Ofcom is to review the payment of retransmission fees as part of a new review of the UK’s public service broadcasters.
It’s one of four options for maintaining and strengthening the current system that places a series of obligations on the BBC, ITV, Channel 4 and Channel 5 in return for the current near-universal reach.
The regulator asks whether the term ‘Universal’ needs to be redefined in an increasingly connected worlds. Another issue us whether the PSBs should be regulated by organisation rather by channel – for example the regionalised ITV has public service obligations, whereas ITV2 does not.
There are also questions around the independent production sector.
Payment from and to the major platforms, such as Sky and Virgin, covers a number of areas. For example the PSBs may receive payment for the HD versions of their channels and for their catch-up services.
Equally the PSBs may pay the platforms for the regionalisation of their services or for using the Red Button facility.
ITV, Channel 4 and Viacom, which has recently taken on ownership of Channel 5, all want reform to the current regulatory regime prevents them from negotiating content fees from platforms for the carriage of PSB channels.
Sky and Virgin Media have publicly stated their opposition to any such move.
Viewing to the main PSB channels accounted for over half (51.1%) of all TV viewing in the UK in 2013, although falling from 60.8% in 2008. If the PSB’s ‘+1’ channels are taken into account, the combined viewing share of the PSBs was 58.7% in 2013.