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12|11|07

Ofcom completes Market Impact Assessment on the proposed Gaelic Digital Service

Ofcom has today published its Market Impact Assessment (MIA) of the BBC’s proposed Gaelic Digital Service (GDS) which includes a new digital channel to be co-funded by the BBC and Gaelic Media Service (GMS).

Ofcom has concluded that the proposal will have a significant positive market impact, most notably for the Gaelic media sector. The BBC Trust will now take Ofcom’s conclusions into account when deciding whether or not to authorise the GDS.

Ofcom’s consultation revealed strong support in principle for the GDS among stakeholders. Some stakeholders raised issues that required further analysis, including the impact on content producers.

Ofcom recommendations

Ofcom’s MIA makes a number of recommendations to the BBC Trust to ensure that there is transparency in commissioning processes and that the GDS is encouraged to play its part in further developing a diverse and creative production base for the Gaelic media sector.

Ofcom also recommends:

• a more precise target for independent production for the new service should be set;
• greater clarity in the area of online rights, to enable independent producers to compete for commissions for any online-specific content;
• that the GDS should as a matter of priority open up a dialogue with the TeleG service which transmits Gaelic programmes on digital terrestrial television to ensure a co-ordinated approach towards the scheduling of Gaelic programmes.

Ends.

Notes for Editors and CSEs

1. TeleG is the service provided by SDN on the digital multiplex A. It broadcasts at least 30 minutes a day of Gaelic programmes.

2. The BBC Charter requires that all new or substantially changed BBC services should be subject to a Public Value Test (PVT) by the BBC Trust. The PVT consists of a Public Value Assessment (PVA) done by the BBC Trust, and a Market Impact Assessment (MIA) carried out by Ofcom. The MIA is intended to ensure that the BBC’s new services are consistent with the development of a vibrant and dynamic commercial sector.

3. The BBC Trust Unit published a press release on the PVA, it can be found at http://www.bbc.co.uk/bbctrust/news/press_releases/2007/gds_pva.html

4. Ofcom’s initial consideration of the GDS proposal suggested it would not raise significant issues. As such Ofcom consulted on a simplified approach and hoped the MIA would be completed in less than the standard three month timeframe. Because of some issues raised during the consultation phase, a three week extension to the process was agreed.

5. The GDS would be the BBC’s first UK public service to be substantially funded by a party external to the BBC. Its £17.9m annual running cost will be made up of £10.1m from the Gaelic Media Service and £7.8m from the BBC. £2.5m of the BBC spend is new expenditure on Gaelic.

6. The latest date for publication of the Trust's final decision is 28 January, 2008.

7. On 23 January 2007 Ofcom published a MIA on BBC’s new on-demand services and on 18 September 2007 it published a MIA on BBC’s High Definition Channel

8. Ofcom is the independent regulator and competition authority for the UK communications industries, with responsibilities across television, radio, telecommunications and wireless communications services.

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