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12|12|05

Minutes of the Thirty Fourth Meeting of the Ofcom Content Board, held at Riverside House, London on 12 & 13 December 2005

Present

Richard Hooper -Chairman
Sara Nathan - Deputy -Chairman
Sue Balsom - Member
Floella Benjamin - Member
Kevin Carey - Member
Jonathan Edwards - Member
Pam Giddy - Member
Rosemary Kelly - Member
Matthew MacIver - Member
Kip Meek - Chief Policy Partner (Ofcom) (minutes 1 – 22 and 32 – 70)
Adam Singer - Member (minutes 6 – 70)
Tim Suter - Partner, Content and Standards (Ofcom) (minutes 3 – 70)
Kath Worrall - Member

Observer

Philip Graf Chairman designate (Ofcom) (minutes 1 – 31)

In Attendance

[Withheld from published minutes]

DVB-H Trial: Demonstration

1. The Content Board NOTED a presentation on future mobile technologies including a DVB-H trial of mobile television content given by [withheld from published minutes], VP Research and Development, O2 and a member of the Ofcom Spectrum Advisory Board. The presentation highlighted the growth of applications and volume in mobile technology which had occurred over the last four years and predicted change for the future. Members NOTED statistics in relation to the mobile and television markets and the combined market of mobile television. It was NOTED that there were three possible technological options for mobile television: 3G, DVB-H and DMB. Members NOTED the perceived advantages and disadvantages of each option. The Content Board NOTED how different categories of content were currently being received via commercial services and potential future services, comparing differences across platforms. Members NOTED a number of issues in relation to three video product categorisations: Live, Sync & Go, and On Demand and NOTED a number of different situations when mobile television content was most likely to be used, which included commuting, at home, at work and on holiday.

2. The Content Board then NOTED the key features of the DVB-H trial which was being undertaken in Oxford with 375 individuals, between the ages of 18 and 45. Members NOTED that the trial provided the individuals with 16 high quality channels over a period of six months. The trial was being undertaken to deepen market understanding in this area, by identifying: the potential uptake of mobile broadcast TV and its customer value; the genres and content types which would work in the mobile environment; and the performance of the DVB-H technology. Members NOTED the early trial results, which confirmed that 56% of UK consumers would be interested in mobile television. Members NOTED that the trial had identified that individuals preferred to look for channel and programme branding which they recognised, and that the individuals were using the devices to access the internet and send messages as well as watch television. Members NOTED a number of predicted key success factors which would enable the service to move to a commercial service. The intended timeline for release of interim and full results of the trial was NOTED by Members.

3. The Content Board considered a number of points which arose from the presentation, including spectrum liberalisation and potential pricing structures for the technology. In response to a question, it was NOTED that a specialist broadcast network would be required. Members thanked [withheld from published minutes] for the presentation and REQUESTED that a visit to Oxford be arranged for Content Board Members in spring 2006.

Ofcom Annual Plan

4. The Content Board NOTED a presentation on the Ofcom Annual Plan, which updated Members in relation to a number of issues previously raised by Content Board Members at the meeting of the Boards/Panel/Committees held on 14 October 2005; and briefed Members on the planned timetable for launch and consultation. Members NOTED a number of market context issues which had been considered when developing the plan. The growth in the communications market, market penetration of digital services (internet, broadband, television and radio) and the future issue of converged accessibility devices were NOTED. Members also NOTED levels of accessibility to digital services, and the perceived lower levels of accessibility by older, disabled and low income households.

5. Members NOTED the issues which had been raised by Content Board Members at the planning day, which were:

6. The Content Board NOTED ten priorities for Ofcom, included in the Annual Plan, which were: [Withheld from published minutes]

7. Members NOTED Ofcom’s intended work programme, which had been organised into eight areas, covering support services and policy work. It was AGREED that further work would be undertaken, in early 2006, to develop prioritisation of a work plan for 2006 to help steer the work of the Content Board in relation to the PSP, local content and media literacy (labelling). [Withheld from published minutes].

8. Members gave consideration to the lower levels of accessibility by older, disabled and low income households to digital services. It was suggested that Ofcom could attempt to mobilise other organisations to develop and communicate appropriate messages to consumers to increase accessibility where market failures were making intervention necessary. It was NOTED that the levels of accessibility in these areas could be increased via the digital switchover communications and the potential for increase in the level of computer market penetration. However it was also NOTED that there could be a plateau in the level of computer market penetration which would limit the take-up of broadband and that there were certain consumers, who were not yet persuaded of the benefits of digital services and would not therefore purchase such services even if levels of accessibility increased. It was AGREED that it was important for Ofcom to engage in this debate to raise awareness of the issues not just with central Government, but also in the nations.

