Broadcasting Committee

The Future of Public Service Broadcasting in Wales

Introduction

Public service broadcasting in Wales arouses strong passions. For its supporters it is the best in the world, untouchable and to be protected at all costs from philistine politicians. For its detractors it represents interference in the market that has inhibited consumer choice.

Changes in technology mean that detractors and defenders alike will have to accept radical change to the traditional structures that have been the foundation of public service broadcasting since the introduction of the licence fee in 1946. With digital switchover, broadcasting is about to go through the equivalent of the City’s Big Bang in the 1980s. Indeed, it can be argued that this process is well underway.

But if the arguments that challenge the current structures of public service broadcasting are compelling, so too is the need to continue its best traditions. The BBC is probably now the most respected news gathering organisation in the world, a global brand that is not only of real value to British and Welsh consumers but one of Britain’s most formidable ambassadors. Nor is public service broadcasting restricted to the BBC - 24 hour news was brought to Britain by Sky who have also launched a dedicated arts channel and produced BAFTA award winning documentaries. Regional news on ITV, especially in Wales is highly valued, as demonstrated by the current backlash against plans to reduce it. For the past 25 years, S4C has been a public funded public service broadcasting broadcaster in the Welsh language and has provided an essential service not only to the Welsh speaking heartlands but to non-Welsh speakers and to the whole of Wales. Channel 4, too, is well-known for its risk taking and innovation in programme making.

As acknowledged by Ofcom’s recently published review, the old model for public service broadcasting is breaking down. The value of the analogue signal that has sustained commercial public service broadcasting for the last fifty years has declined dramatically as digital TV has grown over the past few years and will disappear completely at switchover.

If lifestyle and entertainment programmes address our needs as consumers, public service broadcasting addresses our needs as citizens. It is crucial that broadcasting reflects devolution in Wales and effective public service broadcasting is a key part of the wider solution of how to engage people in our democracy. The question is how to create structures that allow television to play that broader role in a multi-channel, multi-platform age.

Politicians and regulators have to get this right. The stakes are enormous because broadcasting is not simply another industry. It has a massive cultural impact, as well as defining the terms of trade in the political process upon which our democracy depends.

A healthy and diverse broadcasting industry is vital to Wales’ future.

BBC

The BBC is probably the most respected news gathering organisation in the world and on measures such as the number of repeats and the proportion of home-produced programming, there is evidence that general programming quality has improved over the last 20 years. The success of BBC Wales’ Doctor Who and Torchwood has inspired a new confidence in Welsh production.

The achievements of public service broadcasting owe much to the BBC. But its real success has happened because of a plurality of providers of high quality television, whether it is news provided by Sky, drama from ITV or documentaries from independent companies. This has led to creative competition which in turn has benefited the BBC, driving up the quality of its output as the pre-eminent provider of public service broadcasting.

Any new structure must not damage the BBC, the organisation that produces to a high standard the vast majority of public service broadcasting. Most BBC employees recognise that competition in broadcasting is a good thing for the BBC, and there is a balance to be struck between ensuring that competition exists and making sure the BBC is able to continue to do its job well. Other organisations should only be able to bid for licence fee money in specific areas where plurality of provision is lacking, such as daytime children’s TV, with the BBC continuing to receive the vast bulk of the licence fee.

The BBC should be encouraged to exploit the strength and commercial opportunities provided by the BBC brand overseas in order to make up any shortfall of licence fee revenues resulting from the new structure.

BBC Wales, of course, faces huge challenges. It is essential that the BBC reflects the nations and regions in its coverage as well as to ensure that the people of Wales get to see the whole of the UK. This may require a determination that has not yet been possibly seen.

ITV

ITV has been a broadcaster in Wales for the last 50 years. It is a commercial public service broadcaster offering a mixture of news, current affairs and other programming about Wales as an alternative to the publicly funded BBC. ITV also provides programming for S4C. ITV Wales is now part of a merged ITV plc which owns all the Channel 3 franchises in England and Wales.  

