Up Next
The Government’s vision for the broadcasting sector

April 2022

CP 671

Up Next
The Government’s vision for the broadcasting sector

Presented to Parliament by
the Secretary of State for Digital, Culture, Media and Sportby Command of Her Majesty
April 2022

CP 671

© Crown copyright, 2022
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Up Next: The Government’s vision for the broadcasting sector

Contents
Foreword from the Secretary of State for Digital, Culture, Media and Sport

5

Executive summary6

Chapter 1: Market context

10

1.1 Arrival of new technologies

11

1.2 Increase in choice for viewers and listeners

11

1.3 Entrance of big international players into UK domestic markets

12

1.4 Growth of the UK production sector

13

1.5 Looking to the future

13

Chapter 2: Ensuring our publicly owned broadcasters can continue to thrive15

2.1 Licence Fee Settlement and BBC reform

16

2.2 Mid-Term Review of the BBC Charter

16

2.3 BBC Funding Review17

2.4 A sustainable future for Channel 4

17

2.5 Regional and minority language broadcasting

20

Chapter 3: A new system of public service broadcasting for a new era

22

3.1 A new public service remit for television

22

3.2 Ensuring public service content is easy to find and watch

23

3.3 Events of national interest24

3.4 Contestable funding25

3.5 Channel 3 and 5 licensing25

3.6 Opening up the system to new providers26

3.7 Local TV

26

3.8 The benefits of collaboration

27

Chapter 4: A vibrant broadcasting ecology

28

4.1 Championing our production sector

28

4.2 Supporting the UK’s commercial radio sector

29

4.3 Strengthening community radio

30

4.4 Improving access and representation in the sector

31

4.5 Protecting free speech

32

4.6 Levelling up

32

4.7 Meeting our commitment to net zero33

4.8 Encouraging responsible advertising35

4.9 Preserving our cultural heritage

35

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Up Next: The Government’s vision for the broadcasting sector

4.10 Working with our global partners

35

4.11 Promoting competition in digital markets

36

Chapter 5: New and emerging technologies

37

5.1 Content regulation on video‑on‑demand services37

5.2 Ensuring all audiences can access video-on-demand services38

5.3 Digital terrestrial television

38

5.4 Internet-delivered television

38

5.5 Connected audio devices used in the home and in vehicles

39

Acknowledgements40

Up Next: The Government’s vision for the broadcasting sector

Foreword from the Secretary of State for
Digital, Culture, Media and SportThe UK’s creative economy is a global success story. Our production sector is booming,
UK-created content is in demand, and our mixed broadcasting ecology is admiredinternationally.
This thriving and diverse ecosystem has built a virtuous circle. It makes the UK a very
attractive place in which to invest, and allows UK creatives to produce high quality andoriginal content that audiences love.

The Rt Hon
Nadine Dorries MP

Our public service broadcasters are key to that success. Sitting at the centre of thislandscape, they develop skills and talent, drive growth right across the creative industries,
and deliver distinctive yet instantly recognisable British content.

Secretary of State
for Digital, Culture,
Media and Sport

But rapid changes in technology, viewing habits and the entrance of global players haveintroduced new challenges for British broadcasters.
Against that backdrop of rapid change, we need to take action to support British
broadcasters in meeting the most pressing of those challenges, to protect our mixed
ecology, and ensure public service broadcasters remain at the heart of our plans. We will:• Ensure TV-like content, no matter how audiences choose to watch it, is subject tosimilar standards. These changes will mean UK audiences will be better protected fromharmful material and be better able to complain to Ofcom if they see something they
are concerned about.
• Introduce a new prominence regime for on-demand television to ensure that public
service content is both available and easy to find on designated TV platforms.
• Update the remit which our public service broadcasters must contribute to so that itdelivers for today’s viewers.
• Give our public service broadcasters more flexibility in terms of how they deliver their
obligations to reflect how audiences are viewing content.
• Pursue a change of ownership of Channel 4 to ensure it can continue to thrive andgrow its impact for years to come, as part of the wider public service broadcasting
ecology in the UK.
These reforms really matter. They will enable our broadcasters to thrive – an outcomethat is good for audiences, good for our economy and good for our ability to project
British values globally.

5

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Up Next: The Government’s vision for the broadcasting sector

Executive summary
The UK’s creative economy is a global success story, and our public service broadcasters
are the beating heart of that success. They produce great British content loved across the
UK and the world over. The Government wants it to stay that way.
Radio and TV remain strong, valued media in the UK delivering significant public
value. 89% of the population listens to radio every week, a figure which has remained
remarkably consistent in the last decade. Total linear TV set viewing was 2 hours,
33 minutes a day in March 2022, with viewers continuing to turn to our public service
broadcasters for trusted news and high quality, original programming.
The Government believes this will remain the case long into the next decade. Future
listening projections prepared for the recent Digital Radio and Audio Review show thatradio will retain a central role in UK media for at least the next 10-15 years. And while
nearly half of UK adults now consider online video services to be their main way ofwatching TV and film, 17.3 million homes still access digital terrestrial TV via an aerial,
8.4 million households subscribe to satellite television and 3.9 million have a cable TV
subscription.
But the headwinds facing our radio and television broadcasters are intensifying.
Competition is increasing, audience habits and technology are changing constantly, andglobal giants are making their presence felt.
The Government therefore intends to act to support our system of public service
broadcasting, using our new legislative freedoms to deliver a regulatory framework inthe best interests of the UK. We must now deliver much needed reform to the ‘compact’,
the balance of benefits and obligations conferred on our public service broadcasters, toensure they can continue to deliver for audiences across the United Kingdom.
This white paper sets out how we are taking action to:• Freeze the price of the TV licence at £159 for two years. It will then rise in linewith inflation. The Government believes this settlement will give the BBC the money
it needs to fulfil its mission and public purposes effectively, while making sure we
support households through a difficult time.
• Increase the BBC’s commercial borrowing limit from £350 million to£750 million, pending the agreement of appropriate oversight mechanisms, tosupport the BBC in accessing capital and investing in ambitious growth plans.
• Pursue a change of ownership of Channel 4. This will ensure that Channel 4 cancontinue to thrive and grow its impact for years to come as part of the wider public
service broadcasting ecology in the UK. Channel 4 is and will remain a public service
broadcaster, just like other successful public service broadcasters – ITV, STV, Channel
5 – that are already privately owned.

