The BBC press release
BBC Trust approves BBC's
on-demand proposals
30 April 2007 - The BBC Trust has today issued its final approval of the BBC Executive's proposals for new on-demand services, with some modifications. The on-demand proposals are the first to go through a Public Value Test (PVT).
The Trust's provisional conclusions were subject to an open consultation. A remarkable 10,500 individuals and organisations responded. In the light of those responses, and after careful consideration of all relevant issues, the Trust has amended two of the conditions of its provisional approval.
Diane Coyle, BBC Trustee and Chair of the Trust’s PVT Steering Group, said:
30 April 2007 - The BBC Trust has today issued its final approval of the BBC Executive's proposals for new on-demand services, with some modifications. The on-demand proposals are the first to go through a Public Value Test (PVT).
The Trust's provisional conclusions were subject to an open consultation. A remarkable 10,500 individuals and organisations responded. In the light of those responses, and after careful consideration of all relevant issues, the Trust has amended two of the conditions of its provisional approval.
Diane Coyle, BBC Trustee and Chair of the Trust’s PVT Steering Group, said:
"We are delighted so many people
responded to the consultation and
thank everyone who participated for their contribution. The
consultation has demonstrated considerable public support for the
on-demand proposals.
"Thanks to the thorough assessment through the Public Value Test, and with the modifications which resulted from the test and the consultation, the Trust is satisfied that the BBC's new on-demand services will create significant public value with limited market impact. We have therefore given our final approval for the services to be launched."
"Thanks to the thorough assessment through the Public Value Test, and with the modifications which resulted from the test and the consultation, the Trust is satisfied that the BBC's new on-demand services will create significant public value with limited market impact. We have therefore given our final approval for the services to be launched."
Most responses to the consultation came from individuals, the majority of whom supported the proposals and believed that, as licence fee payers, they should have maximum access to BBC content. A significant number of responses were received from industry and commercial stakeholders, some of whom reiterated their concerns about the potential for adverse market impact.
Diane Coyle said:
"The over-riding responsibility
of the Trust is to act in the public
interest. This means that, when considering the potential market impact
of new service applications from the BBC, we must focus primarily on
the effect on consumers who enjoy the choice offered by content and
services beyond those provided by the BBC.
"In our provisional conclusions we proposed a number of modifications to BBC management's plans and sought feedback from the public and the media industry. Having considered the responses carefully, we've made two changes to our provisional conclusions."
"In our provisional conclusions we proposed a number of modifications to BBC management's plans and sought feedback from the public and the media industry. Having considered the responses carefully, we've made two changes to our provisional conclusions."
The two changes are:
* Series stacking: The condition
attached to this feature has changed.
The Trust has taken account of responses from the industry and the BBC
Executive, both of whom questioned the Trust's proposal for an
editorial definition to minimise market impact, with some commercial
companies proposing the facility be removed. But the Trust has also
taken note of the public's overwhelming support for this feature. The
Trust has decided that the facility for series stacking will remain,
but the Trust has applied a 15 per cent annual quota for series
stacking with revised editorial guidance to the BBC Executive on the
type of series which can be included.
* Platform neutrality for DRM downloads over the internet: The condition attached to meeting this objective has changed. The Trust has noted the strong public demand for platform neutrality and is concerned to ensure that the BBC meets this demand as soon as possible. The Trust acknowledges the BBC's commitment to platform neutrality and has taken account of the Executive's response that a two year deadline is unworkable because success is dependent on third parties outside of the BBC's control. However, in the interest of those members of the public who will be disadvantaged until this matter is resolved, the Trust will audit the BBC's progress against this objective every six months and publish its findings.
* Platform neutrality for DRM downloads over the internet: The condition attached to meeting this objective has changed. The Trust has noted the strong public demand for platform neutrality and is concerned to ensure that the BBC meets this demand as soon as possible. The Trust acknowledges the BBC's commitment to platform neutrality and has taken account of the Executive's response that a two year deadline is unworkable because success is dependent on third parties outside of the BBC's control. However, in the interest of those members of the public who will be disadvantaged until this matter is resolved, the Trust will audit the BBC's progress against this objective every six months and publish its findings.
The decision document sets out in full how the Trust has considered the issues raised by respondents to the consultation and the reasons for its decisions. These include:
* Use of digital rights management (DRM)
* Platform neutrality
* Series stacking
* Storage window
* Non-DRM downloads (book readings and classical music)
* Protection of children
* Access for third-party content to the BBCiPlayer
* Syndication
* Bookmarking
The BBC's on-demand services as modified and finally approved by the Trust are:
Seven-day catch-up television over the internet:
* The storage window for TV
catch-up over the internet will be set at
30 days from the day of download.
* Series stacking is permissible for a total of 30 days, seven days after the last episode of the series. Stacking will be limited to an annual quota of 15 per cent of all content offered on-demand. As guidance to the BBC Executive, series most appropriate for stacking are those with a distinct run, with a beginning and end, and a narrative arc or those with exceptionally high impact. This condition will be reviewed by the Trust after 12 months.
* The service will be provided on a platform neutral basis within a reasonable timeframe of launch. The Trust will audit progress every six months.
