Channel 4 – written evidence (DAD0055) 1. Introduction 1.1 Channel 4 welcomes the opportunity to respond to the Democracy and Digital Technologies Committee’s inquiry into the impact of digital technologies on democracy. The Internet has had a transformational effect on society and has brought with it great advantages. However, it has become increasingly apparent that, in the online world, legislation has failed to keep pace as digital platforms have grown rapidly – unchecked – despite their increasing importance and influence in our everyday and democratic lives. 1.2 Insufficient regulation and the unchecked dominance of digital platforms have surfaced several important societal (and industry) issues and Channel 4 believes that progress has been slow and inconsistent in protecting citizens from these. This contrasts with public service broadcasting in the UK, which exists to serve society, has best in class regulation and sets a benchmark in terms of trust and standards. Over the last few decades, the UK’s public service broadcasting (PSB) ecology has played a vital role in British public life, supporting British democratic values and culture. It continues to be a beacon for trusted impartial information, but the playing field needs to be more even to ensure that citizens are protected and so that broadcasters can compete on a fair basis. 1.3 Whilst we welcome the proposals to establish a new independent regulator for the digital economy outlined in the Government’s recent Online Harms White Paper, we also believe that these measures could be complemented further by greater support for public service broadcasting. This approach has the benefit of being more expedient than setting up the new regulator, which would likely take several years. 2. About Channel 4 2.1 With a mission to innovate, be diverse, present alternative views and stimulate debate, Channel 4 is required to take risks and challenge the status quo. As a publicly-owned, but entirely commercially-funded public service broadcaster (PSB), Channel 4 sits as a unique hybrid alongside the BBC, ITV and Channel 5. This model ensures that Channel 4 operates free from both commercial and political influence, as a broadcaster that is not shareholder-owned but which also operates at no cost to the public purse. Under this model, Channel 4 puts its profits back into programmes, with the ultimate objective of delivering its statutory remit and specific Ofcom licence obligations. Combined with Channel 4’s status as a publisher- broadcaster, which means all of its commissioned programmes are made 1 by external production companies, Channel 4 is an agile and innovative challenger brand in the creative industries. 2.2 It is important to note within the context of this specific inquiry, Channel 4’s detailed statutory public service remit includes requirements to produce high quality news and current affairs; to support and stimulate well-informed debate on a wide range of issues, including by providing access to information and views from around the world; as well as requirements to challenge established views and promote alternative views and new perspectives. 2.3 In addition, whilst there have been significant changes to the UK media in recent years with the rise in digital and online, TV has remained remarkably strong and Channel 4 has had a proud history of innovation in this space. Channel 4 was the first broadcaster in the world to launch a VOD service – 4oD in 2006 – which, 12 years later, evolved into All 4. As well as being the first to launch an on-demand service, Channel 4 was also the first to register viewers online, which was launched alongside our award-winning Viewer Promise and enables us to tailor programme recommendations and deliver relevant advertising to viewers. All 4 now has over 19 million registered users including two-thirds of all 16-34 year olds in the UK, demonstrating Channel 4’s ability to reach audiences across different platforms and compete with other online services. All 4 continues to grow and digital is now a £138m a year business with 11% growth in our digital revenues last year. 3. Public Service Broadcasting acts an important antidote to the negative impacts digital technologies can pose on democracy 3.1 Whilst the internet has unquestionably transformed how people around the world communicate, gather information and consume educational and entertaining content, the scale and pace of this technological change has also presented many challenges due to the lack of regulation compared to traditional media. Indeed, digital technologies are overwhelmingly a force for good, but it is undeniable that they have also led to a multitude of harms of significant societal concern which have the potential to threaten our way of life in the UK. 3.2 Information from social media networks have driven the creation of filter bubbles, where national discourse is divided and segregated into mutually reinforcing ‘echo chambers’. Political discourse is polarised and uncertain, and there are high levels of mistrust from the public on those they perceive as the elite. People are increasingly concerned about the power of technology over their lives – whether that is concerning the safety of their personal data, the integrity of their democratic elections or the impact of artificial intelligence. All of these issues mean that there is a need more than ever for national broadcasters with specific remits to provide trusted, accurate information, to hold power to account, to reflect 2 Britain as it truly is and to give space to diverging voices and crucially allow them to hear each other. Negative impact of digital technologies on public discourse 3.3 Of particular relevance to Channel 4 as a trusted media organisation, is the proliferation of disinformation, misinformation and “fake news” which have emerged on digital platforms and the impact it can have on democracy. The Committee will be well aware of the concerns around fake news and the risks to democratic processes such as elections from digital and social media, including – to name just three – the difficulties of identifying trustworthy sources of news, the tendency for services such as YouTube and Facebook to push consumers (through recommendations, etc.) towards more extreme points of view and thereby exacerbate political polarisation, and the inability of social media services to prevent malicious operators from influencing elections or spreading outright lies. It can also damage our trust in our democratic institutions, including Parliament. 3.4 One of the key concerns is the influence this could have on young people, who are increasingly consuming news through online platforms. The Reuters Institute for the Study of Journalism has shown that increasingly vast quantities of people are accessing news and information through social messaging software such as WhatsApp alongside the social media platforms such as Facebook and Twitter1. Millennials are also more likely than previous generations to use digital devices to access news which gives them the freedom to ‘snack’ on small but frequent bits of news throughout the day that are integrated with their daily activities2. Despite this, there is currently no regulation in place to ensure that the news they consume is accurate. 3.5 Indeed, spurred on by a consumer appetite for tailored content, social media has become increasingly influential in how people access news. Yet social media platforms are able to use algorithms to tailor this content for what they believe users would like to see.3 On sites such as Facebook and Twitter, this content can be based on information such as their interests, location and past-click behaviour or what is ‘trending’. This has led to the creation of “filter bubbles” where news feeds use algorithms that direct users to content that echoes and reinforces their own views. 3.6 This contrasts with the UK public service broadcasters which have best in class regulation and sets a benchmark in terms of trust and standards. These broad issues also speak directly to the specific remits of the PSBs and they matter more than ever in addressing concerns about democracy, society and technology. PSBs play a vital role at the heart of British culture – helping to deliver and shape social cohesion, strengthening 1 Source: Reuters Institute Digital News Report 2018 2 Source: Newsworks, 2015: http://www.newsworks.org.uk/Topics-themes/generation_news/78136 3 Source: John Nicolson Report for Channel 4, 2017 3 democracy by creating a public (and transparent) space where national conversations take place and where people are exposed to different views and experiences. There is a need for national broadcasters with specific remits to provide trusted, accurate information, to hold power to account, to reflect Britain as it truly is and to give space to diverging voices and crucially allow them to hear each other. Importance of trusted PSB news for a well-functioning democracy 3.7 As the Government highlights in their White Paper, maintaining a news environment where accurate content can prevail and high quality news has a sustainable future is vital to healthy democratic engagement4. In the current social and political context, many have argued that the need for reliable and trusted news is more important now than it has been for many decades, and this makes the PSBs more important than ever as trusted sources of news. The UK is a case in point for highlighting the benefits of a sophisticated broadcasting ecology that provides trusted news. The UK system is underpinned by a strong public service broadcasting core comprising a variety of organisations with different models, missions and purposes which serve the British public with a wide range of public service programming – from the publicly owned and publicly funded BBC, through to commercial providers such as ITV and Channel 5. 3.8 Two other elements of the UK’s public service broadcasting system underpin its world- renowned status for high-quality and trusted news.