ITV

Tag: Ofcom

  • Ofcom to release terrestrial TV spectrum for mobile broadband services in UK

    Ofcom to release terrestrial TV spectrum for mobile broadband services in UK

    NEW DELHI: Even as the dispute about Defence releasing spectrum continues in India, mobile broadband services in Britain will get a boost with British telecom regulator Ofcom releasing some digital terrestrial spectrum.

     

    The strategy of Ofcom is to ensure that UK’s network operators can continue to deliver mobile broadband using some of the frequencies used for digital terrestrial TV services such as Freeview, and wireless microphones. Ofcom said these frequencies make up the 700 MHz frequency band.

     

    Ofcom CEO Ed Richards said, “This important decision ensures that we are making the raw materials available with which investors and companies can build the services which will support the digital economy of the future.”

     

    Ofcom said that viewers can continue to enjoy the free-to-view TV services without another switchover. Ofcom is keeping a target of 2022.

     

    Ofcom will ensure that users — theatres, sports venues and music events – of wireless microphones will have access to airwaves to deliver cultural benefits.

     

    Some industry reports predict that demand for mobile data could be 45 times higher by 2030 than it is today.

     

    In October, Ofcom has already invited potential bidders to comment on proposals for auction of spectrum in the 2.3 GHz and 3.4 GHz bands, which is expected to take place in late 2015 or early 2016.

     

    The company has identified a number of frequency bands that wireless microphones could potentially use. Working with the PMSE community, Ofcom will confirm what spectrum will be available to them next year.

     

  • UK TV industry sees revenue growth: Ofcom report

    UK TV industry sees revenue growth: Ofcom report

    MUMBAI: The Communication Market 2014 report of Ofcom, an independent regulator and competition authority for the UK communications industries, highlights that TV industry generated ?12.9 billion in revenue during 2013, an increase of ?426 million (3.4 per cent).

     

    The increase was driven by growth in subscription revenues and net advertising revenues. However, there was a small decline in publicly-funded television programming in 2013, following an eventful year in 2012, including the London Olympic and Paralympic Games.

     

    The report examines the key developments and trends seen in the UK television market during the past year. Some of them include:

     

    Pay-TV subscription revenue continues to drive the growth as subscription revenues increased by 6.7 per cent in 2013 to reach almost ?5.9 billion. Subscriptions now account for 46 per cent of all television industry revenues in the UK.

     

    As far as broadcast-based TV advertising income is concerned, it returned to growth in 2013, increasing by 4 per cent (or ?146 million) to reach almost ?3.7 billion, its highest level in the past five years. The largest proportional growth was in the commercial PSBs’ portfolio channels, where revenues increased by 14 per cent to reach a combined total of ?669 million.

     

    Online TV revenue saw an increase of 41 per cent in 2013 to reach ?364 million. The subscription model saw the steepest growth; revenue rose by 76 per cent to ?112 million, possibly indicating that online streaming services are gaining traction in the UK market.

     

    Spend on content by all UK TV channels rose by 3.7 per cent to reach ?5.8 billion. In a year  of English Premier League broadcast rights renewal, spend on sports programming grew by 19 per cent to reach ?1,808 million or 59.1 per cent of all programme spend on commercial non-Public service broadcasting (PSB) channels. Spend on BBC digital channels and the other PSBs’ portfolio channels also increased, rising by 6 per cent and 4 per cent, respectively. However, spend on first-run originated programming for the main five PSB channels declined by 5 per cent; from ?2,588 million in 2012 to ?2,451 million in 2013, partly due to there being no major sporting events that year.

     

    In Q1 2014, 12 per cent of TV households had a smart TV, an increase of five percentage points on the previous year. Among smart TV owners, use of the internet functionality is increasing. 82 per cent used the internet connection on their TV in 2014 compared to 77 per cent in 2013 and 65 per cent in 2012.

     

    Nonetheless, the TV viewing has remained resilient, although there was a decline in 2013 across all age groups. According to broadcaster audience research board (BARB), average viewing dropped from 241 minutes in 2012 to 232 in 2013 among all individuals, with all age groups experiencing declines. This may be due in part to changing media habits, but it might also have been influenced by the hotter summer in 2013 and a lack of ‘event’ viewing – in previous years viewing was boosted by major sports events such as the 2010 Football World Cup or the Olympic Games in 2012. However, among 16 to 24 year olds viewing has declined for three consecutive years: from 169 minutes in 2010 to 148 in 2013.

