The Response of the Campaign for Press and
Broadcasting Freedom to ‘Ofcom’s Second Public Service Broadcasting Review
Phase Two: Preparing for the digital future’ published: September 2008.
1. The Campaign for Press and Broadcasting Freedom is an
independent organisation funded by its membership which links people working
inside and outside the media. It works to improve diversity and accountability
in the media and has campaigned since 1979 on a range of issues including
ownership and control, censorship, public service broadcasting and media
standards. For further details: www.cpbf.org.uk
The Ofcom Review.
2. We welcome the opportunity to
respond to the Ofcom document. In particular we reiterate our agreement with
Ofcom’s recognition that there is a case for continued and increased public
intervention to sustain and develop public service content across existing and
developing forms of delivery. This is a position that the Campaign has argued
for many years.
3. We also welcome the fact that
Ofcom has published evidence of substantial public support for public service
broadcasting. For example Ofcom’s research continues to show the depth of
public support for the maintenance of public service broadcasting[1].
This response is organised around the consultation questions which Ofcom has
raised.
Consultation questions
4. Do you agree that public
service provision and funding beyond the BBC is an
important part of any future
system?
4[a] Public service broadcasting
has, since the introduction of commercial television in 1954, always extended
beyond the BBC to include commercial provision of public service broadcasting.
We consider that one purpose of policy should be to extend the amount, range
and quality of public service communications across the sector, including the
BBC and all major providers of commercial communications services.
4[b] Consequently, one function
Ofcom is to consider measures which can both sustain existing provision and
extend it to major players in digital broadcasting and on the internet.
Currently Ofcom is overseeing a strategy which points in the opposite
direction. That is, Ofcom is allowing ITV plc to retreat from significant
elements of its public service remit, and is also not developing policies to
ensure that major providers like Sky, have to spend significant amounts of
money on original production. In so far as Ofcom has limited powers in this
area it should be pressing the government to devise instruments that would
allow it to take a more pro-active role in promoting public service
broadcasting across all sectors.
5. Which of the three
refined models do you think is most appropriate?
5[a] The Campaign considers that
the current array of commercial and non-commercial broadcasters should remain
in place. ITVplc should be required to restore the cuts it has made in key
areas, such as news and current affairs, children’s programmes, drama, and
non-news programmes for the nations and regions. If it is reluctant to do this,
then steps should be taken by Ofcom to penalise it. It is important to
recognise that ITV is positioning itself to make a considerable amount of money
using its brand in the new age of digital broadcasting. Ofcom should not be in
the business of allowing ITV to ditch its obligations in a manner which
suggests the regulator is keen to aid the board room strategy of one of
companies it is meant to supervise.
5[b] A whole raft of measures can
be used, many of which are outlined in this Ofcom document, to sustain and
bolster public service commercial communications. Where public money is needed
to sustain particular services, such as Channel 4, or additional services for
the nations and regions, then this should come in the form of loans repayable
out of revenues over a long period. This could take the form of loans being
subject to repayment once the company receiving the loans have achieved an
agreed level of profitability or of income, which ever is deemed the most
appropriate. In the case of Channel 4 this would be similar to the system of
funding which supported it in its early years.
5[c] There should be no spectrum
sales. Leasing spectrum is one option as long as the money is used to fund
public service broadcasting content.
5[d] There should not be any top
slicing of the BBC. The recent debates about using the digital dividend,
delivered in the BBC licence fee settlement of 2006, for the future funding of
commercial broadcasters is misguided. It will open the door to more demands on
the licence fee from the commercial sector. Leaving that sum with the BBC would
enable the licence fee to be kept at a lower level than it might otherwise be.
5[e] If the government wishes to
fund the expansion of public service broadcasting beyond the BBC it can begin
to look at measures to make the companies that own satellite and cable channels
pay for the production of public service content. Once companies reach a
certain level of audience and profitability, and given that that success is
built on the loose regulatory framework gifted by the government as well as
access to homes in the UK, then the government should insist that commercial
satellite and cable companies fund high quality public service provision across
all platforms. Ofcom’s focus on the BBC and existing commercial public service
broadcasters has always been too narrow.
5[f] Levies are another option.
In one form or another they have always played a part in developing UK
broadcasting. The Independent Broadcasting Authority which ran commercial radio
in the UK in its early years used a system of ‘secondary rental’, which was in
effect a levy on successful radio contractors, to fund developments of public
service commercial radio. Channel 4 was originally funded by a levy on ITV contractors,
repaid by allowing ITV companies to sell advertising. So, using a levy,
properly structured, is a tried and tested method of ensuring the development
of public service broadcasting in the UK and should now be given serious
consideration by the government.
5[g] In practical terms we
recommend that Ofcom takes a far more robust attitude to the failures of ITV;
that there be government funds made available to fund and support Channels 4
and 5; that there be no top slicing; and that the legislation be altered to
allow change in the nature of Ofcom so that it has the remit to promote public
service across the communications sector, pro-actively, by having powers to
make commercial contractors spend on public service broadcasting and where
appropriate, to use levies to promote that end.
6. Do you agree that in any
future model Channel 4 should have an extended remit to innovate and provide
distinctive UK content across platforms? If so,
should it receive additional
funding directly, or should it have to compete for
funding?
