Select Committee on Communications Minutes of Evidence


Examination of Witnesses (Questions 40 - 59)

WEDNESDAY 4 JULY 2007

Mr Mark Wood and Mr Jonathan Munro

  Q40  Baroness Bonham-Carter: Some years ago you were competing with Sky, as a result the budget was quite seriously cut. You won the tender but at a much lower budget. I know, having been an editor and a producer in current affairs, that money is very tight at the best of times and this must have affected the way in which you can provide the news for your customers and indeed foreign news. I know nowadays in news there are far more two-ways, fewer films, I would suggest fewer reports from abroad. Did the very fact that you had to compete and had to cut your costs not affect the quality of the news that you are providing ultimately for the viewer?

  Mr Wood: I think not. The evidence is there on the screen and you can judge probably as well as I can. I think our news has actually got better in the last few years. ITN is fairly unique in many ways. We are probably the only truly commercial news supplier in that sense. The BBC does not have to worry about commercial pressures and Sky News is a subsidised part of Sky and is a loss making business so they have different pressures. ITN has to live within its agreed contract prices and generate profits so we have become very adept at using new technology and new working practices usually ahead of the competition. What we have done is to become, I think, smarter and faster moving. We are doing it again now, we are having a big technology change now which will again reduce our operating costs and enable us to put more money into coverage. What we have tried to do is take money out of some costs—infrastructure and so on—and keep the funding of the news coverage and the front line stuff as high as we can. In fact we have been increasing our coverage funding in the last couple of years for ITV news.

  Q41  Baroness Bonham-Carter: Mr Munro, I have a question about that. Cutting back on production costs means fewer people working on one story I imagine, multi-skilling.

  Mr Munro: It can mean that.

  Q42  Baroness Bonham-Carter: Does that not mean that you have fewer eyes on a story which affects therefore the quality of the reports?

  Mr Munro: It can if you are not careful. The vast majority of the costs that came out when the ITV news contract was re-negotiated last time round were in what you might call back room areas, management, HR, admin, finance, that sort of thing. There is a multi-skilled driver. That means that in the days of film and in the early days of video deploying a camera crew would have meant a cameraman, a soundman, probably a lighting man as well and almost always on big stories even a runner to physically take the tape back from where the film was being shot to the nearest satellite feed point or even film processing depot in some cases. I remember when I was cutting my teeth on the road in Belfast it was unheard of to go on the road without that number of people. We do not need to do that now because we can feed live pictures from the back of the camera. You do not need a runner, you do not need a sound man because the technology has improved so much. Therefore those costs have come out. We are able to do quite a lot more with the technology that is there. We talked a little while ago about the global warming story we did from Antarctica. I was in New York shortly after that story talking to our American partners at NBC and we were discussing the number of people who did that story. There were only four members of staff from ITN in Antarctica doing that story all week, live transmissions, reporting, the whole lot. They were astonished by that because American television is very unionised still. They have very, very heavy manpower deployments. We would not deploy a small team of that sort into Baghdad because the extra eyes and ears that you need or want for safety reasons are really important, they are crucial.

  Q43  Baroness Bonham-Carter: Also for journalism reasons.

  Mr Munro: It can be for journalism reasons but in Baghdad operating with more white western journalists is not necessarily helpful. In Zimbabwe—we have done a lot of reporting from Zimbabwe in the last two or three years—I do challenge your assertion that we do less foreign news. We have done more work out of Zimbabwe, for example, than any other broadcaster; we have won awards for it.

  Q44  Chairman: The BBC are banned.

  Mr Munro: We are all banned.

  Q45  Chairman: You are banned as well, are you?

  Mr Munro: We are all banned from Zimbabwe and one of the things that constantly irritates is that other people say they are banned from doing it; we are all banned. We get in through routes that I will not put on record for obvious reasons. We go very light weight and very discreet because it is the only way to operate there. The technology allows us to do that. Had the regime been in place in its current form 20 years ago we could not have covered Zimbabwe in the way we did because we would have needed too many people and we would have been too visible. Undeniably costs have come down; undeniably revenue has gone down because the contract is worth less money than it was. Our job as managers is to try to make sure that what comes out of the screen at the end of the day is not the place where the impact of that is felt.

