BBC iPlayer Pre-booking functionality Explanatory Note Issued November 2008 1 The Trust’s decision After a 28 day public consultation, the BBC Trust has decided to approve BBC management plans for the addition of pre-booking functionality to the BBC iPlayer. Pre- booking will allow users to select programmes from the iPlayer schedule up to 7 days in advance and download them for viewing on their home computer. The Trust has also asked BBC management to report reach and usage data for pre-booking six months after pre-booking is launched on the BBC iPlayer. The Trust will make a public statement after it has considered the impact of this on the BBC iPlayer’s reach and usage. Background On 30 April 2007, the BBC Trust approved BBC management’s proposals for on-demand services with some modifications after subjecting them to a Public Value Test. For example, the Trust rejected some types of downloads, such as classical music and audiobooks. In its approval the Trust set out the scope of this new service as part of the Service Licence for bbc.co.uk. The scope of the on-demand service included provision for a seven day catch up service including series stacking, now launched in the form of the BBC’s iPlayer. The scope of the service, based on BBC management’s application at the time, did not include pre-booking functionality. In May this year, BBC management sought the Trust’s approval to amend the terms of the licence to include a pre-booking facility. The Trust did not consider this change to be significant to the extent that a Public Value Test was necessary, but it wanted to provide third parties the opportunity to express an opinion. The Trust decided therefore to hold a 28 day public consultation about BBC management's proposal to add pre-booking functionality to the BBC iPlayer and launched this on 30 June 2008. The consultation closed on 28 July 2008. We received two responses which we are publishing in full with their permission (see Annex B and C). In light of the consultation, we raised further questions with BBC management and we are publishing their response at Annex A. This Explanatory Note sets out the reasoning behind the Trust's decision to approve the addition of pre-booking functionality to the BBC iPlayer. It also sets out why the Trust does not consider that this new feature constitutes a significant change to the BBC's UK Public Services and why it followed the process it did to reach its decision. 2 How the Trust has arrived at its decision If the Trust decides that a proposed change to a UK public service provided by the BBC is a ‘significant change’, it can decide to launch a formal Public Value Test (PVT) assessment to ensure the public value obtained by such a change is not outweighed by any negative market impact. The Trust has decided that the addition of pre-booking to iPlayer is not a significant change. In arriving at this conclusion, the Trust has taken account of the four considerations set out in clause 25(2) of the Framework Agreement, as detailed below: Financial implications The Trust has considered the financial implications of the proposal and decided they are not significant and the cost is low. As provided in BBC management's proposal, the BBC's downloading costs are fixed and BBC management consider that the BBC will not therefore incur further downloading costs as a result of introducing the pre-booking functionality. As regards software development and roll out costs, BBC management has clarified that the physical infrastructure used for pre-booking is the same as for the BBC iPlayer and the only additional cost to implement pre-booking is approximately £30,000 The financial implications are therefore not significant. Novelty There is virtually no novelty in pre-booking, a feature that has been widely implemented on other platforms for some time. Pre-booking is simply an additional feature of the BBC iPlayer which allows users to pre-select a programme for download, currently up to 7 days in advance of broadcast. Although this is new functionality for the BBC iPlayer, it is not in and of itself novel when compared to other services available in the wider market. Duration The duration of the pre-booking functionality on the BBC iPlayer will, in principle, be unlimited. However, this alone does not mean it is a significant change, taking account of the other factors that we have set out. Impact Based on the information provided in BBC management's proposal, the further information provided by BBC management, and taking into account the issues raised by the respondents to the public consultation (set out below), we consider that the likely impact of pre-booking functionality is limited. The Trust considered, but rejected requesting a trial to establish usage and reach data because the costs involved outweighed those of implementing the service. However, owing to the inherent lack of data available in advance of launching this new functionality, we have asked BBC management to return to the Trust six months after launch to provide further usage and reach data in order for the Trust to review impact at that time. 3 Conclusion Having taken into account the above considerations and the points raised during the consultation the Trust has approved the the addition of the pre-booking functionality to the BBC iPlayer. The Trust does not consider this constitutes a significant change to the BBC’s UK public services. In arriving at this decision, the Trust has also borne in mind its duties under the Charter and Agreement as well as regulatory requirements in considering BBC management’s application. We have requested additional information on the impact of pre-booking when this is available. To that end we have asked BBC management to report to us six months after the feature is launched on the BBC iPlayer with information on reach and usage. The Trust will consider this information and make a public statement at that time. Key points arising during the public consultation The two responses that we received during the public consultation differed in terms of their support for the BBC iPlayer pre-booking functionality. One of the respondents, the Audience Council for Wales, was supportive of the proposal and considered that it will increase value for money and will mean the BBC iPlayer provides a function available on other internet catch-up services. The other respondent, British Sky Broadcasting (“Sky”), queried the proposal as it currently stands and on the basis of the information provided by BBC management. In this part of the Explanatory Note we provide details of how we have considered the relevant key points raised during this consultation, primarily by Sky. However, this Explanatory Note is not intended to address every point raised by the two Respondents. We also refer to BBC management's responses to further questions that were submitted by the Trust. BBC management's responses are also set out in Annex A to this Explanatory Note. 1. Access to pre-booking functionality by third party providers of BBC on-demand content Sky queried whether the addition of the pre-booking functionality to BBC iPlayer should be subject to specific requirements on the BBC to "facilitate the simultaneous launch of the pre-booking functionality on other services and platforms which distribute BBC on- demand content." Sky also queried the responsibility of the BBC to support the introduction of pre-booking functionality on other platforms and services that distribute BBC content, for example, through the provision of advance BBC schedules and programme assets. With reference to BBC management's proposal, the pre-booking function is only proposed in respect of the BBC iPlayer internet offering, as opposed to on-demand 4 content provided over cable television where audiences with DVR technology will have access to very similar functionality. The syndication of BBC iPlayer content is primarily through links back to the BBC iPlayer and only in certain cases are partners permitted to host and serve BBC assets (when a partner is unable to link to BBC services, for example). Consequently, the BBC does not currently syndicate the functionality of iPlayer (as distinct from the content within it) on third party websites. BBC management has, however, recognised that it may be beneficial to licence fee payers to make pre-transmission BBC content available to syndication partners. We expect BBC management to comply with the Syndication Policy and guidelines in this respect. As to whether the BBC is required to provide links to pre-transmission BBC content at the same time as it launches the pre-booking function on iPlayer, we do not consider it necessary to delay introducing pre-booking on the BBC iPlayer until such links can be provided to syndication partners. The Trust has reached this position taking into account the public value in offering pre-booking on iPlayer as soon as possible, that syndication arrangements are the subject of commercial negotiations between the Executive and third parties, the expectation that the likely impact of the pre-booking functionality on third parties that syndicate BBC on-demand content will be limited (see below) and the absence of evidence of any negative market impact caused by the introduction of the pre-booking functionality on the BBC iPlayer submitted in response to our consultation. The Trust does, however, expect the BBC to comply with the Syndication Policy and syndication guidelines and continues to monitor syndication arrangements by way of six monthly updates from the Executive.