[Community Television] Ofcom to set out future framework of PSB

[Michelle McGuire]

Ofcom to set out future framework of PSB
Colin Robertson and Conor Dignam
29 September 2004 12:47


Ofcom will tomorrow propose a new framework for public service 
television in the UK - amid growing speculation over the BBC’s monopoly 
on the licence fee.

The regulator, in its second phase PSB report on Thursday (30 
September), will say that unless more direct public money is made 
available to commercial broadcasters like ITV and Channel 4 they will 
have no incentive to commission public service programmes in a fully 
digital market.

Today Ofcom refused to comment on the report until it is published 
tomorrow.

There have been press reports that Ofcom is planning to "top slice " 
the £2.7bn licence fee but Broadcast understands that Ofcom will not 
seek to directly move public funding away from the BBC to the 
commercial channels.

One senior broadcasting source told Broadcast that Ofcom does not want 
to "top slice" the licence fee in the sense of taking existing revenues 
away from the BBC - but will propose an alternative model for more 
directly funding PSB on commercial channels.

The source suggested one option could involve capping the BBC’s costs 
at essentially a similar level to today - based on current population 
and number of UK households - but looking at how additional monies from 
the licence fee could be used.

As the population and number of households grows the additional 
revenues could go towards funding PSB on commercial services rather 
than to the BBC.

If this outline proves to be the case Ofcom is expected to expected to 
argue that the method is not "top slicing" the BBC’s income - but it 
would still have adequate resources to continue providing its current 
services.

It is also known to be considering creating a public pot of contestable 
funds that broadcasters and programme makers will be able to pitch for 
- if the programme idea has already been commissioned for a slot from a 
broadcaster.

There may also be more direct public subsidies for Channel 4 and 
possibly ITV to encourage them to continue producing PSB programming 
once the digital switchover takes place in 2012.

Ofcom is likely to present a number of key proposals that it will argue 
must be acted upon in order to support PSB by commercial broadcasters 
who, as digital switchover approaches, will have less and less reason 
to continue their PSB output.

Broadcasters like ITV and Five are only obliged to broadcast PSB 
content like religious programming, news and current affairs as a quid 
pro quo for using scarce analogue broadcast frequencies.

However, following analogue switch-off, they could in theory take 
commercial-only licenses and broadcast in digital with no PSB 
obligations.

In previous statements Ofcom has already said that public service 
broadcasting is too important just to be left to the BBC.

ITV has already suggested that this is the route it could go down 
unless it gets a satisfactory settlement in the renewal of its current 
licences. The broadcaster wants a significant reduction on the £250m 
licence costs, plus £200m it estimates is the cost of providing such 
services.

However if Ofcom does go down this path it can expect furious 
resistance from the BBC which will argue that public money will 
essentially be used to subsidise the profits of commercial 
broadcasters.

Writing in the Financial Times this week Robin Foster, Ofcom partner 
for strategy and market development said: "We have reached two 
conclusions: that plurality is important (both in the supply of 
programmes and in commissioining); and that public funding can play an 
important role in providing the greatest possible space for risk taking 
and the development of new ideas".

  Source: broadcastnow.co.uk