  Q46  Lord Maxton: Do you think you do better with fewer staff than the BBC do with a lot of staff?

  Mr Munro: I think pound per pound we represent much better value for money than anyone else. If you are asking me whether I would like to have 20 more staff, of course I would. Let me give you an example of where I think nimbleness and being fleet of foot is more important than numbers. The example I have in mind is the Virginia Tech massacre in the United States earlier in the year. We have one Washington correspondent for ITV News with a small support team. He was on the campus live from Virginia Tech by the 10 o'clock news that night and the BBC were not. They decided to keep all of their people back to service their multiple outlets because that is what their Washington bureau does. We think in a light weight way; we think in a fleet of foot way. There is an old analogy which is probably tired and a bit of a cliché but we are the little speed boat that zips around the oil tanker; we can go faster, we are not as big, we cannot carry as much cargo but we get there quicker.

  Chairman: We will just cut in at the end of that commercial! We will come back to the point on staffing. Lord Corbett?

  Q47  Lord Corbett of Castle Vale: Mr Wood, you said earlier that you feel your news has got better. Audiences change and the world has changed tremendously over the last 10 years at least. Can you just expand on that a little bit and just explain some of the differences in the range of issues which you cover and the depth in which you do them? I understand about different things for different programmes, but just broad brush stuff; what do you do more of and less of, for example?

  Mr Wood: I think, as Jonathan says, if you look across ITV News and Channel 4 News the management of foreign coverage is impressive and has become quite creative. The reporting from Antarctica was a classic case of again bringing the issue of global warming to life for viewers. We do a lot of focus groups and have regular feedback from customers and we know that worked very well, we brought a theme alive which otherwise can be quite abstract. Channel 4 News has introduced a regular pattern of anchoring the 7pm news programme from different locations once or twice a year. A few months back we did a week of "News from Iran". John Snow went out and anchored the evening news. That was at a time of quite considerable tension with Iran and worked very well. In terms of them being there they had people in front of the cameras, they were able to have Iranians putting an Iranian point of view on certain issues. It had a knock-on in that the contacts made led to quite a breakthrough in the case of the marines who had been taken prisoner when one of the senior Iranian officials appeared on Channel 4 News live and said, "We'll negotiate a settlement". You can see that kind of creative approach is something that was not done in the same way before. I think in foreign news, getting people off the main stories to tell the other stories, tell the stories of what is happening in parts of Africa—I am thinking back to reports we published about slave mining in the Congo, for example, about treatment of malaria in Uganda—those issues were brought alive by deploying people, having the resources and the time to deploy people on non-urgent stories. That has changed a lot. I think in domestic coverage Jonathan put it very nicely, it is trying to get the viewers' perspective on what is important to them. ITV News has been very good at covering health service issues and crime issues. A while back the ITV regions and the main ITN programme did a take out on weekend drunkenness, the streets of Britain's provincial cities at midnight and three o'clock on a Saturday morning and the number of young people staggering round paralyticly drunk. It highlighted again a major social problem. I think that is a creativity and deployment of resources which is smart and is different to what was happening before. We have been looking at news programmes from 10 years ago recently and finding them rather boring because they are just lists of news: this happened and then this happened. You could not get away with it today because the audience would desert. The audience's expectations are much higher but that is good. I think we have a sophisticated public which wants to get to grips with some key issues both domestically and internationally and I think our news programmes deal with that.

  Q48  Baroness Eccles of Moulton: It struck me while you were talking just now and you were stressing the fact that you want to know what it is the public wants to see, is there also an element in how you react to that in having some wish perhaps to raise the standard of what the public wants to see? I could say that as long as you are satisfying their enthusiasm for sensational news perhaps that could be overdone and a bit of trying to interest them in news that is not entirely based on the sensational is an aim which you have which is not entirely dictated by what you think the public would most like to see.

  Mr Wood: I do not think that we do just go for the sensational. Both in Channel 4 News and ITV News there is a very, very strong focus on public interest coverage. It is getting to grips with issues around changes in the Health Service, changes in education and it is how they affect people. That is not sensational stuff, that is good journalism. I think good journalism is presenting coverage in a way which is compelling. We cover a range of subjects. Jonathan, you should say something on this.