9. The Content Board considered how the interests of the citizen (as opposed to the consumer) would be addressed by Ofcom. It was felt that citizen content issues were clear to Ofcom and would be addressed through the Content and Standards group and the Content Board. It was NOTED that the Consumer policy team was being developed to address citizen non-content issues across Ofcom (as well as content issues), which would work closely with the media literacy team and which would be planning explicit projects to drive these issues forward. It was AGREED that the Director of Consumer Policy would be invited to present to the Content Board in spring 2006 on this area.

Ofcom and the Incitement of Racial and Religious Hatred Bill

10. Paper CB 138(05) was presented to Members, which contained an analysis of the implications for Ofcom (in particular Content and Standards, TV and Radio Licensing and External Affairs) in relation to how it would manage the Ofcom Broadcast Code (the Code) and its relationships with broadcasters, stakeholders and citizen-consumers should the Incitement to Racial and Religious Hatred Bill (the Bill) become law. [Withheld from published minutes].

11. [Withheld from published minutes].

12. [Withheld from published minutes].

13. [Withheld from published minutes].

14. [Withheld from published minutes].

15. [Withheld from published minutes].

16. [Withheld from published minutes].

Appeal Review

17. [Withheld from published minutes].

18. [Withheld from published minutes].

19. [Withheld from published minutes].

20. [Withheld from published minutes].

21. [Withheld from published minutes].

22. [Withheld from published minutes].

Code Review

23. The Content Board NOTED the contents of paper CB 140(05), [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. [Withheld from published minutes].

29. Following careful consideration of the issues covered in the paper [Withheld from published minutes].

30. [Withheld from published minutes].

31. [Withheld from published minutes]

Minutes of the Meeting held on 18 November 2005 (Content Board Minutes 33(05)) and Matters Arising

32. The minutes of the Content Board meeting held on 18 November 2005 were AGREED, subject to a few small amendments. In response to a question, it was NOTED that the Radio Licensing Committee was a committee of the Ofcom Board, and that the Ofcom Board was due to consider a paper dealing with potential changes in membership of the committee shortly.

Content and Standards Group Report

33. Tim Suter updated Members in relation to current Content and Standards people and policy issues. In relation to policy issues, Members NOTED that a number of policy statements were close to publication: the Television Production Sector Review, Digital Local Content, Food Promotion and Children and Product Placement. It was AGREED that it would be a good idea to engage the Nations and Regions to start the debate on the issues of Digital Local Content, combined with Digital Switchover and the PSP.

Rolling Forward Plan of Content Board Agendas

34. Members NOTED the schedule CB 141(05) which set out the rolling forward plan of the Content Board agenda to April 2006.

Ofcom Board Meetings of 18 October and 8 November 2005

35. Members received a report on the Ofcom Board meetings held on 18 October and 8 November 2005. The main points to note were that: [Withheld from published minutes]

36. [Withheld from published minutes]. It was REQUESTED that more thought be given to the planning of regional events and events organised by Ofcom which might be of interest to Content Board Members to avoid clashes with Content Board meetings and that national Content Board Members be given the opportunity to be involved in the circulation of literature about regional issues where appropriate. Clarification was given to Members in relation to Ofcom’s view of ITV and its transition from a Public Service Broadcaster into a commercial broadcaster in the future. In response to a query, it was CLARIFIED that the Ofcom Board would be considering a paper in January 2006 on how Ofcom should organise the work of the Diversity Champion Group in the future.

Members’ Interests

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

Output Regulation (monitoring)

38. Paper CB 142(05) was presented to Members, which made a number of recommendations in relation to how Ofcom could deliver in practice the format regulation regime as set out in the Radio Review Phase II. Members NOTED that the recommendations sought to ensure that the regime was implemented in a practical and transparent way, consistent with Ofcom’s principles of light touch regulation and openness. It was further NOTED that the recommendations attempted to ensure that Ofcom’s decisions with regard to localness obligations were based on a clear policy. Members were reminded that Ofcom: had a continuing duty under the Broadcasting Act 1990 (Section 106) as amended to include conditions in radio licences so as to secure that the character of the licensed radio service was maintained during the licence period; had the power to agree to changes to the character of service of radio stations; and had duties under the Communications Act 2003 to ensure a suitable proportion of local radio material, locally made, was broadcast; and to issue guidelines to define these terms.

