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PSB Compliance Reporting, 2010 Introduction (I) PSB compliance reporting, 2010 Introduction (I) • TV broadcasters must comply with a range of programme and output quotas that set minimum levels of types of programmes that they must show. These obligations originate in the Communications Act 2003 (‘The Act’) or in European legislation, and Ofcom has a duty under the Act to monitor and enforce compliance with these quotas. • The level of regulatory intervention that Ofcom is required to apply depends on the category of broadcaster – public service broadcasters operate under much tighter regulations than multichannel operators – therefore some quotas apply across the board while others are specific to the PSBs. • In terms of licensing and regulation, Ofcom has a direct relationship with ITV1, GMTV1, Channel 4 and Channel 5, whose licences carry specific quota compliance obligations, while the BBC is regulated jointly by the BBC Trust and Ofcom. The Trust sets the majority of the BBC’s targets and monitors compliance but must consult with Ofcom before changing specific quotas, and must obtain Ofcom’s agreement in setting quotas for original productions and out-of- London network productions. • Ofcom has a duty under the Act to review and report on compliance with programme obligations and in previous years this analysis has been included in Ofcom’s annual Communications Market Review or in Ofcom’s Public Service Broadcasting Annual Report. 2 Introduction (II) PSB quotas and the Communications Act 2003 • The Act sets out a range of obligations applying to public service channels, and Ofcom sets appropriate quotas to meet these obligations. When fixing the quotas, Ofcom takes into account the individual remit of each channel and other relevant criteria. These are reviewed as necessary, and the levels may be revised up or down to allow for changes in circumstances and the broadcasting environment. • A summary of the quotas applying to PSB channels is given below. These are applicable to the BBC’s analogue and digital channels, ITV1, GMTV1, Channel 4, Channel 5 and S4C in Wales. They do not apply to the commercial broadcasters’ digital services (such as ITV2, CITV, E4, More 4, Five USA, Fiver) or to other multichannel operators. This pack reports of the first five of these quotas: 1. Original productions – programmes commissioned by broadcasters from in-house production resources or independent producers. 2. Out-of-London productions – network programmes made in the UK outside the M25. 3. Independent productions – programmes made by companies that are independent of broadcasters. 4. Networked national and international news. 5. Networked current affairs. 6. Nations and regions programmes on Channel 3 and the BBC – made and shown in the nations and English regions (data relating to these quotas will be reported separately). 