BBC Trust mulls Ofcom's iPlayer MIA

[BGonaSTICK]

The BBC Trust has received its first market impact assessment (MIA) from Ofcom, into the corporation's plans for on-demand services. Ofcom said that while the BBC's proposed on-demand services were likely to stimulate demand for non-scheduled TV and radio programming via the internet, they could adversely impact commercial rivals and the DVD rental market.

Ofcom said the BBC iPlayer—the application offering a seven-day catch-up window via the web and other on-demand services—represented an important opportunity for audiences to access BBC content in new and different ways. Its research suggested that linear TV viewing and radio listening may fall by between 20% and 30% over the next five years as on-demand services take off.

But Ofcom's MIA said there was a balance to be struck between the BBC's involvement in the market for on-demand services and the risk that "the BBC's power in nascent markets could harm the stimulus of competition necessary to ensure quality content for the long-term". Ofcom recommended that the ability to store and view an entire series of programmes could hit DVD rentals and sales since viewers would have seven days to watch the entire series after the last programme in the series is broadcast.

Unless the BBC Trust's public value assessment (PVA) found compelling reasons for doing otherwise, "the scope of series stacking should be substantially reduced", or "excluded altogether", said Ofcom.

Additionally, Ofcom said the ability to store internet-downloaded programmes for up to 13 weeks could have negative effects on competition and therefore investment in consumer choice, and calls for the window to be reduced, or removed.

Ofcom said the simulcast TV service was "by far the least contentious of the proposed services" since other major broadcasters were "all likely to offer similar services over the internet, with no direct charge to consumers".

Speaking on behalf of the BBC Trust, which will have final say on whether the on-demand services are launched, and in which form, Diane Coyle, Trustee and chair of the Public Value Test (PVT) Steering Group, said: "Ofcom's MIA provides us with a thorough analysis of the market implications of the proposed new services, and highlights important factors for the Trust to consider.

"The MIA forms only one part of the PVT process. In reaching our eventual decision, we must also consider the potential public value created by the on-demand proposals. This will be published in the PVA of the on-demand proposals, carried out by the Trust with the support and assistance of the Trust Unit.

"It is the Trust's responsibility to examine both the MIA and PVA, and our decision will be based on an informed judgement of all the evidence, in the best interests of licence fee payers.

"Once this process is completed the Trust will publish its interim decision for consultation, along with the evidence on which it is based. We will ensure all stakeholders have adequate time to respond before reaching our final judgement."