By Jo Best, 24 January 2007 12:50
NEWS
Media watchdog Ofcom has demanded a rethink of the BBC's plans for an on-demand IPTV service, saying the launch could hurt rival commercial services.
The IPTV service, which could see BBC programmes airing simultaneously online and on terrestrial TV as well as providing viewers with the chance to catch up on programmes they have missed, may not be good for viewers, claims Ofcom.
It noted: "There is evidence that certain aspects of the proposals may have a negative effect on investment in similar commercial services which would not be in the long-term public interest."
A report by the watchdog into the service found that should the Beeb enter the IPTV market, it could account for 11 billion viewer and listener hours by 2011.
Despite predictions of its popularity, Ofcom believes such on-demand services could cause a drop off in DVD rentals and sales if viewers were able to 'stack' an array of programmes to watch later. The watchdog believes this part of Auntie's proposals should be dropped.
It also called for the BBC to shelve plans to make audio books and classical music available gratis, suggesting it would hurt the commercial market for such recordings.
Ofcom added it believes the amount of time viewers should be allowed to store previously shown programmes should be cut from the BBC's suggested 13 weeks to 14 days.
Even the nation's fat pipes could be affected by the proposals. The report said: "The cost of providing extra broadband capacity to deliver the BBC's proposed services to consumers is likely to be high, though any additional capacity would also be available for use by a wide range of other services including commercial on-demand services."
But it's not all doom and gloom. The regulator noted that on-demand will bring users new ways to access Auntie's offerings and could potentially boost the new media industry as whole.
Speaking on behalf of the BBCTrust, Diane Coyle, trustee and chair of the Public Value Test Steering Group, said in a statement: "Our decision will be based on an informed judgement of all the evidence, in the best interests of licence fee payers."
As well as taking into account Ofcom's opinions on IPTV, the Trust will produce a Public Value Assessment and then publish an interim decision for consultation before any service launch goes ahead.
Comments
There are 14 comments. Join the discussion
1. John White
I think this is outrageous!!! How dare Ofcom be so arrogant and say this is not in the consumers best interest. It sounds more like Ofcom want to preserve the profits of the companies producing and selling DVDs. Why cut the amount of time programs are available. What's the difference beween this and someone recording the transmission on a Video or DVD recorder - none! How can the BBCs plans to give away Classical Music etc not be good for consumers? I'm a consumer and given the choice of paying for something or getting it free I know which I'd choose. Ofcom need a good kick up the backside and be told to do what's best for the consumer, not the profits of commercial companies.
2. anonymous
Surely the 'public interest' is best served by getting the maximum possible value for the license fee out of the BBC, & not stopping it from providing services!
The world has gone mad.......again.
3. anonymous
I'm stunned by this Ofcom decision. How can they constrain the IPTV intentions of the BBC to this degree in favour of "DVD providers" when we all want the BBC to maximise the investment we all make in it via the Licence fee.
Don't they realise that you can't apply UK regulation to a Global Internet. It looks like we'll all just have to sit back and watch while the likes of YouTube and future equivalents take the IPTV high ground.
4. anonymous
Is Ofcom really carring out it's Statutory Duties?...
Under the Communications Act 2003:
" 3(1) It shall be the principal duty of Ofcom, in carrying out their functions;
(a) to further the interests of citizens in relation to communications matters; and
(b) to further the interests of consumers in relevant markets, where appropriate by promoting competition"
5. Charkes Wood
I have always felt that having paid my licence, any online access should be mandatory from the BBC.
Ofcoms proposals and objections should be viewed with skepticism in my view, they look to be more about maximising revenue for the BBC and other unamed organisations than maximising benefits to the British public.
That will be new then....NOT!
6. Julian Nicholls
God forbid we should be allowed to download and watch or listen to the programs that we've already paid for.
Even then, we're only going to be allowed to access it for three months (or 14 days), so it won't be killing CD/DVD sales any time soon.
Radio 4 has the right idea with the podcasts of 'The Now Show'. I missed the whole last series when it was on the radio, but I have most of it as podcasts and I shall get around to listening to it at some point.