  Mr Munro: I think the key to any story telling in any media outlet—newspaper, broadcast or on line—is to try to highlight those angles on any story which directly bring it home to the viewer. There are some stories which do not really affect the people very much, but there a lot that do. On the face of it, for example, the increasing aggressive nature of the Chinese economy is not a story that most people would look at and think, "I will watch because it is going to affect me" but if you ask the workers at Longbridge this has affected them very directly. That is why we have a bureau in China and we are continually reporting the growth of the Chinese economy. You can carry on saying it affects you at home but I think after a while viewers get that, they understand that this is a part of the world that they need to know more about. There is no evidence that I have ever seen that people do not want to have that sort of news; I think people do. People want to sit and watch a news programme and feel at the end of the show they have heard about what is happening in the world that day and they have learnt of it too and that is a good mix.

  Q49  Lord Hastings of Scarisbrick: Can I probe you a little bit further on the pressures that are bearing down not just on you as management but as editorial leaders. You talked a lot about how you have recently had to change the news to reflect the different way in which people see and perceive news to be today. There is an implication in that that the decisions about news are not really made objectively but they are made subjectively according to audience demand and desire. Is that a fair reflection?

  Mr Munro: Any news organisation editor or a programme editor or news editor I think the decisions they take are, by definition, subjective. We are objective in the sense that we are politically impartial and so on. I think that it is more the treatment of stories, the way we tell a story than actually the story selection itself which is the kernel of this. It comes back to the Health Service example I was talking about earlier, but it applies across the board to all sorts of stories, not just what story are we going to tell but how are we going to tell it. We should actively encourage viewers to stay with us through programmes because the last thing we want is to produce a programme that no-one is watching. It is in the public interest that people absorb the news. People over the years are absorbing nuggets of news from increasingly varied sources—it is on our mobile phones, it is on our internet sites—and that is a real challenge for the whole broadcast industry. Subjective, yes; I think that is inevitably the case because they are human judgments.

  Q50  Lord Hastings of Scarisbrick: The BBC said it always had the mission to explain in its news. Do you hold to that mission to explain? If I may just illustrate it by say, for example, today's news, Alan Johnston is free and that is something over which we are all delighted but we have seen acres of coverage of the Alan Johnston story and is there a difference between what your viewers might perceive to be the reality of Alan Johnston the journalist and the issues concerning him as compared to the complexity of the Middle East dilemma that brought him into that conflict.

  Mr Munro: That is a very good example so today let me tell you what we are planning to do with that story. We will do a first report which is very much Alan Johnston's day today, all of the various interviews he has given, the press conferences, his movements and what we know about how the release happened. That is a standalone story. We are not going to pollute that with political content; that is his story. Separate to that in the same programme there will be another piece which is about what was Hamas's role? What role, if any, did the British Government play? What do Hamas, who have been very much persona non grata in the international community, expect or want to get from their role in the release of Alan Johnston? That will give us the context into the broader Middle East dimension of this. That is a really important piece of television. I personally do not think it is a mission to explain; I catch it more that we do not want people to watch that programme and not understand the story. We seek always to try to make stories explicable. In the case of that story that will absorb something like half our programme tonight so we have plenty of time, space, what we would call elbow room, to make those explanations. If it was an incremental move in the story as opposed to a defining move it is more difficult to find the time in a half hour programme to bring all that context in every time. Certainly on a big story of that sort we would always strive to do that.

  Q51  Baroness Howe of Idlicote: I think you have done a pretty good promotional programme, as it were, on how you have adapted to more challenges from the technical world apart from other forms of reporting. Could you tell us if there are extra pressures caused by the purely digital and Internet media environment which is obviously much more competitive? Do you have any thoughts on how further you can encourage high standards coming out and giving you an even greater mark for independence and impartiality?

