Digital multichannels
32. As noted earlier, a considerable amount of content
available in the digital multichannel sector meets public
service purposes and characteristics as defined by Ofcom. This
view was supported by evidence from BSkyB, which noted that it
offers a cultural channel (Sky Arts), covers over 100 different
sports, and carries a range of channels on its platform that met
public service purposes and characteristics as defined by Ofcom,
including Discovery, the History Channel and National Geographic.
BSkyB also pointed out that there are 50 international channels,
11 religious channels and 26 children's channels available on
its platform.[52]
33. The Satellite and Cable Broadcasters' Group argued
that commercial digital multichannels are the "dominant
providers of large swathes of public service broadcasting programming,
offering significant amounts of content that meets public service
broadcasting objectives and characteristics as defined by Ofcom".[53]
It commissioned research from David Graham Associates which concluded
that, for the majority of genres, commercial digital channels
provide more public service programming than either the BBC (including
its digital services) or the advertiser funded terrestrial channels.
According to this research, in October 2006 commercial digital
channels broadcast: 843 hours (92%) of arts programming;
6,459 hours (79%) of children's programming; 9,419 hours (92%)
of documentary or factual entertainment; 751 hours (43%)
of news and weather; and 311 hours (25%) of current affairs programming.[54]
34. However, some witnesses argued that this provision
could not adequately substitute for content produced by the designated
public service broadcasters as digital multichannels did
not have an inbuilt, institutional public service ethos
and mission. For example, the Voice of the Listener and Viewer
said that quality will be lost when a public service ethos is
lost to a more marketled approach.[55]
Ofcom argued that public service broadcasting implies an obligation
on the broadcaster and the institution to provide certain types
of programmes that it otherwise might not wish to and that public
purposes therefore become the commitment of the channel, regardless
of its commercial interests.[56]
On the other hand, the RadioCentre told the Committee that "making
money for shareholders is entirely compatible with fostering community
spirit and public value" and that it was in broadcasters'
commercial interests to provide public service content.[57]
35. There were particular concerns about the digital
multichannel sector's level of investment in UKproduced
content. Pact[58] considered
that the provision of UKproduced content, as opposed to
imported programming, is "one of the cornerstones of public
service broadcasting".[59]
We noted in Canada that the underlying objective of intervention
in the broadcasting market is to ensure the provision of Canadian
content, and licensed broadcasters are required to meet Canadian
content quotas. In a UK context, Tim Gardam, previously Director
of Television and Director of Programmes at Channel 4, told us
that multichannels do not have the incentive to invest in
original content as it does not guarantee similar returns on investment
as other content they can provide. By way of example, Mr Gardam
said that over £2 billion of original content is provided
by the designated public service broadcasters while only £100 million
of original content is provided by other channels.[60]
Pact told us that the digital multichannels often rely on
repeats of programming commissioned by the terrestrial channels.[61]
36. The digital multichannels were more positive
about their contribution to the commissioning of UKoriginated
content. BSkyB told us that they spend around £250 million
a year on production and original programming and that it has
the ambition to do more. [62]
The Satellite and Cable Broadcasters' Group said that its members
spend around £150 million per year in the British production
industry, but recognised that this is relatively small in comparison
with the £3.5 billion that is spent on the BBC.[63]
37. Not all digital multichannels are commercially
funded. Channels such as Teachers TV and the Community Channel
provide public service content in return for direct funding from
the Government. In 2005-06 Teachers TV had an annual budget from
the then Department for Education and Skills of around £16 million.
It provides a range of programming covering National Curriculum
subjects, as well as specialist programmes for head teachers,
managers, newly qualified teachers and governors. Teachers TV
also provides more general public service content, including a
weekly halfhour news programme and documentaries on educational
issues and current affairs.[64]
The Community Channel is funded by the Cabinet Office and has
a remit focusing on giving a voice to the voluntary and community
sector by providing news, current affairs, documentaries and lifestyle
programming. The Satellite and Cable Broadcasters' Group said
that these channels demonstrate that public service can be as
efficiently delivered by small specialist channels with dedicated
remits as it can by large organisations and dominant brands.[65]
The Broadcasting Policy Group told us that Teachers TV is a prime
instance of targeted, transparent, accountable, contestable public
service content funding, with a clear value for money assessment
available.[66] We also
learnt of specialist Canadian channels which provide public service
content. For example, Knowledge Network provides educational programming
in the British Columbia Province, receiving direct funding from
the provincial government as well as donations from viewers.
38. There is
currently an abundant supply of content that exhibits public service
purposes and characteristics as defined by Ofcom. There are more
providers and hours of this type of content available to consumers
than ever before, including a substantial provision from the radio
and digital multi-channel sectors. We note, however, the criticism
that the digital multichannel sector is not sufficiently
investing in UKproduced content. We welcome the declared
intention of these broadcasters to increase their investment in
this area and believe that Ofcom should conduct and publish a
detailed analysis of the multichannel sector's level of
investment in UKproduced content.
