Memorandum submitted by S4C (GLOB 71) 1. Executive Summary 1.1 The way people in Wales, as in the rest of the world, consume entertainment and information is changing. Technologies are converging and people demand and are being supplied with content whenever and wherever they choose to use it. 1.2 S4C has and is meeting the challenges and opportunities thrown up by the digital revolution. It has engaged with new platforms as they have come on stream and is continually reviewing the nature of its provision. 1.3 S4C’s Creative Excellence Strategy and the rebranding of services have turned it into a distinctive brand which stands out among the several hundred television channels available. These changes have been well received by the audience. 1.4 The changes in global communications have implications for the creative industries in Wales. We are seeing content producers consolidating with increased investment in this key growth area for the Welsh economy. S4C has played a major part in promoting this economic agenda. 1.5 S4C and the independent production sector have together had great success in international markets. Through our partnership with the independent sector in Wales we are making the most of S4C’s public capital in priming further investment in the burgeoning creative industries sector. 1.6 Public service broadcasting is likely to come under pressure in the digital-only age and children’s services particularly so. S4C is taking steps to address this issue with the proposed launch of a new children’s and young people’s service. 1.7 S4C offers its services on all digital platforms in Wales and on satellite across the UK. This is a significant benefit to viewers, Welsh speaking or otherwise. S4C on digital terrestrial television (DTT) and cable is limited to Wales and we have asked the BBC and DCMS to consider post switchover, carriage of our public services throughout the UK on DTT. 2. Introduction 2.1 S4C is a public service broadcaster (PSB) that provides a range of high quality Welsh language programmes on many platforms, including broadband.1 2.2 We view our responsibilities as a PSB in the context of a global broadcasting and communications ecology. Whilst operating primarily at a Wales level we are facing competition which respects no geographical boundaries in terms of content and delivery technologies. 2.3 S4C’s core language of communication is Welsh, while the language of global competition is English. Our output, irrespective of language, will quite rightly be judged by viewers against global standards of broadcasting. 2.4 S4C is but one of several hundred television channels potentially available to viewers. It is not simply a PSB service in Welsh about Wales. Rather, we are a broadcaster that responds to tastes and expectations which are influenced by global agendas and technologies. 2.5 Welsh speakers have every right to expect their public service television and content to be as contemporary in terms of image and presentation as the next 1 Details of S4C’s Remit, Funding and Regulation can be found at Appendix 1 1 channel. S4C is a key determinant of the image of the Welsh language in the 21st century. Ours is a forward looking image in an ever changing age. 3. S4C meeting the challenge 3.1 Twenty five years since it first went on air S4C is as susceptible to global broadcasting influences as any other channel. We have adapted and responded to the changes and challenges in the industry as they have arisen. • S4C joined the digital revolution in 1998 when S4C digidol, a twelve hours a day Welsh language channel, went on air. • When the National Assembly was created in 1999 S4C2 went on air offering full coverage of the plenary sessions and committees. • As take up of the internet gathered pace we responded with a wealth of websites and additional services. We now have a large catalogue of programmes available on-demand through broadband and are available through analogue and digital terrestrial television, satellite, cable, live streaming as well as through internet protocol television (IPTV). A full list of our present services can be found at Appendix 2. 4. The changing nature of public service broadcasting 4.1 We are seeing the convergence of technologies and the transition of people’s viewing habits and entertainment consumption patterns. This means a significant change in the way education, entertainment and information is now created and consumed in the digital world. S4C views these changes as an opportunity rather than a threat and is committed to ensuring Wales, its people and businesses, are not left behind. 4.2 85% of homes in the UK now receive digital television.2 (The corresponding figure for Wales is not yet available but previous reports have consistently shown Wales as having a higher percentage of homes receiving digital television.) Among individuals the figure for Wales is 91%, and 87% for the UK.3 Internet and broadband take-up among individuals in Wales is on a par with the UK. 59% have an internet connection at home in Wales and 42% have broadband.4 4.3 It is against this background that S4C is seeking to evolve the way it operates in our globalised, converging, multi-channel and multi-platform future. 5. Creative Excellence 5.1 We set out to address the challenge of globalisation with the publication of our 2004 Creative Excellence Strategy,5 which has positioned our services as leading providers of high quality content - including live events, children’s, drama, culture, news, entertainment, rural and lifestyle programmes. 2 Ofcom Digital Progress Report 19 December 2007 3 BARB figures 4 Ibid 5 See Hwww.s4c.co.uk/production/downloads/guidelines/strat-rhag.pdfH 2 5.2 Quality and distinctiveness will be the gold standards of the multi-channel, multi- platform future. In January 2007 we relaunched our services with a new brand. The re-brand presents a contemporary image and attitude. It aims to intrigue and entertain, creating a distinctive and memorable look for S4C to ensure that we stand out in the digital age. 5.3 The quality of S4C programmes has been recognised on the international stage. The drama ‘Con Passionate’ won one of the world’s most prestigious television awards, the Rose d’Or, beating off competition from the likes of ‘The Bill’. S4C also won the top design award for its rebranding package at last year’s European Broadcasting Union Connect conference in Lucerne. 5.4 S4C has won BAFTA, Celtic Film and Television and Promax awards and has been nominated for Royal Television Society awards as well as having received four Oscar nominations. Such international recognition is important to S4C and to producers in Wales as testament to their ability to compete and succeed in global, creative markets. 5.5 Plurality of provision, particularly in the field of news and current affairs in Wales, especially when regional programming across the UK is under threat, is also a key consideration. S4C sources its current affairs programmes from both the BBC and ITV Wales. The coverage of the National Assembly on S4C2 means that S4C plays an important part in maintaining access to and understanding of the democratic process. 5.6 Concern has been expressed as to the possible threat to editorial independence to a broadcaster in receipt of direct public funding. S4C does not share this concern and told the House of Commons Culture, Media and Sport Select committee inquiry into Public Service Content that it is optimistic about the prospects for public service content in Wales. The committee report concluded: “We are encouraged by S4C’s optimism about its ability to provide public service content in the future. S4C demonstrates that a broadcaster with direct public funding and a tightly defined remit can deliver public service content without having its editorial independence compromised.”6 6. New platforms, new audiences 6.1 The way we consume entertainment, information and other content are all changing profoundly. We are moving from a multi-channel to a multi-platform and soon to an on-demand world. Language is no barrier to the consumer- citizens’ expectations and S4C’s audience has every right to have its expectations met. For if they are not met then the audience will simply go elsewhere. 6.2 To meet the challenge S4C has a multi-platform strategy which aims to build our presence on every major digital platform across the UK. Last year S4C started live streaming of its digital service, S4C digidol, on broadband. The move means that viewers across the UK can tune in to the Channel, free-to-view, on their PCs. Our websites are increasingly popular and we have an extensive library of recorded programmes available.7 6.3 There are an estimated 158,000 Welsh speakers living outside Wales in the rest of the UK8 and it is important that S4C content is freely available to those people, as well as others with an interest in high quality original content. Similarly, 6 CMS Committee Report ‘Public service content’ 15 November 2007 7 See s4c.co.uk/watch 8 RSMB 2006 3 dependent on international rights, S4C is now available worldwide through the web. 6.4 S4C has an agreement with Inuk Networks, a supplier of triple-play services to consumers, to include S4C digidol within its IPTV Freewire TV service. S4C digidol is available to students living in some university residences around the UK directly from their own campus accommodation using PC equipment via the high speed JANET network. 6.5 Our aim is not limited to sustaining the Welsh language and culture exclusively in Wales.