  Mr Munro: I think in an age where there are so many outlets, so many people doing what they would describe as journalism, particularly user generated content as it is now called, people filming things on mobile phones and that sort of thing, the unique selling point of terrestrial television news—whether it is BBC or ITN products—our standards hurdles need to be maintained at the very highest level on accuracy, on impartiality, on sourcing and that will be the differential between what we do and what is available at the click of a mouse on a website as the years roll forward. That will be our unique selling point. Our proposition to our viewers is one of trust: you need to give us half an hour of your time, we in return will give you a robust, truthful, honest, impartial, accurate account of the stories that we are bringing you this evening. That is, in a sense, a bargain with the viewer. We have to deliver on that and that is our primary purpose in making television news programmes otherwise we will end up—the whole industry, I am not talking specifically about ITV—being pulled down into a user generated content led world which is not where we want to be and I do not think it is where any of the broadcasters want to be either.

  Q52  Baroness Howe of Idlicote: If I may ask you a further question, thinking about the younger generation, you made some comment about one of these programmes, the later one, tending to attract a rather younger audience. Equally there have been a lot of comments about how the really young generation are not watching any news at all. I wondered what your thinking is here and how you are going to try to attract them in. They are maybe sending clips of what they are doing to one another and so on.

  Mr Wood: Part of our business is in producing video news for mobile phones and for broadband sites and we do stream news channels on mobile phones. An element of that is showbiz coverage and celebrity coverage. The people who tend to watch news on mobile phones tend to be under-25s and their primary interest is in the showbiz coverage or the sports coverage, but through those entrance doors they also watch the other bits of news. We know that when there are major events the usage levels go up quite sharply so they do watch breaking news. The same on broadband, we feed news content and news clips into a range of different broadband sites and we are working with people who will be producing news with a flavour. The Telegraph, The Guardian, The Mirror, The Mail, The Times are all developing their own broadband and video propositions. Telegraph Television and Guardian Television when they are here—and it will not be long—will have their own flavour and their own slant. That is fine because you know what the label is and you know what it stands for. In between all that, anything which is labelled "ITV News" "Channel 4 News" has to be balanced and impartial and has to be trusted. We give up trust at our peril. In a fragmenting world trust brands will become more important.

  Q53  Lord Inglewood: We have so far looked at this from the viewers' perspective. I am interested to go behind the scenes and probe a bit about the way you do it. Presumably you do not have any golden rule about how much domestic coverage and how much international news you cover, but you must aim to get a balance on that I assume.

  Mr Munro: Yes, we have a balance. There is no golden rule because what you describe as a domestic and what you describe as a foreign story is quite often not that easy to define. A British soldier killed in Basra is both; Madeleine McCann's parents are on foreign territory but it is essentially a domestic story. We talk about global warming a lot, it is cause and effect; what we do here has an effect elsewhere in the world and vice versa. So there is not a quota but we usually try for a balance in a programme. Ten days ago when Sheffield was under water the whole programme was about the floods apart from a brief little rap, which is three or four other stories that you need to know about but everything else in the programme was the floods. That is not balanced in that sense but within the floods coverage we will make sure that there is one piece that is an overview piece, there is an environmental causes piece, there is a piece that is living the day with one family and so on so that the contents themselves are not repetitive.

  Q54  Lord Inglewood: I think it was Mark Wood who said that you had five overseas permanent correspondents and then you flew people in and out as the world required. Presumably this is a reduction on what was the case in the past.

  Mr Munro: We used to have six at one stage. We used to have a bureau in Moscow but that was in the days when Moscow was incredibly difficult to get in and out of; visa issues were a nightmare, it was almost impossible to react to a breaking story from London in Russia. In the days of the Cold War obviously that was a major issue. The Cold War is over; the visa issue is over; we closed up the bureau and moved the money into what we call variable coverage, that is to say spending more money on putting people on airplanes to go to places where stories were happening.

  Mr Wood: We opened a reporting bureau for both ITV News and Channel 4 News in China last year, a new bureau, and that has been incredibly productive for both. It is not a breaking news story because covering Chinese daily news is not what interests our viewers but for Channel 4 News and ITV News the whole range and series of reports on what is happening in China and the changes in China has been incredibly watchable and has gone down very well.

  Q55  Lord Inglewood: You must use, in one way and another, quite a lot of part time people, stringers. Do you take information from the public as if they were your people and use that? I am trying to get a picture of how you get out there and do it.