Up Next: The Government’s vision for the broadcasting sector• Make the importance of programmes broadcast in the UK’s indigenous regionaland minority languages clear in legislation, by including it in our new public service
remit for television. We believe that regional and minority language broadcasting
has an important role to play in the UK’s broadcasting ecology, providing not only an
opportunity for speakers to access content in a language familiar to them, but a meansof cultural expression for communities across the UK.
• Update S4C’s public service remit to include digital and online services andremove the current geographical broadcasting restrictions. These changes will allow
S4C to broaden its reach and offer its content on a range of new platforms in the UK
and beyond. We will also legislate to support S4C and the BBC in moving away fromthe current, somewhat rigid, framework requiring the BBC to provide S4C with a
specific number of hours of television programming, so that they can together agree
an alternative arrangement that better suits the evolving broadcasting landscape andthe changing way in which people access content.
• Replace the outdated set of fourteen overlapping ‘purposes’ and ‘objectives’that our public service broadcasters must contribute to with a new, shorter
remit, focussed on the things that they are uniquely positioned to deliver and thatwould make us poorer as a nation – culturally, economically and democratically – ifthey were not provided. We will make it clearer that public service broadcasters must
contribute to this remit and will be accountable for the extent of their contributions.
• Give our public service broadcasters greater flexibility in how they deliver theirremits, while ensuring there are effective powers available should intervention benecessary. This will make it easier for them to make their content available on a wider
range of free-to-air platforms.
• Introduce a new prominence regime for on-demand television. This will ensure
public service content is both available and easy to find on designated TV platforms.
This includes appropriate recognition for the unique relevance of the public service
content produced by STV and S4C in particular areas of the UK. Our new prominence
regime for on-demand services will be proportionate and flexible, so it can adapt
to the differences across the market and ongoing changes, without creating undue
burdens and negatively impacting consumer choice and experiences. Ofcom will also
be given the necessary new enforcement powers.
• Make changes to the local TV licensing regime to enable the extension of thelocal TV multiplex licence until 2034 and subject to the same conditions that
apply to the national digital terrestrial television (DTT) multiplexes. We will consult
on options for the renewal or relicensing of individual local television services at thesame time.
• Protect the UK’s terms of trade regime, while simultaneously updating it to reflectchanges in technology and the way viewers are watching content from our PSBs. We
will also consider whether there is a need to extend aspects of this regime to radio andaudio producers that produce programming for the BBC.
• Bring larger TV-like video-on-demand providers that are not currently regulated
in the UK but who target and profit from UK audiences under Ofcom jurisdiction.
We will also give Ofcom powers to draft and enforce a new Video-on-demand Code,similar to the Broadcasting Code, to ensure TV-like content, no matter how audienceschoose to watch it, will be subject to similar standards. These changes will mean UK
audiences will be better protected from harmful material and better able to complain
to Ofcom if they see something they are concerned about. Respecting issues of freespeech and proportionality, smaller, lower risk on-demand services in the UK willcontinue under existing rules.

78

Up Next: The Government’s vision for the broadcasting sector• Close the loophole that allows unregulated internet-delivered services to appear
on TV sets in the UK by designating additional regulated electronic programme
guides. This will have the effect of bringing internet-delivered services listed on thoseguides within the scope of regulation by Ofcom. We will also keep under review the
information gathering and enforcement powers available to Ofcom in this area.
The Government is also keenly aware of the medium and long term challenges forbroadcasting in the UK. This white paper sets out a vision for the future of broadcasting in
the UK, and the Government’s intentions on how to deliver it, including:• Carrying out a review of the licence fee funding model ahead of the nextCharter period. We will set out more detailed plans for that review – which willcomplement the previously announced Mid-Term Review of the BBC Charter – in the
coming months.
• Continuing to support long term commitments to support cross-borderbroadcasting on the island of Ireland including funding for the Northern Ireland
digital terrestrial television multiplex that has carried RTÉ and TG4 services to
Northern Ireland since 2012. We will also consider the scope to ensure the prominenceof regional and minority language services.
• Consulting on embedding the importance of distinctively British content directly
into the existing quota system. We will be clear that this includes programmes thatreflect the lives and concerns in different parts of the UK, and any legislative approach
we take will allow for further consideration to ensure it is proportionate and achieves
its aim of guaranteeing the continued production of content that could only have been
made for British audiences.
• Looking at making qualification for the listed events regime a benefit specificto our public service broadcasters, in recognition of the key role that they playin distributing content which is both distinctively British and of interest to British
audiences, and recognising that all current services that qualify for the listed events
regime are operated by public service broadcasters. We will also undertake a review tolook at whether the scope of the listed events regime should be extended to include
digital rights.
• Conducting an evaluation of the contestable fund pilot. This will include
considering in detail the lessons in determining whether a contestable fund model
would – in the longer term – provide additional value to the breadth and availabilityof high quality UK produced public service content, which might better meet
audience needs.
• Initiating a review looking at whether to introduce a revenue cap for ‘qualifying
independent’ producer status, to ensure that that status remains an effective lever inpromoting the growth of the sector.
• Continuing to support our highly skilled and innovative creative industries
through creative sector tax reliefs. Recent research has demonstrated theirphenomenal impact, with every £1 of High-end TV Tax Relief delivering returns of£6.44. At the same time, production supported by that tax relief increased from £1.2
billion in 2017 to £4.1 billion in 2021.
• Supporting the British Film Commission to facilitate the growth of sevengeographic production hubs – including one in each nation – and numerous newstudio developments all across the UK. In each of these regions there are alreadysome of the most talented creative and commercial individuals of any industry, andthe skills landscape must evolve to take advantage of this opportunity.

Up Next: The Government’s vision for the broadcasting sector• Consulting in early 2023 on new proposals to champion the community radio
sector and, where necessary, bringing forward changes to licensing requirements
through amendments to the Community Radio Order 2004. In addition, theGovernment remains committed to legislating to give effect to the conclusions of the2017 consultation on radio deregulation when parliamentary time allows.
• Exploring ways to support UK broadcasters through possible changes in the wider
advertising ecosystem. For example, through the Online Advertising Programme we
intend to consider how to create a more level playing field between broadcast andonline advertising, including on the issue of platform liability, as we consider what
measures could be introduced to improve accountability and transparency.
• Ensuring that the UK’s trade policy complements and protects the UK’s
audiovisual public policy framework, including maintaining our membership of theCouncil of Europe’s Convention on Transfrontier Television and, consequently, ourEuropean Works status. This status ensures that the UK continues to contribute tovital cultural enrichment across nations, allowing us to collaborate effectively with ourEuropean neighbours and distribute culturally important works across Europe.
• Establishing a new, pro-competition regime in digital markets. This will drive amore vibrant and innovative digital economy across the UK and will complement theexisting competition regime and regulatory powers available to sectoral regulatorssuch as Ofcom.
• Working with Ofcom to develop legislative proposals to address the divergencein provision of access services between broadcast and on-demand services. We
will engage with relevant stakeholders to ensure that legislation is clear, proportionate
and fit for purpose.
• Enabling the long term renewal of DTT multiplex licences through to 2034. In
addition, the Government will ask Ofcom to continue to track changes to DTT viewing
and to undertake an early review on market changes that may affect the future ofcontent distribution before the end of 2025.
• Engaging further with the radio industry, and gaining a deeper understanding of
the policies and practices of the smart speaker platforms, in order to ensure that weare putting in place the best possible regime to allow radio to continue to reach its
listeners well into the future.
This ambitious policy programme will take time to deliver, but it is essential if the UK isto continue to benefit from a vibrant and successful broadcasting ecosystem.

