarding its online activities which commercial broadcasters in particular believe oversteps its role as a public service broadcaster.
The Newspaper Society welcomed the lighter touch approach for newspaper mergers but called for a synchronisation of television and radio regulation reform to allow newspaper groups to take advantage of acquisitional opportunities. Regional newspapers with over 20% of the local market are currently prevented from controlling ITV and radio licences within the region.
It welcomes talk on cross-media reform but has reservations about the creation of Ofcom. “We are concerned by Ofcom’s proposed role,” said David Newell, director of the Newspaper Society. “The ASA [Advertising Standard’s Authority] and PCC’s [Press Complaints Commission] role, functions and independence must be maintained. The ASA and PCC should not come under the jurisdiction of Ofcom – nor should newspapers or their online versions.”