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Channel 4 Response to CMS Select Committee Inquiry Into Future for Local

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Channel 4 Response to CMS Select Committee Inquiry Into Future for Local Channel 4 response to Culture Media Sport Select Committee inquiry into future for local and regional media 1) Channel 4 was launched in 1982 with a clear mission to provide an alternative public service offering to the BBC and to fulfil a specific remit largely focused on innovation, creativity and diversity. 2) Channel 4 has traditionally been a network broadcaster with no opt-out functions, and is therefore dedicated to producing high-quality programming for the UK as a whole through its daily nationwide news provision. Furthermore, given its key role as a major investor in the UK’s independent production community and as a public service broadcaster committed to reflecting the UK’s cultural diversity, Channel 4 has a significant role to play in supporting production across the nations and regions of the UK and in reflecting the diversity of the UK’s culture across its output. 3) As discussions around how to secure Channel 4’s role as a strong sustainable PSB alternative to the BBC continue, traditional funding models for regional media decline and digital technologies provide new ways of engaging with audiences, Channel 4 is exploring ways that it can enhance this representation of UK life through traditional TV programmes as well as harnessing the opportunities of digital media to provide more localised content online. Importance of content for regional audiences 4) It is clear that audiences value a plurality of regional and local media, both for news and ‘non-news’ provision. Users recognise its value in providing content that is relevant to their communities, promoting a sense of cultural identity, and providing a vital democratic function by informing local people about decisions being made in their area. 1 5) In addition, local media organisations have been a valuable training ground for new talent across the country looking to break into television production, journalism and radio. This vocational experience gives entrants the skills and experience necessary to break into a highly competitive field, and has often led to careers within the mainstream media – building a greater diversity of voices and backgrounds. Challenges for regional media landscape 6) However, the impact of the digital revolution combined with the current economic downturn is having a dramatic affect across the media sector - with fragmentation of audiences putting severe pressure on the traditional model of advertising-funded media. This is restricting the provision of public service media across the board – affecting the ability of commercially funded broadcasters such as Channel 4 to maintain investment in high quality public service content, as well as threatening the sustainability of local press, radio and television institutions. 1 Ofcom “Putting Viewers First” 2009 7) Digital media has led to a rapid shift in consumer habits, with increasing numbers of people now getting information about where they live from the internet rather than their local newspaper, and classified advertising moving online. This decline is likely to be exacerbated by the current economic downturn, which is having a significant impact on the key advertising markets of the regional press, such as property, cars and jobs, with estimates putting the regional advertising slump between 10% and 40%2. Within this context, many local papers are being forced to close – for example, 60 regional newspapers shut in 2008. 3 8) Similar challenges are also being faced by regional television. Like Channel 4, ITV is having to adjust to the structural and cyclical changes in the commercial broadcasting market and is seeking to deal with these pressures by cutting costs in its business. It has stated that its current regional provision is no longer financially sustainable, and has cut the number of flagship services from 17 to 94. The BBC’s proposals to assist ITV by sharing newsrooms, technical facilities and video pictures have been welcomed, but both Ofcom and ITV have stated that this agreement does not offer sufficient scale to sustain ITV’s regional news provision by itself5. 9) These changes are likely to have an impact across the sector, including on Channel 4 – for example, ITN delivers news to both ITV and Channel 4, and we have a series of reciprocal agreements with ITV through ITN that provides us with access to their regional media resources, such as regional news feeds and facilities. Therefore any significant changes to ITV’s regional news structure could affect this provision, leading to additional costs for Channel 4 and potentially impacting upon our own ability to fully represent the UK. 10) It is in within this context that Ofcom’s CEO Ed Richards recently said that “unless we act soon, a diverse supply of high quality news provision will slip away”.6 Ofcom concluded in their final PSB2 statement that securing plurality of provision of regional news should be a key priority