6[a] Yes, Channel 4 should have
funding, directly from the government to innovate and provide distinctive UK
content across all platforms. But it should not have to get this through
competitive funding. In the public sector it is arguable that competitive
funding has proven wasteful of public resources and has shifted money from
where it should be, in the service of the public, to the accounts of private
shareholders. It is a wasteful and time-consuming activity and is not a fair or
appropriate way of disposing of public funds. A loan system, as outlined in
5[b] or the use of a levy 5[f], are ways of aiding Channel 4 through its
current difficulties.
7. Do you think ITV1, Five and
Teletext should continue to have public service
obligations after 2014?
7 [a] Yes. If these companies
cannot pay for these out of revenue, then there could be limited loans to aid
them do this. But if this is not possible, they should relinquish their
contracts and these should be re-advertised.
8. Where ITV1 has an ongoing
role, do you agree that the Channel 3 licensing structure should be simplified,
if so what form of licensing would be most appropriate?
8[a] ITV is, in effect, one
network in England and Wales. There would no harm in restructuring the licence
in the future to acknowledge this, but it should go hand in hand with a
strengthening of the obligations of the contractor to provide a range of
programmes calculated to appeal to the tastes and interests of people in
different areas of the UK. It is not the structure of the licence that is the
issue; it is the obligations that the licence imposes, the willingness of the
holders to adhere to those obligations, and the independence and robustness of
the regulator. At present all three of these conditions are not properly
operational.
9. What role should
competition for funding play in future? In which areas of
content? What comments do you
have on our description of how this might
work in practice?
9[a] Although the arrival of the
independent sector ( a form of competition for funding ) after the changes of
the mid-1980s led to some diversity in terms of the production base and
programming, this situation has rapidly changed. As many predicted in the 1980s
the pressures exerted by the growth of independents would be to push down
standards of employment and training and lead to concentration in the sector.
The competitive ethos that has driven this change and the general changes in UK
TV has led to the stripping away of key elements from UK TV (original prime
time drama, current affairs at prime time, children’s programmes). It has
stripped the BBC of key resources and personnel, and seen the transfer of
public money to individuals who have become very rich as a result.
9[b] It seems odd then that given
the dire consequences that have flowed from the increase in competition for
funding that Ofcom should be pushing this. We do not need more competitive
funding; we need Ofcom to take stock of just how damaging competition in public
services has been to date.
10. Do you agree with
our findings that nations and regions news continues to
have an important role and
that additional funding should be provided to
sustain it?
10[a] It has long been known that
programming in the nations and regions (non-news as well as news) is important.
This kind of programming will only continue if Ofcom takes a much more robust
and independently minded approach to the regulation of ITV. The problem has, of
course, economic dimensions. But these are negligible compared with the problem
of Ofcom’s role in overseeing ITV’s retreat from these areas. Additional
funding should be provided if needs be, but only in the form of loans to ITV in
the short term.
11. Which of the three refined
models do you think is most appropriate in the
devolved nations?
11[a] Existing support for
programming in these areas must continue. This means ensuring that the BBC is
able to deliver as well as the ITV companies. S4C and Gaelic TV need to be
supported.
11[b] Our recommendations in
section 5 above apply here. In addition we consider that the recent
interventions by the Scottish Parliament and the National Assembly for Wales,
point to the need for greater devolution of powers over broadcasting and
communications to the elected assemblies.
12. Do you agree with our
assessment of each possible funding source, in terms
of its scale, advantages and
disadvantages?
12[a] Our concern is that the direction
of Ofcom’s approach is to let the main commercial providers (ITV, Sky etc) off
the hook, whilst putting pressure on the licence fee.
12[b] Public service
communications needs to be funded out of public funds, licence fees, regulatory
assets, spectrum leasing and the revenues of commercial operators. The question
of whether public funding will have a detrimental effect on editorial
independence is to some extent misplaced. It ignores the extent to which
private funding influences editorial choices (we have seen this amply with the
reduction of children’s TV programmes). It also downplays the way existing
mechanisms do foster editorial independence in S4C and the BBC, and the ways
they can be improved.
Conclusion
13. We are concerned that the
changes in ITV’s provision of news and other services, have occurred in the way
and at the pace they have, because Ofcom has allowed this to happen. If we see
a weakening of the BBC, it will be, we believe, because Ofcom has fashioned a
policy consultation environment where the issue of the BBC is constantly
returned to as if the fact that it is a successful public body is a
problem. In one sense this reflects the way Ofcom views the world of
communications; for Ofcom’s purposes and powers were shaped in the framework of
the economic orthodoxies of the last thirty years, which have, since the onset
of the global recession in 2008, been shown to be woefully inadequate ways of
conceptualising how economies and public services work.. In another sense it is
because the Communications Act of 2003 did not give Ofcom enough
responsibilities and powers to develop public service broadcasting.
14. The government therefore
needs to re-think its policy in the area of communications. We recognise the
limitations of Ofcom’s powers and urge that new legislation should re-design
Ofcom as a body geared towards sustaining public service values across all
platforms. It needs not only the powers to do this, but the will to effect
changes that will protect and enhance public service values in communications.
3 December 2008
Campaign for Press and
Broadcasting Freedom
23 Orford Road
Walthamstow
London E17 9NL
0208 521 5932.
[1]
Ofcom, (2008) to Ofcom’s Second Public Service
Broadcasting Review. Phase One: The Digital Opportunity (London, CPBF, May)
paras. 3.44-3.45