Memorandum submitted by Video Networks
Limited
This letter sets out the principal points that
Video Networks Limited would like to cover in its evidence on
the subject of BBC Charter renewal to the Select Committee on
Culture Media and Sport.
For the Committee's information, Video Networks
owns and operates the HomeChoice broadband television service
that is now beginning to roll out in the London area. Its large
range of content (including live television channels, more than
a thousand films and a wide range of individual television programmes)
combined with its unique functionality that allows viewers access
to content whenever they want, means that HomeChoice is essentially
a broadband cable network. It is using BT's local loop infrastructure
to develop its own DSL platform so that a virtually limitless
amount of content can ultimately be made available at low cost
to people's television sets at home.
As part if its evidence, and through this memorandum,
Video Networks Limited would like to invite any member of the
Select Committee who so wishes to visit the company's offices
in Holland Park, London for a demonstration of the HomeChoice
service.
In addressing the issues surrounding the renewal
of the BBC's Charter, Video Networks would like to make the following
points:
(i) The BBC has a vast archive of television
and radio content that it is planning to make more widely available
through distribution on new media platforms. Video Networks welcomes
this. The unique advantage of broadband television platforms such
as HomeChoice is that they can provide content at exactly the
time consumers' want or need it. This means that for a public
service broadcaster such as the BBC, highly expensive programmes,
made from money received through the Licence Fee, can be kept
and then made available to Licence Fee payers at more convenient
times. This increases the value of the programmes. Not only can
more people see them, but because they're watching them at a time
that suits them perfectly, they can derive more satisfaction from
them.
(ii) Video Networks believes that the policy
of universal availability of "already paid for" programming
through its distribution on new media platforms should form a
central part of the case for Charter Renewal. Within the next
five years the media world in the UK will become a very different
place. The Proliferation of broadband will be very nearly universal;
on websites, and through innovative television services, people
will begin to have access to content in a way that is hard to
envisage today. But it will happen. And the educational and social
opportunities offered by this process are huge. The BBC's position
as the mainstay of the British content creation industry requires
it to take a lead in this area. But it must do so in a way that
benefits the industry as a whole, not just its own services. It
has a number of online and new media services, such as bbc.co.uk
and its Interactive Media Player (IMP), currently undergoing testing,
and these will benefit from the BBC's ability to clear all its
content for secondary use on these platforms. However, the BBC's
new media service must not be allowed to become the only beneficiaries;
any new media service provider capable of presenting fully cleared,
licence-fee funded content to licence-fee payers must be able
to use it in the same way as the BBC itself.
(iii) In taking advantage of the availability
of publicly funded programmes Video Networks will be no different
from pay television services such as Sky or cable which already
benefit from the growth of the BBC's digital channels. These can
only be seen on commercial platforms, or through Freeview, which
requires customers to buy a box. Like Sky and cable, Video Networks
has spent millions of pounds developing a network, and a platform,
that it believes offers consumers real advantages. It will not
charge its customers more for the ability to watch BBC programmes
whenever they want. This will be an additional service, made available
at no extra charge, but bringing benefits to the BBC, the HomeChoice
platform, and most importantly, British television households.
(iv) Video Networks believes its platform
can be used for educational and social initiatives—and would
like the BBC to be part of this too. HomeChoice already runs an
information service for the London Borough of Newham, and is exploring
with the London Grid For Learning the use of its network to service
schools and colleges with educational material. It is also in
discussion with various private/public partnerships in London
that might like to use the network for local information and education
as well as entertainment. The BBC has a role to play here—in
a similar way to what it has tried to do in Hull using the Kingston
Communications network. But the process needs to become more robust
and more whole-hearted, if it is to yield the benefits that are
undoubtedly possible. The BBC needs content partnerships with
New Media platforms if it is to develop, facilitate and encourage
the further distribution, not only of its programmes, but of its
whole public service approach and purpose. Platforms such as HomeChoice
stand waiting for exploitation of this kind. Video Networks hopes
that as part of Charter Renewal the BBC is required to join hands
with the innovative programming services that will become more
and more available during this period. The advantages for these
new platforms are, of course, considerable. But there are great
advantages for the BBC too. Through partnerships of this kind,
the BBC will ensure that its presence and influence in the new
world is no less than it has been in the old.
More widely, Video Networks would add this.
In looking at ways in which the BBC can work with New Media operations,
issues will arise relating to the BBC's commercial operations,
and how these sit with its public service remit. What are the
boundaries? What is commercial and what isn't? How far is the
BBC allowed to go? These are questions that have been asked before—but
in truth not very clearly answered. In future clear answers will
be absolutely vital. The UK media industry must find the right
balance for the BBC and then communicate it strongly to the market
at home and abroad. Without that clarity it will be difficult,
perhaps impossible, to encourage the innovation and investment
the new media sector so badly needs.
25 June 2004
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