Tuesday, 17 December 2024

Advanced Television; Ofcom: PSBs ‘facing challenges’

Story from Advanced Television:

As part of its role to support and strengthen the quality of public service broadcasting (PSB), regulator Ofcom has a duty to review periodically how television services provided by the BBC, ITV, STV, Channel 4, Channel 5 and S4C have delivered against the PSB purposes and objectives set by Parliament.

This includes, among other things, an obligation to provide a broad range of high-quality programmes and genres that meet the needs and interests of many different audiences.

Ofcom’s review also considers the contribution that the PSBs’ commercial portfolio channels, radio services, video-on-demand and other online services make to these objectives.

Its review finds that, the PSBs have collectively delivered their purposes and objectives during 2019-23. In summary, it finds that:

  • Audiences rate the PSBs highly for delivering a wide range of UK programmes that appeal to different audiences, trusted and accurate UK news, and events that bring the nation together;
  • The PSBs have maintained overall levels of first-run output, but maintaining investment has been more challenging, with first-run spend declining in real terms. Overall commissioning spend has remained broadly stable in real terms due to third-party contributions;
  • The PSBs have delivered programmes across a wide range of genres. There has, however, been a moderate reduction in first-run UK originated hours in genres including specialist factual, arts and classical music, and children’s; and
  • To reach and connect with all audiences, the PSBs have continued to develop their on-demand services. This has included significantly increasing the amount of UK-produced content on their player.

Ofcom’s review also identifies the challenges and opportunities for delivery of public service media in future. In particular:

  • The PSBs face a significant challenge in connecting with audiences. Their digital-first strategies have had some success, but time spent on their on-demand players has not been enough to offset declines in viewing to their traditional linear channels. At the same time all UK individuals now spend 32 per cent of their daily in-home viewing minutes with streaming services and video-sharing platforms – and this forecasted to grow. Children aged 4 to 15 are more likely to watch YouTube, Netflix and TikTok than the BBC or any other PSB. To connect better with younger generations of viewers, the PSBs are placing their own content on third-party platforms, but they are reliant on the platform and its recommender system for curation and prominence.
  • The PSBs are facing significant financial challenges. Revenues are under pressure and the PSBs are struggling to replace their traditional income streams with new sources of revenue. They also need to deliver a wide range of content across multiple services to meet audiences where they are and increasingly compete with streaming services and video-sharing platforms for advertising revenue;
  • It is becoming more challenging for the PSBs’ news content to cut through in the crowded online environment, where audiences are more likely to be exposed to misinformation and disinformation. Online sources and intermediaries such as social media, search engines and news aggregators are now widely used for news in the UK, and have significant influence over the news users consume. It is more important than ever that audiences can easily find high-quality, accurate PSB news that adheres to high journalistic standards.

In Summer 2025, Ofcom will publish its findings on how to maintain and strengthen the provision of public service media content for the next decade. This could include areas where it is planning to consult on changes to some of its rules, as well as identifying where further Government intervention may be needed. Ofcom says it will continue to explore these issues with stakeholders and welcome their input into the next phase of its work.

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