* Series stacking is permissible for a total of 30 days, seven days after the last episode of the series. Stacking will be limited to an annual quota of 15 per cent of all content offered on-demand. As guidance to the BBC Executive, series most appropriate for stacking are those with a distinct run, with a beginning and end, and a narrative arc or those with exceptionally high impact. This condition will be reviewed by the Trust after 12 months.
* The service will be provided on a platform neutral basis within a reasonable timeframe of launch. The Trust will audit progress every six months.
Seven-day catch-up television over cable:
*
Series stacking as for the internet.
Simulcast television over the internet (live streaming of television networks):
* No
conditions.
Non-digital rights management (non-DRM) audio downloads over the internet (podcasting)
* Book readings will be excluded
entirely from the non-DRM audio
download service element.
* Classical music will also be excluded, except where it is used in contexts such as incidental music to programmes or as signature tunes.
* Existing services on bbc.co.uk to "listen again" to BBC Radio programmes are not affected by the Trust's decisions about downloading services.
* Classical music will also be excluded, except where it is used in contexts such as incidental music to programmes or as signature tunes.
* Existing services on bbc.co.uk to "listen again" to BBC Radio programmes are not affected by the Trust's decisions about downloading services.
In addition to the above conditions the Trust will conduct a formal performance evaluation of all the service elements at 24 months from launch.
Notes to Editors
1. 1) The Public Value Test (PVT) includes a Public Value Assessment (PVA) by the Trust and a Market Impact Assessment (MIA) by Ofcom.
2. 2) The Trust's decision document is published in full on the Trust's website, together with:
* analysis of the consultation responses from individuals
* responses in full from 22 organisations
* draft syndication policy statement
The following material was published alongside the provisional conclusions and remains available on the Trust’s website:
* the Executive's proposal
* the Market Impact Assessment and Public Value Assessment
* the Trust's provisional conclusions
* the Market Impact Assessment and Public Value Assessment
* the Trust's provisional conclusions
3. 3) Timeline of the process:
* The
BBC Governors announced on 31 August 2006 a Public Value Test on
the BBC Executive's proposals to launch new on-demand services
* On 18 September 2006 the details of the Market Impact Assessment (MIA) and the Public Value Assessment (PVA) were announced.
* Additional information on the proposals was published on 10 October 2006 and the period for representations extended to 7 November 2006.
* The MIA process was commissioned and overseen by the Joint Steering Group comprising Ofcom and the BBC Trust and chaired by Ofcom for this
MIA. The Joint Steering Group met four times, the last meeting being held on 17 January 2007.
* The BBC Trust's PVT Steering Group met twice since 1 January 2007, the last meeting being held on 18 January 2007.
* On 19 January Ofcom submitted the MIA to the BBC Trust.
* On 23 January 2007 Ofcom published the MIA.
* On 24 January 2007 the BBC Trust approved the PVA as part of the PVT process and evaluated both the MIA and the PVA in reaching its provisional
conclusions about the BBC Executive's proposition.
* On 31 January 2007 the BBC Trust published its provisional conclusions, along with other supporting material not previously published, and opened a public consultation. In view of the amount of information being released and that this was a new process, the Trust extended the consultation period from an expected 28 days to eight weeks.
* The consultation closed on 28 March 2007.
* The Trust's PVT Steering Group considered the response to the consultation on 16 April 2007.
* The Trust considered and reached a final decision on the proposals at its meeting on 25 April 2007.
* Monday 30 April 2007 – final decision is published.
* On 18 September 2006 the details of the Market Impact Assessment (MIA) and the Public Value Assessment (PVA) were announced.
* Additional information on the proposals was published on 10 October 2006 and the period for representations extended to 7 November 2006.
* The MIA process was commissioned and overseen by the Joint Steering Group comprising Ofcom and the BBC Trust and chaired by Ofcom for this
MIA. The Joint Steering Group met four times, the last meeting being held on 17 January 2007.
* The BBC Trust's PVT Steering Group met twice since 1 January 2007, the last meeting being held on 18 January 2007.
* On 19 January Ofcom submitted the MIA to the BBC Trust.
* On 23 January 2007 Ofcom published the MIA.
* On 24 January 2007 the BBC Trust approved the PVA as part of the PVT process and evaluated both the MIA and the PVA in reaching its provisional
conclusions about the BBC Executive's proposition.
* On 31 January 2007 the BBC Trust published its provisional conclusions, along with other supporting material not previously published, and opened a public consultation. In view of the amount of information being released and that this was a new process, the Trust extended the consultation period from an expected 28 days to eight weeks.
* The consultation closed on 28 March 2007.
* The Trust's PVT Steering Group considered the response to the consultation on 16 April 2007.
* The Trust considered and reached a final decision on the proposals at its meeting on 25 April 2007.
* Monday 30 April 2007 – final decision is published.
4. 4) In the Trust's decision document it identifies some lessons from this first Public Value Test and how the Trust will apply these to future PVTs. In particular the Trust expects to publish more information about management's application at the start of future PVTs to keep the whole process to six months with two separate consultation periods of 28 days. The Trust also plans to publish the Public Value Assessment alongside the Market Impact Assessment from Ofcom (the two elements of the analysis in the PVT), in advance of publication of the Trust's provisional conclusions.
