ITV

Tag: Ofcom

  • BBC iPlayer gets a cautious go-ahead from Ofcom

    BBC iPlayer gets a cautious go-ahead from Ofcom

    MUMBAI: BBC Trust has given the green signal to BBC management to provide broadband audio and video services-iPlayer. They have, however, incorporated changes made by the BBC Trust on the recommendations made by the communications regulator Ofcom following a market impact assessment.

    The proposed BBC iPlayer would provide a seven-day catch-up service featuring a large proportion of programming available for download over broadband. It will also include simulcasting services over the internet and making selected radio programmes available as downloads without digital rights management restrictions.

    The BBC iPlayer had a public value test, following a three-month period of industry consultation. Some of the recommendations by Ofcom included reducting the storage duration of downloaded programmes for up to 7 days from the original 13 weeks that BBC had asked for.

    Ofcom observes that the demand for services delivered over broadband is developing rapidly. It suggests that over the next five years linear television viewing may fall by 20-30%, to be replaced largely by the increased use of on-demand services. A similar pattern is anticipated for audio programming.

    However, it adds that it would not be in the wider public interest for the BBC’s involvement to restrict competition, innovation or choice. It notes that “unchecked, the BBC’s power in nascent markets could harm the stimulus of competition necessary to ensure quality content for the long-term”.

    The BBC Trust said in a statement that the Ofcom market impact analysis forms only part of its public value test process, adding that “in reaching our eventual decision, we must also consider the potential public value created by the on-demand proposals”.

  • Ofcom launches PSP consultation

    Ofcom launches PSP consultation

    MUMBAI: UK media watchdog Ofcom has launched its planned consultation to consider the option of an online public service publisher (PSP).

    If given the go ahead, the service would compete with the online operations of Channel 4 and the BBC. The idea was muted by the regulator back in 2004.

    Ofcom notes that although public service content will be provided by the market, it may well not be enough either in terms of quantity or diversity – a market shortfall is likely to arise. This may have adverse implications for the level of UK-originated production, and for plurality in the public service system – the BBC is likely to play a material role in the digital media world of the future, but for a public service culture to flourish, effective competition for quality is needed.

    Ofcom states, ” We are open-minded about the best solution for the future of public service content – we will not report again on the how to maintain and strengthen the quality of Public Sservice Broadcasting (PSB) until the next PSB Review, which must be completed no later than 2009/10.

    “The primary purpose of this paper is to take the debate forward within the UK’s creative industries and policy environment. We continue to believe that there is a real opportunity for a new PSP to make a significant contribution to the public service system, and to create a lasting legacy for the future.

    ” We welcome the Culture, Media and Sport Select Committee’s interest in the PSP concept in its inquiry into public service media content.”

    Ofcom has given 23 March 2007 as the last date for obtaining feedback. It is actively seeking responses on:

    – The appropriate nature of intervention in the digital media age, and the balance between TV and non-TV forms of public service content distribution

    – The potential role of the PSP and its creative remit

    – The operating model – in particular, the approach to rights management

    – The scale of funding required. Ofcom notes that the future of PSB in UK television is central to its remit. Its first statutory review of PSB was completed in 2005 and set out recommendations for maintaining and strengthening the quality of PSB against a backdrop of rapid change in broadcasting. The television market has continued to evolve at speed since the review, as a result of which it published Digital PSB in July 2006.

    Digital PSB highlighted a number of market developments affecting the future of public service broadcasting. One of these is that the rapid take-up of digital television is reducing the viewing share of the traditional public service broadcasters, and hence the value of the analogue spectrum

    Viewers – especially younger audiences – are increasingly watching content on internet and mobile platforms, and are starting to move away from traditional TV. Changes in spectrum policy will affect the way in which public service aims need to be financed in the future.

    In Ofcom’s view, these changes mean that the delivery of PSB in a fully digital television world needs to be rethought. While the core public purposes endure, the means of delivery and institutional framework may have to change. As a result, the challenge is to define the appropriate model for PSB for the future, not for the world as it is today – or as it has been in the past. The challenge is as much an opportunity for public service broadcasting as it is a threat to it.