ITV currently provide a total of 9.5 hours per week of Wales’s programming. However, ITV has recently made it clear that it finds these requirements stretching and could well see further cuts. Plurality of news coverage and current affairs is absolutely essential to ensure a healthy democracy. We must remember that ITV is the only broadcaster outside the BBC to provide any regional news programming. Solutions must be found to ensure that plurality of regional and national news services are continued.

S4C

S4C, established in 1982 is a public service broadcaster providing a range of high quality Welsh language programmes on television and online. Its remit on analogue is a broad range of high quality programmes both in Welsh and English. At peak periods the programmes broadcast are in Welsh and the programmes not in Welsh at other times are normally programmes which are being have been or are to be broadcast on Channel 4. S4C Digidol is a broad range of high quality and diverse programming in a service in which a substantial proportion of programmes consist of programmes in Welsh.

Funding of the channel comes directly from the DCMS, a contribution from the BBC licence fee and commercial income from advertising revenues. As S4C’s primary role is to promote and sustain the Welsh language it is absolutely essential that the current funding streams are maintained. Indeed, S4C’s funding has been established by law.

Channel 4

Channel 4 has not been available in many homes in Wales until the advent of digital TV. It can be argued that it has been difficult for Channel 4 due to the fact that S4C has been the main channel. However, it now has a significant viewing share in Wales and it is vital that it reflects the needs of Welsh viewers in its programming. Currently, Channel 4 does not broadcast any regional or Welsh news as it argues that it gives more of an international flavour in its news bulletins. It would be beneficial if Channel 4 reflected the whole of the UK, including Wales.

Channel 4’s position could be considerably strengthened if it was allowed to benefit commercially from the overseas rights of the programmes it commissions. This is already a hugely significant income stream for the BBC.

Radio

When discussing broadcasting people more often associate it with television. However, radio plays an important part which is proved by BBC Radio Wales being one of the most successful radio networks in the UK. Welsh language radio is mainly provided by BBC Radio Cymru along with other commercial radio stations. Ofcom has awarded 9 licences in Wales to Community radio stations but one has ceased to be licensed.

Key Points

1. The current public service broadcasting model is under threat. Following the digital switchover, the minimum number of channels in every household will be at least 30. Advertising-funded channels will have to compete much harder than in the current, relatively cosy, terrestrial oligopoly. This will make it harder for them to invest in certain types of public service broadcasting.

2. Broadcasting policy needs to ensure a continued plurality of provision of high quality programmes that cater to our needs as citizens as well as our needs as consumers. Broadcasting in Wales must reflect the needs of the Welsh people to ensure a healthy democracy. The regions and nations must be adequately covered by broadcasters. In a post-bureaucratic age of greater personal freedom and responsibility, a socially responsible media operating independently of politicians has an essential role in promoting debate. Maintaining plurality of provision in news is the most important way to ensure balance in the supply of news. Impartiality should remain a central public service obligation on public service broadcasters.

3. Consideration should be given to organisations other than the BBC on whether they should be allowed to bid for small parts of the licence fee. This would ensure a plurality of provision in key genres, such as news, current affairs and daytime children’s TV. However, such a model would need to avoid the risk of distorting the commercial television market by mixing public and commercial funding, so it may be preferable for it to fund new channels rather than "top up” funding of existing channels. However, any new structure should not become an "arts council of the airwaves” with bureaucrats making programming decisions.

4. Examine the possibility of establishing a general Public Service Broadcasting Commission with responsibility for distributing the licence fee.

5. Consideration should be given to an assessment of the possibility of relaxing the restrictions on broadcasters holding global rights to programmes they commission.

6. Greater prominence should be given to television in the Nations and regions by policy makers, including local television. This is essential in reflecting our devolved democracy in Wales and strengthening democratic accountability. Rectifying the lack of local and regional broadcast output should be an important policy objective.

7. The continued support of S4C is absolutely vital as its primary role is to promote and sustain the Welsh language.

8. Public service broadcasters need to embrace technological change ranging from digital television to the internet and mobile phones. However, activities by taxpayer-funded broadcasters on new platforms need to be monitored carefully to avoid market distortions.