Reforming the BBC
While some might object that this “bottom slicing” would leave the BBC funding output where it ceded editorial control of the channel or service that scheduled the output, this is no different in kind to current BBC co-funding of output with HBO (Band of Brothers and Rome), Showtime (The Tudors) or Discovery (Life) with US broadcasters. If it is OK for the BBC to co-fund with US commercial broadcasters why should it not be possible to co-fund with UK broadcasters, especially if those broadcasters have a PSB remit (see proposals for Channel 4 in Chapter 3). Recommendation – Shift regulatory oversight to a sector wide body With the BBC allocating some funding to third party services and a more contestable public value test process, the BBC should be regulated by a new body – the Public Service Content Trust (see Chapter 4 for more details). Responsibility for monitoring the market impact of the BBC across all services – existing and new ones – should pass to Ofcom, while the National Audit Office should have the remit to assess value for money and efficiency issues at the BBC. Recommendation – Shift the responsibility for delivering public access The BBC has played an important role in helping to drive platforms towards analogue switch off and, in particular, of ensuring that all public service providers – the BBC and commercial providers, gain widespread access to consumers in the digital age. However, it is clear that while BBC distribution interests largely coincide with those of commercial PSB providers they are not identical. In addition, the BBC’s recent preoccupation with access and distribution issues has probably helped divert management’s focus away from their core purpose – providing quality content on compelling services. Responsibility for promoting universal access distribution and high levels of discoverability in the web 2.0 age should, therefore, pass to the regulatory body overseeing the BBC and commercial PSB (the PSC) which would execute these duties through a special division – the Public Access Division (PAD). (See Chapter 4 for more detail). The PAD would be charged with ensuring PSB services and content gained the widest possible distribution. This distribution would be free of any incremental charges and would take direct control of allocating digital transmission capacity between public service broadcasters and content providers. It would also take over any remaining need to promote 2Mbit/sec roll out to more than 95% of the UK. In addition it would lead negotiations over retransmission fees for public service content. Legislation would be needed so that content providers could charge for retransmission by leading platform providers. Ofcom would arbitrate over these charges. (See Chapter 5 for a full discussion of retransmission fees in the UK). Given its focus on distributing content, the PAD would take over lead responsibility for Freeview, Freesat and Project Canvas from BBC management. It would work with all PSB providers to ensure their content is widely distributed and would also have the right to require the BBC to link non BBC PSB providers to the BBC’s main Web 2.0 services in the UK. The PAD would spread broadband to remote parts of the UK through community hubs. These hubs would be in public libraries, community centres and post
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