Plurality
39. Ofcom suggested that plurality—in other
words, having many providers—is important at three levels
of the broadcasting production and distribution chain:[67]
- plurality of outlets: so that
viewers do not have to rely on a single provider in order to receive
content;
- plurality of commissioning: so that a range of
commissioners working for different organisations can bring their
different perspectives to bear on the system; and
- plurality of production: so there are different
creative organisations competing for commissions.
40. The situation outlined in this chapter arguably
fulfils the objective of plurality in public service content provision.
The Government is committed to plurality in public service broadcasting
as it believes that a "sustained plurality of public service
broadcasting providers […] is the best way of ensuring that
the quality and diversity of public service broadcasting is maintained".[68]
Ofcom pointed out that plurality creates a number of benefits,
including the provision of complementary services to different
audiences, a range of perspectives, particularly in news and current
affairs, and competition to spur innovation and investment.[69]
The Satellite and Cable Broadcasters' Group told us that consumers
benefit from strong, fair competition between providers of quality
content[70] and Geoff
Metzger, Managing Director of the History Channel, noted that
competition is good as it creates the incentives for broadcasters
to innovate and provide value for money.[71]
BSkyB pointed out that competition is beneficial as it helps prevent
the inefficiencies that ensue when organisations are insulated
from market disciplines.[72]
Andy Duncan, Chief Executive of Channel 4, agreed that plurality
ensured competition, stating that "the most worrying thing
is if there is not proper competition and plurality over time,
the BBC potentially becomes fatter, lazier, more bureaucratic
and, ultimately, less sharp".[73]
41. The concept of plurality in the provision of
public service content was largely supported in the evidence we
received. For example, Jocelyn Hay, Chairman of the Voice of the
Listener and Viewer, stated that "in the name of democracy
it is absolutely essential to have information and news from a
plurality of sources in addition to a wide range of programmes".[74]
Andy Duncan told us that "there seems to be a strong consensus
that you do not only want the BBC" and that alternative broadcasters,
providing "some proper competition and some proper plurality"
were necessary.[75] In
relation to news provision, Mark Thompson, DirectorGeneral
of the BBC, told us that plurality is important as it is "good
for the British public and for the national debate" if there
is a range of different public service providers.[76]
Jeremy Mayhew, a Partner at Spectrum Strategy Consultants, agreed
that plurality is important and stated that it "would be
bad for the BBC and bad for British citizens" if the BBC
gained a monopoly in public service provision as this could lead
to less innovation and lower quality output. [77]
Mark Thompson, however, told us that the Government needed to
"become very clear about precisely what is the extent of
the public service plurality you want to secure, what are the
programme types [and] what are the areas that you want to ensure
you have secured".[78]
42. Plurality
in the provision of content is important, as it brings the benefits
of competition, different services and a diversity of viewpoints
to consumers. We consider that there is currently a plurality
among providers, commissioners and producers of public service
content and we note and welcome the Government's commitment to
plurality. Despite this commitment, it is the case that a large
proportion of the Government's support for public service content
has been concentrated on one provider, the BBC. We believe that
the Government and Ofcom should set out what they consider to
be a sufficient level of plurality, and the investment necessary
to achieve that, in order to assess whether this is likely to
be threatened in future.
31 Ev 109 Back
32
Ev 110 Back
33
Ofcom, Communications Market 2007, August 2007, p 145 Back
34
ITV, The next five years: content-led recovery, 12 September
2007, http://www.itvplc.com Back
35
Channel 4, Channel 4's unique contribution to public service
broadcasting, April 2007, p 7 Back
36
Channel 4, Channel 4's unique contribution to public service
broadcasting, April 2007, p 14 Back
37
Ev 87 Back
38
Ofcom, Communications Market 2007, August 2007 Back
39
Ev 128 Back
40
Ofcom, Communications Market 2007, August 2007 Back
41
BBC, Part Two: BBC Annual Report and Accounts 2006-07,
July 2007, p 75 Back
42
BBC, Part Two: BBC Annual Report and Accounts 2006-07,
July 2007, p 55 Back
43
BBC, Part Two: BBC Annual Report and Accounts 2006-07,
July 2007, p 75 Back
44
Ev 152 Back
45
Ofcom, Communications Market 2007, August 2007 Back
46
Ev 18 Back
47
Ev 37 Back
48
Ev 38 Back
49
The UK's largest commercial radio company, which owns 55 analogue
and 99 digital radio stations. Back
50
Ev 28 Back
51
Ev 42 Back
52
Ev 180 Back
53
Ev 236 Back
54
Ev 237 Back
55
Ev 15 Back
56
Q 521 Back
57
Ev 38 Back
58
The trade association representing the commercial interests of
the independent production sector. Back
59
Ev 57 Back
60
Q 3 Back
61
Ev 61 Back
62
Q 478 Back
63
Qq 600-601 Back
64
Ev 384 Back
65
Ev 238 Back
66
Ev 2 Back
67
Ev 204 Back
68
Ev 259 Back
69
Ev 204 Back
70
Ev 234 Back
71
Q 614 Back
72
Ev 179 Back
73
Q 199 Back
74
Q 51 Back
75
Q 196 Back
76
Q 331 Back
77
Q 7 Back
78
Q 332 Back
