Darroch hits out at UK broadcasting regulations

LONDON - BSkyB chief executive Jeremy Darroch has hit out at UK broadcasting regulation, claiming that it is marked by "interventionist micro-management".

Darroch: BSkyB boss is unhappy with broadcasting regulations
Darroch: BSkyB boss is unhappy with broadcasting regulations

Speaking at a Royal Television Society event last night (3 December) in central London, Darroch said there is an assumption among media regulators and some in the industry that "change is not just threatening - its wrong", adding, "it's the task of government and Ofcom to restore the equilibrium - and then preserve it for as long as possible."

However, he argued that maintaining this status quo is not attractive, insisting that "to someone like me, who comes from sectors where progress is driven by relentless, sometimes brutal competition and demanding customers, its attractions seem pretty limited".

BSkyB has grappled with numerous regulatory and legal challenges in recent months. Among them, it has navigated Ofcom's review of the pay-TV industry, Ofcom's review into public service broadcasting provision and the regulator's review into its plans for a pay-TV service on Freeview.

Darroch, who became BSkyB chief executive last December, went on to claim that in virtually every other aspect of British life, "it is taken as read that an open, free and competitive marketplace is in the best interests of the consumer. But the older tradition of interventionist micro-management persists in broadcasting".

Referring to Ofcom's review into public service broadcasting provision, he argued that the review underestimates the PSB contribution from pay-TV broadcasters. "The risk, therefore, is that further public intervention is directed in a way that diminishes the opportunity for the market to continue to invest and innovate," he added.

Darroch, however, sounded several positive notes for the TV industry, insisting it should be optimistic despite its problems.

He said: "Of course these are challenging times for consumer businesses and for customers themselves. But, while there is no room for complacency, home entertainment and communications remain hugely important in people's lives. In short, we are both positive and optimistic about the future."

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