BBC on-Demand Services May Have Negative Market Impact, Ofcom Warns
Posted on: Wednesday, 24 January 2007, 15:00 CST
UK communications industries regulator Ofcom has published a market impact assessment examining the BBC's proposed on-demand services. In the report, Ofcom commented that, although the plans will allow BBC viewers to access content in new ways, there are various elements that could be against public interest.
The BBC Royal Charter and Agreement came into effect on January 1, 2007, requiring the BBC Trust to subject all new BBC services to a public value test assessing whether they would be in the wider public interest, as well as an Ofcom assessment of market impact.
The BBC's proposals include 'catch-up TV,' through which viewers could watch programs from the last seven days via cable TV and the internet, as well as store an entire series of programs, and 'simulcast TV,' whereby BBC channels would be broadcast on TV and over the internet simultaneously. The broadcaster also hopes to facilitate the downloading of BBC radio programs.
Ofcom was positive about some aspects of the proposals, commenting that the services have the potential to expand growth in UK-based new media industries, and could account for almost four billion viewer and listener hours by 2011.
The regulator hinted at downsides, however, commenting that there is evidence that downloading and storing series of programs could discourage investment in commercial on-demand services and could have an adverse effect on DVD rentals and sales. It added that streaming TV over the internet could have negative effects on competition, therefore reducing consumer choice.
Ofcom said that it has passed its assessment on to the BBC Trust, to be taken into account alongside a public value assessment. The BBC Trust is expected to publish a consultation document setting its draft findings once it has reached its decision.
Source: Datamonitor
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