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Up Next: The Government’s vision for the broadcasting sector

Chapter 1: Market context
The UK’s creative economy is a global success story.
Our production sector is booming, UK-created content
is in demand, and our mixed broadcasting ecology
is admired internationally. In 2019 the UK’s creative
industries contributed £115.9 billion to the economy,
with the film, TV, video, radio and photography sectors
alone contributing £21.6 billion.1
This thriving and diverse ecosystem has built a virtuous
circle. It makes the UK a very attractive place in which
to invest and allows UK creatives to produce highquality, original content that audiences love. And as welevel up, our creative industries are playing a vital rolein increasing opportunity and outcomes across the UK.
Our public service broadcasters are key to thatsuccess. Sitting at the centre of this landscape, they
develop skills and talent, drive growth right acrossthe creative industries, and deliver distinctive yet
instantly recognisable content. In 2020 they showed
30,000 hours of new, original UK content, madein every corner of the country.2 This in spite of thechallenges presented by the COVID-19 pandemic.

Our broadcasters played a key role during the COVID-19 pandemic in supporting the nation through an
extraordinarily difficult time. Examples of this support include:• The BBC provided educational content throughout the schedule to help those children unable to attend
school. BBC local radio teamed up with manufacturers, retailers, and charity Wavelength to offer free DAB
radios to the most vulnerable people aged over 70.3
• ITV relaunched their Britain Get Talking campaign (‘Apart. But never alone’) on air and on social media.4• Channel 4 broadcast a ‘Stay at Home’ on-screen graphic during all Channel 4 programming to help deliver
this vital public health message. This graphic reached 78% of the UK population, seeing the message on
average thirteen times.5• Community radio stations, through the efforts of volunteers, overcame disruption to stay on air to provide
valuable local information and support to their communities including local public health messaging
targeted at harder to reach groups.
• Local commercial radio stations increased their commitment to news and information significantly
throughout lockdown, broadcasting 25% more news bulletins on average that lasted 28% longer.6
At the same time, our production sectors demonstrated their resilience and their ability to innovate. Even when
faced with the challenges of COVID-19, the industry reached near record levels of spend – the combined spend
by film and high end television production during 2021 reached £5.64 billion, the highest ever reported and£1.27 billion higher than for the pre-pandemic year 2019.7

1
2
3
4
5
6
7

On a GVA basis: DCMS. DCMS Economic Estimates 2019 (provisional): Gross Value Added. 2021.
Ofcom. Media Nations 2021. 2021.
BBC. Free DAB radios for over 70s as BBC local radio aims to Make a Difference. 2020.
ITV. Written evidence submitted by ITV plc. Digital, Culture, Media and Sport Committee. 2020.
Channel 4. Written evidence submitted by Channel 4. Digital, Culture, Media and Sport Committee. 2020.
Digital Radio and Audio Review. 2021.
BFI. Official 2021 BFI statistics reveal a record £5.64 billion film and high-end TV production spend in the UK. 2022.

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Of course, it was not just industry or broadcasters alone who have achieved this, with Government intervention
during the pandemic ensuring the safe continuation of production. Over 1,100 productions have signed up to
the Government’s Film and TV Restart Scheme so far and over £2.9 billion of production spend would not havebeen possible without the scheme, which has supported more than 95,000 jobs.
Radio also makes a vital contribution to the UK’s
broadcasting landscape. The intimate feel of radio
broadcasting and its ability to mix news, information,
music and entertainment have ensured its enduring
popularity. Its provision of national and local news
and information strengthens plurality and places radio
as among the most trusted media in the UK – not tomention its key role in connecting communities andhelping to address social issues including loneliness andmental health.
But rapid changes in technology, viewing habits andthe entrance of global players have introduced newchallenges for British broadcasters.

1.1 Arrival of new technologies
Radio and television rightly remain hugely importantparts of everyday life for millions of listeners andviewers. In 2020 the average adult in the UK watchedalmost 40 hours of video content a week,8 and 89%
tuned into the radio.9
The way we choose to ‘tune in’ is changing, however.
The rapid growth in the take-up of superfast broadband
and the proliferation of devices capable of connecting
to the internet is changing the way we access audio andvideo content. For example, 79% of households with a
TV set now choose to connect it to the internet, giving
them access to a wide array of additional services.10
Equally, internet-delivered audio services have grown
rapidly in the past three years and will be part of radio’s
future. It is particularly striking that smart speakers,
which emerged only five years ago, are now owned oraccessed by a third of all adults.11 These trends havealready driven average internet usage in the UK to
more than 453 gigabytes per connection per month –equivalent to more than 150 hours of high definition
content – and show little sign of stopping.12

Ofcom. Media Nations 2021. 2021.
RAJAR. RAJAR data release: Quarter 1, 2020. 2020.
10
Ofcom. Media Nations 2021. 2021.
11
Digital Radio and Audio Review. 2021.
12
Ofcom. Connected Nations 2021. 2021.
13
Ofcom. Media Nations 2021. 2021.
14
Digital Radio and Audio Review. 2021.
8
9These technologies are not only changing how
we watch, but also where we watch. In particular,
the proliferation of portable devices – particularly
smartphones – means that people are no longer
restricted when it comes to where they watch TV, andcan now watch on the go wherever they might be.
The advertising we see – a vital source of income
for many of our TV and radio broadcasters – is alsochanging. While linear TV advertising, as a share of all
display advertising, was broadly consistent between
2000 and 2015 at approximately 40%, between
2015 and 2020 its share fell to 27% as advertisers
increasingly moved online.13

1.2 Increase in choice for viewers
and listeners
These advances in technology mean that today’sviewers and listeners now have a huge amount ofchoice in terms of what they watch and how they
watch it – and they are taking advantage of thatchoice. In addition to the vast amount of content fromour public service broadcasters, viewers also enjoy
an increasingly wide range of high quality, UK-based
original programming from commercial broadcasters.
Sky News and, since 2020 Sky Arts, are available freeto-air, while Discovery’s already significant spend on
UK content continues to rise as it looks to compete in
the global streaming market.
Alongside live TV and radio, audiences now divide
their time amongst an increasing number of providers
and devices. For example, as of 2021, there were
574 radio stations available on DAB across the UK, in
addition to thousands of online stations and streams,
333 analogue commercial and BBC stations, andover 300 community stations.14 For those looking

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Up Next: The Government’s vision for the broadcasting sector

for something to watch, there were 294 television
channels available in the UK15 and more than 500 hoursof video were uploaded to YouTube every minute.16

podcasters, music streaming platforms and video
game companies – all international multi-billion poundindustries in themselves.

