1.41

Based on these two questions, we have developed four possible illustrative models, which we will evaluate in more detail in phase 2 of our review. In each model we would expect the market to provide some public service content:

• Model 1 - Evolution: the current commercial public service broadcasters (PSBs) retain a designated public service role. Either their public service responsibilities are reduced in line with the declining value of their gifted spectrum, or additional support is provided to retain or expand those responsibilities which remain high public priorities but which can no longer be supported through the value of existing gifted spectrum;
• Model 2 - BBC only: the commercial PSBs do not retain special designated roles and no additional public funding is provided for public service broadcasting beyond the BBC. The BBC becomes the sole UK-wide intervention in public service content, and may need to take on additional roles to meet needs not served by the market. Limited plurality is provided only to the extent possible through content supplied by fully commercial broadcasters;
• Model 3 - BBC/C4 plus limited competitive funding: Channel 4 retains a designated public service role to provide plurality with the BBC but other commercial PSBs lose their public service obligations and benefits. Channel 4’s remit is extended across platforms and into new programming areas, supported by new funding. Any remaining public purposes not served by the BBC and Channel 4 – potentially for example non-BBC programming for the nations and regions – could be delivered through long-term but transferable funding agreements with other providers, awarded competitively through a funding agency; and
• Model 4 - Broad competitive funding: the commercial PSBs do not retain special institutional roles. Instead additional funding is made available by government for public service content beyond the BBC. Long-term but transferable contracts for meeting specific public service purposes would be awarded competitively through a funding agency. Those contracts would be open to bids from a wide range of organisations, including the existing PSBs. The BBC would have a core role in areas where the market is unlikely to deliver but where a competitive process would be difficult to specify.

Comments

Of these models, model 3 is closest to my views, although I believe that Film 4, More 4 and E4 should be granted the PSB status that BBC 3 & BBC 4 have.

BBC/Ch4/S4C remain as PSBs, with others such as Teachers TV, the Community Channel, Sky News,Euro News, etc, providing PSB programming either as fully designated PSBs or with some programming being so designated.

(ITV1 and five could either remain as PSBs or compete for PSB funding as they feel appropriate; if they do not remain as PSBs, they should loose their epg positions and must carry status, as well as their rights to carriage on PSB Muxes.)

I am not in favour of model 2. The BBC needs competition.