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17|11|09

Ofcom recommends reducing media ownership regulations

Ofcom today published its report to the Secretary of State for Culture, Media and Sport on recommended changes to the media ownership rules.

The final report draws from evidence published in our consultation document on 31 July 2009 and stakeholder responses to that consultation.

It recommends two main changes:

• Removing the rules around local radio service and multiplex ownership and national multiplex ownership. For local services, this means that all local commercial radio stations could be owned by one operator in a local area, alongside the BBC local radio services; and
• Liberalising the local cross media ownership rules so that the only restriction is on ownership of all three of: a local radio station; local newspapers (with 50% or more of the local market share); and a regional Channel 3 licence.

These recommendations could help maintain local content, by increasing flexibility for media companies. They would reduce the regulatory burden on the local media sector and the radio industry in particular. Consumers still rely on television, radio and press for news, so complete removal of the local cross media ownership rules could reduce protection for plurality.

We have based these recommendations upon our recent analysis of the local media sector set out in our discussion document Local and Regional Media in the UK - published in September.

Our recent consultation on localness regulation for commercial radio, which closed on 23 October, also made a series of proposals aimed at reducing the regulatory burden on the radio sector, while protecting the local content that listeners value.

All of our proposals are recommendations to the Government in line with Ofcoms statutory duty, under section 391 of the Communications Act, to review the media ownership rules and report to the Secretary of State at least every 3 years. This is our second review of the media ownership rules. Our last report was in November 2006.

Any decisions on these issues are a matter for Government and Parliament. Our radio proposals require legislative changes that the Government has proposed to include in its planned Digital Economy Bill.

Ed Richards, Ofcoms Chief Executive, said:

"In line with our statutory duties, we have today set out recommendations for Government and Parliament. These proposals would allow local media companies more flexibility to respond to the challenges that they are facing while at the same time protecting plurality for listeners and viewers; it is for Government and Parliament to take any decisions in this area."

The full statement can be found here: http://www.ofcom.org.uk/consult/condocs/morr/statement/

ENDS

NOTES FOR EDITORS

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

2. The report on Local and Regional Media in the UK published on 22 September 2009 can be found here: http://www.ofcom.org.uk/research/tv/reports/lrmuk/

3.The Radio: the implications of Digital Britain for localness regulation consultation published on 31st July 2009 can be found here: http://www.ofcom.org.uk/consult/condocs/radio/condoc.pdf

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