Home > Media and Analysts > Speeches and Presentations > 2007 > Apr > Listener and viewer

19|04|07

Voice of the Listener and Viewer

1 Introduction

Good afternoon.

Thank you for inviting me to speak here today.

At the outset let me pay tribute to the important campaigning of Jocelyn Hay and the VLV who do such good work in representing the citizen and consumer interest in broadcasting.

The VLV's stated aim is of course to secure quality and diversity in British Broadcasting.

It is an ambition I share.

It is an ambition that lies at the heart of Ofcom's purposes.

And I believe that that it is one of our biggest challenges in the next few years.

To tackle that challenge, we must start now to develop a new digital media vision for 2012 and beyond.

One that puts securing a future diverse range of high quality content at its heart.

So, today I would like to:

Reflect on the changing nature of the consumer and citizen interest within the evolving digital environment;
Consider the role that Ofcom can play moving forward; and
Set out what I see as the key components of a digital media vision for 2012 and beyond.

2 Protecting consumers in the digital age

Let me start with the changing nature of the consumer and citizen interest.

Events in the first few months of this year have highlighted the need to constantly preserve the consumer and citizen interest in a complex multi-channel, multi-platform world.

So let me say a few words about some of the recent issues we have seen in UK broadcasting, and then broaden out to some thoughts on how we start adapting content regulation to the post switchover internet world.

a) Broadcasting problems

We all know it is now possible to make the audience more intimately involved in the media experience than ever before.

They can not only watch programmes, but can engage and interact with programmes such as the Quiz TV shows that have proved so popular.

This is a feature of a media industry able to involve and engage with its audience as never before.

It provides wonderful new opportunities and we must recognise how much people enjoy entertainment of this kind.

But it also provides substantial risks.

Recently the trust between broadcasters and viewers has been tested by events surrounding the use of premium rate telecoms services in television programmes.

Yet it is critical today more than ever before that the broadcast industry takes responsibility to respect its viewers as it introduces new services and develops new ideas.

We must see viewers not as a commodity, but as people whose trust and loyalty can be quickly damaged if it is abused.

This means much higher standards of governance and compliance than we have seen to date if broadcasters are to retain public confidence.

What this period has demonstrated is that some broadcasters are not accustomed to dealing directly with their audiences as individuals. They are more used to the culture of mass free-to-air television, rather than individuals each paying a premium rate call to answer a question or cast a vote.

And it is important to be clear about recent events.

The rules are in place. What has happened here is not a failure of regulation, but a failure of compliance.

b) Adapting content regulation to the post switchover world

More broadly, we must also begin to tackle some difficult questions around the future of content regulation.

We must recognise that as the boundaries between media blur, so the application of existing content rules become more difficult.

Take one clear example, the mobile phone video of Saddam Hussein’s execution earlier this year:

In the unregulated newspaper sector, still pictures on front pages - with little power to shock
On broadcast television, the video shown in part and "in context", in an Ofcom-regulated environment;
But on YouTube available in its entirety subject to the warning that the content may be ‘inappropriate’ and the self-declaration that the viewer is 18 or older.

In that context our current model of binary regulation - television regulated, internet not - is being stretched to the limit.

So, we need to ask ourselves two simple questions:

Firstly, what are we trying to achieve?

Secondly, how do we achieve those aims?

The negotiation of the AVMS Directive began this debate and the anticipated outcome provides an appropriate evolution of the current model and a step towards a longer term vision for content regulation.

But AVMS should be seen as a stepping stone and not a long-term and sustainable solution.

So we need to start addressing some very difficult questions, such as:

Is the principal purpose of standards protection only to protect children and vulnerable groups or is it wider?
And how much weight should be given to:
- Firstly, the viewer's own ability to control access to the media in question;
- Secondly the context in which it is viewed; and
- Thirdly the desire and ability of the viewer to take responsibility for protecting themselves?

So we will need to establish some core principles to underpin a new model of content regulation for the longer term.

But it is also important that people are able to assess for themselves when media is and is not regulated, so they can take appropriate action to protect themselves and their families.

Which is why we have made promoting media literacy and enabling consumers to make informed choices one of our priorities for this year.

We will publish a statement on this later in the summer.

Of course, viewers need to be empowered, informed and engaged, to harness the advantages that digital media bring.

Whether it is:

The ability to communicate and share information across great distances with friends and family;
Social networking, which is often seen as the preserve of the young, but which can bring huge enjoyment to all sections of society;
The ability to use navigation tools and content controls to protect themselves and their families from harmful content; or
The wonderful choice and diversity of digital TV services now enjoyed by over 75% of UK households.

