Will's Web Watch: 'Don't knock the BBC'... Why not?

Give me successful innovation, not Corporation...

By Will Sturgeon, 12 July 2004 11:35

COMMENT My favourite of the anecdotes wheeled out to chart the nation's understanding of the internet is about the elderly couple who travelled down from somewhere 'oop North' to Television Centre in Shepherd's Bush and told the man at the gate they were there to see the BBC's website - presuming it to be something to do with spiders but aware it was worth the journey because it was mentioned at the end of most programmes.

Now things have changed a little since those days of confusion but after years of expansion the BBC's web presence is set to shrink a little following recommendations in the government-initiated Graf report that it close a number of its websites.

Now, unlike the vast majority - or at least the vocal majority - of silicon.com readers I fully support almost any reasonable measures taken to rein in the BBC.

I know the BBC's news service is excellent (and so it should be, given the funding it receives) but the issue here wasn't the news coverage or the BBC's closely guarded impartiality or the fact that it provides the vital government counterbalance in a church and state democracy. Nor was it the fact the BBC is 'propaganda free' and a destination for those who live in countries which don't enjoy the same levels of freedom within the media.

We'll take those as read and get along a lot better if you remember that at no point am I suggesting we curtail the BBC's news coverage.

The government's complaints all centred on non-essential offerings such as games and entertainment features which are clearly accounting for public money in the form of licence fees and yet are directly competing with perfectly acceptable commercial services.

Some readers suggested this was simply more government sour grapes after the fiasco of the Hutton enquiry.

Now while I've not read it cover-to-cover I'm fairly sure the Hutton report at no point specifically made mention of Fantasy Football competitions - but clearly some people believe that to be the case. Either that or they are simply far too blinkered when it comes to understanding why aspects of the BBC's business model are not acceptable.

It has been argued that the BBC's anti-competitive practices are putting out of business UK firms who fight for commercial revenues in a market where the BBC has utterly destroyed any chance of a level playing field.

The dominance of the BBC is also stifling innovation within the media and nobody revels in that situation more than the BBC. It will often report how the BBC websites 'scoop top awards' or 'receive the most clicks'. Just last week the BBC site was boasting that it won the 'online ratings war' with its formulaic and rather staid Euro 2004 coverage.

So well done to the Beeb and the next time an innovative sports media site - such as the much-missed OneFootball.com, which provided detailed and informed comment, with an interesting selection of columnists, such as best-selling author Simon Kuper - goes out of business because it couldn't compete for clicks in a market cast in shadow by the BBC, I hope they'll polish their gongs with glee in Shepherd's Bush.

Owners of other media brands would rightly argue, 'Well give me your funding and I'll win awards'. In many respects they would be right. With no means of comparison there is no way to tell whether the online offering represents a worthwhile return on our investment but my guess is that brands more used to fighting for their life are far better positioned to innovate and, given the funding, would really raise the bar.

One reader who wisely opted to remain anonymous wrote in to say: "How sad. If commercial websites aren't up to competing, that is their problem."

That's one way to neatly side-step the small issue of the unreasonable headstart the BBC is given to produce online content.

The BBC is funded to the tune of many millions of pounds annually to provide its web coverage with no thought of ad revenues. Other sites must balance their expenditure against their income.

But some believe this is merely a case of the government keeping vote-swaying media baron Rupert Murdoch and his kith and kin happy.

Reader Colin Hinkley said: "The reason the BBC is constantly under attack is that it conflicts with the commercial interests of Rupert Murdoch and other media barons."

But perhaps the reader whose opinions most closely echoed my own was Richard Bence.

"The BBC has always had a reputation for high quality but its tentacles are now spreading into areas that do not provide value to licence-payers," he wrote. "It is not just Rupert Murdoch who is affected by the BBC but small UK companies. How can there be an effective marketplace when one of the players is a vast publicly funded body?"

