Jowell: Digital TV Is More Than ITV Digital
The Secretary of State for Culture, Media and Sport, Tessa Jowell, has made a statement to the House of Commons this morning regarding ITV Digital. In it she expressed concern about the plight of businesses, football clubs and employees affected by the situation, but said that her “first concern now is for the subscribers.” She emphasised that it was important to restore stability to the digital TV market in order to reassure consumers, describing the current problems as a “bump on route” to the switchover process.
Jowell’s statement opened with an emphasis on the fact that “this is an issue with reverberations far beyond the boardroom of ITV Digital.” However, while acknowledging that the Government has a direct interest in terms of being concerned for the businesses and people affected, and underlining her close contact with the various parties involved, she went on to say: “There is always a risk in such ventures, especially in relation to markets built on new technology. It is precisely for this reason that I would not intervene directly on what is essentially a private matter between a company and its creditors. The Government’s role is to protect the wider public interest.”
The wider public interest evidently means the maintenance of competition in the digital TV market and, from the Government’s point of view, the push towards switchover. On this subject, Jowell pointed to the progress made so far and stated: “We have very good reasons to be positive about the future as new cheap set top boxes are coming on the market and scope increases for improved quality of picture and reception.” These she expects to see rolled out “as soon as the current uncertainty has been resolved”, which she expects to happen “within a matter of two weeks.”
There were some disparaging words for those behind the failed business, as Jowell acknowledged that “The business has made commercial judgements which have turned out to be unsuccessful.” and went on “The hard truth is that this is a failure of a company, not of a technology.”
“My contact with the industry suggests that there are established and new industry players wanting to have a go at making this proposition work” she continued “I have always made clear that the switchover process must be driven by consumer demand…the most important thing now is to restore certainty and predictability for consumers so that they can make their own, informed choices.”
Jowell’s speech did not contain much comfort for those consumers who have spent money on the service however, as she was unable to say for certain what would happen to pay TV services other than to repeat that “If and when the service for which the licences have been granted cease to be provided and the licensee no longer fulfils the terms of its licences, the Independent Television Commission will begin the process of revocation of the licences for the digital terrestrial multiplexes formerly used by ITV Digital”. She did, however, say that she was confident that free to air services will remain in place without interruption and that the administrator was confident that a sale of the business will be achieved.
With regards to the many Nationwide League football clubs affected by the situation, again, the DCMS head was unable to offer much more than supportive words and a watchful eye: “Clearly, the failure of ITV Digital to meet their contract with the football clubs will be a further blow for many that are already facing financial difficulties.” she said, ” I welcome the fact that the chief executive of the FA will bring together the various organisations with the power to help navigate football and the clubs through this difficult time. Government will offer all support to the efforts of that group”
Jowell ended with an assertion that the end of ITV Digital was not the end of the UK’s digital TV aspirations: “The success of DTT should not be equated with the position of one commercial operator. The fact that ITV Digital has not succeeded will not deflect us and the broadcasting industry from making a reality of the digital future. Digital TV is more than ITV Digital.”
DCMS: 020 7211 6200 www.culture.gov.uk
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