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Local and Regional Media in the UK

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Local and Regional Media in the UK Discussion Document Publication date: 22 September 2009 Main Heading Contents Section Page 1 Executive summary 1 2 Introduction and background 12 3 The local and regional media landscape 19 4 The local and regional media consumer 47 5 The economics of local and regional media 57 6 The role of local and regional journalism 72 7 Sustaining plurality in regionally-based television news 87 8 Opportunities for local TV 102 9 Creating opportunities for sustainable local radio 119 10 Future challenges and opportunities 125 Annex Page 1 Overview of Ofcom’s statutory duties for this report 139 Local and Regional Media in the UK Section 1 1 Executive summary This report stems from our statutory duties1 1.1 Ofcom has statutory duties to secure the availability throughout the United Kingdom of a wide range of television and radio services of high quality and wide appeal and to maintain sufficient plurality of providers of different television and radio services. 1.2 We also have a duty to ensure optimal use of the radio spectrum, including whether and how we make spectrum available for digital terrestrial television (DTT) services. In performing those duties, Ofcom must, among other things, have regard to the different needs and interests of everyone who may wish to use the spectrum for wireless telegraphy, including use of spectrum for local television. 1.3 In carrying out these duties, we have undertaken a series of separate studies to understand the challenges facing the delivery of content to consumers and citizens across the UK, with a particular focus on local content. This report brings together the evidence and analysis which underpins this work, assessing how well local content is being delivered to consumers and citizens, and examining the prospects for delivery in the future. 1.4 Ofcom also has duties specific to radio broadcasting, which include the licensing of local commercial and community radio stations and maintaining a range and diversity of local stations broadcasting local material. In fulfilling this duty, the report refers to changes to the regulation of commercial radio which we set out in a separate consultation in July2. 1.5 In addition, Ofcom has a duty to report and make recommendations to the Secretary of State at least every three years on the operation of the media ownership rules, which include rules relating to local media ownership. In a separate report published in July, we have consulted on the liberalisation of the local media ownership rules, prior to making our recommendations to the Secretary of State later in the year. 1.6 In the future, following the Office of Fair Trading’s (OFT’s) recent review of the local and regional media merger regime3, Ofcom will also be required to conduct a Local Media Assessment in cases relating to local media mergers involving one or more local or regional newspapers which raise prima facie competition concerns. The report is set in the context of existing work by Ofcom and Government 1.7 In our Second Public Service Broadcasting (PSB) Review, ‘Putting Viewers First’ completed in January 20094, we focused on the historic and continuing importance of TV programming from the nations and regions. 1 For further details on our statutory duties, please see Annex 1 at the back of this document 2 Ofcom (2009) Radio: the implications of Digital Britain for localness regulation [Internet] London Available from: Ofcom http://www.ofcom.org.uk/consult/condocs/radio/condoc.pdf 3 Office of Fair Trading (OFT) (2009) Review of the local and regional media merger regime Final Report [Internet] London Available from: OFT http://www.oft.gov.uk/shared_oft/mergers_ea02/oft1091.pdf [Accessed 19 August 2009] 4 Ofcom (2009) Ofcom’s Second Public Service Broadcasting Review: Putting Viewers First [Internet]. London. Available from: Ofcom 1 Local and Regional Media in the UK 1.8 In the review, we recognised that there were growing pressures on traditional models of delivering content to audiences across the different parts of the UK. We also highlighted the growing importance of content aimed at local audiences and the potential for new models of delivery of such content. 1.9 We concluded that we needed a more detailed analysis on the provision of public service content at a local level and consider the broader issues in the provision of local content across different media platforms. 1.10 The Government’s Digital Britain Final Report, published in June 20095 also highlighted the importance of news and local journalism for democracy and considered a range of issues relating to the future of local media. One of the key recommendations of the report was a consultation on Sustainable independent and impartial news; in the Nations, locally and in the regions6. Ofcom’s response to this consultation is published alongside this report.7 1.11 In summary, this report brings together Ofcom’s research and analysis which is relevant to the various duties in relation to the provision of local and regional content across the UK. It reviews a range of opportunities and initiatives for sustaining a healthy and vibrant local media sector in the future. The report also provides an evidence base behind our response to the DCMS consultation. 