First-run originated network hours 2007
(excluding news)
Source: Pact/Attentional.
10. The Production Trend report showed that
this lack of representation for Northern Ireland (as well as the
Nations and regions as a whole) was evident across all the PSB
broadcasters.
BBC1 and BBC2
11. BBC network production in the Nations
remained low in 2007, with Scotland, Wales and Northern Ireland
combined accounting for less than 5% of non-news network hours.
Of that, Northern Ireland represented just 0.2% and 0.1% respectively
(excluding news), by far the lowest of all the devolved Nations.
ITV1
12. ITV1 commissioned no network programming
from Northern Ireland independent producers in 2007, and just
0.1% of its total first-run network hours (excluding news) came
from the Nation.
Channel 4
13. Northern Ireland accounted for just two hours
of first-run network programming on Channel 4 in 2007, representing
0.1% of network hours (excluding news).
Five
14. Outside news, Five commissioned no Northern
Ireland network programming at all.
Addressing this failure
15. While this lack of representation has no
doubt been exacerbated by the current pressures on the PSB system
due to fragmenting audiences and advertising revenues, it is also
the result of years of neglect that cannot be dismissed as a result
of recent developments. Representation of the devolved Nations
and English regions was little better, and in some cases worse,
when the 2003 Communications Act was introduced and PSB broadcasters
were enjoying record revenues.
16. Nor can this situation be put down simply
to a lack of a production supply base in Northern Ireland or other
nations or English regions. In recent years, some Northern Ireland
independents have turned over more business from US broadcast
networks than the combined PSB UK channels.
17. In our view, the problem stems from
a London-based commissioning culture, whereby producers in the
Nations and regions have struggled to compete on a level playing
field with those based in London.
18. The BBC has recently sought to address
this issue. Pact welcomes the BBC's decision to change the definition
of Out of London programmes to be in line with the definition
used by Ofcom and the rest of the broadcasting industry. In particular,
Pact welcomes the BBC's announcement that it will source 50% of
network programming from outside London by 2016, including the
aim of commissioning 3% of programming from Northern Ireland.
In Pact's view this is potentially one of the most significant
developments in the UK's PSB system, and if delivered effectively
should be seen as one of the most important public benefits provided
by the BBC.
19. In our view, the BBC should work towards
meeting these targets as soon as possible, and aim to significantly
exceed them by 2016. The BBC has stated that this is its intent;
however, given the long history of a London-centric commissioning
culture at all PSB broadcasters, including the BBC, the annual
progress reports provided by the BBC Executive to the BBC Trust
on this matter should be made public. These reports should include
a breakdown of the level of commissioning from external/independent
suppliers, as opposed to in-house departments. Having a mixed
production ecology is important to building genuine diversity
of viewpoints, as we have outlined.
20. Reporting on this level of detail is
entirely feasible. The BBC already captures much of this data
for its biennial reviews of the Window of Creative Competition
(a mechanism whereby the BBC opens up 25% of its commissioning
to competition between its in-house production departments and
would-be external suppliers). Also, Pact has been able to collate
this data for all PSB broadcasters for its Production Trend Reports.
21. Crucially, through, strong representation
of the devolved Nations and English regions should not be left
to the BBC alone. Channel 4, which is also publicly-owned, though
commercially funded, should play a key role in this, using its
distinctive voice to add range and diversity to the portrayal
of the Nations and regions on network television. Channel 4 has
a statutory PSB duty to represent the entire UK, being subject
to an Out of London under the 2003 Communications Act. Channel
4 has proposed a modest rise of 5% on its current level of 30%
Out of London programming, and we would agree that at the very
least this should be part of the broadcaster's new remit following
the Government's current Digital Britain review.
22. However, we see a strong case for Channel
4 to increase its Out of London commitment still further to 50%,
phasing in this increase as the BBC moves towards its 50% target.
The BBC's decision to commission 50% of network content from Out
of London suppliers represents a substantial stimulus for independent
companies in the Nations and regions, giving many far greater
access to network-level commissions. As a result, companies will
look to staff up, and invest in skills and business development.
Channel 4 should be able to benefit from the increased capacity,
infrastructure and expertise of such companies, and therefore
should consider the scope for increasing its commitment to Out
of London commissioning.
23. Given that the BBC's Out of London initiative
to increase its nations' targets to 17% will criteria stronger
infrastructure, there is likely to be more scope for Channel 4
to increase its network commissioning above that of its recent
commitment to 3% across all three Nations combined.
24. Channel 4 may voice concerns that as
a publisher broadcaster without in-house production it may have
difficulty achieving a higher Out of London target due to a supposed
lack of external production capacity. We reject this—as
we have noted, many companies outside London are already earning
more revenues from commissions from US-owned digital channels
than they are from the PSBs, and are therefore clearly not being
fully utilised by those PSB broadcasters. In considering this,
the Committee should bear in mind that the BBC's overall spend
on UK programming is far greater than that of Channel 4 (£1.2
billion a year compared to £377 million, according to Ofcom).
Should Channel 4 increase its Out of London commissioning to 50%
this would be a relatively small increase in investment compared
to the BBC, and we would therefore not anticipate any failure
on the part of the supply market to meet this target. However,
if Channel 4 were to set 50% as a target to be worked towards,
rather than introduced immediately, it would be able to gradually
build its supply base. What is important is a clear statement
of policy from Channel 4 to work towards this 50% target, coupled
with regular public progress reports.
25. If as a result of the Digital Britain
review the Government were to create a contestable fund for "at
risk" areas of public service programming, Pact's position
is that this should be available to programmes where there is
a proven market failure, as well as a clear public value. We see
UK children's programming for older children as clearly fulfilling
both criteria, and would urge the Government and Ofcom to consider
the case to also include the most under represented areas of non-news
Out of London programming.
26. Additionally, Ofcom has outlined proposals
for news consortia from the Nations and regions to provide regional
news on the ITV network. These should offer an opportunity for
a range of external suppliers, including independent production
companies, to compete to offer news to audiences across the UK.
27. We support appropriate levels of funding
for indigenous language content, such as the Irish Language Broadcasting
Fund. Both Scotland and Wales have well funded models with Scotland's
new BBC ALBA channel and S4C in Wales.
28. However, our primary concern is that
Northern Ireland (and all devolved Nations and English regions)
should be better represented at network level across the UK. Network
commissions are vital for companies in the nations and regions
to develop their businesses. The longer term or larger scale commissions
at network level are important to companies' ability to plan strategically
and commit investment that will build the local infrastructure
and talent base.
April 2009
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