New BBC channel could hurt competition, warns watchdog
PLANS for a new Scots BBC TV channel have the potential to harm fair and effective competition, the broadcasting watchdog has warned.
Ofcom yesterday said it will carry out a full assessment of the proposals after stakeholders raised significant concerns over the ‘material change’ it would bring.
Last year the BBC announced plans for a new Scottish channel which was expected to begin broadcasting this autumn.
But this could be delayed after Ofcom said it will not reach a final decision on whether or not to grant a licence for the channel until July 11.
Following consultation with stakeholders, Ofcom concluded that due to the ‘material change’ of bringing forward a channel ‘further assessment’ is required.
Last year it was disclosed that the channel is to be called BBC Scotland and will take over from BBC Four with a budget of more than £32million a year.
It will include a 9pm news programme covering international, UK and Scottish stories with a ‘Scottish perspective’ and a number of shows which reflect Scottish life, including dramas and comedies. The BBC’s governing body said the channel had passed its public interest test, but Ofcom has said further assessments must be carried out.
The watchdog added that it had taken feedback from 17 stakeholders, including the Institute of Local Television, the Scottish Newspaper Society and TV production sector trade association Pact. All three have raised concerns about how the channel,
‘Expansion of digital news’
which would see 80 journalists recruited to the BBC, would affect competition in news and production north of the Border.
Stakeholders questioned whether or not the channel was adequately funded, with some criticising a ‘lack of detail’ and the potential to ‘crowd out competition’.
In a letter to the BBC, Ofcom said: ‘We consider the points above raise concerns and issues which are sufficiently significant to justify conducting a BCA (competition assessment).
‘The activities proposed by the BBC, taken together, comprise a single proposal to carry out a new UK Public Service.
‘We do not consider that the aspects of the BBC’s proposal giving rise to our concerns can be clearly separated from an assessment of the proposition.’
Pact raised concerns over competition, claiming the funding would ‘leave less investment per hour’ and that it could lead to issues with local ‘content production’ companies.
A Scottish Newspaper Society (SNS) senior representative said steps must be taken to avoid an ‘adverse impact on fair and effective competition’.
The SNS raised concerns over an influx of new journalists who may contribute to the new channel as well as to online services, claiming this could lead to further competition of both written and video journalism.
Its submission said: ‘The high number of extra journalists appears disproportionate to the needs of a weekday, hour-long news programme with access to material being produced for flagship bulletins.
‘If the proposal is about the launch of a new channel, we fail to understand why it should be accompanied by an expansion of the digital news.’
It claimed it is ‘not true’ to argue that ‘analysis and long-form journalism’ is not ‘in competition with existing providers’.
A BBC Scotland spokesman said: ‘We welcome Ofcom’s decision to scrutinise the proposal for the new channel and we look forward to contributing to the consultation exercise.’