News by Netflix? Warning streaming sites could provide public service broadcasting as Ofcom proposes radical shakeup of rules for BBC and ITV
Streaming sites such as Netflix should expand into news so that public service broadcasting is not diminished along with the decline of its traditional providers, Ofcom has said.
Research from Britain's TV regulator found that viewers are increasingly ebbing away from channels like the BBC in favour of new American media outlets.
Ofcom warned that traditional broadcasting is 'unlikely to survive in the online world' and proposed a radical overhaul of existing rules to allow them to compete.
This shakeup would allow the UK's public service broadcasters - BBC, ITV, Channel 4 and Channel 5 - to meet their obligations on alternative mediums such as the internet.
It could pave the way for less news programmes on TV and radio and give PSBs more wriggle room to produce entertainment.
Ofcom also proposed new media players such as Amazon step up into PSB roles to inform those who have deserted traditional PSBs.
Although details will be fleshed out in the New Year when the regulator publishes its recommendations, the consultations points to countries where online outlets are required by law to make public service content available.
Streaming sites such as Netflix should expand into news so that public service broadcasting is not diminished along with the demise of its traditional providers, Ofcom has said
Research from Britain's TV regulator found that viewers are increasingly ebbing away from channels like the BBC in favour of new American media outlets, although regional news remains popular (BBC Points West programme pictured)
Ofcom said: 'Alongside the content provided by existing PSBs, new providers could help deliver public-service media in future.
'This new content could focus on specific groups of people or types of programme.
'New providers could offer different skills, expertise and online experience – leading to wider benefits to audiences and the economy.'
It could pave the way for regulations requiring public service content for online platforms.
Ofcom's report referenced legislation in Canada and Germany that mandate digital players to provide accessible news content.
Last year, only 38 per cent of viewing by 16 to 34-year-olds was of traditional broadcast content.
Public service requirements for online platforms worldwide
Canada: Ministers have proposed legislation allowing the regulator to require online platforms to make financial contributions to support Canadian content, and to impose obligations on platforms to make sure that content can be found by audiences.
Germany: State authorities recently passed broadcasting legislation introducing a 'must be found' rule for certain kinds of public interest content on media platforms, meaning it should be easily visible on the site.
Australia: The regulator has proposed introducing minimum standards giving publishers more control over how their content is displayed on digital platforms like Facebook and Google.
France: Regulator requires Google to negotiate with news publishers to agree a compensation mechanism for use of news content.
Source: Ofcom consultation
Two in five viewers of streaming services say they can imagine watching no broadcast TV at all in five years' time.
The regulator said the findings herald a 'critical juncture' for PSBs and that pre-internet age rules should be relaxed to allow them to fulfill their functions on digital platforms.
It said it would look to 'establish clear goals for public service broadcasters, with greater choice over how they achieve them, and quotas to safeguard vital areas such as news.'
Recently, MPs called on Ofcom to look at BBC plans to cut its regional news services in England.
But viewers also want to keep seeing content made about the UK and their own area on screen.
Ofcom said that 'PSBs are particularly important for dedicated regional news, where contribution of the non-PSBs is minimal.'
Original UK children's programming, education and religious programming, made specifically for the UK, are also seen as public service content that the market is unlikely to provide.
It said PSBs must create new partnerships to better compete and new providers could help deliver public service media in future.
Public service broadcasting also faces falls in advertising revenue, the costs of growing digital services, and challenges brought on by the coronavirus pandemic.
But Ofcom steered away from wading into the thorny issue of whether the BBC licence fee should remain, calling it a matter for the Government.
Ofcom chief executive Dame Melanie Dawes said: 'Our traditional broadcasters are among the finest in the world.
'But television has witnessed a blizzard of change and innovation, with audiences turning to online services with bigger budgets.
'For everything we've gained, we risk losing the kind of outstanding UK content that people really value.
'So there's an urgent need to reform the rules, and build a stronger system of public service media that can flourish in the digital age.'