Public service broadcasting

 Public service broadcasting

Ofcom review of PSB in Britain

In 2020 Ofcom published its findings from a five year review of public service broadcasting in Britain. Read the introduction to their report - pages 3-7. You'll need your Greenford Google login to view the document.

1) Look at page 3. Why is it a critical time for public service broadcasting? 

Audience viewing habits continue to change rapidly and competition from global content providers is ever-increasing. We are facilitating a wide-ranging conversation on the future of PSB, Small Screen: Big Debate.

2) Read page 4. How has TV viewing changed in recent years? 

• There have been significant changes in the way in which people watch television. Live broadcast

viewing has declined, as audiences increasingly choose to view content at a time that suits them

on global online and on-demand content services. These trends are affecting all broadcasters,

including the PSB channels.

• Audiences continue to highly value the purposes and objectives of PSB, including trustworthy

news and programmes that show different aspects of UK life and culture. The PSB channels have

generally fulfilled the statutory PSB remit but maintaining the current level and range of

programmes is challenging. People are watching the PSB channels less, as they are no longer the

only or necessarily audiences’ preferred source of content that ‘informs, educates and

entertains’.

• The broadcasters responsible for the PSB channels are responding to these changes, innovating

and offering online and on-demand services to try and meet audience expectation. But these new

services have not yet fully made up for the loss of live broadcast viewers, particularly amongst

younger people, who increasingly prefer global streaming services, like Netflix and YouTube.

• The PSB system plays an important role in the UK’s wider creative economy. Investment by the

PSB channels makes up the bulk of the UK production sector’s revenues and how the money is

spent is underpinned by regulation that supports a vibrant and diverse production sector across

the nations and regions.

• We recognise the large volume and wide range of content that other television, audio and online

services have provided for audiences during our review period. Multichannel commercial

broadcasters (Sky especially) and some subscription video on-demand (SVoD) services have

increased their investment in original UK content although this is typically focused in a

comparatively narrow range of genres. YouTube and other online sources provide an enormous

volume of content including a long tail of niche interests, but of varying quality and

trustworthiness.

• The evidence we have collected reinforces the need for an open and wide-ranging debate about

the future of PSB to ensure audiences continue to enjoy a range of high-quality, original UK

content including impartial news, and that the creative economy continues to thrive. Through our

Small Screen: Big Debate programme of work, we are examining what audiences think are the

most important aspects of PSB; by whom and how it should be delivered; and how our regulatory

approach could evolve in an increasingly online and on-demand world. This document and

supporting data will help inform that debate and we will consult on options for the future of PSB

in the summer, before making recommendations to Government.

3) Still on page 4, what aspects of PSB do audiences value and enjoy? 

Viewers and listeners of all ages have rapidly adopted these newer media, with the average viewer now spending over an hour a day watching services like Netflix and YouTube- audiences enjoy.

4) Look at pages 4-5. Find and note down the statistics in this section on how much TV audiences tend to watch and how they watch it. 

The average viewer now spending over an hour a day watching services like Netflix and YouTube. On average, over three hours of live broadcast TV each day and over half of that is to the PSB

channels.

5) Read the section on page 5 discussing the importance of PSB. Again, find the statistics and explain the value of public service broadcasting in Britain.

They provide audiences with approximately 32,000 hours of new UK content in a wide range of subjects, including news, current affairs, drama and children’s programmes. This far outweighs what is available on other commercial broadcast channels and the global streaming services.

6) Look at the section on commercial challenges. How have revenues fallen for PSB channels?

Between 2014 and 2018, net advertising revenue for the advertising-funded PSB channels has fallen

by an average rate of 3.8% per year (compound annual growth rate or CAGR2) equivalent to

approximately £325m. In the same period, the BBC’s revenues from the licence fee have fallen by an

average of 4% each year.

7) Read page 6. What services increasingly play a role in our media lives in the digital age? 

Commercial broadcasters like Sky and on-demand services like Netflix, extend the choice of content available to audiences. Some have increased their investment in original UK content and so made a valuable contribution to a thriving UK media industry. Notably, Sky has increased spend on original UK drama and has renewed its commitment to its news service, provided on a free-to-air basis. SVoD services have been particularly effective in engaging younger audiences, and our research suggests audiences aged 16-34 years old are more likely to watch a BBC programme on Netflix than the BBC iPlayer.

Goldsmiths report on Public Service TV

Read this report from Goldsmiths University - A future for public service television: content and platforms in a digital world.

1) What does the report state has changed in the UK television market in the last 20 years?
New technology has facilitated on-demand access to television content, and created new services and platforms, while consumer behaviour has started to change rapidly, particularly among the young.

2) Look at page 4. What are the principles that the report suggests need to be embedded in regulation of public service broadcasting in future?

The principles that need to be embedded:

• In return for public service broadcasters meeting the obligations of their licences, their content should be guaranteed prominence on electronic programme guides, smart TVs and on the interfaces of on-demand players as they emerge.
• Retransmission fees should be paid by pay-tv platforms to public service television operators to address the current undervaluation of public service content by these distributors. 
• Ofcom should supplement its occasional reviews of public service broadcasting with a regular qualitative audit of public service content in order to ensure that audiences are being served with high-quality and diverse programming. This should include detailed data on the representation and employment of minority groups and a comprehensive account of the changing consumption patterns of younger audiences.
• Ofcom should continue to monitor the independent production sector and take action, where necessary, if consolidation continues to increase and if diversity of supply is affected.

3) What does the report say about the BBC?

The BBC is the most important part of the television ecology, but the model of universality underpinning its public service credentials is under threat. The BBC has been contracting in real terms and it is hard to sustain the case that it is damaging competitors. The licence fee is vulnerable in the face of changes in technology and consumption, and it is in any case far from an ideal system: it has failed to guarantee real independence and is charged at a flat rate. The BBC’s independence has also been compromised by the insecurity of its establishment by a royal charter and the process behind the appointments to its governing body.

4) According to the report, how should the BBC be funded in future?

The government should replace the licence fee as soon as is practically possible with a more progressive funding mechanism such as a tiered platform-neutral household fee, a supplement to Council Tax or funding via general taxation with appropriate parliamentary safeguards.

5) What does the report say about Channel 4?

Channel 4 occupies a critical place in the public service ecology – supporting the independent production sector and airing content aimed specifically at diverse audiences. Its remit has remained flexible and it has moved with the times. But it has cut programme spending; it has largely abandoned arts programming and has been criticised for not doing enough for older children. Recently, Channel 4 has been threatened with privatisation, in whole or in part, a proposal that would threaten its public service remit. 

6) How should Channel 4 operate in future?

Channel 4 should not be privatised – neither in full or in part – and we believe that the government should clarify its view on Channel 4’s future as soon as possible. In addition, Channel 4 should significantly increase its provision for older children and young adults and restore some of the arts programming that has been in decline in recent years.

7) Look at page 10 - new kids on the block. What does the report say about new digital content providers and their link to public service broadcasting?
Television with the characteristics of public service broadcasting now appears outside the public service system: from Sky and other commercial broadcasters, on subscription video-on-demand services such as Netflix and Amazon, and through the new Local TV services. Meanwhile, a broad range of cultural institutions – including museums, performing arts institutions and community organisations – are now producing video content of public service character. We believe that the growing contribution to a digital media ecology made by these cultural institutions should be boosted by a specific public intervention.