January 26, 2007

Ofcom Demands Rethink On BBC IPTV

by Jan Harris

IPTV

Ofcom, the media regulator, has asked the BBC to review its plans for an on-demand IPTV service, due to concerns that it could damage rival commercial services.

The service would allow the BBC to broadcast programmes simultaneously online and on terrestrial TV and also provide viewers with the opportunity to catch up on programmes they have missed.

Ofcom believes that this may not be good for viewers in the long-term as it could have a negative effect on investment in similar commercial services.

Ofcom’s report found that if the BBC enters the IPTV market it could account for 11 billion viewer and listener hours by 2011. This could result in a substantial decline in DVD rentals and sales. Ofcom believes that this part of the BBC’s proposals should be dropped.

It also expressed concern that the commercial market for audio books and classical music could be adversely affected if the BBC proceeded with plans to make such recordings available for free.

Ofcom suggested that the viewers should only be allowed to store previously shown programmes for 14 days, rather than the 13 weeks suggested by the BBC.

On a more positive note, Ofcom remarked that on-demand would provide new ways for views to access BBC services and said that IPTV could potentially boost the new media industry as whole.

The Public Value Test Steering Group will take into account Ofcom’s opinions on IPTV, when it produces a Public Value Assessment. It will then publish an interim decision for consultation before any service launch goes ahead.

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Story link: Ofcom Demands Rethink On BBC IPTV

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