It's a good point. It wouldn't be tolerated in any other marketplace. My point here isn't that the BBC needs to be closed down or run out of town, though I appreciate there are those who take any attack on the corporation to mean just that.

To use a less high-tech analogy that even that old couple at the beginning of this piece would understand, I want to see the internet nurtured and websites given the opportunity to grow and to innovate. In order for that to happen some of the BBC's less necessary branches need to be cut back to allow the sunlight to reach the more promising saplings on the ground. I'm fine with the BBC being the tallest, proudest, most admired tree in the garden but let's make sure it is a garden, with diversity, colour and growth and not a shaded wasteland beneath one monolithic oak.

Comments

There are 24 comments. Join the discussion

  1. 1. anonymous

    You dont seem to take into acocunt that the BBC are innovating them selves. (Will replies. I fully accept that, but one innovator does not make for a very innovative market. If Nike were the only people making running shoes the market would have moved far more slowly. If BMW made the only cars the motivation to constatly push R&D would be limited. If the BBC steals too much market share from smaller companies there is a danger that is the situation we will be left with.)

    Also wasn't the Fantasy football hosted on the BBC site actually arranged and organised by a private company?

  2. 2. Troy

    Nice to see unbiased journalism. (Will replies. It's my column - it's meant to be 'opinion' - this is not a new concept.)

    You have not explored the other side of the argument. The BBC have done a lot to improve the quality of TV in this country (Ed note. We're don't write about TV. This article is about websites), if you look at the US the quality of the programs, the programming schedules and advertising are far worse quality than we get on ITV. This is because ITV has had to compete with the BBC it's had to balance advertising with quality.

    I would like to see the same happen with the web; I'm fed up with commercial sites where you’re flooded with popup and adverts all over the place.

  3. 3. anonymous

    While I agree that the Beeb must be checked and re-checked in it's use of the License Payer's money and that this column is opinion, reporting of the facts MUST become a priority for all those throwing in their view.

    "...non-essential offerings such as games and entertainment features which are clearly accounting for public money in the form of licence fees and yet are directly competing with perfectly acceptable commercial services..."

    Are you certain that public money is being used in all cases?

    The BBC is a hugely complex organisation and the funding, marketing an production of its programmes and content even more so. Try looking at say, Blue Planet and Fightbox...

    The BBC, under Greg Dyke and before has been looking for ways to supplement (and possibly replace?) the licence fee and many initiatives are running very successfully to do just this...has anyone offered analysis recently to show what we would be paying for our TV licence if BBC Worldwide or BBC Technology did not have the remit that they do?

    Anti-competitive?....go interview the folks and bid teams of Technology or Worldwide and ask them about the 'easy ride' that they have when going out to win new business.

    Question, analyse and challenge...but don't 'knock' 'em just because of a preconceived view of what you believe the BBC is.

  4. 4. Paul Heneghan

    The BBC's mandate (taken from their website) is to enrich people’s lives with great programmes and services that inform, educate and entertain.

    Nowhere does it say that these services must be limited to the airwaves. The transmission media from broadcaster to audience can include rf, satellite, cable, broadband, 56K modem etc.

    Why must the BBC throttle back its entertaining services (and as some people would have it, its educational services). Is it just so some commercial companies can make some money with some substandard offerings? If commercial companies are good enough, they will stand on their own two feet.

    Recently, I went along to an IT evening at my daughter's school and we were shown a number (four, I think) of very useful educational websites, one of which was the BBC's. The other three were good enough that they merited inclusion in the list despite the BBC oak tree.

    To modify your oak tree analogy, I think the Internet is like a large park with the BBC one of the biggest oak trees. There is plenty of room in the park for other trees to grow. Just because a few elms are struggling is not justification for suggesting that it must be due to the shade of the BBC branches.

    Now, if the BBC were shown to be anticompetitive in the same way that Microsoft are anticompetitive, it would lose the support of the public, but they're not, and they haven't.