The result is the end of an era of mass media
dominated by linear television and radio, delivered
over the airwaves via a box in the front room. In fact, in
2020, less than half of video viewing went to traditional
live services.17 While particularly evident in younger
age groups, this trend is now apparent in almost all age
demographics.18 For radio, the BBC and commercial
radio have responded by investing in new online
services, for example app-based services such as BBC
Sounds, Global Player, Kiss Kube or the Times Radioapp, and by hosting content on streaming services suchas Spotify or YouTube to continue to retain listeners
and attract new younger audiences.

This increase in choice and competition is a good thing.
Nevertheless, it has significant implications for the
UK’s broadcast sectors which need to be considered.
The UK’s public service broadcasters in particular arefacing substantial challenges in today’s broadcasting
and technological environment – an environment
far removed from that of the 1920s when the BBC
was founded, or even the 1990s when the mostrecent public service broadcaster, Channel 5, waslaunched. This challenge is addressed in more detail in
Chapters 2 and 3.

The main beneficiary of this change in the way weconsume television has been video-on-demand
services. Delivered over the internet, they allow
viewers to select from a catalogue of hundreds oreven thousands of hours of programmes, all at thetouch of a button. In April 2021, Amazon Prime Video’s
content library boasted 41,000 hours of programmes,
Netflix’s 38,000 hours and public service broadcasters
a combined 37,000 hours of content – 12 years’ worth,watching 8 hours a day.19 In the fifteen years since
the BBC iPlayer first launched, the popularity of these
services has grown rapidly: more than three-quartersof UK households now use a video-on-demand service,including those offered by existing broadcasters(BBC iPlayer, ITV Hub) or available on subscription(Netflix, Amazon Prime Video).20 Notably, use ofsubscription video-on-demand services, such as Netflix,rose rapidly amongst the over 55s during the early partof 2020 as people stayed at home.21 More recently,
there is increasing evidence of viewers shopping aroundto find the services that best meet their needs, in what
is becoming an increasingly competitive marketplace.22
They are not the only beneficiaries, however. A modern
television or radio broadcaster must also compete
for our eyes and ears with the significant investment
in new content from video sharing platforms,

1.3 Entrance of big international
players into UK domestic markets
In addition to increasing the choice available toviewers and listeners, the adoption of internet-based
distribution methods – paired with the increasing desireof audiences to seek out new shows – has prompted
a new wave of globalisation. British programming haslong had a brilliant reputation overseas, and Americanshows have been mainstays on British TV channels for
decades. But the landscape has changed and it is now
clearer than ever that our broadcasters are competingon an international stage. This has been felt primarily
in two ways.
Firstly, UK-based broadcasters now compete directlywith services based overseas, many of whom havebeen able to leverage the significant financial resources
arising from their global scale. In 2019, the UK’s
public service broadcasters were able to spend justunder £2.8 billion on new content – by no means an
insignificant amount.23 Yet at the same time, Netflix
alone spent an estimated $13.9 billion (£11.5 billion).24
This effect is felt most keenly in particular genres,
including high end drama, where the average spend perhour on purely domestic productions has remained wellunder £2 million per hour, while the budget for showswith international investment is now almost £6 million

BARB. TV since 1981. 2021.
YouTube. YouTube by the numbers. 2022.
17
Ofcom. Media Nations 2021. 2021.
18
Ofcom. Media Nations 2021. 2021.
19
Ofcom. Media Nations 2021. 2021.
20
Ofcom. Media Nations 2021. 2021.
21
Ofcom. Media Nations 2020. 2020.
22
Sunnebo, Dominic. Cost of living crisis bites: GB Streaming market shrinks. Kantar. 2022.
23
Ofcom. Recommendations to Government on the Future of Public Service Media. 2021.
24
Low, Elaine. Netflix Reveals $17 Billion in Content Spending in Fiscal 2021. Variety. 2021.
15

16

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Up Next: The Government’s vision for the broadcasting sector

per hour.25 This funding disparity risks making it harderfor our domestic broadcasters to access the best
facilities and attract the best on- and off-screen talent.
At the same time, our broadcasters are having towork harder and harder to secure their presence on
new global platforms – operated by digital giants
who are quickly becoming the gatekeepers of content
discoverability. Some of these companies also operate
their own services, which are, in turn, given pride ofplace on the platforms they operate.
These new global players – the Googles, Amazons,and Apples of this world – are successful because they
provide convenience and integration. But the growing
power of these players, and the data they have attheir fingertips, will inevitably impact how rights ofaccess, carriage and prominence are negotiated moving
forward. While the increase in range and ownershipof distribution platforms generates potential benefits
around consumer choice and innovation, there is a riskthat the broadcasters that we in the UK know and love
are simply crowded out.
In other sectors the emergence of global tech giants
and the wave of consolidation they have promptedhave raised questions about the impact on competition
and the risk to the range of potential perspectives
available to consumers. In the broadcasting sector
there has been a growing trend towards consolidation,
most noticeably with major mergers in North America
and Europe. We want to make sure viewers andlisteners experience the benefits flowing from theevolution of the sector, whilst ensuring we continue tosupport consumer choice and the success of our mixed
ecology. These challenges are addressed in more detailin Chapters 3, 4 and 5.

