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18|11|05

Minutes of the Thirty Third Meeting of the Ofcom Content Board, held at Copthorne Hotel, Newcastle On 18 November 2005

Present

Richard Hooper -Chairman
Sue Balsom - Member (minutes 1 – 39)
Floella Benjamin - Member (minutes 1 – 39)
Kevin Carey - Member
Jonathan Edwards - Member
Rosemary Kelly - Member
Matthew MacIver - Member
Kip Meek - Senior Partner, Competition and Content (Ofcom)
Tim Suter - Partner, Content and Standards (Ofcom)
Kath Worrall - Member

In Attendance

[Withheld from published minutes]

Apologies

Sara Nathan Deputy Chairman
Pam Giddy Member
Adam Singer Member

Minutes of the Meetings held on 28 September and 10&11 October 2005 (Content Board Minutes 31(05) & 32(05)) and Matters Arising

1. The minutes of the Content Board meetings held on 28 September and 10 and 11 October 2005 were AGREED, subject to a few small amendments.

Content and Standards Group Report

2. Tim Suter updated Members in relation to current Content and Standards people and policy issues. Members NOTED that a colleague had recently returned to the Content and Standards group from the ASA and that the temporary role of another colleague had been made permanent within the Content and Standards group. In relation to policy, it was NOTED that the group was continuing to develop the 2006/7 annual plan. Identified priorities were NOTED to be: future approach to PSB; work with co-regulators and listed events. Members NOTED that the programme of work in relation to Radio Licensing was expected to continue into the future.

Rolling Forward Plan of Content Board Agendas

3. Members NOTED the schedule CB 128(05) which set out the rolling forward plan of the Content Board agenda to March 2006. It was AGREED that items identified at the Content Board awayday would be scheduled into the forward plan for 2006.

Ofcom Board Meetings of 27 September and 11 October 2005

4. Members received a report on the Ofcom Board meetings held on 27 September and 11 October 2005. The main points to note were that : [Withheld from published minutes]

Members NOTED that the organisational changes made recently had been felt to be successful and NOTED an update in relation to colleague departures from Ofcom. [Withheld from published minutes]. Members discussed Ofcom’s position in relation to the decision of the EU Commission on the Football Association Premier League. It was NOTED that Ofcom’s recently created International Group would provide Ofcom with a focus on European issues in the future.

Members’ Interests

5. No Members declared interests for incorporation into the register of interests.

Digital Local Content and Interactive Services

6. Paper CB 130(05) was presented to Members, which contained an update in relation to work undertaken to understand the potential benefits of local content and interactive services, an evaluation of alternative ways of delivering the services, an assessment of possible business models and an evaluation of the case for public intervention to support local digital content services. Members were reminded that the PSB Review had identified local content, delivered by digital television and broadband, as one of the elements of Ofcom’s proposed model for the future of regional and national broadcasting. It was NOTED that digital technologies opened up a range of new possibilities for local content, and that as ITV1’s regional commitments declined in the run-up to digital switchover, local services might be a more effective way of securing public benefits. Members also NOTED that if the Secretary of State ordered the development of a licensing regime for digital local television (as empowered under the Communications Act), it would be Ofcom’s responsibility to develop and implement it. Members NOTED it was important that local television delivered via DTT should not come to be seen as the only option for the future, and that other possible approaches to securing public and social benefits of local services should be properly considered.

7. Members considered the draft report which contained the analysis, and which would be published at the end of the year to meet the undertaking made in Phase 3 of the PSB Review. Members NOTED that the objectives of the report were to:

8. The Content Board NOTED the main findings of the research and analysis to date:

9. The Content Board NOTED the following conclusions from the report:

10. Members NOTED that in order to make progress in this area the main tool at Ofcom’s disposal was control over the allocation of spectrum. [Withheld from published minutes]

Members NOTED the executive’s proposed policy on spectrum management.

11. In relation to the role of the BBC, members NOTED that there were clear arguments in favour of the BBC taking an active role in local content. However, it was NOTED that the BBC’s existing plans are relatively limited in range of content. Members NOTED five options presented by the executive in this area and NOTED that the executive felt that these options required careful evaluation by Ofcom, Government and the BBC, before a decision was reached. It was NOTED that the executive proposed that Ofcom should be open minded about all these options rather than coming to a settled view.