3 Introduction (III) European ‘AVMS’ quotas • All television broadcasters licensed by Ofcom in the UK, including multichannel operators, are subject to the obligations of the Audiovisual Media Services (AVMS) Directive. • The AVMS Directive replaced the Television Without Frontiers (TVWF) Directive on 10 December 2007 and was transposed into UK legislation in December 2009. • This requires that on each channel, the majority of programmes must be European (including from the UK) and at least 10% must be made by independents. • Of these, the majority must have been made within the past five years. The European Commission publishes a report on compliance by all EU Member States every two years and the latest report can be found at http://eur- lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52009DC0309:EN:NOT 4 100% Note: BBC figures programmes include made or forcommissioned other BBC Includeschannels. repeats. Source: quotas, alltime performance against originalproduction Broadcasters’ Hours 20% 40% 60% 80% 0% Quota % Ofcom/broadcasters 70% 85% BBC One 86% 88% 89% 70% 83% BBC Two 82% Achieved 2007 82% 82% 80% 81% BBC Three 86% 85% 83% 70% 75% BBC Four 84% 80% 83% Achieved 2008 70% 75% CBBC 79% 84% 83% 80% 79% Cbeebies 81% 80% 81% 90% 97% Achieved 2009 BBC News 24 97% 97% 96% 90% 98% BBC Parliament 97% 98% 98% 65% 90% ITV1 87% 80% Achieved 2010 82% 56% 64% Channel 4 62% 61% 58% 50% 56% Channel 5 59% 56% 51% hours runhours from 19:00 to midnight. Includes repeats. Note: BBC figures programmes include made or forcommissioned other BBC Three BBC and channels. BBC Four peak Source: quotas, peak performance against originalproduction Broadcasters’ 100% Hours % 20% 40% 60% 80% 0% Ofcom/broadcasters Quota 90% 99% BBC One 99% 99% 100% Achieved 2007 - 80% time 95% BBC Two 95% 95% 97% 70% 70% BBC Three 78% Achieved 2008 75% 74% 50% 63% BBC Four 81% 80% 80% Achieved 2009 85% 95% ITV1 96% 95% 97% 70% 76% Channel4 76% Achieved 2010 79% 77% 40% 42% - time time Channel 5 49% 44% 44% Source: producers Qualifyinghours commissioned from independent % Qualifying hours 100% 20% 40% 60% 80% 0% Ofcom/broadcasters 31% All BBC 35% 2005 39% 38% 40% 36% 28% BBC One 30% 2006 33% 31% 34% 33% 39% BBC Two 40% 42% 2007 45% 49% 41% 33% 43% ITV1 35% 2008 40% 45% 39% Channel 4 Channel 87% 84% 87% 2009 87% 84% 86% Channel 5 Channel 88% 94% 96% 97% 2010 95% 81% = 25% Quota Qualifying independentcommissions, Qualifyinggenre by Source: % Qualifying hours 100% 20% 40% 60% 80% Ent 0% Ofcom/broadcasters Comedy 33% 69% 30% 29% All BBC 38% Drama 47% 50% 66% 28% 2% Sport 27% 39% C.Affairs 66% 86% 16% 3% ITV1 18% Factual 44% 41% 28% 37% 47% Factual Ent 100% 80% 75% 89% 99% Hob/Leisure Channel 4 Channel 100% 58% 97% 92% 72% 100% 100% Arts 100% 0% Music 100% 0% 100% Channel 5 Channel 100% Religion 99% 29% 99% 100% 100% 0% Childrens 0% 82% Source: quot Performancetheagainst 10% 20% 30% 40% 50% 60% Percentage of Percentage networkoutsideby London, productionproduced value andby 0% Quota Ofcom/broadcasters a All BBC 30% 32% s 33% 35% 38% 38% Achieved 2006 35% ITV1 46% 44% Value 50% 45% 39% Channel 4 Channel 30% 37% 35% 32% Achieved 2007 37% 39% Channel 5 Channel 10% 21% 33% out 35% 29% 26% - of Achieved 2008 - London All BBC 25% 30% 32% volume (%) 34% 35% production 39% Achieved 2009 35% ITV1 50% 53% Volume 50% 52% 44% Channel 4 Channel 30% 40% 43% 41% Achieved 2010 45% 45% Channel 5 Channel 10% 22% 15% 17% 9 15% 12% Expenditure on out-of-London production Percentage of production by value (%) London Midlands & East Northern England Southern