1.4 Growth of the UK
production sector
Amidst this backdrop of increasing choice andtechnological innovation, the UK television
production sector is thriving, both domestically andinternationally. In 2019 total sector revenues grew toover £3.3 billion, their highest level to date, even before
accounting for the individual successes of production

studios wholly owned by the BBC, ITV and Channel 5.26
While commissions from UK broadcasters made up
the majority of that revenue, international revenues(commissions from foreign broadcasters and streaming
services) are becoming increasingly important. This
revenue stream has increased rapidly since the middleof the last decade, and in 2019 it exceeded £1 billion for
the first time.27
Despite the obvious challenges presented by the
COVID-19 pandemic, sector revenues proved resilientin 2020. Facilitated by the Government’s world-leading
Film and TV Production Restart Scheme, they fell just
14% to £2.9 billion, still the sector’s third highest total
annual revenue ever.28 The sector’s bounceback has
been remarkable and evidence of how resilient anddynamic the UK production sector has become.
In line with the Government’s ambition to level up
the United Kingdom, production outside of London
has risen considerably in the last decade. This trend
has been driven primarily by our public service
broadcasters, who now make more than half of theircontent outside London.29 All around the UK thriving
production hubs have built up. The BBC and ITV
have already established a vibrant media cluster in
Salford’s MediaCityUK from where major UK national
programmes including BBC Breakfast and Coronation
Street are made and broadcast. Similarly, Cardiff has
become one of the UK’s largest media centres outside
London, hosting BBC Wales, ITV Wales and Welsh
language broadcaster S4C.
This growth is not confined to television. Over recent
years, live radio has also been strengthened by the
emergence of a small – but dynamic – independent
production sector. These companies produce content
for the BBC and commercial radio, as well as adding to
the growing presence of UK audio content on podcast
and other audio platforms.

1.5 Looking to the future
The contribution of the creative industries to the UK
economy increased significantly in the last decade –nearly 50% between 2010 and 2019.30 The number ofthe people they employ has grown by more than a third

British Screen Forum. High-end Television Drama Investment: An Update. 2021
Oliver & Ohlbaum for Pact. UK Television Production Survey: Financial Census 2021. 2021.
27
Oliver & Ohlbaum for Pact. UK Television Production Survey: Financial Census 2021. 2021.
28
Oliver & Ohlbaum for Pact. UK Television Production Survey: Financial Census 2021. 2021.
29
Ofcom. Small Screen: Big Debate Consultation: The Future of Public Service Media. 2020.
30
On a GVA basis: DCMS. DCMS Economic Estimates 2019 (provisional): Gross Value Added. 2021.
25

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Up Next: The Government’s vision for the broadcasting sector

since 2011.31 We want to see these trends continue, andour internationally renowned broadcasting sector –which forms a key pillar of the creative economy – gofrom strength to strength.
This strength was recognised in the Plan for Growth,which identified the creative industries as one of thefour key sectors to drive the country’s growth after
the pandemic.32 Through the development of a Sector
Vision we will set out our joint government and vision
for the sector to 2030. This strategy will ensure thatall parts of the creative industries continue to play acentral role in maximising global trade and investment
opportunities, reaching our net zero targets, andlevelling up the country.
Radio and TV remain strong, valued media in the UKdelivering significant public value. As noted above, 89%of the population listens to radio every week, a figure
which has remained remarkably consistent in the last
decade.33 Total linear TV set viewing was 2 hours, 33
minutes a day in March 2022,34 with viewers continuing
to turn to our public service broadcasters for trusted
news and high quality, original programming.
We think this will remain the case long into the next
decade. Future listening projections prepared for the
recent Digital Radio and Audio Review show that radio
will retain a central role in UK media for at least thenext 10-15 years. And while nearly half of UK adults
now consider online video services to be their main
way of watching TV and film,35 17.3 million homes still
access digital terrestrial TV via an aerial, 8.4 million
households subscribe to satellite television and3.9 million have a cable TV subscription.36
The broadcasting sector has experienced significant
change, and the rate of further change shows no signof letting up as we look further into this decade andbeyond. Total subscriptions to video-on-demand
services reached 31 million in the second half of 2020,
up 54% on the previous year.37 And tellingly, 42% ofusers of those services say they can imagine watching
no broadcast TV at all in 5 years’ time, rising to almost
half (46%) of 18-34 year-olds.38

DCMS. DCMS Sector National Economic Estimates: 2011 to 2020. 2021.
HM Treasury. Build Back Better: our plan for growth. 2021.
33
RAJAR. RAJAR data release: Quarter 1, 2020. 2020.
34
Thinkbox. Monthly TV Viewing Report: March 2022. 2022.
35
Ofcom. Media Nations 2021. 2021.
36
BARB. BARB Establishment Survey. 2020.
37
Ofcom. Media Nations 2021. 2021.
38
Ofcom. Media Nations 2021. 2021.
31

32

These trends are clear and unlikely to be reversed. But
as much as they create challenges, they also create
opportunities – to deliver new services for viewers andlisteners. To not just retain audiences, but to attract
new ones around the world.
The proposals set out in this white paper will support
British broadcasters in meeting those challenges,
ensuring the continued success of our mixed ecology,
with public service broadcasters at the heart ofour plans.

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Up Next: The Government’s vision for the broadcasting sector

Chapter 2: Ensuring our publicly owned
broadcasters can continue to thrive
The UK benefits from six public service broadcasters,
all of which are operationally and editoriallyindependent of government. Three are publicly owned.
Those broadcasters – the BBC, Channel 4 and Welsh
language broadcaster S4C – vary in their size, remit
and funding models. The UK’s privately owned public
service broadcasters – ITV, STV and Channel 5 – will be
discussed in Chapter 3.
We want all of those broadcasters to continue making
high quality, original content, which people all over
the UK love, trust and learn from. We also want them
to be at the forefront of developments for gettingthat content in front of audiences. However, to makesure they are set up to achieve this, there are somespecific changes we need to see from our publicly
owned broadcasters.
The BBC is a great national institution. Over the past
100 years it has touched the lives of almost everyone in
the UK and made a unique contribution to our cultural
heritage. It is also respected globally, and reaches
hundreds of millions of people across the world every
week. No other country in the world has anythingquite like it.
The BBC also plays a vital role in supporting thecreative economy across the UK, and makes asignificant economic contribution across each of
the UK’s nations and regions through its spending
and wider activities. Every £1 of the BBC’s direct
economic activity generates £2.63 in the economy, andapproximately half of the BBC’s economic impact is
outside of London.39 The BBC also plays an importantrole in the UK’s wider public service broadcasting
ecosystem, including through commissioning
distinctive public service content and developing talentand skills from communities across the UK.
The BBC has been entertaining UK audiences, andserving millions more globally, since 1922. In its
centenary year, the Government wants to not only
39
40

KPMG. An Assessment of the Economic Impact of the BBC. 2021.
BBC. Tim Davie’s introductory speech as BBC Director-General. 2020.

