A FUTURE FOR PUBLIC SERVICE TELEVISION CONTENT AND PLATFORMS IN A DIGITAL WORLD

Recommendations

Info

A FUTURE FOR PUBLIC SERVICE TELEVISION collection of small producers has today been transformed into an industry of real scale and power. The Thatcher government admired the entrepreneurialism of the independent sector and rewarded it when the 1990 Broadcasting Act brought in a new system of production quotas for the BBC and ITV. The industry was given another major boost by the 2003 Communications Act, which greatly enhanced producers’ terms of trade with broadcasters, allowing them to hold on to more of the rights to their programmes. Producers have also benefited from the expansion in demand represented by new channels, international business and video-on-demand services. In recent years, the sector has seen significant consolidation: there are fewer producers, and some of them have got a lot bigger. The total number of producers with at least one programme broadcast by a public service channel has fallen from 442 in 2006 to 259 in 2014. 190 Channel 4 used only half as many suppliers in 2014 as it had done eight years earlier. 191 In 2001, only 11 producers had revenues of more than £10 million; by 2014, 33 had producers reached that level, while 11 had UK revenues of more than £50 million (up from two in 2001) and five exceeded £100 million. 192 The largest companies are now mostly the subsidiaries of major international corporations. Seven of the top 10 producers in 2014 were foreign owned; five did not qualify as independent for quota purposes as they were at least part-owned by broadcasters. 193 This top 10 accounted for 66% of all UK external production revenues in 2014, up from 45% in 2003 and from just 19% in 1993. 194 Their parent companies include some of the biggest US media groups. Endemol Shine, the biggest UK producer after the BBC and ITV, is 50%-owned by 21st Century Fox (the biggest shareholder in Sky), while Discovery and Liberty Global (the owner of Virgin Media) are the joint owners of the next biggest producer, All3Media. NBC Universal and Time Warner are also represented in the top 10. 195 This is no cottage industry any more, and one might question to what extent it needs any protection or further nurturing. Indeed it could be argued that we now have a far more export-oriented independent sector whose inclination is to minimise risk and work with tried and tested formats. As the independent producer Natasha Cox argued in her submission, this emphasis on profitable formats “is a cause for alarm for public service content, as increased competition and a focus on international sales is arguably stunting creative freedoms.” 196 Enders Analysis too acknowledge that while consolidation may be especially beneficial for the ‘super-indies’, “there is an inherent risk that these same companies will consider how any new idea may sit with a global audience, rather than with a UK-specific audience.” 197 190 Ofcom, Review of the operation of the television production sector, 2015, p. 20. 191 Ibid., p. 25. From “around 200” producers in 2006 to “around 100” in 2014. 192 Ibid., data combined from p. 2, and p. 17. 193 Ibid., p. 18. 194 Ibid. 195 Ibid. for the full list. 196 Natasha Cox, submission to the Inquiry. 197 Enders Analysis, Channel 4 market impact, January 5, 2016. 72
CONTENT AND PLATFORMS IN A DIGITAL WORLD However, in its recent review of the sector, Ofcom did not find significant problems associated with consolidation and recommended no urgent changes. It found that 88% of producers with at least one programme airing on a PSB channel were in the ‘small’ category (with revenues below £10 million) 198 , while levels of market entry remained high, with 32% of producers new to the market in 2014 199 . In the absence of solid evidence to the contrary, we would agree that no change is immediately necessary to the delicate regulatory balance that ensures the production sector remains competitive and open, but if consolidation continues and the number of companies able to enter the sector falls significantly, it will need further scrutiny and a more robust response from the regulator. It is important to look at the issue from the demand side too. Channel 4 plays an extremely important part in supporting the independent production sector, commissioning more new hours of programmes from external producers than any other public service broadcaster. 