3 PSB in the future

And whilst there is indeed a fantastic array of programming choice available on digital platforms today, we also need to focus on the future of public service broadcasting and agree on a clear approach to guide us through digital switchover and beyond.

As you know, Ofcom has a responsibility periodically to review and report on how to maintain and strengthen the quality of public service broadcasting in the UK.

Our last review was in 2004 and our next will start in early 2008.

These reviews give Ofcom the opportunity to be at the forefront of the debate about the future of public service broadcasting, leading discussion and thinking creatively about how to tackle the challenges ahead.

It gives us the opportunity to look at the long-term problems facing PSB and suggest options for addressing them.

We have already begun work preparing for our next Review of PSB.

Firstly, we have put in place an evidence base for assessing the effectiveness of public service broadcasters today.

In March of this year we published our first Annual Report of Public Service Broadcasting.

It aims to provide a means by which we can monitor the delivery of public service broadcasting and its findings were very interesting.

It is clear that as a whole PSB continues to be valued by viewers,
It is also clear that the PSB channels are perceived as contributing in different ways: -
- BBC1 is strong in delivering news and big national events;
- BBC2 stimulates knowledge and learning;
- ITV1 is appreciated in particular for regional identity and quality drama;
- Channel 4 for engaging, high quality and challenging programmes, in particular amongst 16-24s.
- And Five gets strong support for some of its engaging and high quality individual programming.

This is important, because what Parliament asked Ofcom to consider in its PSB Reviews is the delivery of the designated public service broadcasters taken together.

So we need to think about how these complementary strengths will work together moving forward, building on existing successes and continuing the diversity of PSB provision we see today.

And we will also need to think about how, as digital television penetration approaches 80%, we take account of the broader range of PSB digital channel portfolios and the variety they offer.

Secondly, we have begun considering the key genres which the commercial PSB's have traditionally provided alongside the BBC but which, although socially desirable, are commercially unattractive.

This includes looking at the future of news and issues around future delivery of regional non news programming, and children's.

Let me focus briefly on children's.

The UK has a great tradition of original children's programming.

We all remember our favourite children's television:

Be it Picture Book, Tiswas or Bagpuss;
Or recent favourites such as Teletubbies, Art Attack or the ever fresh Blue Peter.

High quality British children's TV is something we need to strive to protect.

Our PSB Annual Report confirmed that Children's PSB is particularly highly valued by parents and it is a genre our stakeholders have consistently expressed concern about.

But we have also known for some time that digital switchover and multi-channel television will mean that commercial PSBs will find it more difficult to sustain all their former obligations in the digital age.

So as you know we are conducting a significant piece of research looking at the state of children's media in the UK, the role of television within this and the prospects for future delivery. This will be published this Summer.

Ofcom's first job is to analyse the changes we have seen in the children's market and to consider whether there is a suitable quantity and range of high quality and original programmes for children and young people- and this is crucial- across all PSB channels.

Not in this case to look at whether individual channels are doing enough.

And if the research indicates a problem, we will need to ask ourselves:

Is the BBC's contribution alone sufficient?
If not, can we secure commitments from providers who do not see it in their commercial interests to make such programmes?
And if not what long-term interventions might be required?

And whilst we can identify the case for long-term intervention, it will ultimately be for Government to make that intervention, not Ofcom.

We will look to publish policy options, if appropriate, in the Autumn.

Thirdly, we have also begun to think about what both existing and potentially new institutions might provide.

And any discussion of PSB institutions needs to start with the BBC as the cornerstone of the PSB system.

Through the new Charter and Agreement Ofcom has an important role to play in the remodelled governance and accountability of the BBC, predominantly through market impact assessments which contribute to the BBC Trust's public value tests.

We look forward to working productively with Sir Michael Lyons and his team on this to show that the new governance framework is a change of substance, not just form.

But subject to the new governance arrangements, what the new Charter and Agreement does is give the BBC an opportunity to be brave and creative in what it does during switchover and beyond.

It can be confident in its creative powers and embrace new media, whilst continuing its tradition of high quality traditional output across all genres.

And we support the BBC doing this. But in forging ahead, the BBC must of course also understand the concerns of other companies in the market who are not lucky enough to be guaranteed a stable income stream for at least the next five years.

This also means being confident enough in its distinctive role and privileged provision to embrace the benefits of diversity and plurality in a public service broadcasting system which provides such a vibrant and exciting mixed economy, as well as the competition for quality which we believe lies at the heart of a successful PSB system.

So what of the other PSB institutions?

Channel 4 has shown a willingness and an ability to provide an alternative perspective, but questions have been raised about its long term sustainability.

