BBC Trust Supports Online-Only BBC Three

LONDON: The BBC Trust has given its provisional approval to moving BBC Three to an online-only service, but is not backing the launch of a +1 channel for BBC One.

The Trust carried out a series of "Public Value Tests" for several proposals to evaluate whether any adverse market impact is justified by the likely public value.

Regarding BBC Three, the body concluded that it passed the public value test and the proposal to move the service online should be approved. The public value assessment identifies "clear long-term potential" in a new online service that would save £30 million a year and that it thinks will be "more distinctive" than the existing BBC Three channel. "Those aged 16 to 34 are already far more likely than any other group to use online video services and the BBC is right to anticipate the need to serve this audience in new ways," the Trust said.

The Trust did express some concerns about the short-term impact of the change, and is asking for the following conditions to be addressed. It is calling for a more carefully managed transition from broadcast TV to an online service, to raise awareness of the change. The Trust said it will consider whether this should include a period of running both services in parallel. It is also asking for clearer commitments to programs on BBC One and/or BBC Two that appeal to a younger audience, including the use of those channels to continue broadcasting long-form BBC Three programs. Also, a commitment to a space on broadcast television (not just on BBC Three online) where "risks can be taken with new talent and new ideas of the sort that BBC Three has been successful in developing."

In regard to the addition of a +1 channel for BBC One, the Trust said that the move failed to pass the public value test. The conclusion was that the +1 service would capture viewing shares for the BBC at the expense of commercial channels and reducing the profitability of ITV and Channel 5, for example. The public value would be limited, since 24 percent of U.K. TV households would have to upgrade their equipment in order to receive +1.

Evaluating the evolution of the BBC iPlayer, the Trust said that audiences will benefit from the development of the service to include more online-first and third-party content. The ruling is that the proposed changes are too limited in scale to have a "notable market impact."

A public value test was also given to determine whether the hours should be extended for CBBC. The Trust backs this move, saying that the proposal would expand choice for young viewers, can be implemented at minimal cost and represents a "good use of the license fee."

Rona Fairhead, the chairman of the BBC Trust, said: "We want a strong, sustainable BBC which is innovative, distinctive and relevant and has clear boundaries with the commercial market. We have reached our provisional conclusions with this over-arching objective in mind.

"It is clear that the long-term future of broadcasting is online and the BBC needs to find new and exciting ways to help audiences make that transition, while bearing down on costs overall.

"We know young audiences are already moving towards the online future, but we do recognize that in the short term some of them will feel the immediate impact of the BBC Three proposals. We are therefore asking the BBC for commitments to ensure it uses the full range of its television services to better serve young people and others who make up BBC Three’s audience."

The BBC issued a statement responding to the conclusion about BBC Three: "We welcome the Trust's provisional conclusion, which is the next step in delivering our vision for a new BBC Three. With a frozen license fee and the BBC's income cut by 26 percent we have had to make some very difficult choices, however our plans will allow us to innovate with new ideas and new forms of content for younger audiences. We'll now consider the areas the Trust have asked us to address and respond in due course."