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24|01|07

Ofcom examines the public service potential of digital media

Section 3 of the Communications Act 2003 requires Ofcom to secure the availability throughout the United Kingdom of a wide range of television and radio services which are both of high quality and calculated to appeal to a variety of tastes and interests. Ofcom must also secure the maintenance of a sufficient plurality of providers.

Section 264 of the Act requires Ofcom to report on the effectiveness of the existing television public service broadcasters - BBC, ITV, Channel 4, S4C, five and Teletext - in the delivery of their Public Service Broadcasting (PSB) obligations; and to make recommendations for maintaining and strengthening the quality of PSB for the future.

Ofcom completed its first review of PSB in February 2005. It showed that, despite continued public support for the current level of PSB, the existing terrestrial analogue model of commercially-funded PSB will not survive the transition to digital and may erode rapidly prior to 2012.

As part of its response, Ofcom suggested there could be a new Public Service Publisher (PSP), a commissioner of new media content focussed on meeting public purposes. It would use new distribution platforms such as broadband, mobile and digital broadcasting to deliver distinctive, high quality, UK-originated public service content. The PSP would be a networked, participative new media organisation in contrast to the traditional broadcasting focus of the existing PSB model.

Ofcom’s Communications Market Report 2006 shows that consumers – especially those under the age of 25 – are increasingly taking advantage of new internet-based and mobile technologies that allow users to create, modify and comment on content. It is this transition toward a more complex, interactive relationship between audiences and visual media that would form the focus of the PSP.

In July 2006, Ofcom published a document which outlined the areas of importance for the future provision of PSB and set out where Ofcom will be undertaking further work in this financial year. As well as developing the concept of the PSP, Ofcom committed also to carry out a financial review of Channel 4 and evaluate the future prospects for news and children’s television programming.

Following this document’s publication in July Ofcom commissioned a PSP Creative Forum which held a number of workshops during the summer of 2006 to determine what kind of content the PSP might generate and what its public service values should be. Its conclusions can be found at www.openmedianetwork.org.uk.

Today’s proposals

A discussion document published today further develops Ofcom’s initial views on the PSP alongside the work of the Creative Forum. It suggests the PSP could offer a rich new media experience for users. It could

• allow audiences to re-use content as well as view it;
• place user participation at the heart of much of the content;
• include high-quality audio and video content developed for new media distribution and use rather than traditional broadcasting; and
• drive community activity, including location-sensitive content and the ability to collaborate to create new material.

Ofcom believes that there are valid arguments both for the creation of a new organisation and for the PSP to be linked to an existing media provider. It also believes it could be based outside London to help reflect the diversity of viewpoints around the UK and to encourage a wider spread of investment in digital media.

Ofcom is seeking views on the exact amount, and source, of the PSP’s funding. At present, production and distribution costs for new media content are lower than for conventional television. This suggests therefore that the PSP could make a significant impact for an initial budget of £50-100 million per annum. Larger scale, more ambitious proposals could be made as digital media enters the mainstream, as expected, later this decade.

Next steps

The deadline for responses to Ofcom’s initial views on the PSP is 23 March 2007. These will be incorporated into Ofcom’s preparatory work on the next PSB Review, which is expected to begin in 2008. Ofcom will provide a summary of responses later in the year.

See Related Items for the document along with details on how to respond.

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