1.12 In undertaking work on this report, we have recognised the critical role that local newspaper journalism plays in delivering public purposes. Local newspaper journalism not only underpins the delivery of local news on other media, but also makes a key contribution to the national news agenda. However it is important to stress that Ofcom does not regulate the content of newspapers, a role which is fulfilled by the Press Complaints Commission8. 1.13 While consumer definitions of local are blurred, this report primarily covers media on a regional (county or broader geographic area), local (town or local district) and ultra- local (immediate community or neighbourhood) basis. We also cover some of the broader media issues in the devolved nations of Scotland, Wales and Northern Ireland. The UK local media landscape is diverse but consolidating 1.14 In radio, there are approximately 80 commercial local radio operators, managing circa 300 services, in addition to a growing number of community radio services. Over 200 community radio stations have been licensed to date with more than 150 already broadcasting. One of the main features of the local media sector today is its diversity. Alongside the main television broadcasters, there are around 90 regional and local newspaper publishers accounting for approximately 1300 titles. 1.15 However, few providers operate across all media platforms, with most concentrating on a single platform. In recent years the sector has consolidated, with five groups accounting for around 70% of newspaper title ownership, two groups accounting for http://www.ofcom.org.uk/consult/condocs/psb2_phase2/statement/psb2statement.pdf 5 Department for Culture, Media and Sport (2009) Digital Britain: The Final Report [Internet]. London, TSO. Available from: Department for Culture, Media and Sport http://www.culture.gov.uk/what_we_do/broadcasting/6216.aspx [Accessed 19 August 2009] 6 http://www.culture.gov.uk/what_we_do/broadcasting 7 http://www.ofcom.org.uk/consult/ofcomresponses/dcms.pdf 8 See the PCC website for more information on the PCC at http://www.pcc.org.uk/ 2 Local and Regional Media in the UK 40% of radio station ownership and a single company holding all Channel 3 licences in England and Wales. Consumers value local and regional content, and particularly local and regional news 1.16 Nine out of ten UK adults regularly consume some form of local news, information or other content through television, radio, newspapers or the internet. Each of these platforms plays a complementary role in providing relevant news and information and enables people to keep in touch with their local community. Regional TV news is watched at least once a day by four fifths of adults; about half listen to local radio or read a free paper at least weekly; two fifths read a paid for paper at least weekly while around one in five use commercial news websites. 1.17 Consumers and citizens value the role local and regional content plays in their lives; local and regional news in particular helps to inform people about what is going on in their local community, while news and other types of local content contribute towards reflecting UK cultural identity and representing diversity and alternative viewpoints. 1.18 Local and regional newspapers play a particularly important role in informing, representing, campaigning and interrogating and thus underpinning awareness and participation in the democratic process. Newspaper journalism is also a crucial part of the local and regional media ecology because it supports journalism on other platforms. But the local media sector is facing major structural challenges, driven by the growing take-up and use of the internet 1.19 People are changing the way they access and consume local and regional media. Newspaper circulations have been in slow and consistent decline for the last 30 years; more recently there have been reductions in the consumption of regional television and local radio. 1.20 At the same time the internet has become an increasingly important part of the local media mix. A third of adults with broadband access say they use local websites at least weekly while consumers say they value the internet for accessibility, convenience and quality of information. 1.21 However the internet has had a significant impact on the consumption of other media, particularly newspapers. While the internet is the main source of news for just 6% of adults, nearly 10% of recent broadband adopters say they spend less time reading local newspapers and a quarter of those accessing local websites say they do so instead of reading the hard copy.
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