England Scotland Wales Northern Ireland 2006 63.3% 5.9% 17.6% 8.9% 1.5% 2.6% 0.2% 2007 63.3% 5.7% 17.3% 9.6% 1.3% 2.6% 0.3% 2008 61.1% 6.7% 17.4% 10.2% 0.3% 1.7% 2.5% 2009 60.5% 7.3% 15.3% 10.5% 0.6% 2.2% 3.6% 2010 61.8% 2.8% 15.1% 12.6% 2.6% 4.6% 0.4% 0% 20% 40% 60% 80% 100% Source: Broadcaster returns 10 Volume of out-of-London production Percentage of production by volume (%) London Midlands & East Northern England Southern England Scotland Wales Northern Ireland 2006 66.0% 4.8% 14.5% 12.0% 1.6% 0.9% 0.2% 2007 64.3% 4.4% 17.9% 10.8% 1.7% 0.7% 0.2% 2008 64.6% 8.9% 12.7% 11.0% 1.8% 0.9% 0.1% 2009 62.7% 9.5% 11.3% 11.4% 3.3% 1.7% 0.2% 2010 60.8% 8.3% 11.6% 12.9% 4.6% 1.4% 0.5% 0% 20% 40% 60% 80% 100% Source: Broadcaster returns 11 Out-of-London productions by channel/macro-region: value Distribution of spend on qualifying productions by macro region and channel (%) BBC ITV1 Channel 4 Channel 5 2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010 London 67.4% 65.1% 62.3% 62.2% 55.7% 50.1% 55.3% 61.2% 64.7% 68.3% 63.1% 60.6% 66.9% 65.5% 71.2% 73.6% Midlands & East 4.1% 3.8% 3.8% 3.9% 9.2% 13.4% 14.4% 1.4% 2.1% 1.0% 2.3% 1.7% 15.4% 17.4% 16.0% 7.2% Northern England 10.2% 8.9% 8.2% 7.7% 29.4% 31.0% 25.5% 25.4% 18.5% 18.4% 19.4% 19.7% 3.0% 5.1% 1.8% 0.1% Southern England 12.0% 14.2% 14.0% 13.0% 3.7% 4.0% 4.1% 11.4% 12.8% 10.8% 12.4% 13.5% 12.1% 8.7% 9.0% 12.1% Scotland 3.3% 3.7% 6.1% 7.4% 1.9% 1.4% 0.6% 0.4% 1.7% 1.4% 2.5% 4.1% 2.3% 2.9% 1.9% 6.2% Wales 2.6% 3.5% 4.4% 5.0% 0.0% 0.1% 0.1% 0.1% 0.2% 0.0% 0.2% 0.2% 0.5% 0.5% 0.1% 0.8% Northern Ireland 0.4% 0.6% 1.2% 0.8% 0.1% 0.0% 0.0% 0.0% 0.1% 0.0% 0.0% 0.2% 0.0% 0.0% 0.0% 0.0% Total Regional 32.6% 34.9% 37.7% 37.8% 44.3% 49.9% 44.7% 38.8% 35.3% 31.7% 36.9% 39.4% 33.1% 34.5% 28.8% 26.4% Source: Broadcaster returns 12 Out-of-London productions by channel/macro-region: volume Distribution of hours of qualifying productions by macro region and channel (%) BBC ITV Channel 4 Channel 5 2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010 London 68.1% 66.5% 64.7% 61.4% 46.9% 49.7% 48.0% 55.6% 57.3% 59.3% 55.3% 54.7% 84.6% 82.6% 85.5% 88.2% Midlands & East 5.8% 5.6% 5.5% 5.7% 2.9% 21.0% 25.5% 19.8% 0.5% 1.2% 1.9% 2.3% 7.1% 8.7% 6.5% 5.1% Northern England 6.6% 5.7% 5.1% 5.0% 43.7% 24.3% 20.5% 19.3% 23.5% 22.2% 23.7% 23.3% 3.3% 4.9% 1.5% 0.1% Southern England 14.6% 17.0% 15.7% 17.6% 6.0% 4.3% 5.7% 5.0% 16.3% 14.6% 15.3% 14.0% 4.6% 3.1% 3.3% 4.4% Scotland 3.2% 3.4% 6.5% 7.5% 0.4% 0.3% 0.2% 0.2% 1.5% 1.4% 2.0% 3.7% 0.2% 0.6% 0.4% 1.8% Wales 1.5% 1.5% 2.2% 2.0% 0.0% 0.2% 0.2% 0.1% 0.8% 1.3% 1.6% 1.6% 0.2% 0.2% 2.8% 0.5% Northern Ireland 0.3% 0.3% 0.4% 0.8% 0.1% 0.0% 0.0% 0.0% 0.1% 0.0% 0.0% 0.4% 0.0% 0.0% 0.0% 0.0% Total Regional 31.9% 33.5% 35.3% 38.6% 53.1% 50.3% 52.0% 44.4% 42.7% 40.7% 44.7% 45.3% 15.4% 17.4% 14.5% 11.8% Source: Broadcaster returns 13 Source: Hours per year quotas, allday news international and Performancenational against 1000 1500 2000 500 Ofcom/broadcasters 0 Quota 1,380 1,467 BBC One 1,572 1,620 1,560 2005 1,602 1,617 365 465 2006 ITV1 444 388 374 384 394 2007 208 319 Channel 4 Channel 315 2008 312 313 318 237 2009 260 478 Channel 5 Channel 459 451 2010 417 411
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