12. In relation to the future of the RSLs, Members NOTED that RSL operators had lobbied for:

Members NOTED the executive’s proposals in relation to the future of the RSLs.

13. Members gave consideration as to what formal advice to give to the Ofcom Board in relation to the draft report. [Withheld from published minutes]. It was AGREED that the draft report would be amended to reflect that no mention was made about local radio and this needed to be explained given the title of Digital Local Content, and that there were no RDAs in Scotland. Consideration was given to the effect on Gaelic digital television and radio programmes, and it was RECOMMENDED that this would be a possible area for exploration by the Director for Scotland.

14. Members also gave consideration to the level of interest shown in local programming and the amount of content which was evidentially being created organically. It was AGREED that Ofcom’s approach in this area should be to encourage such content creation and be careful to ensure that market intervention was kept to a minimum so as not to distort the organic creation of content. Members discussed the possible models for regulation in this area and it was FELT that no particular model should be excluded at this stage. Members discussed the possible role of the PSP in the creation of local content. It was RECOMMENDED that the draft report should include reference to the role of local radio in the provision of local content. Members discussed the broadcast of content over broadband and NOTED that an experiment was being conducted to test the bandwidth required to broadcast content. It was NOTED that some areas of the UK were still not able to receive more than 1MB of bandwidth, and it was queried as to whether 2Mbps (as reflected in the draft report) was essential.

Deregulation of future funding sources for television production

15. Paper 130(05) was presented to Members, in relation to three issues broadly linked to the issue of future funding for television production, on which Ofcom had committed itself to consider whether to undertake consultations, in the statement accompanying the Ofcom Broadcasting Code:

  1. whether to permit product placement;
  2. whether to permit television services to appeal to viewers for funds; and
  3. the rules to govern the sponsorship of television and radio channels.

In addition, Members NOTED that Ofcom’s annual plan had committed Ofcom to reviewing developments in sources of funding for commercial broadcasters including advertising, sponsorship and product placement, with a view to a possible consultation on regulatory changes. It was NOTED that all three proposals were deregulatory measures designed to enable broadcasters to access additional sources of revenue.

16. Members gave consideration as to what formal advice to give to the Ofcom Board on whether to consult on a proposal to permit product placement in television programmes, and if so whether to approve the draft consultation presented. Members NOTED the content of paper CB 131A(05) and draft consultation document, [Withheld from published minutes]. Members viewed a video produced by ITV on product placement and gave consideration to the experience of the USA’s self-regulated approach in this area. It was NOTED that in America the Actors and Writers Guild had expressed some concerns as to the effect of product placement on programmes (whilst at the same time indicating an interest in sharing the funding produced. The Content Board NOTED the key points made in the paper and then gave consideration as to their preliminary thoughts on the key questions highlighted in the paper. It was NOTED that the draft consultation document required further work to incorporate these key questions.

17. The Content Board gave consideration to the first question, which would be posed in the consultation, whether the existing ban on product placement was no longer appropriate and whether a move towards a principle of making transparent the distinction between editorial and commercial content should replace the existing requirement for separation. Members NOTED the amount of revenue which it was anticipated would be made from removing the existing ban. [Withheld from published minutes].

18. The Content Board NOTED that in terms of range of programmes, the consultation proposed not to permit product placement in news, current affairs and children’s programmes. [Withheld from published minutes]. It was NOTED that some programmes crossed over into different programming genres and therefore any rules applied would need to be considered carefully. Members discussed the advantages and disadvantages of a policy of removing the ban from sport and entertainment programmes initially to test the effects on the market. [Withheld from published minutes]. It was NOTED that following consultation in this area, the timetable for making a decision would be partly dependent on the timetable for the revision of the EU Television Without Frontiers Directive. It was RECOMMENDED that prior to Ofcom making a decision, research should be conducted to identify the views of consumers. The RECOMMENDATION of the Content Board to the Ofcom Board, was that the consultation should propose that product placement be banned from news, current affairs and children’s programming genres.

19. In relation to the third question, “How should audiences be made aware of product placement?”, Members NOTED that [Withheld from published minutes]. Members AGREED that the key issue in respect of this question was to ensure transparency and therefore AGREED that the Content Board’s view on this issue, [Withheld from published minutes]. Members NOTED that any type of identification which interfered with programme had been found to be unpopular with audiences.

