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30|09|04

A new framework for Public Service Broadcasting

Ofcom today published the second phase of its statutory review of public service broadcasting, setting out key proposals to maintain and strengthen public service television in the digital age.

Section 264 of the Communications Act 2003 requires Ofcom to report on the effectiveness of the existing public service broadcasters – BBC , ITV, Channel 4, S4C, Five and Teletext – in the delivery of their public service broadcasting obligations; and to make recommendations for the continuation of public service broadcasting in the years ahead.

The Phase 2 Report highlights that the existing analogue model of public service broadcasting, which has been sustained for many years by a combination of institutions, funding and regulation, will not survive the transition to digital and may erode rapidly prior to 2012. Ofcom is therefore proposing a new settlement be put in place in order to secure competition for quality before the old model has completely eroded.

The framework has seven proposals:

1. The increasing importance of a strong, independent, fully-funded and public service focused BBC ; funded through a licence-fee model.
2. Channel 4, as a critical second provider of public service broadcasting, to remain as a primarily not-for-profit free-to-air broadcaster, free to form alliances, joint ventures and partnerships with other organisations, with the possibility of asset transfer as a route to create scale and public service impact.
3. ITV1 to play to its strengths in public service broadcasting, contributing through high-quality, UK-originated production, investment in news, regional news and current affairs, with a proposed initial reduction in, then phased withdrawal of, regional non-news obligations. Ofcom also proposes using the greater flexibility afforded by the Communications Act in assessing the delivery of ITV1’s obligations such as arts, children’s and religious programming.
4. A new approach to programming for the Nations and Regions, with regional production on ITV1 and a rebalancing of some non-news regional responsibilities to the BBC.
5. Channel Five committed to UK-originated programming and acting as a market-led public service broadcaster.
6. A strong independent production sector based on the successful implementation of the new Codes of Practice introduced by Ofcom earlier this year. However, if the programme supply market is not working more efficiently 12 months from now, Ofcom will take further action.
7. A new concept to stimulate innovation and plurality: a competition to run a new Public Service Publisher (PSP) using new technologies and distribution systems to meet audience needs in the digital age. A winning bid could come from any current broadcaster, any media company (except the BBC), an independent producer, infrastructure operator - or a consortium of such companies.

The proposals are subject to public consultation; the closing date for responses is 24 November 2004. The Review will be completed once the final Phase 3 report is published at the end of the year. Ofcom’s PSB Review will inform the Government’s own review of the BBC Charter as well as its decisions on the timing of digital switchover.

Ofcom Chief Executive Stephen Carter said: “The historical compact between broadcaster, audience, Government and regulator will not survive the move to digital.”

He added: “Our seven proposals, taken together, aim to keep the strongest of the traditional whilst adding the spur of the new. We look forward to hearing people’s views.”

The Executive Summary of the Report is available online at:

http://www.ofcom.org.uk/consult/condocs/psb2/psb2/execsum/

The full Phase 2 Report (in pdf format) is available online at:

http://www.ofcom.org.uk/consult/condocs/psb2/psb2/psb_phase2.pdf

(Please note that if these links do not work, you should copy and paste the urls above into your browser).

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