celebrate the BBC’s successes over the past 100 years,
but also to look to the future and take this as an
appropriate moment to undertake further reforms thatcan secure the BBC’s future in the decades to come.
The BBC needs to be forward looking so it can meetthe challenges of modern broadcasting as it serves
audiences across the breadth of the UK. As the Director
General said in his first speech upon assuming his role,
the BBC must be a “simpler, leaner organisation” thatoffers “better value” to licence fee payers.40 The BBC
also needs to address issues around impartiality andgroupthink, and to do so it needs to make material andswift progress on its 10-Point Impartiality and Editorial
Standards Action Plan. The Government’s Roadmap for
Reform sees the forthcoming Mid-Term Charter Review
and upcoming Funding Model Review as two key
milestones in preparation for the next Charter Review.
This agenda will ensure the BBC is able to continue tothrive and be a global beacon for decades to come.
Channel Four Television Corporation began
broadcasting in 1982. A self-financing public
corporation, it is publicly owned but generates mostof its income from advertising. Channel 4 is an integral
part of our public service broadcasting system. It
contributes to the UK’s creative economy and creates
fun, daring, and provocative programming enjoyedby a broad range of audiences. But it is uniquely
constrained in its ability to meet the challenges of thechanging media landscape under its current ownershipand operating model. Its borrowing is accounted for
as public sector borrowing and scores against public
sector net debt. It cannot derive significant revenues
from production due to its publisher-broadcasterstatus, largely prohibiting Channel 4 from producing
its own content – and limiting revenue from the saleof secondary rights. In the landscape that Channel 4 isoperating within, which has evolved significantly andcontinues to evolve, these constraints inhibit its ability
to grow and succeed. Easing these constraints withinpublic ownership could lead to increased public sector

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Up Next: The Government’s vision for the broadcasting sector

net debt and risk to the Government and, ultimately,
the taxpayer, if Channel 4 could not service additional
debt or its financial position deteriorated. Therefore,
given the pace of change in the media landscape andthe importance of safeguarding Channel 4’s distinctive
position within it, the Government consulted on thebest ownership and operating model to secure Channel
4’s future sustainability.41 This Government’s responseto that consultation is discussed in section 2.4.
The UK also has a number of broadcasters who serve
the UK’s regional and minority language audiences.
S4C, which started broadcasting in 1982, provides awide range of content in Welsh across traditional anddigital platforms to viewers in Wales, playing a vitalrole in promoting the Welsh language. MG ALBA is theUK’s Gaelic language media service, with the remit toensure the provision of a wide and diverse range of highquality programmes in the Gaelic language is madeavailable to persons in Scotland. It makes an incredibly
valuable contribution to the lives and wellbeing of
Gaelic speakers across Scotland and the UK as a whole
including through its partnership with the BBC inproviding BBC ALBA.
The Government has an important role to play
as we look at ensuring the continued success andsustainability of our publicly owned broadcasters– recognising their significant contributions to British
life while being mindful of the fact that changes may
be necessary if they are to continue to flourish. This
chapter sets out the Government’s proposals forthis change.

2.1 Licence Fee Settlement and
BBC reform
The BBC is funded by the licence fee, which wasintroduced first as a wireless licence fee in 1923. This
became the television and radio licence fee in 1946,
which cost £2 for a single channel. The output of
the BBC, and the licence fee, has evolved massively
since then, from the addition of the colour television
supplement in 1964 to the closure of the iPlayer
loophole in 2016.
On 17 January, the Government announced the LicenceFee Settlement to the end of the current Charter
period. The price of the TV licence will stay at £159
for two years, before rising in line with inflation from
April 2024. The Government believes this settlement

41

will give the BBC the money it needs to fulfil its mission
and public purposes effectively, while making sure we
support households through a difficult time.
The Licence Fee Settlement gives the BBC certainty
on its funding over the remainder of the Charter
period. Looking forward, the Government also wants
to see the BBC taking steps to reform over the next
six years. This includes taking action to improve on its
impartiality, which is central to the BBC’s Mission andto maintaining trust with audiences. In that context we
welcome the BBC’s 10-Point Impartiality and Editorial
Standards Action Plan, published in October 2021,
which aims to raise standards by ensuring that BBC
programmes and content are fair, accurate, unbiased,
and reflect the UK public. Alongside this, the BBC
adopted the findings of the Serota Review into theBBC’s governance and culture in full. While the Action
Plan is a good start, changes are necessary and theyneed to be delivered.
To demonstrate the Government’s support for theBBC’s wider reform agenda, we have recently agreed
to update the Framework Agreement between
the Government and the BBC to include the BBC’s
new reform commitments, and to ensure that the
Framework Agreement accurately reflects the new
obligations and responsibilities that the BBC will
deliver over the remainder of the Charter period. These
updates will be published shortly.

2.2 Mid-Term Review of the
BBC Charter
The next phase of our roadmap towards reform of
the BBC is the Mid-Term Charter Review. This wasestablished by the current Charter, and is a key toolwith which the Government can consider whether the
BBC is heading in the right direction.
We have already begun work on the review, which
will report by 2024 and feed into the Charter Review
process, due to start in 2025. While the review will
not look at the BBC licence fee and funding issues,
it will consider whether the current governance andregulation arrangements are working effectively, or if
further reform is required.
We are consulting the BBC, Ofcom and the devolved
administrations in determining the scope and Termsof Reference of the review. The Government isinterested in the effectiveness of the BBC’s governance

DCMS. Consultation on a potential change of ownership of Channel 4 Television Corporation. 2021.

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Up Next: The Government’s vision for the broadcasting sector

and regulation arrangements in enabling progressagainst our ambitions for greater impartiality, moreaccountability for its editorial standards including thehandling of complaints, and a BBC that represents thebreadth of the audience it was established to serve. This
is not just about how well the BBC is doing – we also
want to look at the effectiveness of the framework bywhich Ofcom holds the BBC to account. In doing so,
we will consider Ofcom’s findings from its review of the
future regulation of the BBC.
We will set out more details in the coming months.