  • Ofcom faults BBC’s download plans

    Ofcom faults BBC’s download plans

    MUMBAI: UK pubcaster The BBC’s plans to offer all its TV and radio shows on-demand via the internet and cable TV have been criticised by the media watchdog Ofcom. Ofcom said that certain aspects of the BBC’s on-demand service, which is due to start later this year, could have a negative effect on commercial rivals.

    The BBC’s proposed on-demand services consist of:

    – catch-up TV – offering viewers the chance to watch any BBC programme from the last seven days over NTL:Telewest, Homechoice and the internet at a time of their choosing. This would also allow series stacking – the ability to store and view an entire series of programmes;

    – simulcast TV – BBC channels that are broadcast on television would be made available at the same time over the internet; and

    – audio downloads – BBC radio programmes (excluding full-track commercial music) would be available to download from the internet.

    Ofcom conclusions are that the new services could account for almost four billion viewer and listener hours by 2011. A proportion of these hours – over half in the case of simulcast and audio download services – could represent additional viewer and listener activity over and above current levels.

    The proposed services are therefore likely to stimulate considerable interest in other new media services to the benefit of all UK consumers and businesses. They offer significant potential value to licence fee payers.

    However concerns have been expressed:

    Series stacking could discourage investment in commercial on-demand services and is likely to have an adverse effect on related markets such as DVD rentals and sales. Ofcom believes the scale of series stacking should therefore be substantially reduced or excluded altogether.

    In the case of catch-up TV on the internet, the ability to store programmes for up to 13 weeks could have negative effects on competition and therefore investment in consumer choice. Ofcom believes that this storage window should be reduced or removed. In the event of removal, viewers would still have up to 14 days to download and view the content.

    The ability to download free BBC audio content might have a serious adverse impact on specific markets; notably commercial classical music recordings and audio books. Ofcom believes the latter should be excluded from the proposed services and the availability of classical music recordings should either be constrained or removed; and the cost of providing extra broadband capacity to deliver the BBC’s proposed services to consumers is likely to be high, though any additional capacity would also be available for use by a wide range of other services including commercial on-demand services.

  • Ofcom hits Gamecast UK with £100,000 fine

    Ofcom hits Gamecast UK with £100,000 fine

    MUMBAI: UK’s regulator Ofcom has slapped a hefty £ 100,000 fine on Gamecast UK Limited for the breaching of broadcasting guidelines by its service You TV2.

    Cellcast UK Limited, the parent company of Gamecast, was hauled up before the Ofcom sanctions committee after complaints that its service had transmitted six minutes of sexually explicit material on the afternoon of 1 September 2005 on TV2, which is a free-to-air service.
    You TV2 currently transmits material promoting adult chat lines and is placed in the adult section of the Electronic Programme Guide under its You TV2 licence.

    Ofcom also received a complaint that Gamecast was broadcasting a pre-recorded quiz, on 28 July 2005, but had not informed viewers that the telephone number was not live.

    A complaint was made by a member of the general public concerning a quiz called Guess the Celebrity Live, part of a programme called Play2Win.

    You TV2 is a free-to-air service provided by Gamecast UK Limited. At the time of the investigation You TV2 was a family entertainment service operating in the entertainment section of the Electronic Programme Guide.

  • Global television revenues reached £164bn in 2005: Ofcom

    Global television revenues reached £164bn in 2005: Ofcom

    MUMBAI: UK media regulatory body Ofcom has published its International Communications Market Report.

    The report analyses trends in the global television, radio, telecommunications and wireless communications industries. It also compares UK data, consumer attitudes and industry performance against that of China, France, Italy, Germany, Japan, Ireland, the Netherlands, Poland, Spain, Sweden and the US

    Global television revenues reached £164 billion in 2005 (equating to £25 per person), having grown at 7.2 per cent per annum in nominal terms for four years, making it the fastest-growing sector within the communications industry.

    In 2005, the US had by far the largest television industry in revenue terms, attracting £75 billion. Japan, came second in the same year with £19.5 billion followed by the UK with £10 billion. However the UK is second to the US on a per capita basis, at £164 against £253 for the US.

    The UK leads the world for penetration of digital television at over 70 per cent of households, against 54 per cent in the US. Chinese viewers benefit from the largest number of analogue terrestrial free-to-view channels (16), while the UK has the fewest with five.

