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The measurement of Public Service Broadcasting (PSB) is an emotive topic. Partly this reflects the difficulties involved - PSB is a multi-dimensional concept, which poses some significant challenges in its definition, measurement and valuation. But it may also reflect the high stakes at play in the PSB arena.

After all, we currently spend around £3 to £4 billion of public funds(-1-) on the provision of PSB in the UK each year. There is a clear public interest in ensuring that this money is spent effectively - and in asking whether too much (or too little) is being spent compared with the benefits being delivered. There are also some powerful interest groups with a stake in the outcome of any such assessment, from the many producers, administrators and managers who depend on PSB funding for their own livelihoods and who are likely to have a vested interest in keeping the funding taps turned fully on, to those who feel that their commercial interests are threatened by the continued existence of the PSB sector. In this paper, we argue that it is possible to take a considered and systematic approach to the measurement and valuation of PSB. Indeed, such an approach is an essential part of effective public policy in broadcasting, and should underpin key decisions about the scale and scope of PSB in the changing broadcasting market. We divide our approach into three parts:

• Defining PSB - we need to begin with an agreed position on the aims and objectives of PSB and the interventions needed to ensure that they are provided
• Measuring its delivery - once the aims and objectives have been defined, we suggest a coherent approach to tracking or measuring the extent to which the current broadcasting sector and the PSBs within it are delivering to their remits
• Assessing the value produced - as well as measuring its delivery, we need to be able to compare the benefits of PSB with the costs of provision in order to assess how effectively we are spending public funds.

We illustrate our approach with the results of pilot studies which have been carried out by the Independent Television Commission over the past two years, and which are being further developed by Ofcom as part of its PSB review. In particular, we present the outcome of a detailed study into the benefits and costs of the key PSB obligations imposed on ITV licensees.

Footnotes

1. Directly or indirectly, with the precise amount depending on how we value the radio spectrum being used by public service broadcasters.

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