    Just my opinion! I'm quite happy for others to have their opinion - one of the features of living in a democracy.

    Paul

  5. 5. burgess taylor

    Maybe we should close down BBC TV as it competes against those poor commercial tv producers?

    I'd much rather pay for something I can get better for free. No really!

    (Ed note. Do you really get the BBC coverage for free? Don't let the people in the TV licence detector vans hear you say that.)

  6. 6. Charles Wood

    The BBC is in radio and Broadcast TV. Frankly all else should be done by other bodies. I think even the sale of goods is wrong, these should be given back as profit entirely to the taxman. Maybe a seperate company whose sole job is sales of resources. So there is no "mixed" funding and no vested interest.

    That would stop a lot of this corporate nonsense.

    It is obvious to all of us that the BBC is neither independant or a public service, but a large corporation looking after it's employees interests, with a great bank. Some of those employees are good at what they do, and many are not.

    If the licence fee is to be the funding source, and that is what gets us the democratic input , then fine. All other revenue to the taxman, and a funding review every 5 years with the directors ELECTED by the public at the same time.

    Then I would believe the rhetoric.

  7. 7. anonymous

    BBC Resources Ltd, BBC technology Ltd, BBC Worldwide Ltd...

    All set up to deal with the commercial use of the BBC's resources.

    FACTS people FACTS, get them and then make your comments!!!

    The BBC was originally set up to broadcast radio, should they have been stopped from entering the new medium of television when it arrived?

  8. 8. Susannah

    At last someone talking sense about the BBC - thank you Will.
    Lets see the same applied to their radio and TV offerings too. The BBC should either be a public service broadcaster, funded publicly, or a commercial operator competing with everyone for ad revenues. At the moment its neither. Its a hybrid stifling the commercial sector and failing to provide a public service. I'd prefer to see it act as a public service and I am not suggesting that we scrap the BBC - just ensure that it gets back to doing what I always understood it should do.

  9. 9. Warren Swaine

    It's a bit disingenuous trying to hide silicon.com's editorial stance behind the "device" of personal opinion. Were you hoping that subscribers would forget that you've been riding this particular hobby horse for years?

    (Ed note. The column is Will's personal view and certainly not the view of silicon.com as whole or representative of an "editorial stance". Are you suggesting Will isn't a real person or these aren't his personal views? Don't read too much into this, or spend too much time hatching conspiracy theories Warren, you'll lose sleep.)

  10. 10. burgess taylor

    "Ed note. Do you really get the BBC coverage for free? Don't let the people in the TV licence detector vans hear you say that."

    OK, not free. But how much more does it cost you to watch your favourite sports on Sky that you used to watch on the BBC ?

    And don't you already pay for commercial TV (via the slice of the retail price of your purchases spent on advertising) whether you even have a TV or not ??

    OK, the BBC is not perfect, but you'll miss it (or the bits that have closed) when they're gone, and there will be no turning back...

  11. 11. Duncan Sykes

    whilst the beeb states it wishes to give value for money and innovation to its customers why does it still refuse to provide the most basic element in its portfolio. Nationwide TV coverage? there are still licence paying customers like myself living as I do within sight of a transmitter who
    are still without a digital signal and who cannot get anything more than 3 channels.
    (The BBC have no available information regarding system upgrades in your area)!

  12. 12. anonymous

    Anyone want to fund my website so that I can compete with auntie on a level playing field, you wont get nothing back and I will require more funding next year, and you still wont get anything back, and so on.

    The taxman / licence fee colector is the banker and the banker always wins, fair competition not by a long way.

  13. 13. Jeremy Chatfield

    BBC preserves British culture, in the face of US imports. Canadians, living in the shadow of their culturally obese neighbour, have to resort to law and subsidy to keep Canadian content. ITV/C4/5 have hours of US shows every day. BBC1/2 show some, mostly of the best US shows, but almost everything else is UK. This content choice supports a greater community of Brit-based arts and culture. If you knock the Beeb back to "news and news alone", the competition becomes one to see who can stuff the schedule with the cheapest recycled US shows.