    The UK is one of the most successful countries for exporting programmes and formats – in 2004 64 formats and nearly 3800 hours of programmes were sold internationally. Public service broadcasters are coming under increasing funding pressure around the world; however support for PSBs is still high, especially in the UK.

    Young people are having an increasingly disruptive effect on TV viewing across the globe. In the countries surveyed, around one third of those with broadband access claimed they were watching less TV. Declining TV reach among younger people is an international phenomenon.

    All countries in the survey have made commitments to digital switchover. Sweden and Germany have already begun a geographically phased process which they aim to complete by 2007 and 2009 respectively. The remaining countries have set completion dates between 2009 and 2012.

    Operators diversifying channel business models : Channels launched by channel operators have in some cases relied on a new business model – in other words, free-to-air operators have diversified into pay television and in some cases pay television channel operators have done the opposite (e.g. Discovery launching a FTA channel, DMax, in Germany).

    More channels relying on the same business model:Terrestrial broadcasters have also taken advantage of additional broadcasting capacity to launch channels that rely on their traditional source of revenue, such as free-to-air broadcasters expanding their advertiser-funded channel portfolios (e.g. France Télévision
    launching France 4 and Gulli on the French DTT platform).

    New revenue streams enabled by new technologies : There is a third category of response based around the development of new services enabled by technological innovation.Pay-per-view (PPV) was a widely-deployed service in the earlier days of digital television platforms, but more recently content on demand, delivered though broadband, offers channels and rights holders access to yet another new revenue stream.

    Discovery recently launched a broadband site in Germany that offers consumers subscription-based access to full-length programmes from its archive; and Channel 4 and Five in the UK both have broadband-based download services offering access to US and UK shows. DTT launched in many markets and well established in some

    Roll-outs were advanced worldwide – helped by supplier and consumer incentives. The timing and pace of DTT launches have varied by country – launches began in the late 1990s with Sweden and the UK, but some countries have only recently begun to roll out a DTT network (e.g. France).

    Global radio revenues (including public funding) totalled £25 billion in 2005 (or around £4 per person), of which £18 billion came from advertising. Growth has been generally lower than for telecoms or television – at around 3.8 per cen tper year in nominal terms since 2001.

    The US is by far the largest market for radio, with annual revenues of £11 billion in 2005; Japan is second with revenues of £1.9 million. Together the US and Japan account for over 50 per cent of the radio revenues of the twelve countries studied in this report. The UK is the fourth largest market with revenues of £1.2 billion in 2005.

    The proportion of total ad spent on radio varies substantially by country. In the US, 11.5 per cent of all display advertising expenditure goes on radio; in the UK it is less than four per cent. Radio listening is more popular in the UK than in any other country in this study – with weekly listening per capita averaging nearly 23 hours. The share of listening to PSB stations is also higher in the UK than anywhere else – at around 55% of total listening.

    Digital radio is increasing in popularity. The UK leads in the roll-out of DAB, with 85 per cent coverage and over 200 stations available. The internet Ofcom notes is having a positive impact on radio listening with around one third of adult broadband users among the countries we surveyed listening to online radio every week. Less than one in five adults claims to be listening to less radio offline as a result of being connected to broadband.

  • James Murdoch lashes out at UK media regulatory body Ofcom

    James Murdoch lashes out at UK media regulatory body Ofcom

    MUMBAI: UK media scion James Murdoch at a conference held by Ofcom attacked the UK regulatory body.

    He argued that there should be more deregulation. His speech came at a time when Ofcom is looking into the legalities of Murdoch buying an 18 per cent in ITV, which is a rival of pay TV operator BSkyB that Murdoch heads. Murdoch’s move put paid to NTL’s aim of taking a stake. Entrepreneur Richard Branson owns a stake in NTL. Media reports indicate that in his speech Murdoch blamed what he terms as the ‘dead hand of history’ and specifically UK pubcaster the BBC and its founder, Lord Reith, for a fearful and backward-looking legacy that he said bred elitism and stifled creativity.

    “We should never forget that when broadcasting first came to this country in the 1920s, politicians and the British establishment were more fearful than excited by the new wireless service. They were aided by Lord Reith, who took a pretty firm view of the need to keep the lower classes in their place. He welcomed the transformation of the BBC into a state agency in 1929 and thereafter had no time for any kind of innovation, whether it was jazz – a ‘filthy product of modern culture,’ according to him – or indeed television itself.”