20. Members gave consideration to whether the consultation should propose rules regarding “undue prominence” in relation to product placement. [Withheld from published minutes]. It was NOTED that the basis for retaining the undue prominence rule would be to ensure that the editorial integrity and independence of the broadcasters was not compromised and to avoid programmes being distorted for commercial purposes. [Withheld from published minutes].

21. In relation to the fifth question, “Are all products and services acceptable for product placement?”, Members [Withheld from published minutes].

22. Members then considered what role, if any, Ofcom should play in the commercial arrangements surrounding product placement. Members NOTED that product placement deals would be likely to involve complex negotiations between advertisers, producers and broadcasters. [Withheld from published minutes].

23. Members gave consideration as to whether the consultation should also refer to product placement on radio. The Content Board NOTED that the discussion and work carried out to date about product placement had been focused on television, however it was also NOTED that product placement was also prohibited on radio although without the European legislative requirement to do so. [Withheld from published minutes].

24. [Withheld from published minutes].

25. [Withheld from published minutes].

26. [Withheld from published minutes].

27. [Withheld from published minutes]

28. It was AGREED that the recommendations of the Content Board would be clearly presented in the paper due to be considered by the Ofcom Board on 6 December 2005.

Review of Television Production Sector: Consultation

29. Paper CB 132(05) was presented to Members, which highlighted for discussion three key areas [Withheld from published minutes]. Members also considered the draft consultation document which elaborated on the proposals as discussed with the Board and Content Board in October 2005 and which reflected comments made by the Policy Executive, Content Board and Ofcom Boards at previous meetings.

30. Members considered [Withheld from published minutes].

31. The Content Board gave consideration to the issue of the definition of a qualifying independent producer. It was NOTED that following the discussion of policy proposals with the Content Board in October, [Withheld from published minutes] the Content Board RECOMMENDED that Ofcom should consult on this issue [Withheld from published minutes].

32. The Content Board considered the way in which the rights for distribution of television programmes over alternative distribution platforms were dealt with in the Codes of Practice for the public service broadcasters. [Withheld from published minutes]. Members NOTED that Ofcom had discussed with both broadcasters and producer representatives how the framework created by the existing Codes of Practice might be updated and clarified to reflect the treatment of multi-media rights within the primary licence. [Withheld from published minutes].

33. Members NOTED that further work was needed to work through a number of implications and NOTED that the executive had developed a proposal taking into account the different issues. [Withheld from published minutes].

34. The Content Board NOTED that the executive would be conducting an additional round of pre-consultation with broadcasters and producer representatives on this proposal, before the consultation document would be published. Members considered the proposal and felt that the situation regarding the effects of the changes was not clear at the present time. In relation to the hold-back period it was NOTED that Ofcom would not be able to specify periods and therefore the consultation would be phrased accordingly. [Withheld from published minutes].

35. In response to a query regarding the independent quota [Withheld from published minutes]. It was AGREED that the executive would ensure that the Ofcom communications department was aware of this and the other consultation documents which were planned for release prior to the end of the year.

Food Promotion and Children: Update

36. The Content Board received an update in relation to the current situation of work in this area, which had been instigated following the Government’s request for Ofcom to restrict television advertising to children of products that are high in fat, sugar and/or salt (HFSS). Members NOTED that the Department of Health’s (DH) work to assess the economic benefits of an end to the advertising of HFSS products to children, had taken much longer than envisaged. In response to a query, it was NOTED that the DH had experienced difficulties in obtaining the information on which the assessment would be made as this was an area where there was little data available. Members were reminded that Ofcom had been assessing the likely financial impact on broadcasters and other stakeholders, and had pre-consulted on various policy options, without indicating what stance it might take. [Withheld from published minutes] and was awaiting the DH’s assessment of the economic benefits before undertaking an extensive period of evaluation. It was expected that the DH’s assessment would be received imminently, allowing the executive to undertake the required evaluation over the next few weeks.

37. In relation to rule development, Members NOTED that Ofcom was encouraging Ofcom’s co-regulatory partner, the Broadcasting Committee on Advertising Practice (BCAP), to develop appropriate rules for the content of food and drink advertising. It was NOTED that rule development had taken longer than expected, but that Ofcom hoped to persuade BCAP to devise a balanced set of rules targeting HFSS products specifically, which would cover both broadcast and non-broadcast media. [Withheld from published minutes]. It was NOTED that BCAP anticipated delivery of revised rules to Ofcom by the end of 2005, which may incorporate nutrient profiling. Members NOTED that publication of the consultation had therefore been delayed until the end of February 2006. It was RECOMMENDED that the executive approached the Commissioner for Children for his views on this issue.

