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BBC Management's Assessment of the Public Value of Its Local

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BBC Management's Assessment of the Public Value of Its Local BBC Management’s assessment of the public value of its Local Video proposals BBC Management’s assessment of the public value of its Local Video proposals Contents 1 EXECUTIVE SUMMARY.................................................................................................................3 1.1 Description of Proposals........................................................................................................3 1.2 Fit with BBC public purposes and strategy..............................................................................5 1.3 Reach....................................................................................................................................6 1.4 Quality and Distinctiveness....................................................................................................7 1.5 Consumer and Citizen Benefits (Impact)................................................................................8 1.6 Cost.......................................................................................................................................9 1.7 Value for Money...................................................................................................................10 1.8 BBC’s role in local markets..................................................................................................10 2 DESCRIPTION OF PROPOSALS..................................................................................................12 2.1 A note on definitions............................................................................................................12 2.2 Overview of proposals..........................................................................................................12 2.3 Proposals in detail................................................................................................................14 3 FIT WITH BBC PURPOSES AND STRATEGY..............................................................................18 3.1 BBC’s role in serving local communities...............................................................................18 3.2 The importance of Local.......................................................................................................19 3.3 The shift from linear to on-demand news..............................................................................21 3.4 BBC’s Purpose performance................................................................................................22 3.5 Reach of BBC Nations and regional TV news.......................................................................25 3.6 Market context.....................................................................................................................27 4 REACH.........................................................................................................................................29 4.1 Reach of Local Video...........................................................................................................29 4.2 Maintaining overall reach to BBC regional/local news...........................................................34 4.3 Widening the age profile of BBC regional/local news............................................................35 5 QUALITY AND DISTINCTIVENESS..............................................................................................36 5.1 Relevance............................................................................................................................36 5.2 Quality.................................................................................................................................37 5.3 Distinctiveness.....................................................................................................................40 6 CONSUMER AND CITIZEN BENEFITS (IMPACT)........................................................................45 6.1 Measuring impact and value.................................................................................................45 6.2 Assessment of consumer and citizen benefits......................................................................45 6.3 Local Democracy.................................................................................................................48 7 COST............................................................................................................................................51 7.1 Overview of Local Video costs.............................................................................................51 7.2 Cost breakdown...................................................................................................................52 8 VALUE FOR MONEY....................................................................................................................56 8.1 Comparison between costs and audience valuations............................................................56 8.2 Alternatives to the BBC Local Video proposal.......................................................................57 9 THE BBC’S ROLE IN LOCAL MARKETS.....................................................................................61 9.1 The Local BBC.....................................................................................................................61 9.2 Relationships with third parties.............................................................................................61 ANNEXES............................................................................................................................................64 Annex 1: Existing BBC local online provision..................................................................................64 Annex 2: Proposed Local Video offer geographic areas.................................................................65 Annex 3: Research Annex.............................................................................................................66 Page 2 of 67 BBC Management’s assessment of the public value of its Local Video proposals 1 Executive Summary This document sets out BBC Management’s application to the BBC Trust for permission to enhance significantly its creation of local news and related video content delivered via internet protocol (hereafter referred to as ‘Local Video’). The evidence and analysis presented in this document is intended to assist the BBC Trust in its assessment of the public value of the proposals as part of the Public Value Test. BBC Local Video will provide distinctive, high-quality and relevant news to licence fee payers across the UK, when they want, and how they want. The offer will safeguard two of the BBC's public purposes – ‘sustaining citizenship and civil society’ and ‘representing the UK, its Nations, regions and communities’ – throughout the current Charter on future-proofed platforms. In particular, Local Video is designed to help close the wide ‘gap’ between the importance that audiences attach to the BBC’s local role and their view of current performance. Unchecked, this gap risks becoming more pronounced due to underlying shifts in audience attitudes and behaviour. As the value attached to ‘localness’ increases and the demand for on-demand news grows, the ability of the BBC’s traditional Nations and regional news outlets to meet audience expectations is likely to diminish. Local Video will reinvent the BBC’s regional/local news offer: compensating for the decline in the reach of the BBC’s regional TV audiences, attracting a younger demographic to local news and deepening users’ appreciation of the BBC Local websites. It will preserve the BBC’s valued provision of local news – a role the BBC has played ever since its foundation as a group of local radio stations in 1922 – in an on-demand age. In developing these proposals, BBC Management has spoken to various stakeholders in order to help maximise the public value of the offer, while providing as much certainty as possible to the wider market. The proposal contains self-imposed limits on the geographic scope, editorial focus and quantity of content as well as the speed at which the offer is introduced. In addition to extending the BBC’s generous linking to other local news providers, the BBC will also purchase content from these providers and give them access to BBC content, helping ensure that Local Video can contribute to building the overall market in local online news provision. 1.1 Description of Proposals The focus of the Local Video proposal is news and sport video bespoke for broadband, and in particular, the BBC Local websites. It will be made in 60 areas across the UK: it is not ‘ultra-local’ and the BBC has no plans to invest in hubs of a more local nature. Within England and Northern Ireland, the proposal will add a new tier of local relevance to the BBC’s existing audiovisual news. Within Scotland and Wales where BBC local radio stations do not exist, it will deliver audiovisual news at a local level for the first time. The proposal supersedes the BBC’s previous plans to improve its local news offer by creating a local television service available on all digital TV platforms as well as via bbc.co.uk1. This document draws on over five years of research on a Local TV news offer culminating in a nine-month trial in the West Midlands on digital satellite and broadband. However, BBC Management has updated and refreshed its research to further assess the Local Video broadband offer, scaled back in light of the Licence
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