New Report Calls for BBC Overhaul

LONDON: The Policy Exchange think tank has released a report calling for a radical transformation of the BBC and the privatization of Channel 4 in order for public-service broadcasting in the U.K. to survive.

A key recommendation is for the BBC to "place quality before ratings." Policy Exchange also wants to BBC to cut back spending on high-priced sports rights, programs for the 16-to-35 set and "popular entertainment," which can all be found on other networks. "Instead of crowding out commercial schemes, the BBC management should spend up to 5 percent of total license fee income on co-funding PSB programs on other channels," the report notes.

The report, Changing the Channel, also recommends that the BBC Trust be replaced by a BBC Joint Board. "The way the BBC Trust has been set up has not enabled it to hold the BBC to sufficient account and has forced it to take a narrow institutional approach to the delivery of PSB in the U.K." Policy Exchange also suggests the creation of a Public Service Content Trust to promote public-service broadcasting across all TV, radio and broadband. The PSC Trust would be the lead body for monitoring the delivery of BBC services.

In reference to ITV1 and Five, the report says they should be able to opt out of the PSB system after 2012—two years prior to the end of their licenses. This would require them to pay for the digital terrestrial frequency they had previously been gifted. Prices for this capacity would be set by regulators, with the proceeds re-allocated by the new PSC Trust.

Channel 4 should be privatized in 2012, but retain a PSB license for at least ten years. It should receive ITV reallocated digital capacity, the report says, as well as some from the BBC. It could choose to use or sublease this, but retain the income from it. Channel 4 should also be granted cross promotional and linked access to the BBC’s iPlayer as well as Project Canvas. If C4 were to merge with Five, the combined entity must be required to make a minimum level of investment in new programming.

Mark Oliver, the author of the report, commented: “The current U.K. broadcasting system was set up in the 1950s and now struggles to keep up with the extraordinary changes of the digital age. It is clear that the 20th century analogue institutions that were created are now worryingly out of date. We need a dramatic rethink if we are to continue to deliver public-service broadcasting in an entirely new age.”