Ofcom Releases PSB Report

LONDON: British media regulator Ofcom has laid out a series of recommendations for the future of public-service broadcasting (PSB) in the U.K., including preserving the license fee solely for the BBC.

Ofcom is calling for "major changes" to the PSB system in order for it to survive past the digital switchover in 2012, noting that the rising cost of public-service broadcasting outweighs the benefits for commercial broadcasters like ITV. Ofcom’s recommendations also aim to address the projected £235 million shortfall in the commercial broadcasting sector by 2012, as a result of switchover costs and a TV ad downturn. 

In its long-awaited report, Ofcom rejects the "top-slicing" of the BBC’s license fee for rival broadcasters’ programs and services. However, the BBC may have to relinquish the £130 million annual surplus from the funds set aside to assist in the digital switchover. Those funds could be used to establish a reconstituted Channel 4.

Channel 4, Ofcom says, should partner or merge with another broadcaster, to be positioned as a "strong, alternative public-service voice to the BBC." The new broadcaster, with C4 at the center of it, would deliver news, current affairs, content for older kids, programming made outside of London and digital media content. The new organization could be formed from a partnership with BBC Worldwide or a merger with Five. Ofcom states: "Any partnership would need to maintain and strengthen delivery of the public purposes. Partnerships should complement market provision and ensure economic sustainability, accountability, choice and competition." ITV is to remain a commercial broadcaster, but with "limited public-service commitments." Ofcom reaffirmed previous proposals for ITV to cut back on regional programming as well as current-affairs content. 

Releasing the report, Ed Richards, the chief executive of Ofcom, stated: "The central challenge is how a strong and historically successful public service broadcasting system can navigate from analogue to digital. Our proposals aim to sustain the quality and creative spirit of public-service broadcasting while capturing the opportunities of broadband distribution, mobility and interactivity. These proposals set out what we believe is required to fulfil a vision of diverse, vibrant and engaging public service broadcasting content across a range of digital media."