39. The Content Board NOTED that the publication of the Radio Review Phase II had set out Ofcom’s post-consultation position with particular regard to the provision of localness, and Ofcom’s desire to move from input regulation to an emphasis on output regulation. Members NOTED a number of issues involved in moving to a regime of output regulation which were considered in the paper. Members NOTED that the radio industry had urged Ofcom to move to a system of output regulation; however since the publication of the radio review had shown some reluctance to embrace the move due to the uncertainty around what monitoring would need to be undertaken. It was NOTED that in making its recommendations on monitoring the executive had attempted to leave much of the onus on a station itself to highlight its localness credentials in the best way it saw fit through the Public File, and to outline Ofcom’s expectations in relation to monitoring.

40. Members gave consideration to the proposed wording of Ofcom’s Public File and proposed monitoring considerations as set out in Annex’s A and B of the paper. With respect to the proposed frequency of regular monitoring, it was clarified that the proposal was to make monitoring incidental, in response to complaints received, but that a certain level of additional monitoring would be undertaken. Clarification was sought in relation to “In certain circumstances the content of the Public File may compensate for some shortcomings with the selected output monitoring”. It was NOTED that as monitoring would be undertaken over a certain time period, there may be occasions on which a stations public file would be used to identify information in relation to regular output from the station, which may have not been captured within the time period reviewed. It was REQUESTED that some thought be given to how Ofcom could encourage stations to advertise the existence and location of their public file, ensuring that any direction to stations was within Ofcom’s powers.

41. Members NOTED that it was likely that there would be considerable interest from the industry once Ofcom published its first monitoring reports. The Content Board debated the differing effects of the requirements on different size stations. Members NOTED that Ofcom intended to review the effectiveness of the proposed level of monitoring, and that if found to be in-effective Ofcom would look to undertake a higher level of monitoring.

42. Following consideration of the issues presented, Members gave consideration to what formal advice to give to the Ofcom Radio Licensing Committee in relation to the recommendations made in the paper, and RECOMMENDED that: [Withheld from published minutes]

Programme Related Material

43. Members NOTED a background presentation and a number of video clips in relation to programme related material, to brief Members in relation to a number of issues in this area on which policy options would be brought back to the Content Board for consideration in early 2006. Members were reminded that the Ofcom Broadcasting Code stated that:

Members also NOTED that it was currently illegal to advertise gambling.

44. The Content Board NOTED that a number of developments in both programme-related material and premium rate services had challenged traditional definitions, and that as a result Ofcom needed to consider whether it should take any action. In relation to programme-related material, Members NOTED that broadcasters had become increasingly inventive in interpreting PRM. It was NOTED that programme-related material material was historically fact-sheets and helplines, then it became CDs and DVDs, and now broadcasters were including ringtones, downloads and possibly items such as character dolls in the future. In relation to premium rate services, Members NOTED that these services were historically just an entry-route for an occasional competition or a chance for viewers to vote – now it was a permanent feature of many music channels or quiz channels.

45. After viewing a number of video clips which demonstrated these issues in current broadcast content, Members considered a number of questions which the executive had been considering, as follows:

46. [Withheld from published minutes].

47. Following consideration of the information presented, the Content Board discussed the potential implications of these developments. [Withheld from published minutes].

Public Service Broadcasting: Self-assessment reviews and statements of programme policy

48. Paper CB 143(05) was presented to Members, which outlined the process and timetable for handling the PSB self-assessment reviews of 2005 and the statements of programme policy for 2006, as prepared by ITV network; the ITV Nations and Regions licensees; Channel 4, Five, GMTV and Teletext. The paper also contained output and audience data intended to provide a general overview of public service broadcasting, as delivered in 2005. Members were reminded that sections 266-269 of the 2003 Communications Act (The Act) require commercial PSB services to publish an annual statement of programme policy for the forthcoming year; and a review of their own performance against the previous year’s statement, which must be prepared in accordance with Ofcom guidance on the subject. It was NOTED that proposals for significant change in the character of PSB services may only be included in the statements if they had been agreed by Ofcom.

49. The Content Board NOTED that it was only the second year in which statements and reviews had been required by Ofcom and therefore, the first year in which reviews would be related directly to statements of programme policy prepared under Ofcom’s Guidance Note. It was further NOTED that Ofcom’s role was to decide whether the statements and reviews presented by the broadcasters had been prepared in accordance with the Guidance Note. In addition, it was not for Ofcom to comment on the performance of individual channels – unless there had been a systemic failure in the delivery of PSB. Members were reminded that any broad assessment of PSB delivery should consider how the channels “taken together” had performed. Members NOTED that the executive had no reason to believe there had been any systemic failures.

