Jim Marshall: Digital Britain…Did the BBC get off lightly?

The Digital Britain Report has only widened the gap between the BBC and commercial operators, says Jim Marshall, Starcom Mediavest’s executive director and chairman of the IPA Media Futures Group.

“As interesting is the rumour that the original Digital Britain Report was originally much tougher on the BBC, but was ‘watered down’ by nervous politicians, at a time when they are reluctant to anger the likes of the BBC”…

Digital Britain Report – but what about the BBC?

It is probably fair to say that the media world was somewhat under whelmed by the Digital Britain Report.

While it covered a lot of ground it didn’t come up with too many firm proposals or solutions for many of the industry’s current dilemmas. For example, who should be allowed to merge with whom (in TV and across other media)? To what degree the public service broadcasting remits can be genuinely relaxed? And most importantly how is Britain’s leadership in digital technology really going to be funded?

In reality, many of these answers are to be found not in what the report proposes but in what it does not oppose: So yes, Channel 4 will probably do a deal with BBC Worldwide; CRR probably will be relaxed; Local Media ownership rules will also probably be relaxed; And so on.

That’s Commercial Media, but what about the BBC?

The BBC isn’t happy, because the report has the temerity to say that 3.5% of the BBC’s license fee should be redirected into the commercial sector, to potentially fund local news coverage from 2012.

OK, it is from monies allocated to the BBC for digital switch over, which will now not be required.

And OK, the BBC, unlike the commercial media (and every other commercial business), is still guaranteed an increase through its license fee.

Even so, the BBC sees this as a fundamental threat to its very independence, because the government is tampering with its license fee award. Consequently the BBC’s management has reacted angrily and the BBC trust has criticised the proposal.

In my view, the BBC is reacting like a spoilt child – a brat who is whining about his/her sweet allowances being reduced while surrounded by starving children.

As interesting is the rumour that the original Digital Britain Report was originally much tougher on the BBC, but was ‘watered down’ by nervous politicians, at a time when they are reluctant to anger the likes of the BBC. Obviously, I’ve no idea whether this is true, but I would like to believe it is and can see how it could very possibly be the case.

Why?

Because, in a world where pretty well all commercial media are struggling for survival, the BBC continues to enjoy inflationary funding.

This is not only unfair but also has a fundamental impact on the commercial sector and its future development. Stephen Carter, from his days at Ofcom, will be more then aware of this.

Indeed, Ofcom have long and quite rightly argued, that regulating the structure of commercial broadcasting, can be much undermined by the behaviour of the BBC.

This has never been more true than now and for the immediate future (i.e. Digital Britain). The BBC may be a great organisation and generally more progressive then its commercial competitors, but it can afford to be whether, with its main services in Television and Radio or whether with its Digital channels, VOD services and it’s excellent but entirely free website.

For the future, it’s difficult to imagine how effectively the commercial radio companies will be able to compete with the BBC’s national digital channels and it’s difficult to imagine how ITV will be able to compete in entertainment and Channel 4 in public service broadcasting. At least compete in an environment where the BBC’s funding is guaranteed at a substantially higher level than the commercial companies.

The BBC’s current charter runs until 2016, but its funding is reviewed in 2011.

It will be a brave politician that is prepared to go into battle with arguably Britain’s most loved and respected, but the BBC has got to operate with a greater level of parity with the commercial sector.

For me, it is a great disappointment that the Digital Britain Report did not do more to address this. It might just be that it was a great disappointment for Stephen Carter as well.