Earlier this month we published LEK's independent assessment of Channel 4's financial and operating performance.

This report makes clear that whilst Channel 4's recent commercial performance has been strong, the Group is likely to become loss making beyond 2010 and may increasingly be forced to decide between commercial health and delivery of public service content in its commissioning.

We have published alongside the LEK report four options for Channel 4 on which we welcome responses. They are:

Rule out any further public support for Channel 4;
Monitor Channel 4's financial performance and remit delivery with a view to considering the case for future intervention;
Consider safety net measures to mitigate risk to Channel 4 in the short and medium term and review more significant intervention at a later date; and
Move immediately to assess the possibility of major intervention.

We expect your views by early May and in June we will set out the timetable for reaching a firm view on these issues.

But as Andy Duncan has said, the first stage is for Channel 4 to ensure it has done everything it can to future proof itself.

And what of more innovative responses?

We have proposed the PSP, a new idea aimed at exploiting the opportunities for providing public service content over non-traditional platforms, in particular broadband.

We cannot escape the reality that audiences are moving online. And we want to ensure that the principles of high quality content and diversity are replicated to some degree on non-traditional platforms.

We also believe the PSP can provide new media content in Britain which is British, in the same way that we have uniquely British content in the traditional broadcasting world.

And not necessarily at the expense of existing PSB, but to complement it.

Short-term PSB solutions

Alongside these challenges and questions, we must also recognise that there will be an inevitable period of transition as we move from an analogue to digital world.

And during this period of transition I fully expect to hear calls for Ofcom to intervene in various areas.

So I would like to be very clear today about what Ofcom's powers are to address short term PSB concerns- which are I think particularly relevant for the commercial PSBs.

Because these powers are often misunderstood or exaggerated.

Let me start with what we can control directly.

Firstly: production quotas, such as original programming, regional programming made in the regions, regional programming in peak and network programming made outside the M25, where our powers are strong and clear.

We can raise or lower the quotas for these without the licensee's agreement, once we have consulted with them.

Secondly, there are certain programme genres, in particular news, current affairs and regional, where we are able to use our discretion to determine what we consider appropriate, subject to consultation and reasonableness.

Beyond this our powers are limited.

This is because the approach in the Communications Act 2003 to how the broadcasters divide their schedule outside the areas I have just mentioned is largely self-regulatory.

So for genres such as children's, religion, drama and arts, what we can do is in fact very limited.

What changes did the Communications Act make?

First, the regulator is no longer able to require that a commercial PSB fulfils a set number of hours of a particular programme genre.
Second, if a broadcaster wishes to make a significant change to their PSB output, Ofcom must assess it against the overall level of programmes from all the PSB channels, including the BBC digital only channels, taken together.

Ofcom’s role is to offer guidance to broadcasters if they are proposing to make a significant change to the overall character of their service, as set out every year in a Statement of Programme Policy.

And as with any self regulatory regime, where the commercial incentives and the regulatory ambitions are not reasonably well aligned, effective regulation is less likely to follow.

What this means is we need to recognise the inherent limitations of today's broadcast regulation as we move into a fully digital world.

4 Digital Media Vision for 2012 and beyond

So what should a digital media vision for 2012 and beyond look like?

Let me set out a few thoughts.

We need to develop a system for the 21st century which takes the best of the 20th century model, but which is not unduly constrained by it.

We should use the opportunity we have today to think creatively about the future rather than trying slavishly to preserve the past.

This means not only meeting the needs of today's audience, but the needs of tomorrow's.

Because audiences in the future will have different demands from today. They will have grown up in a world where control, mobility and participation in day to day media are not novelties, but necessities – part of what they take for granted.

So what will the characteristics of this digital media vision be?

It will need to be set in a global context.
It will need to be a successful mixed economy: using both public and private investment.
It will require continued intervention, but which is transparent, accountable and bounded.
It must take account of the greater part the market can play in the digital world.
It must be aimed at retaining plurality and diversity of public service provision.
With the purpose of preserving the vitality, the originality and the diversity of public service content in the future.
Serving both the consumer and the citizen.

And this will mean a clear approach to securing future investment in original production and creativity which is focused on ambition, quality and engagement within but also beyond the BBC.

Securing high quality content must remain at the heart of our purpose and our vision.

5 Conclusion

What I have set out today is some thoughts on a new digital media vision which aims to:

Ensure that citizens, consumers, viewers are provided with high quality and diverse content and services in the future;
But also that people are both protected and able to protect themselves in a complex and fast changing media landscape.

There is a long way to go, but we need to start now to develop a coherent framework for 2012 and beyond.

Thank you.

Ed Richards, Chief Executive, Ofcom