50. Members were reminded that although the 2004/5 statements and reviews had been accepted by the Content Board as having met Ofcom’s Guidance Note, it had been felt that they lacked self-critical and strategic insight and as a result the broadcasters had been reminded of the importance of the inclusion of these aspects for the completion of the 2005/6 statements and reviews. Members NOTED that the Content Board would be considering the PSB self-assessment reviews of 2005 and the statements of programme policy for 2006 at its January 2006 meeting. It was NOTED that none of the broadcasters had so far consulted Ofcom on a proposed “significant change” for 2006 and that should any such change be either proposed by a broadcaster or identified by the executive, it would be contained within the individual papers to be considered in January 2006.

51. [Withheld from published minutes]. It was AGREED that individual Members of the Content Board would be involved with the evaluation of particular PSB channels and provide input to the decision papers, in preparation for the January 2006 meeting. It was further AGREED that Members would be contacted after the meeting to agree the above allocation of PSB channels.

Public Service Broadcasting: First Wave of Audience Tracker Findings

52. Paper CB 144(05) was presented, which provided Members with an overview of the results from the first wave of the PSB tracker research. Members were reminded that as an outcome of Ofcom’s PSB review, and to inform the yearly statements of programme promises process, it had been decided to establish a tracking study to monitor audience opinions of the performance of the main terrestrial TV channels over time. In order to establish ratings for each channel the PSB Review’s purposes and characteristics had been translated into a number of statements for respondents to rate each channel on. It was NOTED that the key objective would be to see how the ratings for the PSB channels shifted over time. The Content Board NOTED that the research had been conducted through a total of 7,000 telephone interviews with adults aged 16 and over. It was NOTED that the research would be conducted over four months: October, January, April and July. Members NOTED that the first wave of research was based on the responses of all viewers of each channel, and that from the second wave onwards the research would also focus on regular viewers to each channel.

53. Following consideration of the detailed research results as presented in the paper, Members considered whether there was any additional information which should be identified in future waves of the research and whether any changes should be made to the reporting format of the research results. Members gave consideration to the results which referred to the levels of satisfaction and trust in news. It was NOTED that the research indicated that BBC One and BBC Two performed particularly strongly in relation to the PSB purposes in this area. Members discussed the different types of viewer which might watch different PSB channels and any effects which these differences could have on the research results. It was AGREED that some comparison would be undertaken to identify the differences between channels by respondent. Members gave consideration to the results in relation to Channel 5 and its coverage in Scotland. It was NOTED that a difference in responses had been found in relation to viewers platform choice and it was AGREED that further analysis would be undertaken in relation to the demographic profile of respondents in relation to platform choice.

54. The Content Board were interested to identify research results in relation to national differences. Members NOTED that it had been decided that the yearly research results would provide analysis on a national basis, and therefore the respondent base per quarter would be too small to be able to report quarterly on any basis other than the UK as a whole. [Withheld from published minutes].

55. In relation to the reporting format of the research results, one Member suggested that the research results could be shown in relation to the top and bottom 50 percent, rather than the top 30 and bottom 30 percent. In relation to the PSB purpose “Programmes show different cultures/opinions within the UK”, it was NOTED that respondents had not been provided with a definition of this statement and had therefore been able to interpret it as they wished. [Withheld from published minutes].

Media Literacy: 2006/7 Priorities

56. Paper CB 145(05) was presented, which briefed Members on the background and achievements undertaken in relation to media literacy during 2005/06 and asked Members to reaffirm the media literacy strategy and agree priorities for the promotion of media literacy in 2006/07. Members NOTED that a considerable amount of work had been undertaken during the past year including continued efforts to raise the profile of media literacy, encouragement of debate, raising awareness of the issues as well as assessing stakeholder needs, identifying active partners and continued efforts to acknowledge areas of market failure. It was NOTED that a wealth of data was now available and that research would be continued to ensure changes were tracked over time.

57. In relation to the media literacy strategy, Members NOTED that the current strategy of “Leadership and leverage” was proposed to remain. It was NOTED that the executive proposed to use the Media Literacy Audit (MLA) as a significant tool to raise relevant issues on stakeholders’ agenda and that further research into elements and issues related to media literacy would be used as evidence to lever action by stakeholders.