for future regulation, and outlined a proposal for Independently Funded News Consortia (IFNC) to support the provision of regional and local media. This would allow third parties to pitch for funding to supply regional news, which would be broadcast on existing Channel 3 news slots. ITV has endorsed this proposal, and the Government’s interim Digital Britain report suggested that there may be an opportunity for Wales, in partnership with S4C, to act as a pilot study for how the consortia might work7. Channel 4 and representation of the UK 11) As a network broadcaster, it is vital that Channel 4 reflects the diversity of the UK across its output. This portrayal is maintained throughout our distinctive Channel 4 News offering and through a range of key programming genres – with programmes as diverse as Red Riding and Shameless to Dispatches, The Secret Millionaire and Big Art telling different stories about life in Britain. 2 MediaGuardian “Stop Press” 3.4.09 3 MediaGuardian “Stop Press” 3.4.09 4 Ofcom “Putting Viewers First” 21.01.09 5 Ed Richards speech on “Independently Funded News Consortia”, 28.04.09 6 Ed Richards speech on “Independently Funded News Consortia”, 28.04.09 7 Digital Britain interim report, 20.01. 2009 2 12) Channel 4 also does more than any other broadcaster to support independent television production across the nations and regions of the UK - investing more than £1 billion since 1998 in programmes from companies based outside London8 . Recognising that more can be done to reflect the devolved nations at a network level, Channel 4 has recently outlined a number of initiatives aimed at increasing network commissioning from Scotland, Northern Ireland and Wales – including appointing a new commissioner dedicated to working with companies from those nations, and ring-fencing slots in key strands such as Dispatches and Cutting Edge for those companies. News and representing the UK 13) Providing pan-UK news coverage is core to Channel 4’s ability to reflect and bring together communities across the UK – connecting audiences across the country to important national stories. 14) Channel 4 remains committed to plurality in news provision and will play its part in maintaining a sustainable news alternative to the BBC. While other media organisations reduce their provision of high-quality news, Channel 4 remains committed to its comprehensive Channel 4 News peak-time UK-wide bulletin – which was found by recent audience research of regular TV news viewers to be the most trusted and the most independent news bulletin9. 15) In addition to the important role of national news provision, Channel 4 also recognises the vital democratic contributions made by regional news, and the very real challenges the sector faces. It is in the interests of democracy that there is a strong alternative to the BBC’s news provision at a regional as well as national level, and Ofcom research found that the most important priority for audiences in the devolved nations and English regions is to ensure provision of regional news beyond the BBC10. 16) Therefore we support a settlement that enables the continuation of regional news provision on ITV, and particularly supports ITN in their efforts to continue as a strong alternative independent news organisation to the BBC. In addition, while Channel 4’s future news focus will remain primarily at a network level, given it does not have the resources or infrastructure to provide news at a regional or local level, we believe we can potentially play a role in delivering some additional new forms of regional content going forward. 17) For example, we recognise the threat highlighted by Ofcom to both news and ‘non-news’ programming in Scotland, Wales and Northern Ireland, and in particular recognise there may remain particular outstanding issues surrounding news provision in the devolved Nations. In the absence of ITV and external parties securing a settlement around News for the nations, Channel 4 would be willing, in partnership with ITN, to explore our role in helping to address this issue, in the context of adequate support being made available. Channel 4 is already exploring the contribution it could make to local media and new forms of journalism through harnessing the opportunities of digital media, as outlined below. 8 “Channel 4’s contribution to the nations and regions,” EKOS, 2007 9 Channel 4 commissioned survey from YouGov, January 2009 10 Ofcom “Putting Viewers First” 21.01.09 3 Digital opportunities for hyper-local media 18) While the digital age has led to some considerable challenges, it is also important to note that it is also presenting particular opportunities for hyper-local media – content that is tailored to small, specific communities. The costly infrastructure of spectrum, television stations and printing presses means that they have never been best placed to provide this kind of truly localised content, but the lower costs of digital media, combined with its participative nature, means that there is now considerable potential to develop hyper-local community-based online content.
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