    He said that effective broadcasting regulation should be a compass by which a regulator and the players in a market can find true north in constantly shifting seas and warned the getting it wrong would open the way for tiresome and dysfunctional meddling that can shipwreck the regulatory process itself, not to mention business and their customers across the board.

    Murdoch argues that those who want continuing intervention in the industry are motivated by institutional or commercial self-interest.

    “That is, for example, why Channel 4 wrapped up its desire to be able to spend more of our money under the guise of public service competition to the BBC. Or indeed why the BBC favours digital terrestrial television even though it is an inferior technology in terms both of choice and functionality.”

    He hit out at the BBC for having what he calls a fantasy about creating a ‘British Google’” to be funded by the taxpayer. “This is not public service, it’s megalomania. Delusions of grandeur will flourish in the absence of proper accountability,” he said. Channel 4 CEO Andy Duncan offerd a rebuttal by saying that the broadcaster is an extremely good example of a blend of market intervention and commercial competence. “The quality of television in this country and the level of originated British programming, is directly a result of intervention (by the state).”

    Branson meanwhile says that Murdoch is scared of what will happen if NTL takes a stake in ITV. He says that Murdoch is terrified that a stake for NTL in ITV would mean competition for Sky. Branson adds that NTL would fight BSkyB’s prichase of the 18 per cent stake in ITV. He was quoted in reports saying, “The Murdoch empire was, I think, absolutely terrified at the idea of Virgin taking over, because we would have given Sky some real competition.

    “They responded by buying 20 per cent of ITV to thwart our takeover. We have gone to the competition authorities and said that a company that already controls most of Britain’s newspaper media plus has most of the sporting and film rights in the UK shouldn’t be also allowed to have such an undue influence over ITV.”

    The Office of Fair Trading is examining the case. Some politicians have even met the British government and have made an appeal that in the public’s interest Murdoch not be allowed to buy a stake in ITV.

  • Online video boom starting to affect TV viewing: BBC Study

    Online video boom starting to affect TV viewing: BBC Study

    MUMBAI: People are starting to watch less TV as the online video boom grows, suggests a BBC News survey.

    Around 43 per cent of UK people who watch video from the internet or on a mobile device at least once a week said that they watched less normal TV as a result.

    Online and mobile viewing is rising – three quarters of users said they now watched more than they did a year ago. The BBC News Website is running a series of special features looking at the future of TV.

    The website’s survey also suggests that online video viewers are still in the minority – just nine per cent said that they did so regularly.

    Another 13 per cent said they watched occasionally, while a further 10 per cent said they expected to start in the coming year.

    But two-thirds of the population said they did not watch online and could not envisage starting in the next 12 months.

    In the survey, one in five people who watched online or mobile video at least once a week said they watched a lot less TV as a result.

    Another 23 per cent said that they watched a bit less, while just over half said their TV viewing was unchanged. Three per cent said that online video inspired them to watch more TV.

    Online and mobile video is far more popular among the young, with 28 per cent of those aged 16 to 24 saying they watched more than once each week.

    An average of 10 per cent aged 25 to 44 were net video regulars, with that figure falling to just 4% of over-45s.

    Earlier this year, media regulator Ofcom said that the number of 16 to 24-year-olds watching TV in an average day had dropped 2.9% between 2003 and 2005.

    Comedian Ricky Gervais, whose audio and video podcasts have become hits on the web, said amateur video would never replace TV – but broadcasters would harness the power of the internet.

    “You can’t knock up an episode of The Sopranos or 24 on a little handheld digital camera,” he told the BBC News website.

    “I don’t think you’ll ever be able to sidestep TV or DVD. But TV companies will embrace it.”

    The choice offered by new platforms was “exciting”, he said, and any future developments depended on how many people started using the technology.

    “I’m sure when the BBC first launched, they were going: ‘Ah, not many people have got tellies. Who’s watching this?’ So it’s good to get your act together. And then people catch up with the know-how and the means to watch it.”

