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Executive summary

1.1 In January, we published a discussion paper on a new approach to public service content in the digital age^(-1-). The document laid out the rationale for intervention in the interactive digital media market based on key market developments in the broadcasting and online digital media markets. We also made some suggestions as to how such an intervention might work, based on Ofcom’s proposal for a Public Service Publisher (PSP), an institution rooted in digital interactive media, which would focus on the provision of content designed for that market.

1.2 This document is an initial summary of the 76 responses to that paper. This document is not intended to address the issues raised by the respondents. We will be conducting further work and industry seminars on the issues raised over the summer to develop further the points raised in the responses.

1.3 We have refrained from further discussion of the key issues here as the next statutory Public Service Broadcasting (PSB) Review will start in early Autumn 2007. The PSB review will consider the full range of issues relating to the future development of public service content including a number of issues directly related to the PSP and its operation

Key messages from responses to the document

1.4 Overall, there was broad support for the idea of intervention to support public service content in digital interactive media, in principle. Many respondents spoke positively of the importance of the online market in media consumption and the value of such an intervention, as well as concerns over the likelihood of the online market delivering sufficient socially valuable content.

1.5 There was clear support for further work to refine the case for intervention and specify where any intervention should be targeted. As a subsidiary question, a number of respondents asked about the precise nature of intervention required. Although many respondents were in favour of investment in digital content, they stressed the importance of ensuring this was clearly and effectively targeted.

1.6 Substantial comment was focussed on the role the PSP could play in content provision. Although these comments were diverse, there was a keen interest in supporting facilitation and navigation of online content, where it was felt that existing provision may be limited. Similarly, others suggested a number of innovative roles for the PSP in supporting the creation of content, including acting as a provider of “venture capital for creativity” or as a navigator of online provision

1.7 We specifically asked for responses to the idea of an open rights model to allow users and producers to make maximum use of the capacity of online content to be modified, amended and re-used to increase value. While there was considerable support for a presumption in favour of this approach, a number of respondents raised concerns around the specific mechanism in the discussion document. They suggested that existing copyright legislation was sufficient to deliver the benefits that we had identified. The principles of a more open framework for content were widely supported, but the consensus was that further work will be needed to determine the most effective system to deliver this.

1.8 Questions of funding and scale are likely to be central to the ongoing debate over the PSP. We set out preliminary suggestions on the PSP’s funding and scale in the discussion paper and responses to these questions varied considerably. We highlighted the need to consider the funding and scale issues in the light of the online market rather than that of traditional broadcasting. Many respondents welcomed this development, although there were divergent views over how much funding was required for a PSP or where it should come from.

1.9 Many of the respondents made substantial submissions with extensive supporting detail on the key issues highlighted above and others. These are available on the Ofcom website: http://www.ofcom.org.uk/consult/condocs/pspnewapproach/responses/ .

Further work

1.10 As a result of the responses received to the discussion paper, we will undertake further work to address the issues raised. The three main areas of work are set out below.

1. Further work on the case for intervention: We have commissioned an external review of the economic case for market shortfall, looking at the nature of possible market shortfall in the online market and the extent of any enduring failure of the market to provide sufficient public value content. In addition, we are commencing a review of online content provision in the UK in order to assess more accurately the level of existing provision of public service content in digital interactive media.
2. Engaging with the online and broadcast industries: Over the summer, Ofcom is hosting a series of seminars on the key issues concerning the PSP: the case for intervention in online markets, the structure and content of a PSP, and scale and funding
3. Further internal work: Ofcom will also be working on other issues arising from the responses to the document. In particular, we will develop further analysis of the nature of the content that the PSP should provide.

1.11 The results of this and other work will feed into the next statutory PSB Review, scheduled to begin in early Autumn 2007. Many of the issues discussed below will be directly relevant to that review.

Footnotes:

1.- http://www.ofcom.org.uk/consult/condocs/pspnewapproach/newapproach.pdf, further thoughts on the PSP, based on the results of a process of creative engagement can be found at the Open Media Network website: http://www.openmedianetwork.org.uk/

The full document is available below

• A new approach to public service content in the digital age [pdf]
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