Monday, 21 April 2008

Ofcom

The system of PSB in UK television has evolved over the course of more than 70 years – the BBC was granted its first Royal Charter in 1927, and regular television broadcasting began in 1936. Competition was introduced gradually into the system: independent television (ITV) was launched in 1955, BBC Two went on air in 1964, Channel 4 came into being in 1982, and Channel 5 (later Five) was launched in 1997.

This system has operated on the basis of increasing the number of PSB providers (referred to as plurality of PSB provision) – and the assumption that this plurality creates competition for quality in the provision of PSB. UK viewers benefit from provision by five main public service television broadcasters – the BBC, Channel 3, Channel 4, Five and S4C (plus Teletext). In addition, there are a number of other broadcasters who contribute to PSB’s purposes and characteristics in a range of ways.

The PSB Review identified that changes in the market are threatening the established PSB system – the move from analogue to digital, and consequently multichannel, television may mean it is no longer realistic to expect commercial broadcasters to deliver significant PSB obligations due to their fragmenting audience base. As such, PSB provision from commercially-funded organisations is under potential threat. This was one of the most important, and at the time controversial, conclusions of the PSB Review.

Ofcom’s belief is that PSB in the UK should evolve with the grain of these trends rather than seek merely to minimise their impact on the current system.


The future of news: what are the prospects for television news after digital switchover?

All PSB providers are obliged to carry news as part of their services. However, the decline of the efficacy of the existing arrangements to ensure PSB provision makes the enforcement of these PSB obligations more uncertain after digital switchover. In addition, there may also be changes to the commercial environment for non-PSB providers, which have implications for the provision of news output. Against this background, Ofcom will carry out a project to assess the prospects for television news in the wider context of access to and consumption of news in the post-switchover era. It will consider how the market is likely to develop and what the implications are for ensuring plurality of news provision and/or maintaining the quality of that provision.

The future of Channel 4: Channel 4 has played a key role in providing plurality in the PSB system over the past quarter century. Ofcom will need to examine Channel 4’s financial and operational performance in detail in order to assess the company’s future prospects in the digital era.

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