     

    Click here to read the finer details

  • Ofcom seeks additional HD channel on Digital Terrestrial TV

    Ofcom seeks additional HD channel on Digital Terrestrial TV

    MUMBAI: UK media watchdog Ofcom has invited applications from broadcasters for a fifth HD channel on Digital Terrestrial TV. This decision will mean that a new HD channel could join the existing four HD channels broadcast on multiplex B: BBC HD, BBC One HD, ITV1 HD and 4HD.
     

    Applications are open to commercial Public Sector Broadcasters, which include the Channel 3 licences, Channel 5, Channel 4, and the Welsh Authority. The closing date for applications is 17 October.
  • Ofcom aproves Sky’s request for pay-TV services on digital terrestrial TV

    Ofcom aproves Sky’s request for pay-TV services on digital terrestrial TV

    MUMBAI: UK media watchdog Ofcom has announced that after three rounds of consultation, it has made three decisions: Sky Sports 1 and 2 to be offered to retailers on platforms other than Sky’s at prices set by Ofcom; to approve Sky and Arqiva’s request for Sky to offer its own pay TV services on digital terrestrial TV (Picnic), but conditional on a wholesale must-offer obligation on Sky Sports 1 and 2 being in place, with evidence that it has been effectively implemented; and to consult on a proposed decision to refer two closely related movie markets – for the sale of premium movie rights and premium movie services – to the Competition Commission. 

    Ofcom notes that the pay TV sector has delivered substantial benefits to consumers since its emergence in the early 1990s. More than 12 million consumers now pay to access a greater choice of content, at higher quality, and with a greater degree of control than has historically been available from free-to-air broadcasters. Sky has been at the forefront of this development and has delivered substantial benefits to millions of consumers in the UK.

     

    Pay TV services have to date been delivered primarily via satellite and cable networks. However, this investigation comes at a time of disruptive change in the way content is distributed. For example, digital terrestrial TV offers the scope for pay TV to be delivered via aerials, and new broadband networks could offer consumers an unprecedented choice of content, and the ability to access that content on demand.

     
     

    The ability to provide such services depends not just on technology, but on access to content that consumers want to watch. Live high-quality sports and recent Hollywood movies retain an enduring appeal for many consumers. Access to this content has driven the historical development of pay TV. This will remain crucially important for the development of new platforms and new services.

     

    For many years Sky has held the exclusive rights to broadcast first-run Hollywood movies and many of the most sought-after premium sports. Ofcom has now concluded that Sky has market power in the wholesale of certain channels including this content. However, the position differs between sport and movies: 
    Sky’s position in sport arises from the unique ability of broadcast TV to reach a large live audience, and Sky’s control of the live broadcast rights for many of the most important sports. This is unlikely to change in the next few years.

     

    The position in movies is more complex, since there are a variety of ways consumers can purchase movie content, and the importance of linear channels is starting to reduce. Looking forward, Ofcom expects video-on-demand to become increasingly important. However, Sky controls not only all the major linear channel movie rights, but also all of the rights that would be required to develop a subscription video-on-demand service for first-run Hollywood movies.

     

    Ofcom notes that Sky exploits its market power by limiting the wholesale distribution of its premium channels, with the effect of restricting competition from retailers on other platforms. This is prejudicial to fair and effective competition, reducing consumer choice and holding back innovation by companies other than Sky. In the case of movies, the fact that Sky also owns but barely uses the subscription video-on-demand rights denies competitors the opportunity to develop innovative services. 

    Ofocm has decided to use its powers under section 316 of the Communications Act to ensure fair and effective competition by requiring Sky to offer the most important sports channels – Sky Sports 1 and Sky Sports 2 – to retailers on other platforms: 
    Given that it cannot expect commercial agreement between Sky and other retailers, Ofcom has set a price for standard-definition versions of these channels at a level that should allow an efficient competitor to match Sky’s retail prices. The calculations are based on Sky’s own retail costs, adjusted for scale so as to allow for a market with several competitors rather than a single provider.

     

    Ofcom has set a wholesale price for each of Sky Sports 1 and 2, when sold on a standalone basis, which is 23.4 per cent below the current wholesale price to cable operators. Most consumers currently buy packages which include both channels, and the wholesale price for the service bundle which applies in those circumstances has been reduced by 10.5 per cent.

     

    In calculating these prices, Ofcom has taken into account the additional retail revenue generated by Sky from its Multiroom service enhancement, and have also taken into account any associated costs. Other retailers will be free to develop their own service enhancements, including offering Multiroom-type services, by using the same underlying wholesale product at no additional cost.

