Information society : agenda for action in the UK : evidence received after 31 March 1996 / Select Committee on Science and Technology.
- Great Britain. Parliament. House of Lords. Science and Technology Committee.
- Date:
- 1996
Licence: Open Government Licence
Credit: Information society : agenda for action in the UK : evidence received after 31 March 1996 / Select Committee on Science and Technology. Source: Wellcome Collection.
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![23 April 1996] [ Continued The early multi-channel experience for audiences in the UK has been conditioned by the way in which the satellite and cable industry has developed, in analogue, as essentially a closed environment. This closed environment, only now coming within the reach of current regulatory control, has allowed one or two dominant players to control which services are made available to viewers and at what cost. This is achieved through control of the so-called “gateway”—the point at which viewers are able to access services and service providers are able to charge for them. If abused, the effect of the gateway could be to limit the range of available services, to deter new market entrants and to reduce the level of competition on quality, service and price (see figure 3). The importance of the gateway will be boosted in the digital world by the fact that most of the new channels will be paid for directly by the audiences receiving them—in the form of subscription or eventually “pay-per- view”. Already subscription fees account for 20 per cent of all industry funding; they are expected to increase threefold or even more. Many of the services funded by direct payment will prosper on a relatively small reach of the whole population—indeed their success will often depend on targeting the segment of the market which values the service the most and charging appropriately. Universality is unlikely to be a key objective. In contrast, public service channels have a remit to ensure that a range of high-quality programmes and services are available to everyone. The BBC will wish to continue to serve the whole audience and not just those sections which are commercially attractive. The BBC is committed to an authoritative service of news and political coverage as well as a wide range of factual output in peaktime, including history, science, wildlife, consumer and social action programming. As now, in the digital age we will strive to offer something for everyone, wherever they live and whatever their tastes. Viewers too will expect to be able to continue to receive the public service channels for which they have paid. They will expect this as a right. However this right could be under threat. At present, all homes receive network television free-to-air terrestrial delivery systems and then some choose to supplement those services with cable or satellite packages. But in the future, and especially as digital terrestrial transmission replaces analogue, households will choose a single delivery system for all services. We expect, well within the life of the new Charter, anything from a half to two-thirds of households to choose cable or satellite delivery (see figure 4). Those cable or satellite systems may well be owned by broadcasters who compete with public service channels. These owners could not be blamed if they favoured their subscription channels over free public services. These operators could enjoy a monopoly of distribution into the home. Viewers therefore need a guarantee that public service channels will be available on these systems as well as over conventional television aerials, many of which will fall into disuse as has already happened in Germany. In the multi-channel universe, it is equally important that viewers can find public service channels on the electronic menus that will be provided to guide them through the many hundreds of services available. These electronic programme guides (EPGs) will be more than a screen-based Radio Times. They will be able to learn their owner’s programme preferences and guide them to new programmes they will enjoy. But there is a risk that the provider of an EPG could abuse that position to guide viewers either towards their own or towards the most profitable programmes. To protect viewers’ interests in these areas therefore, the BBC proposes that satellite services “must offer” their viewers access to public service channels; that cable companies “must carry” public service channels without having to pay copyright clearance; and that public service channels are made “easy to find” on electronic programme guides. 4. CONCLUSION The UK has the most successful public service broadcasting system in the world, but in order to ensure a well-balanced broadcast economy in the digital age Britain needs to continue to sustain and develop a broad- based television industry, involving strong networks, as well as an increasing range of niche and specialist services. Deregulation has been a powerful force driving the globalisation of telecoms. But deregulation has to be backed by strong anti-monopoly powers to prevent market distortion. The successful transition to digital will depend on whether the various transmission systems can offer services of real value to the audience; and that, in turn, will depend on the participation of a range of programme providers and their ability to recoup the costs of a high-quality and competitive range of services. The challenge for government is to create a framework which both encourages enterprise and innovation in a fast-moving field and preserves the benefits of a plural society. And as increasing competition makes effective and enforceable content regulation even more difficult, the role of a public service broadcaster—such as the BBC—with clear public ébligations to ensure quality, distinctiveness and universal availability will become even more important.](https://iiif.wellcomecollection.org/image/b32218631_0036.jp2/full/800%2C/0/default.jpg)


