13/09/2007

Scottish broadcasting matters because it speaks to, and for, Scotland, with its shared culture, distinct character, and unique geography. 

Scotland’s top three programmes in World Cup year 2006 were, in reverse order, Coronation Street, Only An Excuse? and Still Game. England’s exploits filled the top three slots for much of the rest of the UK, only entering the Scottish top five for the game against Henrik Larsson’s Sweden. But Scottish broadcasting, like broadcasters everywhere, is challenged by the competition and choice that come with convergence.

Today, we can watch television on our telephones, telephone over the internet, watch television on computer and listen to radio on television. All from one provider. Where there were five channels, now there are hundreds. The certainties and structures of the past, built around established infrastructure, are changing. With change comes challenge, a responsibility Ofcom has recognised in its research and recommendations, and our research leaves us in no doubt about the value viewers have in Public Service Broadcasting.

But this being Ofcom, some stats. Eight in ten in the UK now have multi-channel television, up 17 per cent in the last two years. For Scotland, the figure is slightly less. Multi-channel television means smaller audiences for all, with the five terrestrial channels seeing their combined audience share drop 3.6 per cent last year alone to 66.8 per cent, from 77.7 per cent in 2002. In 2002, digital-only channels had a share of 22.3 per cent. By last year, this had risen to 33.2 per cent.

Audience changes for children’s television are more extreme.  The public service broadcasters’ share for 4-15 year olds has fallen from 64.5 per cent in 2002 to 45.8 per cent last year. Move up an age group and we find 16-24 year-olds are watching less terrestrial television than ever before – just 55 per cent of their viewing last year, down almost 20 per cent in five years - opting instead for non-PSB digital channels. This age group also spends over seven hours less time per week watching television than the general population.

Our most recent Communications Market Report in May found that 57 per cent of Scots felt the quality of programming had remained the same over the past year.  23 per cent felt it had worsened, 17 per cent that it had improved. Sixty-one per cent changed channel when offended by what they were hearing or seeing, 37 per cent switched off, while three per cent each moaned, complained or ignored. Nevertheless, Scots consumption has dropped by 8.1 per cent since 2002, standing at a still impressive average of 4.1 hours each day, second only to the North East of England on 4.2 hours.

So what is Ofcom doing? We think viewers’ interests are best served by regulating for convergence, by promoting competition for a fluid market, and by taking measures where necessary to secure the broader public interest.  Rather than ‘dumbing down’, our aim as a regulator is to ensure viewers are able to make well-informed comparisons in a crowded, converged yet creative marketplace.

Ofcom’s first Public Service Broadcasting review in 2005 found that demand for PSB will continue in the multi-channel digital world. However, what will change - is changing - is the commercial world. Advertisers are following the market and moving spend to other platforms, with commercial PSB channels seeing a reduction in the combined net advertising revenue from £2612 million in 2002 to £2427 million in 2006. 

That access to analogue spectrum is now worth less than it used to be not only poses challenges to traditional PSB funding, it also diminishes the regulator’s capacity to require commercial PSBs to deliver certain types or quantities of programmes.

Our first review allowed reductions to the level of non-news programming broadcast by ITV1 in the English regions and the Nations. In advance of switchover, Ofcom is undertaking further work to determine whether the current levels of non-news supply in the Nations are sustainable. ITV has also signalled that pressures on its revenues associated with increasing digital penetration mean that in its view the current pattern of regional news provision is not sustainable.

We have not proposed the abandonment of regional programming. Our research shows that regional non-news programmes rate low on viewers’ list of priorities - the quotas we set are minimum requirements and it's up to broadcasters if they want to exceed them, to meet the desires of their audiences.

The First Minister has recently appointed the Scottish Broadcasting Commission and Ofcom looks forward to making a submission and providing any necessary evidence.

What of news in the digital age? The last decade has seen a steady decline in the numbers watching television news. Fifty-nine per cent of Scots rely on television as their main source for British news, the lowest of the UK nations. Within Scotland, as in all the nations, less than half cite television as their main source of local news. However, Scotland is again the lowest, at 42 per cent. For Scots, newspapers remain an important medium, as increasingly is the internet.

Nevertheless, we know from our research that what viewers wish to see more of is ‘current events in my region’. Ofcom is committed to maintaining nations and regions news at least until the end of the current licences in 2014. After that, other solutions may need to be considered. Will funding be available from the devolved governments? Will omnipresent competition for the BBC still be important? Or will content emerge serving super local communities? Our document, New News, Future News – part of our second PSB review – aims to find some answers.

Given the level of Ofcom research into future challenges for PSB - in news, non-news and children’s programming - we are bringing forward our second review to start later this year. It will include further consideration of our proposed Public Service Publisher – £50-100 million of public funds to support plurality of public service content in the digital age.  There has already been broad support for the principle of intervention, the question now is what form.

The PSP could commission public service content but not be tied to a traditional linear TV model - it could distribute public service content across platforms, covering a number of areas that deliver public value. It could commission content from a wide range of organisations, and it could partner with other bodies such as libraries, museums, galleries or the education sector. It could also be based outside London.

Vicki Nash, director, Ofcom Scotland.

Next Thursday: Neil Blain, Professor and Head of Department of Film & Media Studies at the University of Stirling.

Read last Thursday's article, here.