     

    Ofcom adds that it has not set a price for high-definition versions of Sky Sports 1 and 2. It has accepted Sky’s argument that high-definition services are a relatively recent innovation, and that pricing flexibility will help promote future innovation. Ofcom just requires Sky to offer contractual terms for supply of these channels on a fair, reasonable and non-discriminatory basis.

     

    Ofcom says that it has provided guidance on a number of non-price matters such as security, to ensure that the remedy is implemented as quickly as possible. 

     

    Further Ofcom has decided it would not be appropriate to impose a similar obligation on Sky’s movies channels. Ofcom has expressed concerns over restricted distribution of movies channels, but the main forward looking concern relates to the sale of video-on-demand rights. It says that it cannot adequately address this concern under section 316 (which relates primarily to linear channels). Instead it belieevs in making a reference to the Competition Commission under the Enterprise Act 2002, and as required by statute.

     

    Ofcom has consented to Picnic, subject to a wholesale must-offer obligation on Sky Sports 1 and 2 being in place, and evidence that it has been effectively implemented. This conclusion is also subject to any movies channels included in Picnic being offered to other DTT retailers. These conditions will allow consumers to benefit from access to Picnic, while also ensuring fair and effective competition.

     

    Ofcom expects these decisions to deliver substantial benefits to consumers. The most immediate benefit will be felt on digital terrestrial television. 10 million Freeview households will, if they so choose, be able to access the most attractive sports content via their existing aerials, and competition between Sky and other retailers should ensure a wide range of packages, including lower-priced entry-level bundles.

     

    Improved access to ‘must-have’ content will incentivise investment in new means of distributing content, such as faster broadband networks. In the longer term, this will result in a range of innovative new services for consumers.
  • TDSAT-Ad cap: 2nd amicus curiae done, channels turn now

    TDSAT-Ad cap: 2nd amicus curiae done, channels turn now

    MUMBAI: The second amicus curiae Aman Ahluwalia continued his arguments today in the TDSAT-ad cap hearing. After giving the legal perspective yesterday, today he focused on the commercial implications of the ad cap regulation.

    Ahluwalia said that the Telecom Regulatory Authority of India (TRAI) has the power to implement licensing under section 11 (1) (a) of the TRAI Act as well as enforcing it on broadcasters through section 7 (11) of the Cable TV Networks (CTN) Act. There is no need for it to choose the CTN act. The TRAI’s procedure may have been faulty but the bench should not strike down the ad cap regulation on account of this.

    The bench wondered that when a licence is issued, the terms and conditions need to be read properly, and if the ad cap regulation issued by TRAI adds anything to section 7 (11) of the CTN act, then should it be accepted. The agreement between the licensor and licensee is only for section 7 (11) and if points like clock hour and reporting to TRAI come into the picture, it is in excess of the section.

    The bench said that one cannot change, modulate or supplement the terms of the licence. If TRAI had implemented it under sections 11 and 12 of the TRAI Act that address the issue of licensing and advertisements then such problems wouldn’t have come up.

    The amicus curiae read out the final draft report of the convergence bill which gives the definition of ‘broadcasting services,’ as it doesn’t have an exact one. He said that content, distribution and technical components all come under the TRAI act and content and distribution together mean carriage. By reading out reports such as the Nariman report, he chose to interpret broadcasting services to include content.

    Ahluwalia then proceeded to the commercial aspects. He told the bench that after reading the code in the UK, he saw that the ad cap may work for GECs while the news channels that have less viewership will be most affected by it. The only way revenue can be raised is either by digitisation when subscription revenue will go up, or by raising advertising rates. However, if subscription rates are jacked up, viewers may not pay, and resort to cord cutting, resulting in lower viewership, and comitantly lower ad revenues as they depend entirely on viewership.

    To support his statement, he also produced financial reports of Zee TV and the Sun Network which showed that their ad revenues were high as compared to news channels. Sponsored shows could be a way out for news channels to generated additional revenues but this could turn out to be dangerous as news could become coloured. And thus he suggested that genres should be dealt with differently.

    According to him, English news channels will be the most affected because advertisers will start turning the screws on them as viewership will quite likely drop off the cliff. The scenario could improve when DAS is implemented completely all over the country as by then subscription and ad revenues each will contribute equally to a company’s top line.

    Reading from an Ofcom (independent regulator and competition authority for the UK communications industries) report, he emphasized that TRAI’s ad cap regulation needs to be more precise in terms of the number of ads per half an hour, duration of the promos etc. Till DAS isn’t complete, it should not be implemented as, under Article 19 of the Constitution, broadcasters have the right to disseminate information and viewers have the right to receive plurality of information giving them the power to choose.

