After a 12-month delay, secretary of state Tessa Jowell gave the all clear to the BBC this morning. The plan has long been attacked by commercial rivals, including BSkyB and Channel 4, which fear that the new arrival will unfairly compete with their own offerings and eat into limited advertising revenues.
ISBA had argued against the channel on the basis that it would hit commercial channels' abilities to attract youth audiences in the digital TV marketplace. Despite its misgivings, ISBA said it was "strongly welcoming the detailed schedule of 12 conditions laid down". ISBA said it would be pressing the government to ensure that the channel is firmly held to these conditions.
The 12 conditions aim to ensure that BBC Three maintains a strong public-service focus, does not compete directly with commercial rivals and ultimately does not lead to failure in the market for UK youth programming.
ISBA said that as long as the BBC is held to the 12 conditions, they would significantly limit the damage that the launch of BBC Three will do to the commercial sector. It also said it was going to press for the new communications super-watchdog Ofcom to be given powers to regulate BBC Three.
"ISBA will ask government whether Ofcom, the proposed single communications regulator, will now be given full authority to regulate BBC Three. ISBA will be watching closely to formulate its own views on whether BBC Three's product satisfies the government's 12 conditions, and fully expects to be involved as a key stakeholder with government in further discussions about BBC Three," it said in a statement.
In making the announcement this morning, Jowell said she was determined BBC Three would be a distinctive public service channel that was not competing with what is already out there in a vigorous marketplace. She said the channel would be reviewed after two years to ensure this is the case.
The 12 conditions to be met for BBC Three include a commitment to innovative and risk-taking programmes; using and fostering homegrown talent; and using and fostering the independent production sector.
The BBC warmly welcomed the decision and said that Jowell had set some demanding conditions.
BBC chairman Gavyn Davis said: "She has laid out some demanding conditions in the approval but the governors agree that BBC Three must be a high quality and distinctive public service channel and we shall ensure that those conditions are met. BBC Three completes the BBC's portfolio of TV channels for the digital age and will help promote digital take-up."
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