200 It spent £377 million on new programmes for its main channel in 2014, more than any other channel spent on external suppliers. 201 Yet despite the launch of its Indie Growth Fund in 2014 to provide seed funding for small indies, Channel 4 is not actually the strongest patron of the smaller companies. Only 8% of its total spending in 2014 was devoted to companies with revenues less than £10 million, lower than the BBC (15% of its external commissioning spend), Channel 5 (21%) and all other channels combined (31%). 202 Channel 4’s spend on new commissions as opposed to returning series, in effect a measure of its support for new ideas, accounted for only 33% of its spend, again lower than the BBC, Channel 5 and the multichannel services. 203 Perhaps, most worryingly of all, given its crucial role in nurturing the indie sector, Channel 4 worked with 295 companies in 2015, down from 311 in 2005 and 527 in 1995, 204 a trend that we would like to see reversed. “CHANNEL 4 PLAYS AN EXTREMELY IMPORTANT PART IN SUPPORTING THE INDEPENDENT PRODUCTION SECTOR” 198 Ofcom, Review of the operation of the television production sector, 2015, pp. 24-25. 199 Ibid., p. 19. 200 Ibid., p. 15. 201 See the table in Ofcom, Response to Channel 4 Corporation’s Statement of Media Content Policy, 2016, p. 9. Across all its channels, the BBC spent £409m on external suppliers, with BBC One accounting for £217m, BBC Two for £117m, and the other portfolio channels £75m. 202 It did, however, do better in this regard than ITV, which allocated just 1% of its external commissioning spend to producers with revenues of less than £10m. NB Channel 4’s figures include S4C. Independent Production Sector Financial Census and Survey 2015, Oliver & Ohlbaum Associates for Pact, 2015, p. 16. 203 Ibid., p. 17. The BBC allocated 46% of its external commission spend on new commissions, Channel 5 38% and others 36%. ITV again lagged behind the rest, with just 15%, while Channel 4’s figures again included S4C. 204 Sourced from Channel 4 Annual Reports. 73
Page 1 and 2:
A FUTURE FOR PUBLIC SERVICE TELEVIS
Page 3 and 4:
Contents Foreword by David Puttnam
Page 5 and 6:
To instruct democracy, if possible
Page 7 and 8:
Welcome Television is leading a cha
Page 9 and 10:
CONTENT AND PLATFORMS IN A DIGITAL
Page 11 and 12:
PSB channels 71.9% All other channe
Page 13 and 14:
Page 15 and 16:
Why television matters Television i
Page 17 and 18:
Page 19 and 20:
1982 1990s 2012 The BBC-ITV duopoly
Page 21 and 22: CONTENT AND PLATFORMS IN A DIGITAL
Page 23 and 24: Time for action Today’s policymak
Page 29 and 30: Basic principles At the core of pre
Page 39 and 40: The multichannel revolution Perhaps
Page 51 and 52: The BBC For most people, the BBC is
Page 67 and 68: Channel 4 If the BBC is the most im
Page 71: Only 8% of Channel 4’s total spen
Page 79 and 80: ITV and Channel 5 The focus of atte
Page 85 and 86: The changing face of ITV 1993-2002
Page 91 and 92: New sources of public service conte
Page 103 and 104: Television and diversity We have ea
Page 107 and 108: THE PEOPLE SHOULD BE TELEVISED If t
Page 115 and 116: Nations and Regions Public service
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Content diversity One of the key wa
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Sports content now accounts for som
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Talent development and training In
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Conclusion Television is changing.
Page 155 and 156:
Recommendations General The UK’s
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Appointing the BBC board Sir David
Page 163 and 164:
APPLICATION OF THE NOLAN PRINCIPLES
Page 165 and 166:
BAFTA members’ survey delivered i
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Public service broadcasting, public
Page 175 and 176:
Page 177 and 178:
Inquiry events Do we still need pub
Page 179 and 180:
Acknowledgements Inquiry Report Con
show all

A FUTURE FOR PUBLIC SERVICE TELEVISION CONTENT AND PLATFORMS IN A DIGITAL WORLD

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?