1.1 This document provides the terms of reference for Ofcom’s market impact assessment of the BBC’s new on-demand proposals
1.2 The BBC’s new Royal Charter and Agreement requires the BBC Trust to undertake a Public Value Test (‘PVT’) before a decision is taken to make any significant change to the UK Public Services. The PVT comprises two elements – a Public Value Assessment (‘PVA’) and a Market Impact Assessment (‘MIA’). In the transitionary period until the new Charter becomes legally effective on 1 January 2007, the BBC Governors have committed to apply the PVT to all new service licence applications.
1.3 For the purposes of conducting MIAs, the Ofcom and the BBC Governors have established a Joint Steering Group (‘JSG’) with Ofcom. The JSG has set these terms of reference for this MIA. The substantive findings of the MIA, however, will remain a matter for the judgment of Ofcom.