    If the regulation comes into effect now, many smaller news channels may shut down and the existing ones will generate less revenue and hence news could end up being coloured as only a limited number will be left to provide news.

    After Ahluwalia concluded, the News Broadcasters Association (NBA) counsel presented the rejoinder. He argued that TRAI’s analysis of the ad cap violations was incorrect.

    His second argument was that TRAI has the power to implement the terms and conditions between the licencee and licensor under section 4 A of the Telegraph Act that talks about teleport licences. It cannot implement it on the basis of the uplinking and downlinking policies.

    Teleport licences do not mention the CTN act at all and when TRAI is enforcing it on the basis of licensing then its line of reasoning needs to be read in the context of teleport licensing.

    The NBA counsel stated that TRAI cannot act against broadcasters under the uplinking/downlinking policy since it falls under the ambit of the Ministry of Information and Broadcasting.

    During its arguments, TRAI mentioned that broadcasters had suppressed documents related to licensing. The NBA counsel clarified that the data was about OB vans and teleports, which was available in the public domain.

    He added that, according to Ofcom, UK channels were allowed ad commercials of 9-12 minutes averaging and not per clock hour. Also, if TRAI were to enforce the ad cap, it should be under the teleport licence under section 4 A of the Telegraph Act.

    The NBA will continue its rejoinder tomorrow as well.

  • UK switchover almost complete with 98 per cent getting digital signals: Ofcom

    UK switchover almost complete with 98 per cent getting digital signals: Ofcom

    MUMBAI: A total of 25.1 million households in the United Kingdom were receiving digital TV across all platforms in the fourth quarter in 2012, marking an increase of almost five per cent from the year before.

    The Digital Television Update report by the British media watchdog Ofcom says digital TV is now received in 98 per cent of UK households following the completion of digital switchover last October.

    A total of 75 per cent households watched TV over digital terrestrial signals in the fourth quarter of 2012, an increase of 0.5 percentage points on the fourth quarter of 2011. In the fourth quarter of 2012, 54 per cent households subscribed to pay TV, up by two percentage points on the same period in 2011. A total of 37 per cent households subscribed to pay satellite in the fourth quarter of 2012, the same proportion in the corresponding period in 2011. A total of 13 per cent households subscribed to cable in fourth quarter of 2012, which was the same proportion in the corresponding period in 2011.

    In the fourth quarter of 2012, 3.4 per cent households had multi-channel platforms other than digital terrestrial, satellite and cable, up by 1.4 percentage points on the same period in 2011.

    There were an estimated 2.12 million free-to-view digital satellite households in the fourth quarter of 2012, up from 2.04 million in the fourth quarter of 2011, according to the survey data.

  • Ofcom rejects Greystone Media’s appeal in TV-on-demand case

    Ofcom rejects Greystone Media’s appeal in TV-on-demand case

    MUMBAI: UK media regulatory watchdog Ofcom has rejected an appeal by Greystone Media in relation to a decision by the Authority for Television On Demand (ATVOD) – which is responsible for regulating the editorial content of certain on-demand programmes services.

    On 26 April 2011, ATVOD determined that Greystone Media’s business channel was an On-Demand Programme Service and therefore subject to regulation under Part 4A of the Communications Act 2003.

    Greystone Media appealed this decision on 6 February 2012. As the appeal body for ATVOD decisions, Ofcom assessed the case and has found in ATVOD’s favour, deciding that the service did fall within the scope of ATVOD regulation. This decision relates to the content on the business channel at the time of ATVOD’s original determinations.

  • TV revenue sees fastest growth in communications sector: Ofcom

    TV revenue sees fastest growth in communications sector: Ofcom

    MUMBAI: Global communications sector revenues, the total of TV, radio, telecom and post sectors, grew in 2011 by 3.7 per cent to touch ?1,322 billion, according to a report by UK media watchdog Ofcom.

    In terms of percentage growth, television revenues grew fastest among the communications industries, by 6.6 per cent in 2011 to ?258 billion.

    Global advertising expenditure grew by 3.8 per cent in 2011 to ?298 billion, the highest total spend since 2007. While expenditure on internet advertising grew at a compound annual rate of 16 per cent between 2007 and 2011 to ?48 billion, the compound annual growth rate of newspaper advertising was in the negative at 6.9 per cent to drop to ?60 billion, while for magazines it was a 6.8 per cent fall to ?28 billion.

    In the television and radio sectors, subscriptions generated the largest and fastest-growing proportion of total revenues in 2011. Television subscription revenues grew by 10.5 per cent in 2011 to ?133 billion and at a compound annual rate of nine per cent between 2007 and 2011. Radio subscription revenues grew by 12.5 per cent in 2011 to ?2 billion and at a compound annual rate of 8.5 per cent between 2007 and 2011.