58. In relation to the media literacy priorities, Members NOTED that the executive proposed to continue with the current three identified priorities of: research; connecting, partnering and signposting; and content information. In relation to research, Members NOTED that the media literacy audit had identified a number of areas where further research may be necessary, including mobile, internet, digital radio and interactivity and that emerging issues related to media literacy would be considered for further research. In relation to connecting, partnering and signposting, Members NOTED that the media literacy work was aiming to act as a signpost to advice and guidance on matters of safety and best practice; to connect media literacy projects and to work in partnership with other stakeholders to promote media literacy. The Content Board NOTED that the executive hoped to build on and develop the key partnerships which had blossomed in the areas of television, radio, internet, mobile and education and undertake a number of other projects in this area. Members NOTED that efforts to raise media literacy on the agenda of the DfES, Scottish Executive, Welsh Assembly and Department of Education in Northern Ireland were continuing. In relation to content information, Members NOTED that they would be asked to consider next steps in this area at the February 2006 meeting, and it was proposed that the audience research findings be published and a meeting of the Audio Visual Content Information Working Group be convened in 2006 to consider the next steps.

59. The Content Board NOTED that a proposed additional fourth strand “Embedding media literacy across Ofcom’s work” had been added to the strategy for 2006/07. Members NOTED that Ofcom’s renewed focus on the consumer had highlighted the importance of embedding media literacy across the range of Ofcom’s relevant activities. It was NOTED that the executive proposed to develop initiatives to raise colleague’s awareness of media literacy, for example the introduction of ‘Media Literacy Champions’ to assist in the delivery of awareness and the development of a checklist for project scoping, to ensure issues of media literacy were considered in project work and every day activity.

60. Following consideration of the strategy and priorities as outlined within the paper, Members REAFFIRMED the media literacy strategy and AGREED priorities for the promotion of media literacy in 2006/07.

Programme Labelling : Research Findings

61. Members NOTED a presentation on the findings of the programme labelling research which had been undertaken to encourage the creation of a common framework for content information (labels) in order to give both practical and operational guidance to both Ofcom and stakeholders. It was NOTED that initial consultation responses from industry showed significant resistance as many felt that the current system operated adequately. Issues of the cost and technicality were also highlighted. In relation to the research objectives and methodology, it was NOTED that the research had been designed to answer the following key questions:

It was NOTED that the research had been conducted in three phases; a 25 minute face to face interview in-home, followed by an in-home deliberative phase to raise awareness of viewing choices and the role of content information, and finally a 15 minute follow-up telephone interview.

62. The key findings from the pre-deliberative phase of the research on current information needs of adults were NOTED as follows: [Withheld from published minutes]

63. Members NOTED the key findings of the pre-deliberative research into the views of respondent parents regarding their child’s (under 15’s) viewing as follows: [Withheld from published minutes]

64. The Content Board NOTED the key results of the post deliberative research as follows: [Withheld from published minutes]

65. Members NOTED that in relation to how they would like to receive programme information in the future, respondents were asked to choose which option they best preferred from: current status, age ratings, symbols and text. It was NOTED that the favoured option for programme information was found to be a text option which respondents felt should be used uniformly across all channels. It was NOTED that this result was consistent with the research undertaken by the BBC, which had been presented to the Content Board in October 2005. Members NOTED that the EPG would help address some of the concerns raised about labelling, however there were currently limitations to the amount of information that could be offered using this vehicle. It was AGREED that Members would contact the executive with any questions or requests for further information after the meeting. It was NOTED that this item would be brought back to the Content Board in February 2006 for a decision on future policy and direction. [Withheld from published minutes]. It was NOTED that this issue was being considered as part of the TWF Directive.

Radio Licensing Committee (12 December 2005)

66. Members were updated on the Radio Licensing Committee (RLC) meeting held on 12 December 2005 when a decision had been made on the award of the Ipswich local commercial FM radio licence. In addition the Committee had made an initial consideration of the applications for the Shrewsbury local commercial FM radio licence. Decisions had been made on a number of Community radio licences and further discussion took place regarding outstanding requests for Community radio licences in the Greater London area. It was NOTED that the Committee had received a presentation on illegal broadcasting and the recent ‘Operation Crystal’, which was felt would be of interest to other Content Board Members. It was AGREED that a clarification note in relation to the operation of the purdah rules would be circulated to Members.

Matters for External Communication

67. Members were briefed in relation to Ofcom’s recent activities and forthcoming announcements.

Content and Standards Report

68. The Content Board received an update on programmes which had been attracting complaints. The Content Board was also updated on the status of current Fairness and Content Sanctions cases.

Any other business

69. No items of other business were raised.

Date of next meeting

70. It was NOTED that the next meeting would be held on Monday 16 and Tuesday 17 January 2006 in Riverside House.

15 December 2005


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