I recently attended The future of UK broadcasting - content production, market dynamics, and priorities for policy and regulation, 26th November 2019, at the Westminster Media Forum.  The blog considers the value of Public Service Broadcasting and how their service differs from global streaming services.

Public Service Broadcasting (PSB) provides significant value to the UK economy.  It encompasses radio, television and other electronic-media outlets who produce content to inform, educate, and entertain as a public service. Siobhan Walsh, Director, Content Policy, Ofcom, commented that the existing legislation regulating the sector "does look very dated", being much more focused on a linear world (scheduled programming viewed at a set time).  Ofcom are continuing to explore with government how to build flexibility into the system.

PSBs work hard to ensure that the content they create is representative of the many diverse voices of the population, which is important for the education of society.  Alongside high-quality entertainment, they cover hard-hitting topics to educate, and promote awareness and understanding around issues that affect modern society.  Programming that encourages conversation and inspires debate.

Global streaming services, such as Amazon and Netflix, are unregulated and have the freedom to invest in and capitalise on what is popular.  In 2019, Netflix invested over £400 million in the UK, producing shows such as The Crown, and Black Mirror, with filming taking place in multiple locations across the UK.  The investment from PSBs in UK organisations and the economy is significantly higher at £2.6 billion. PSBs have also been de-centralising in recent years, bringing much needed investment to other areas of the UK outside of London.

PSBs struggle to compete with the budgets of global streaming services, making it a considerable challenge to compete on a global stage.  With the huge amount of content now available online, it raises important questions around quality over quantity, and popularity over substance. Another major issue facing PSBs with global streaming services operating in the UK market is the fact that they are under no obligation to ensure that PSB content is given prominence within its service.  As noted by Clare Sumner of the BBC, "if content is hard to find, it will be viewed less."  She warned that algorithms that serve audiences only what they know and love risk narrowing choice and exposure to other topics. 

"If content is hard to find, it will be viewed less."

Clare Sumner, Director, Policy, BBC

From a consumer perspective, the growing trend is to have at least one paid subscription to a Subscription Video-on-Demand (SVOD) service, such as Amazon or Netflix.  Tom Price, Commercial Director of the newly launched BritBox, revealed that the average US household has 3.4 SVOD services. Whilst many SVOD services are available to access through other services, like Sky, BT, and Fire TV, there is not yet a seamless solution to aggregate a mix of channels within that.  Siena Pakington, Content Director, BT, said research suggests that consumers will take several paid subscription services, but there is no one service that meets the needs of the consumer.  She commented:

"The viewer wants programmes to watch, they don't just want to be signposted to different player brands."

This increasing fragmentation for the consumer is creating an increasingly difficult landscape for them to navigate.  She suggested that it might be valuable to explore ways of bundling services together, to preserve the richness and variety in the market.

In a highly competitive market, the value and importance of PSBs should not be taken for granted.  Siobhan Walsh of Ofcom described audience feedback from a teenager, who said that she prefers to watch TV "downstairs with her mum" because she finds it more sociable.  In this period of rapid progression, it is important not to lose sight of the vital public service delivered from the BBC, ITV, and Channel 4, enriching our homes, our communities, and our lives.

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Caitriona Fitzsimons Digital Reporter