7. Glenn Peacey
Ofcom should concentrate on regulating satellite broadcaster and newspaper businesses or perhaps consider how to make Channel4 better before imposing demands on the BBC that actually reduce the offering to the public.. When will regulators start to listen to consumer demand? If the public dont like what the BBC has to offer then they won't use it, end of story. There will then be a space for the commercial sector to fill.
It seems increasingly common for the regulator to put in place policies that end up costing the comsumer more money withouth actually increasing customer choice; Directory Enquiries is just one example.
Personally I would much rather see the BBC offer free services over as many new media devices as possible; this creates demand and stmulates the market place for other providers at the same time.
Rather than stopping the BBC from producing content that there is a clear public demand for, the commercial sector should fight back by making more creative programmes and content; offer services that people actually want to watch and use.
8. anonymous
It's about time the BBC got back to providing core public sector programming and stop trying to muscle in on every delivery channel. The BBC's business is Content, and as such has a commercial investment in this publicly funded intellectual property. Once the BBC has made it available over a digital platform it has relinquished all control over its ability to derive a commercial return. Surely it should license this Content to delivery partners so that there is some revenue raised and there is no cost of delivery. The BBC just seems on a mission to own the media world, and I for one oppose the financing of these aspirations from my compulsory license fee.
9. anonymous
If "YouTube and future equivalents take the IPTV high ground" one wonders what the swamps will be filled with?
I sounds as if Ofcom is simply, very simply, doing as HMG in its muddled and overbriefed ignorance is telling it.
Personally, I'd like lots of IPTV from Auntie for my licence fee.
10. anonymous
Just like Ofcom in telecoms - supporting the commercial provider and dissing the "citizen-consumer".
11. galley slave#41
We in the U.K. pay a lot of money to be able to operate a TV so any extra products provided might go some way to giving us value for our money.
WHICH WE ARE NO WAY GETTING AT THE MOMENT.
12. Simon
I think the majority of comments so far (all but one I think) typify one of the problems we have today - people just have no imagination or ability to think past their next meal !
Yes, wouldn't it be great if the BBC started giving away loads of stuff for free ? Or would it ?
To all those in favour of them doing so, just think about this. Take whatever service/goods your employer sells (to pay your wages) and think what would happen to the business if someone came along and started giving it away for free ? How long would you be in a job ? How long would your job actually exist at all ?
Once your employer (and every other business selling that type of goods/services has gone, how much consumer choice will there be then ?
We've seen it time and time again - though usually as a result of calculated business policy. For example, IBM did it with cash registers, Standard Oil did it with petrol, Microsoft did it with computer software. there is a long list of companies that have offered free (or cheap) offeerings with the sole intention of removing competitors from the market - only to be able to milk the market once the competition has gone.
More recently, we've seen it with ADSL. When ADSL was getting off the ground, there were loads of companies with a variety of business plans - then bowing to the mass mantra of "we want it cheap" prices were cut to the point where nearly all those opportunities simply vanished in a cloud of negative profit potential and we were left with "you can get any flavour of ADSL you like as long as it's what BT deigns to offer us". It took at least 5 years, and regulatory intervention, to start the process that in the last couple of years has barely begun to offer us what we could have had years ago - a clear case of short term gains for long term harm.
So I'm not against the BBC having online offerings, but it has a duty to consider what effect those offering will have on the commercial market - both short and long term. If it's offerings significantly damage the commercial sector, then we get good value in the short term, but long term we lose on all those offering that would have come from other sources - in other words, long term the public suffers from reduced choice.
Don't confuse cheap or free with good value !
13. anonymous
So it's OfCom sponsored by Blockbuster is it?
I cannot believe that they think they are best serving the citizens by denying them access to content. This decision is so obviously biased by inducement, that even the 'Donations for Peerages' investiagtors could find it...
If the commercial organisations think that they have a product which the public wants, let them try to sell it... the customers will decide.
And someone needs to tell OfCom that they have no jurisdication over the American networks which will surely fill the Internet with content. Are we just going to sit back and let them?
14. puzzled
What surprises me is that ofcom did not mention that the bbc should stop making programs since these are bad for the commercial rivals. Oh and while they at it close down a few of the local radio stations because the quality of programs been broadcast is making the commercial stations look like a micky mouse outfit