2.3 BBC Funding Review
Looking further forward along the roadmap forreforming the BBC, we need to consider the futureof the BBC’s funding model. When the Government
last reviewed the licence fee model in 2015/16, it
recognised that there were a number of drawbacks
to the licence fee, but concluded that it remained themost appropriate funding model for the BBC for thisCharter period.
However, the broadcasting sector continues tochange rapidly. As set out in more detail in Chapter 1,
technology has revolutionised how, when, and whereaudiences can access and watch content. An increasing
number of households are choosing not to hold a TV
licence, as fewer people choose to watch live TV orother activities that require a TV licence.
Should this trend continue as expected there areclear challenges on the horizon to the sustainabilityof the licence fee. For example, if fewer households
are required to hold a TV licence, and there is a desire
to maintain the BBC’s current level of funding, thenthe price of the licence fee would need to increase,potentially significantly, for those households who
continue to be required to hold a TV licence.
The Government also remains concerned that thelicence fee is enforced by criminal sanctions, which
the Government sees as increasingly disproportionate
and unfair in a modern public service broadcasting
system. We are particularly concerned that, following
the end of the free TV licence concession for over75s, there is the potential for licence fee enforcement
action to be taken against vulnerable elderly people.
The Government also sees the ongoing disparity in the

42

Ministry of Justice. Statistics on Women and the Criminal Justice System. 2019.

proportion of sanctions against women as unfair, with
74% of people convicted for TV licence evasion in 2019
being women.42
In recent years several countries have, reflecting on
similar challenges, changed the funding models fortheir public service broadcasters and we will be able todraw on their experiences. At the same time, the BBC
is a unique institution globally. It is therefore necessary
to identify a unique approach that works best for thecontinued sustainability of the BBC as it continues toserve the whole of the UK.
The Government wants to see the BBC continue
to succeed, which is why we need to consider themost fair and appropriate funding mechanism to be
introduced at the end of the current Charter period. We
want to see the BBC continuing to play its importantrole producing compelling programmes, contributing
to our thriving creative industries, and supporting
thousands of jobs across the UK. We also want to
see the BBC continuing to provide high quality andimpartial news to global audiences through the World
Service, which is currently partly funded by the licencefee, and partly by general taxation. In addition, wewant to ensure that S4C, which receives all of its publicfunding from licence fee income, continues to receive asustainable and predictable level of funding.
The Government will therefore carry out a review of thelicence fee funding model ahead of the next Charter
period and we intend to set out more detailed plans forthat review in the coming months.
The Government will also continue to support the BBC
in diversifying its income streams, becoming morecommercially successful and less reliant on the licencefee. The Government recently agreed to increase theBBC’s commercial borrowing limit from £350 million
to £750 million, pending the agreement of appropriate
oversight mechanisms, to support the BBC in accessing
capital and investing in ambitious growth plans.

2.4 A sustainable future for Channel 4
Channel 4 is an integral part of our public service
broadcasting system. It contributes to the UK’s creative
economy and creates fun, daring, and provocative
programming enjoyed by a broad range of audiences.
Channel 4 has done an excellent job in delivering
its founding purposes – providing greater choice foraudiences, and supporting the British production

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Up Next: The Government’s vision for the broadcasting sector

sector. Forty years on, independent production in
the UK is now booming, with companies increasingly
less reliant on Channel 4 for commissions. Choice
is no longer a problem, in a world of smart TVs andstreaming sticks, catch-up and on-demand.
Channel 4 delivers commercially successful content
that appeals in particular to young and valuable
audiences, which underpins its distinctive brand.
However, the market in which it operates haschanged radically and is continuing to change. The
company’s current financial position and its shortterm outlook cannot therefore be our sole focus. Its
historical performance does not guarantee its futuresustainability – we must pay attention to the longerterm outlook too and consider what tools will benecessary for future success.
As is the case for other public service broadcasters,
Channel 4 faces growing competition for audiences,programmes and talent, from new global videoon-demand providers with greater spending power.
Audiences are increasingly likely to consume content
on non-linear platforms such as video-on-demand
services. Whilst overall daily viewing is increasing,rising from 4 hours 49 minutes in 2017 to 5 hours 40
minutes in 2020, linear TV’s share of total viewing
fell from 74% in 2017 (3 hours 33 minutes) to 61%
in 2020 (3 hours 27 minutes). At the same time,
subscription video‑on‑demand services’ share of
total video increased from 6% in 2017 (18 minutes)
to 19% in 2020 (1 hour 5 minutes).43 In addition, theTV advertising market has changed significantly, withspending on linear TV advertising, which constituted
74% of Channel 4’s revenue in 2020, declining
substantially in the last decade in favour of digital.
Linear TV advertising revenues fell 31% sector-wide
between 2015 and 2020.44 We set out more detail on
the changing context in which Channel 4 is operatingin the decision rationale and sale impact analysis
published alongside this white paper.
In the Government’s view, Channel 4’s public
ownership model is constraining its ability to respondto the challenges and opportunities of this changing
broadcasting market in the long term. That is why
we consulted on the best means of ensuring its
future success and sustainability as a public service
broadcaster. It is our conclusion that now is theright time for the Government to pursue a changeof ownership of Channel 4. We need to ensure that
43
44

Ofcom. Media Nations 2021. 2021.
Ofcom. Media Nations 2021. 2021.

Channel 4 can continue to thrive and grow its impact
for years to come as part of the wider public service
broadcasting ecology in the UK.
We are at a unique turning point. Channel 4 has
fulfilled its original mission and now it is theGovernment’s responsibility to take a long term
view. We believe that the investment in content
and technology needed to succeed in this rapidlychanging media landscape will be delivered at greater
scale and with greater pace under private ownership,
supported by private-sector capital, rather than asking
the taxpayer to bear the associated risk. We have theopportunity to make Channel 4 bigger and better
without losing what makes it so distinctive. Channel
4 is and will remain a public service broadcaster, justlike other successful public service broadcasters – ITV,
STV, Channel 5 – that are already privately owned.
A change of Channel 4’s ownership forms part of theGovernment’s wider broadcasting reforms to support
all public service broadcasters into the future, as set
out elsewhere in this document.
Channel 4 itself has set out that it both wants andneeds to grow. We welcome that ambition, and toachieve it Channel 4 will need to invest and innovate,
more and faster. As for all other public sector
broadcasters, it needs to be able to generate and own
its own content. Having greater access to capital, andthe ability to produce and sell its own content will give
Channel 4 the best range of tools to accelerate andunleash its potential.
This can allow it to create more great programming
made by people who live and work across the UK. It canallow it to invest more in technology to make watching
Channel 4 content easier, faster and more engaging. It
can enable Channel 4 to think genuinely big in terms ofthe next evolution of its business model and strategy
to help it lead the way in defining ‘what’s next’ in the
global TV market.
This is not a decision the Government has taken
lightly. Our consultation generated 56,293
responses – including 40,411 campaign responses,
15,727 individual responses, and 155 responses
from organisations, campaign groups or sectoral
stakeholders – and there is a clear strength of feeling on
this issue. The Government has taken the consultation
responses into account, and examined a broad rangeof other options outside of a change of ownership.
The summary of the consultation responses we

