Ofcom: PSBs facing “increased competition” from new players

New entrants into the UK TV market, including over-the-top online video services such as Netflix and Amazon, could ultimately reduce audience share and revenues for public service broadcasters, according to Ofcom.

Ofcom’s third review of public service broadcasting states that UK PSBs are facing “increased competition” from on-demand and online video services; however, the report reveals a solid viewer satisfaction with the broadcast channels, which include the BBC, ITV, Channel 4 and Channel 5.

In research published on Monday, audiences told Ofcom that public service broadcast is meeting their needs with 77% of viewers satisfied with PSB channels, up from 69% in 2008.

While the report recognises that PSBs may come under threat from new competition, the regulator says that such competition could stimulate “greater innovation” and better quality programmes, as well as helping PSBs to better meet audience needs.

If current trends continue, Ofcom’s view is that the PSBs “should be able to maintain current levels of delivery and output.

“But on-going changes in the sector could present both opportunities and challenges for PSB,” the regulator said.