BBC accused of exaggerating the decline of local papers

THE BBC has been accused of exaggerating the decline of newspapers to justify the expansion of its own online operations.

Oliver & Ohlbaum, an independent research firm that often works for the Corporation, said the BBC ‘misreads and overplays the imminent demise of other news media’ even though the sector is ‘vibrant’.

The study was published in response to a report by BBC News chief James Harding making the case for the Corporation to keep expanding its operations. He said local journalism was ‘one of the biggest market failures of the last decade’.

But O&O said: ‘The BBC... should not preempt market failure that does not exist. Local media have had to cut costs and adapt to a competitive landscape... but the sector remains profitable and there are strong signs that revenues are stabilising.’

Publishers claim the BBC’s free local news websites have eroded their market share, and MPs fear they have driven many newspapers out of business.

The O&O report, for the newspaper lobby group the News Media Association, said the BBC should ‘support’ other organisations ‘rather than build up its own services’. This would give it access to more news content and different audiences.

O&O founder Mark Oliver said: ‘The BBC’s drive to “do more” risks becoming a contributory factor in the erosion of the wider UK news provision market.’

The BBC said it planned to link to content from other news groups, adding: ‘The suggestion that we are overreaching is misleading. Our share of online news is falling.’