Media Literacy: Audit Research Findings

38. Paper CB 134(05) was presented to Members, which gave an in-depth look at the results of the large scale media literacy audit, which had been conducted by Ofcom to identify the UK media literacy skills, knowledge and understanding of both children and adults across media platforms. Members then NOTED the content of a presentation which focused on the development of possible policy implications. Members NOTED the key findings of the research in relation to the stated aims of the project. [Withheld from published minutes]. It was NOTED that generally the levels of competence with digital technologies were relatively high, but that levels of interest and overall awareness were lower. Members NOTED that the breadth of usage was variable across platforms and age of respondents, that there was limited knowledge relating to content controls, and that the level of creativity and interactivity were low.

39. The Content Board NOTED that Ofcom’s strategy for the promotion of media literacy comprised: a principle role of providing leadership and leverage to promote media literacy; work with stakeholders to help focus on the present and future media literacy needs of all members of society; and a focus on the media literacy gaps unlikely to be addressed by other stakeholders. Members gave consideration to the media literacy gaps presented in relation to a number of different target groups and target platforms, where it was felt that Ofcom was in a position to address the issues. In relation to the over 65’s, Members NOTED that the key issue was how to raise levels of interest and awareness. Members commented that a campaign to advise consumers of the benefits of the internet would be positive. It was NOTED that levels of interest and awareness of media literacy had been identified in Northern Ireland. Members observed that Northern Ireland had already incorporated media literacy into the education curriculum, and that it was hoped this would help address the imbalance in the future. Members NOTED that the extent of parental controls and educational usage of media literacy, did not necessarily correspond to the level of children’s knowledge and ability. Consideration was given to the results of the research in respect of the protection of minors and the amount of usage “on their own”. It was AGREED that clarification of this area of the research would be undertaken to enable an assessment of the implications for the protection of minors. Members NOTED that more needed to be done to improve awareness in relation to digital radio. [Withheld from published minutes].

40. Members gave consideration to the plans for policy roll-out and NOTED that the executive intended to focus on: developing platform specific policies; an increase in publicity and clearer instructions to raise levels of awareness and competence; and a focus on children through schools and parents. Members AGREED that there should be more engagement with the educational system with regard to media literacy, and that any work Ofcom could do encourage this would be positive. It was SUGGESTED that the Chairman of the Content Board be involved in the launch of the Media Literacy Report on 17 January 2005.

Matters for External Communication

41. Tim Suter outlined Ofcom’s recent activities and forthcoming announcements. Members NOTED that on 1 November 2005, Ofcom Scotland had announced the agreement with Scottish TV and Grampian TV to aid the establishment of the proposed Gaelic digital television channel by 2007. An issue was raised relating to the press coverage following this announcement, and it was NOTED that the Director of Scotland was fully supported by Ofcom.

Content and Standards Report

42. Chris Banatvala updated the Content Board on programmes which had been attracting complaints. The Content Board was also updated on the status of current Fairness and Content Sanctions cases.

Radio Licensing Committee (7 November 2005)

43. Matthew MacIver updated Members on the Radio Licensing Committee (RLC) meeting held on 7 November 2005 when a decision had been made on the award of the Northallerton and Swansea local commercial FM radio licences. In addition the Committee had made an initial consideration of the applications for the Warwick local commercial FM radio licence. A decision was made on the Wigan and other various stand alone areas Community radio licences and consideration was made of the Garrison Army Radio Community radio licence application. The Committee considered a paper on a consultation on the methodology for the review of financial terms for the extensions to the national commercial radio licences. It was NOTED that the Chairman of the Community Radio Fund Panel would be invited to attend the Radio Licensing Committee at strategic times to provide an update on the Community Radio Fund Panel.

Any other business

44. No items of other business were raised.

Date of next meeting

45. It was NOTED that the next meeting would be held on Monday 12 and Tuesday 13 December 2005 in Riverside House and would be likely to commence at 2.00pm on the 12 December.

22 November 2005


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