  • UK’s Ofcom OKs sponsorship of TV, radio channels

    UK’s Ofcom OKs sponsorship of TV, radio channels

    MUMBAI: UK regulator Ofcom is amending its Broadcasting Code to allow the sponsorship of commercial television channels and radio stations, subject to specific safeguards intended to preserve editorial independence, protect the under 18s and ensure audiences are made fully aware of the sponsorship relationship.

    Modifying a regulation in place for over 50 years, Ofcom announced yesterday that sponsorship of commercial television and radio programmes has been permitted for 15 years.

    Restrictions on certain programmes and channels
    The Ofcom Broadcasting Code prohibits the sponsorship of news and, for television, current affairs programmes. It also prohibits specific product categories from sponsoring certain kinds of programmes. For example, alcohol brands are not allowed to sponsor children’s programmes and gambling companies may not sponsor programmes aimed at under 18s.
    Ofcom intends to allow the sponsorship of any channel, so long as the amount of programming that cannot be sponsored is limited.

    For example, channels and stations that broadcast short hourly news bulletins will be allowed to be sponsored. However, an alcohol brand would not be allowed to sponsor a children’s television channel.
    General restrictions: 
    Specific safeguards will be put in place to preserve editorial integrity and protect children.

    These include: 
    * Viewers must be made aware of the sponsorship arrangement and the sponsor’s credits must be separated from all other editorial and advertising content on the channel; credits for the channel sponsor must not appear in or around programmes that cannot be sponsored and credits should not suggest that these programmes are included in the sponsorship arrangement;

    * The sponsor’s presence on the channel should not be unduly prominent;

    * Broadcasters will be unable to name channels after the sponsor. However, as at present, a company with a brand known in another field – for example, Hallmark or Saga – may be granted a Broadcasting Act licence in its own right, with editorial responsibility for all programme output.

    Next steps
    Channel sponsorship represents a new opportunity for broadcasters; however it is important that transparency, editorial independence and appropriate protection for the audience are maintained. Ofcom will therefore publish guidance for broadcasters to go alongside the new Code rules, to ensure full compliance.

  • BBC DG Mark Thompson stresses importance of funding for digital switchover

    BBC DG Mark Thompson stresses importance of funding for digital switchover

    MUMBAI: Realistic funding through a new, long term licence fee settlement is essential if the BBC is to fulfil the Government’s ambitious goal for digital switchover laid down in the new 10 year BBC Charter. This is the message that BBC DG Mark Thompson has sent out..

    “Few people outside the industry have registered the scale of task – or the scale of the money required. This is a project of great size and intricacy. The risks are formidable. If it is under resourced it will fail. It’s a simple as that – and the failure will impact on many millions of households,” Thompson said in a speech at the Smith Institute.

    “If all that was wanted in the new Charter was a steady-state BBC with the same line up of services and the same level of quality, we could deliver that well within our current resources. If you want a BBC which does no more than it is currently doing, then a budget that reduces in real terms – RPI-minus – is the right settlement.”

    Thmpson points out that a tough regime of productivity and cost reduction within the BBC over recent years will release an additional £355 million per year for new investment from 2008 – a total of £3bn over the next Charter. He adds that recent benchmarking and independent reports show the BBC is close to the ‘efficiency frontier’ and its proposals for continuous efficiency improvements should keep it there.

    However to deliver the full mission set out by the Government the BBC could only fund 70 per cent of the costs itself though savings and efficiencies. thompson notes that the BBC needs additional net investment to fund the rest of the plans that successive reports have shown the public understands and is willing to pay for.

    He said that the BBC’s current licence fee bid could reduce to around RPI +1.8% (from RPI +2.3%) if, among other factors, the broadcasting regulator Ofcom decided not to levy a spectrum tax on the BBC over the next licence settlement period.

    This would mean a licence fee of £149 in 2013/14 in today’s prices, well below the £162.66 that the recent Work Foundation report commissioned by the Government says that licence payers would be wiling to pay. This bid would still include the wider broadcasting industry costs of switchover and building the digital transmission network for both TV and radio as well as investment in planned new digital access services through on demand and mobile.

    The bid does not include the costs of targeted help for the most vulnerable which need to be ring-fenced but that the Government have said will be paid through the licence fee. He adds, “Historically the most powerful argument for a relatively long settlement has been a guarantor of the BBC’s independence. Digital switchover will take place over the next seven years. The BBC’s mission over the next seven years is crystal clear in the White Paper. There is a powerful case for settling the BBC’s funding for the same period.”