    Telecom sector generated the largest absolute rise in revenues in 2011, up by ?31 billion to ?936 billion.

    The number of fixed-line voice connections remains relatively resilient in the UK, with more fixed-line voice connections per 100 people than in the other markets covered. Although this number fell between 2006 and 2011 in all of the countries which Ofcom surveyed, the fall in the UK was among the smallest. Tablet take-up is highest in Spain and Australia (it is 24 per cent in both). Italy and the US have the next-highest claimed ownership (23 per cent and 20 per cent) while in the UK take-up is 19 per cent.

    In nearly all comparator countries, consumers say they have reduced face-to-face communication and fixed telephone calls with friends and family. In all eight countries, use of post declined. In contrast, preferences for online communications increased, particularly in the UK and Italy, which showed large increases in the use of email and social networking.

  • ITV ownership rules not to change: Ofcom

    ITV ownership rules not to change: Ofcom

    MUMBAI: There will be no changes in the ownership rules affecting UK’s principal independent broadcaster ITV, UK broadcast sector regulator Ofcom said.

    According to the prevalent rules a newspaper group with more than a fifth of national newspaper share cannot hold a Channel 3 licence or a stake in a Channel 3 licensee that is greater than 2 per cent. Also, certain persons are disqualified from holding broadcast licences generally while certain others are not allowed to hold certain kinds of broadcast licences. The rules also say that some persons may hold broadcast licences only if Ofcom has determined that it is appropriate for them to do so.

    It is Ofcom’s resposibilty to ensure that regional Channel 3 licensees broadcast news programmes nationally which are able to compete effectively with other national television news, by requiring them to appoint a single news provider between them. Persons who would be disqualified from holding a Channel 3 licence are also disqualified from being the Channel 3 appointed news provider.

    Ofcom also has a statutory duty to review the media ownership rules regularly and counsel for any change to the UK Secretary of State.
    Ofcom said that the wider public policy debate about media ownership is ongoing and believes that any recommendations it makes will need to be considered in light of any changes to the legislative and policy framework. According to the regulatory body, it has neither observed any Parliamentary policy rationale nor any shift in the market context in which they operate for existing rules to be changed.

    In a statement, the regulator said, “Our advice on measuring media plurality set out that it is for Parliament to decide if and when this rule should be modified or removed and that the conclusion of the first periodic review of plurality is likely to provide greater certainty than is currently available. As such, we do not recommend any changes to this rule in this review.”

  • Half of internet users in UK unsure if content legal: Ofcom

    Half of internet users in UK unsure if content legal: Ofcom

    MUMBAI: Nearly half of all internet users in the UK are unsure whether the content they are accessing online is legal, UK media watchdog Ofcom‘s research has found.

    However, one in six people online believed they downloaded or accessed content illegally over a three-month period this year.

    The findings come from the first wave of a large-scale consumer study into the extent of online copyright infringement among internet users aged 12 and above.

    This ongoing research will identify trends over time, examining infringement of copyright on music, films, TV programmes, software, books and video games.

    According to the report, 47 per cent of users cannot confidently identify whether the online content they download, stream or share is legal or not, highlighting the importance of increased efforts to educate and inform consumers.

    In June, Ofcom published a draft Code that would require large fixed internet service providers (ISPs) to inform customers of allegations that their internet connection has been used to infringe copyright, and to explain where they can find licensed content on the internet.

    Under the amended Communications Act 2003, Ofcom will report to the Government on efforts made by content owners to invest in awareness campaigns to help educate consumers about the impact of copyright infringement.

    The consumer study also found that:

    • One in six (16 per cent) internet users aged 12+ downloaded or accessed online content illegally during the three month period from May to July 2012;
    • Reported levels of infringement varied considerably by content type: eight per cent of internet users consumed some music illegally in the three months, but just two per cent did so for games and software;
    • The most common reasons cited for accessing content illegally were because it is free (54 per cent), convenient (48 per cent) and quick (44 per cent). Around a quarter (26 per cent) of infringers said it allows them to try before they buy;
    • Infringers said they would be encouraged to stop doing so if cheaper legal services were available (39 per cent), everything they wanted was available from a legal source (32 per cent) or it was more clear what content was legal (26 per cent). One in six said they would stop if they received one notifying letter from their ISP;
    • Those who consumed a mixture of legal and illegal online content in the form of music, films and TV programmes reported spending more on legal content in these categories over the three-month period than those who consumed entirely legal or illegal content.