The UK’s media controller, Ofcom, has proposed allowing public service broadcasters such as ITV to increase their advertising allowance. The move has been criticised by industry body Coba, which represents commercial broadcasters, on-demand services including Sky and Disney, and smaller channels. They claim the change will negatively impact news output and profitability, and could result in cut programming. However, public service broadcasters have contested this, stating that existing regulations and obligations protect PSB news. Ofcom is seeking industry views on its proposals, which endeavour to align the rules for all broadcasters but will retain some restrictions for PSB channels.
Impact on News and Profitability
Coba claims that Ofcom’s proposals would result in the loss of nearly half an hour of news coverage per weekday, thus impacting the most vital aspect of public broadcasting: information. According to the industry group, the change would also result in 115 hours of public service news programming being cut every year and “significantly impact commercial revenues across the broadcasting industry”, potentially undermining media plurality.
Industry Views Needed
Ofcom disagrees, stating that its research showed audiences aren’t overly sensitive to an increase in ad minutes but are more likely to notice an increase in the number of ad breaks. Broadcasters such as ITV and Channel 4 have advocated for looser restrictions to boost revenue amid the cost-of-living crisis. Ofcom says it is seeking industry views before making a final decision.
Existing Protections
Public service broadcasters object to the claim that the proposed change will negatively impact news output, stating that other regulations exist to ensure the availability and quality of PSB news, including news obligations set out in the PSB licenses and general rules that apply to broadcasters on the number of breaks allowed in programmes. For example, ITV broadcasts over 1,300 hours of news and current affairs a year and intends to increase its evening news broadcast by a half hour every day, well beyond its quota obligation. Similarly, Channel 4 broadcasts more hours of news than its regulatory obligation of 208 hours per year, and any proposed changes will not affect Channel 4 News, which it considers vital importance to the British public.
Summary
Proposed changes by Ofcom to increase the advertising allowance for public service broadcasters such as ITV have been criticised by industry body Coba, which claims that they will result in reduced public service news programming and negatively impact profitability, potentially threatening media plurality. Ofcom has argued that its research shows audiences are not sensitive to an increase in ad minutes but may notice an increase in the number of ad breaks. Public service broadcasters, including ITV and Channel 4, contend that existing regulations offer ample protection for the quality and availability of PSB news.
Additional Piece:
The potential impact of increased ad allowance for public service broadcasters has significant implications for the broadcasting industry and wider society. Critics argue that the proposed change could result in reduced news coverage, impacting the quality of information available to the public. Additionally, they warn that profitability for smaller channels could be threatened, which would undermine media plurality.
However, advocates for the proposed change cite the need for looser restrictions to boost revenue and thus enable investment in quality programming. Furthermore, they argue that existing regulations provide ample protection for PSB news.
One potential solution to this conundrum is for public service broadcasters, commercial broadcasters, and industry regulators to collaborate on innovative strategies that balance competing demands. For example, broadcasters could explore alternative revenue streams, such as paid digital subscriptions or product placements, to offset the potential loss of ad revenue. Regulators, meanwhile, could offer incentives for broadcasters to invest in quality programming or require that a percentage of revenue from increased ad allowances goes towards news programming.
Ultimately, the challenge of balancing public service obligations with commercial considerations will continue to evolve with shifting technological and economic landscapes. However, it is imperative that all stakeholders remain committed to preserving the integrity and quality of information in a rapidly changing media landscape.
Summary blended into article:
The proposed increase in advertising allowance for public service broadcasters by Ofcom has been met with objections from industry body Coba, which has called it ill-conceived and unnecessary. Coba claims the proposed change could result in reduced public service news programming and negatively impact commercial revenues across the broadcasting industry, potentially undermining media plurality. Critics also argue that the change will impact the quality of information available to the public.
Advocates of the proposed change, however, argue that looser restrictions are necessary to boost advertising revenue amid a cost-of-living crisis. Furthermore, they maintain that existing regulations provide ample protection for public service news programming.
One potential solution would be for broadcasters and regulators to collaborate on innovative strategies that balance competing demands. Alternative revenue streams could be explored, such as paid digital subscriptions or product placements, to offset the potential loss of ad revenue. Regulators could incentivise investment in quality programming or require revenue from increased ad allowances to go towards news programming.
As the media landscape continues to evolve, it is crucial that all stakeholders remain committed to preserving the quality and integrity of information for the public.
—————————————————-
| Article | Link |
|---|---|
| UK Artful Impressions | Premiere Etsy Store |
| Sponsored Content | View |
| 90’s Rock Band Review | View |
| Ted Lasso’s MacBook Guide | View |
| Nature’s Secret to More Energy | View |
| Ancient Recipe for Weight Loss | View |
| MacBook Air i3 vs i5 | View |
| You Need a VPN in 2023 – Liberty Shield | View |
Commercial broadcasters have attacked plans by the UK’s media controller to allow public service rivals such as ITV to increase their advertising allowance, saying it would hurt news output and the profitability of smaller channels.
Coba, the industry body it represents broadcasters and on-demand services such as Sky and Disney, said On Tuesday Ofcom’s proposals could result in the loss of nearly half an hour of news coverage per weekday.
In April, Ofcom tabled proposals to allow public service broadcasters to show more minutes than advertising on their main channels after considering the potential effect on the general public and market.
PSB’s main channels, such as ITV, Channel 4, S4C and Channel 5, are limited to a maximum average of seven minutes of advertising per hour of television. Other channels, however, can run up to nine minutes of ads.
Ofcom has proposed aligning the rules for all broadcasters, but retaining some restrictions for PSB channels, which would limit the number of internal interruptions allowed in programmes.
The watchdog said “tighter advertising restrictions on PSB channels are no longer justified or proportionate” and that it was seeking industry views on the proposals.
Ofcom’s research found that audiences weren’t overly sensitive to an increase in ad minutes, but were more likely to notice an increase in the number of ad breaks.
Broadcasters such as ITV and Channel 4 have pushed for looser restrictions to boost revenue when many advertisers are tightening their budgets amid the cost-of-living crisis.
Coba said Ofcom’s plan could result in 115 hours of public service news programming being cut every year. The industry group also said it would “significantly impact commercial revenues across the broadcasting industry.”
He also warned that the change could “threaten the viability of smaller commercial channels, potentially undermining media plurality”.
Coba Executive Director Adam Minns said: “We strongly oppose these proposals from Ofcom. These proposals are ill-conceived and unnecessary, and are not even supported by all public service broadcasters.
“The result will be to erode the most important aspect of the public broadcasting system: information.”
Public service broadcasters rejected Coba’s analysis. ITV claimed that other regulations existed which protected the availability and quality of PSB news.
These included the news obligations set out in the PSB licenses, as well as general rules applying to broadcasters on the number of breaks allowed in programmes.
“ITV broadcasts over 1,300 hours of news and current affairs a year. In 2022, we extended our evening news by an extra half hour per day, significantly increasing the amount of news we broadcast well beyond our quota obligation.”
Ofcom said: “We will consider all responses to our consultation before reaching our final decision.”
Channel 4 said the analysis was “pure guesswork”, adding: “Channel 4 broadcasts more hours of news than our regulatory obligation of 208 hours per year and any proposed changes will not affect Channel 4 News, which is vital importance to the British public”.
https://www.ft.com/content/0b8bd981-5479-42d5-b834-48459d3d0db4
—————————————————-