Ofcom opens door to commercial TV getting a slice of licence fee

Ofcom opens door to commercial TV getting a slice of licence fee

Deborah Bonello

Jamie鈥檚 Kitchen: the type of PSB programme Ofcom wants to see more of.

Ofcom has hinted that commercial channels could get a cut of the licence fee towards programming costs and that the BBC must 鈥渞eaffirm its position鈥 as the standard setter for high-quality public service broadcasting.

These were just some of the early findings of the first phase of the media regulator鈥檚 public service broadcasting review, revealed by Ofcom last week.

The consultation, which has been set up to establish the value and future of public service broadcasting in the UK, so far seems to have raised more questions than it has answered.

However, the questions being asked will have delighted ITV chief executive Charles Allen. His suggestion that all channels should be able to bid for PSB cash was placed firmly on the Ofcom table. And the report also opened the door to a dramatic reduction in ITV鈥檚 PSB obligations outside of news and drama.

Ofcom has come up with the somewhat vague finding that 鈥渂roadcasting on the main terrestrial TV channels has partially, but not completely, fulfilled the requirements of the Communications Act鈥.

The consultation has found that audiences appear to be tiring of reality TV programmes such as Big Brother and Pop Idol and feel that there is a lack of innovation and originality on television programmes.

The report from Ofcom found that some specialist programming that is the heart of public service broadcasting, such as arts and current affairs, has been pushed to the margin of the schedule, out of peak time. The regulator also stressed that news, regional news and original UK production should continue to be the central components of public service broadcasting and urged the television industry to find new ways of fulfilling its PSB obligations with less worthy programming and more popular shows along the lines of Channel 4鈥檚 Jamie鈥檚 Kitchen, which meets PSB criteria.

Significantly, Ed Richards, senior partner at Ofcom, said that the way that Channel 4, and possibly ITV and Five, are funded could change.

鈥淎s we approach the digital age and enter it through digital switchover, we do need to rethink the funding structure,鈥 he said.

His comments sparked speculation that the idea of a public funding pot championed by Allen could become reality. Any broadcaster could then pitch PSB programme ideas to receive funding from this pool. Richards said Ofcom will be looking at the possibility of creating this fund from the 拢3.7bn licence-fee money, meaning there could be more than one recipient of the licence fee. Broadcasting executives, including Allen, have long advocated the creation of such a PSB fund by taking a slice of the licence fee.

Ofcom said that the role of Channel 4 in the public service broadcasting landscape remains 鈥渃ritical鈥 and stressed the importance of assuring its economic stability in the future.

Richards and his team made a total of 10 recommendations, including an examination of the funding of PSB and the need for competition for the future of public service broadcasting in light of the increasing penetration of digital television in the UK.

The deadline for responses to the first-phase findings of Ofcoms鈥檚 PSB review is 15 June.

Quantity wins over quality

Ofcom carried out research across the UK as part of the first phase of its consultation on public service broadcasting.

Activities included a survey covering 6,000 households, a number of focus groups and an analysis of viewing and funding data from broadcasters.

The regulator found that expenditure on programming has increased in real terms.

However, the main terrestrial channels鈥 share of overall funding declined from 65% to 57% between 1998 and 2002.

Audience share claimed by the terrestrial channels also declined overall from 87% to 86% because of the growing penetration of multi-channel television.

On an individual level, Five grew its share over the last few years, but that wasn鈥檛 the case for the other terrestrial broadcasters.

Channel 4鈥檚 share dropped below 10% last year and BBC1鈥檚 reach in multi-channel homes fell from 84% in 1998 to 80% last year.

Some of the programmes most closely aligned with the principles of public service broadcasting, such as The South Bank Show, Newsnightand Horizon, have lost as much as half of their viewers over the period and are much less popular in multi-channel homes.

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