    Thompson stressed that, in the event of a low settlement, the new BBC Trust would have to make some difficult decisions about what not to do, in the interests of public value and the BBC’s current £1bn a year investment in the UK’s wider creative industries. “We can’t do everything. We can’t rob existing core services to pay for switchover.”

    He said that in the event of a low settlement, he would not be able to recommend to the Trust that the BBC should go ahead with the transformational plan for creativity and jobs in the North based around a new broadcast centre in Salford. “We would have to find other, more modest ways of increasing our investment in the North.”

    In terms of public value he said: “Benchmarked against most of the public sector, the BBC has demonstrated one of the strongest and most consistent records of delivery. “It is wrestling with many of the same issues as the rest of the public sector, how to reform and modernise; how to drive efficiencies and improve quality at the same time. But it’s still a success story in terms of delivery, public confidence and the ability to change and re-invent itself.”

  • Casbaa convention 2006 adds bandwidth to pay-TV

    Casbaa convention 2006 adds bandwidth to pay-TV

    News Flash: Saugato Bhowmik to head Viacom 18 Integrated Network Solutions, Jaideep Singh moves onMUMBAI: Tagged “From Bandwidth to Brandwidth”, the Casbaa Convention 2006, to be held from 24 to 27 October, is poised to shed light on using advancements in digital technologies to maximise the value of newly-available communications bandwidth for sophisticated brand development, innovative marketing and premium content.

    “Broadband and the multimedia revolution present immense opportunities for pay-TV platform operators, content providers and telcos of all types in Asia,” remarked Marcel Fenez, chairman of the Cable and Satellite Broadcasting Association of Asia (Casbaa).

    As Asia’s foremost broadcast industry event of the year, the Convention opens on 24 October with the Casbaa Technology Showcase 2006, focussing on the products and technical solutions revolutionising the world of pay-TV. This day-long session will feature presentations from the developers of global wireless, high definition, broadband and interactive technologies, states an official release.

    On the opening day of the convention, 25 October, the Casbaa Pay-TV Piracy Survey 2006 will be unveiled. This fourth annual study conducted by Standard Chartered Bank in collaboration with Casbaa and its member organisations, reveals pay-TV piracy estimates for 2006-2007. John Medeiros, the Casbaa VP for Government Relations and Regulatory Affairs, will look at the value of cooperation between government and the pay-TV industry and review government efforts to address the worsening problem of pay-TV piracy, the release adds.

    With regulation a crucial element for the broadcast industry, Kip Meek, Senior Partner for Competition & Content, OFCOM (UK) and Chairman of the European Regulators Group, will consider the need for regulatory supervision and effective governance and cast light on the relevance of a converged regulatory model to Asia. Meek will explore challenges and opportunities arising from the emergence of new media, technological innovations and the increasingly blurred distinction between carriers and content providers.

    The following day, 26 October, Charlie Ergen, Co-founder & CEO, EchoStar Communications (US), will present delegates with the realities of operating one of the world’s most advanced Direct-to-Home satellite TV services and look at market opportunities in Asia Pacific, including how industry players can focus on ‘brandwidth’ rather than ‘bandwidth’ in their business operations today.

    On the final day of the convention, 27 October, Irwin Gotlieb, Global CEO of WPP’s Group M in New York, will discuss the future of advertising and of media in the changing landscape, providing insights into effective strategies and tactics for pay-TV operators.

    “This year’s programme will offer delegates fresh perspectives on branding and the opportunities it provides in this new paradigm of abundant bandwidth and technological advancements. To make immediate and enormous strides towards becoming a digital leader, domestic markets should operate in sync with the rest of the world and gain the full benefit of a global marketplace,” said Simon Twiston Davies, CEO of Casbaa. “Regulators will see the benefits of loosening restraints on industry growth, while industry players will gain insights into the latest business and technology trends as well as the hot issues of today.”

    The Casbaa Convention 2006 will be held at the Hong Kong Academy for Performing Arts from 24 to 27 October, and is presented by InvestHK, with Star TV and now TV as the official partners.