    Yes, I've lived in the US and seen the stultifying boredom of 58 channel TV. It's possible to see "The Lucy Show" continuously, 24/7, by channel hopping. It's hell. The Beeb's non-news output keeps us from that. Their websites do provide a challenge to competition, but an incumbent always does. Rule#1 in marketing - don't fight for a market someone else owns, unless you have deeper pockets.

    I think they should be left to get on with it, because it raises the game. Brit TV is so much more mature than US - and it's the standards of the Beeb that do that.

  14. 14. Geoff

    Wake up people! Knock away Will - the BBC needs a good shake up. To people like Jeremy Chatfield I'd say 'read the article again' - it's not even about television... but seeing as you raise the subject. The BBC produces some of the worst TV in the Western world. You praise its coverage. Well good for you - you obviously LIKE makeover shows and endless guff about home improvements - not to mention the cringeworthy comedy and formulaic 'give them drama based on the emergency services' formulaic time-fillers. And then there's the sub-ITV, 'vote now' style programming - is there anything you can watch which doesn't end in a phone vote? Stop living in the past, the BBC is now failing the UK public in a lot of ways and as the article points out it is also failing innovation and young UK businesses.

  15. 15. Jo Bloggs

    Same old band wagon ......

    For once, could the UK reporters please stop picking on easy prey with their personal opinions and pick on some foreign companies !!!!

    Anti BBC/BT/BGas.... the list is endless. When was the last time you had a go at McDonalds or IBM or Sony ... ??? Lets face it, gutless and easy story are words that spring to mind !! And no I don't work for any of these companies - I'm retired.

    Anti competitive / monopoly ..... one word "SKY"

  16. 16. Paul Heneghan

    "Ed note. Do you really get the BBC coverage for free? Don't let the people in the TV licence detector vans hear you say that."

    In my (and most other people's) opinion, we do get the BBC coverage for free. The licence fee is a form of taxation approved by the government and set aside to provide us with public service broadcasting from the BBC The BBC then provides the British public with free Radio, Television and Internet broadcast services.

    In the same way we have (mostly) free roads. Will (and maybe ed too?) would claim that the roads are not free - we pay for them out of taxation. Most people would still consider them to be free.

    So stop berating the BBC all the time (I don’t remember any article from silicon.com that came out in favour of the BBC) and give us some balanced journalism. I’m not suggesting that Will changes his spots – I always enjoy his articles – but find somebody who likes the BBC and can put its case instead of relying on your readers’ replies.

    Paul

  17. 17. Amateur Economist

    I agree. There may well be a cultural and pull-through argument for public money funding low brow programmes on BBC1 though it goes directly against the usual argument of market failure. I am certain that this does not apply to the web where cost of entry and distribution is very small compared to terrestrial TV. The BBC might perhaps support UK plc best by promoting and publicising the output of small UK content producers and not by replicating what they will grow to do.

  18. 18. anonymous

    As an ex-pat in the US, the BBC is a welcome reprieve from all of the 'fluff' offered in the US media marketplace. I think that there is some real value in the BBC, especially the news and programming. I am sorry that the government (especially the committee that manages this information) wants to bash the BBC, but it is a wonderful educational resource which can provide a scrutiny function as well as education.

    My understanding is that the BBC will be selling off BBC technology soon anyway (BBC Technology is the San Francisco based arm of the BBC, which works on the back end of the website), which should clear away some of the branches which Will discusses.

  19. 19. anonymous

    FACTS, FACTS, FACTS!!!!!

    "BBC Technology is the San Francisco based arm of the BBC, which works on the back end of the website"

    BBC Technology has an office in San Francisco but I think that you'll find a few folk in Maidenhead with something to say about it being where the back end of the BBC website is handled and a few more in London with something to say about where 'BBC-T' is run from.