  Mr Munro: The answer to your question about viewers is yes in the UK. We would not normally have direct contact with members of the public on foreign news until we actually get to the scene of the story. ITN is a domestic brand. The viewer video issue in the UK is becoming a really big source of picture, the source of picture that all broadcasters are making use of increasingly. There are some very prominent examples of that. Perhaps the most prominent that we have had recently was the arrest of the men, the jury is still out in the trial of the 21/7 alleged bomb plot when we had user generated content as we call it. It was not actually filmed on a mobile phone but nonetheless it was from a member of the public who contacted us. That is increasingly important and we are about to launch a whole website called ITV News Uploaded where people can upload that material and we will only harvest the very best of it for terrestrial news programmes but it will become a vehicle through which we can contact viewers who have contacted us with events. The floods coverage last week was full of pictures of water rushing down streets which had been filmed by viewers.

  Q56  Baroness Thornton: Some of my questions have already been answered in the issues earlier about your early news bulletins and the ratings and so on so I will not ask you to repeat that. Since 1981 your overall share of viewers for ITV News has dropped from 49% to 19%. What has happened to the rest? How do audiences for news compare to the overall decrease in your viewing figures? Has news fared better or worse than other genres? You touched on this but perhaps you can expand on it, what is the age and demographic profile of your news viewers? My 19 year old daughter almost certainly accesses some of your celebrity screening I am sure; I wait in expectation of her watching the news. Can you give us some idea about what trajectory you think you are on at the moment?

  Mr Wood: Inevitably the viewer numbers to the news programmes rest within the schedule and as the audiences fragment the number of channels multiplies. The viewer numbers for the mainstream networks have been in steady decline and therefore viewer numbers for news programmes have. At key points, for example at the 6.30 News on ITV, we outperform the average for that time. We compete with the BBC, we have roughly the same sorts of audience numbers. I think Channel 4 News, the performance of the News tends to above the expectation of the schedule at that time so that is quite encouraging. Channel 4 News has a very fast growing young demographic which is very encouraging. In fact Channel 4 News right now is getting the biggest audiences it has had for four years which is quite an achievement given the decline otherwise. The reality is that one would expect the network's viewing numbers to continue to decline for a while but then probably bottom out. If you look in other comparable countries where fragmentation of the spectrum has happened earlier—Germany is a classic case where there have been multiple news channels for a long time—the big networks tended to then bottom out round about between 16 and 18%, sometimes up to 20%. It is quite likely we will see something like that here. Then what you will have is the accessing news on other platforms. People do watch news channels; they watch news on demand on the Internet. Broadband has made news a more enjoyable experience on the web. People do access news increasingly on the web and look at both video news and straightforward text news. Part of our business is to deliver news on multiple platforms, in different ways and in different packages so that we can get people interested in different places. There is a challenge in getting younger people to look at news. Newspapers have the same issues. We are all in the same boat, frankly, trying to find ways to engage attention. I think showbiz coverage is a good way in because you get attention and there is other stuff as well.

  Q57  Lord Maxton: At the moment you are quite right, more and more people go to the computer for the news and your news is scheduled on television. However, there are now on the market already machines actually quite low bands which would allow you to watch your computer generated news on your television and control it from your television. Does that not begin to make the whole concept of news scheduling irrelevant and in the long term mean that we will not have programme scheduling?

  Mr Wood: It will be both and we want to be on both sides of that divide and have strong multi-media offerings on the web as well. Channel 4 News and ITV News will be available on demand on the websites as they are now so we will continue to make that easier to use. Recent history shows that when there are big stories breaking people still like news programmes. They like to go to an anchor and a pre-arranged, pre-organised running order and a presentation and interpretation. I think, particularly at times of crisis or major stories as we have had this week, the audience numbers shoot up, even though you can go to Sky News or BBC News 24 you can go on the web and get a news item.

  Q58  Chairman: How much do the rise by?

  Mr Wood: Earlier this week they were up at the weekend by about 25 to 30% on normal.

  Q59  Chairman: What does that mean in people?

  Mr Wood: The weekend audiences are heavily dependent on the schedules but there were probably about an extra million viewers on Saturday night and I think about an extra one to two million on Sunday night.


 
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