    Can I suggest that everyone has a look at the various websites of the BBC operating companies before making views known, just in case the reality of the situation changes their them.

  20. 20. anonymous

    Well said, Will...a balanced view of the situation. But even it doesn't go far enough (and many readers' comments completely ignore) that the whole Charter Review - and the Graf report aren't about whether the BBC does things well. They're about whether they are fulfilling the remit under which they receive close to £3 billion a year from the taxpayers (thinly disguised as "licence payers").

    The BBC is indeed a great innovator. It produces some excellent television. It can be a major force in new media areas, like Broadband. But with all the cash at its disposal, and a cross-media domination second to (nearly) none, it SHOULD do very well!

    The charter was set up when there were less than a handful of TV channels, and when TV was an isolated medium. Neither of these factors now apply, so the review is timely.

    We also need to question whether the BBC is, in many of its activities, flagrantly flouting Competition Law, hiding behind its immunity from most regulation and its privileged status.

    Further, many seem to think of the BBC as non - commercial, and that this is a great asset. Yet the BBC, is as commercial as any media player. Take, for example its 50% interest in all 11 UKTV channels; and its 34 magazines.

    All of which may amount to great commercial success. But we have another legal principle in this country - that government "intervention" in a marketplace, which the licence fee amounts to, is only resorted to in cases of market failure.

    The BBC is operating in many markets where there is no market failure, but there is intense competition. If it does so, it surely must do it on the same basis as other operators - which means no government intervention (whether by legal or financial support).

  21. 21. Drew Edgar

    Replace BBC....insert Microsoft?

    The complaints are not dissimilar.

    The difference is the taxpayers' money which is poured into the BBC to (quite properly) provide a head start in achieving excellence in the areas proscribed.

    In those areas we are dished up mostly c..p!

    The standard of English grammar and elocution on the BBC is appalling, particularly so in the moron hosted programming for our children, "innit mate?"

    Let us have an end to these diversions & a return to the core business & values of excellence!

  22. 22. anonymous

    To those who see the BBC as the sole defender against the evil Sky... well, until the BBC stops seeing itself as just that, no commercial operator is going to be willing to take on Sky. But surely that's not what the BBC's public service broadcasting remit, nor licence revenues, should be applied to?

    The BBC is second only to Sky in terms of the number of digital channels in which it has an interest. Its cross-promotional capabilities make it supremely powerful (and are not restricted to TV alone). And it even chooses to selectively sidle up to Sky when it suits its commercial purposes (both are partners in Freeview, and now allegedly discussing partnership in Freesat).

    If we're not careful, we'll have a cosy duopoly, controlling both the content and the communication channels, totally incapable of attack on any area that Sky & the BBC choose as their own, with token "competition" between them to give a semblance of free choice. And even worse, it will be state supported.

    But it needn't be that way. It's entirely feasible, with all the advances in technology and convergence in communications, to envisage a serious competitor to Sky. And one that will open up quite exciting new possibilities.

    But it won't happen as long as the BBC is able to play whatever commercial games it wants, and is allowed to operate a quasi-cartel with Sky if it suits their mutual interests.

  23. 23. Benjamin Ellis

    Next stop, the education content market with the BBC's online curriculum site that the Government has approved! The ELC funding available to schools now were meant to appease the commercial interests in this field but are schools spending them??? How about a Silicon special report?

  24. 24. Bob Robinson

    Commercial providers of information and entertainment can compete effectively with the BBC if they provide wht the public want. BBC Radio 3 has Classic FM, BBC1 has ITV1, News 24 has Sky News bbc.co.uk has a million other sites competing with every niche of the market. Let the public decide what they want not the politicians. I don't seek out fantasy football but I see no reason why bbc.co.uk cannot provide this type of entertainment any more than I expect it to cover Wimbledon or the boat race.

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