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Up Next: The Government’s vision for the broadcasting sector

received, our response, and the decision rationale andsale impact analysis have been published alongside
this document.
We acknowledge that a substantial number ofconsultation responses did not agree that there arechallenges in the current TV broadcasting market that
present barriers to a sustainable Channel 4 under public
ownership. However, as set out above, we must pay
attention to the longer-term outlook for Channel 4 andensure it has the best range of tools available for future
success. We believe that a change of ownership will
provide this.
We acknowledge the concerns raised about the
impacts removing the publisher-broadcaster restriction(effectively prohibiting Channel 4 from producing
its own content) could have on the independent
production sector. However, we do not agree withthose who have argued that it is necessary to retain
the restriction in order for the sector to continue tosucceed. Independent production sector revenues
have grown from £500 million in 1995 to £2.9 billion
in 2020, whilst the contribution of public service
broadcaster commissions to sector revenue fell from
58% in 2010 to 41% in 2020,45 due in large part to thegrowth of international commissioning revenues. Of
the £2.9 billion sector revenues in 2020, public service
broadcasters accounted for £1.2 billion, with Channel
4 spending £210 million on external commissions,less than each of the BBC (£508 million) and ITV(£356 million), who both have their own in-houseproduction studios.46 Whilst Channel 4 therefore still
plays an important role, the sector is increasingly
benefitting from commissions from other sources
and can continue to prosper without the publisherbroadcaster restriction on Channel 4. The Government
will remove this restriction to enable Channel 4 todiversify its revenue streams into content and improve
its business resilience. Channel 4 will still be required
to commission a minimum volume of its programmingfrom independent producers, in line with the quotas
placed on other public service broadcasters, ensuring its
continued contribution to the sector.
It has also been argued that these changes will resultin a reduction in revenues from primary commissions
for small and medium sized producers. Channel 4 has
excellent relationships with independent producers
right across the UK and there is no reason this shouldchange – its work with these creatives has made it the45
46

success it is today, and part of its business model is to
produce risky content that speaks to audiences acrossthe UK. As such, we expect a new owner to want togrow and develop those relationships, even as it begins
to produce and sell its own content. The Government’s
continued support for the independent production
sector will be underpinned through protecting andupdating the “terms of trade” regime and associatedindependent production quotas which apply to all
public service broadcasters. This is explored further in
Chapter 4.
The Government also recognises Channel 4’s
commitment to levelling up, and its support fornational and regional economies. Channel 4’s existingobligations in terms of regional production, andproduction outside of England, will be maintained.
We expect Channel 4’s access to networks outside
London and its ability to speak to a diverse range ofaudiences across the UK to be an attractive asset thatany potential buyer will look to nurture and develop.
Indeed, there is no reason that a sale could not
accelerate the process of growing the broadcaster’s
impact outside of London.
The Government acknowledges the material andcontinued impact of Channel 4’s investment in the
UK film sector. Film4 has a distinctive brand and trackrecord of delivering successful Oscar-winning films that
could be seen as an asset by many potential buyers.
The Government does not believe that private
ownership has to be to the detriment of public good. It
is not a binary choice, and the right owner will provide
more investment, and support Channel 4’s role indelivering public good. Some people are concernedthat a private owner will make fundamental changes
to what Channel 4 does, and how it sees its place inthe public service broadcaster family. Although it is notpossible to predict precisely how its future obligations
would be operationalised by any particular buyer,
we would expect buyers to see the value in making
decisions that continue to deliver outcomes in linewith those we see today, as they are linked to Channel
4’s brand.
The right owner for Channel 4 will be one who shares
our ambition for the business and our belief in whatmakes it special. The Government will require this newowner to adhere to ongoing commitments, similar to
those Channel 4 has today, whilst allowing Channel 4
to adapt and grow, keeping its distinctive voice on our

Oliver & Ohlbaum for Pact. UK Television Production Survey: Financial Census 2021. 2021.
Oliver & Ohlbaum for Pact. UK Television Production Survey: Financial Census 2021. 2021.

20

Up Next: The Government’s vision for the broadcasting sector

screens for years to come. This will include retaining its
remit to provide distinctive, educational, innovative andexperimental programming that represents the breadthof society. It will also include equivalent obligations
for news and current affairs provision, to show original
programmes, and to continue to make programmes
outside London and across the UK. In particular, we will
expect a Channel 4 under new ownership to continue
working with independent production companies
right across the UK. We are not trying to change thedistinctive role Channel 4 plays; we are proactively
giving it the best set of tools to succeed in the market
context that is emerging.
New opportunities and investment, facilitated by achange of ownership, will complement continued
Government support for the creative economy(discussed further in Chapter 4). The Government
will look to use some of the proceeds from the sale of
Channel 4 to deliver a new creative dividend for thesector. The Government will also consider funding
for the creative industries in the round at the next
Spending Review.

2.5 Regional and minority
language broadcasting
Broadcasting in regional and minority languages has
an important role to play in the UK’s broadcasting
ecology, providing not only an opportunity for speakers
to access content in a language familiar to them,
but a means of cultural expression for communities
across the UK.
The Government has a strong record of demonstrating
its commitment to regional and minority language
broadcasting. For example, the Government has
embedded a duty to regional and minority languages
as part of the BBC’s general duties under the current
BBC Charter, with a further set of responsibilities in thecurrent Framework Agreement.

As the Government announced on 17 January, S4C
have received a strong licence fee settlement for
the next six years. This provides £88.8 million perannum for the first two years, then rises in line with
inflation thereafter. It includes a new commitmentof £7.5 million per annum to support S4C’s digitaldevelopment, ensuring S4C’s offering remains
sustainable in the digital age. Through its provision of awide range of content in Welsh across traditional anddigital platforms to viewers in Wales, S4C is vital to thepeople of Wales, and this settlement will enable S4C
to continue to support the Welsh economy, culture
and society, reach more Welsh language speakers
including younger audiences, and the UK Government’s
commitment to support the ambition of 1 million
Welsh speakers by 2050.
Building on this settlement, and in line with thebroader reforms described in Chapter 3, we will update
S4C’s public service remit to include digital andonline services and remove the current geographicalbroadcasting restrictions. These changes will allow S4C
to broaden its reach and offer its content on a rangeof new platforms in the UK and beyond. S4C will havegreater clarity on its ability to invest and generatecommercial revenue, and the new unitary board andaudit arrangements, implemented following the 2017independent review of S4C, Building an S4C for the
future, will be reflected in updated legislation.
We will also legislate to support S4C and the
BBC in moving away from the current, somewhat
rigid, framework requiring the BBC to provide
S4C with a specific number of hours of television
programming, so that they can together agree analternative arrangement that better suits the evolving
broadcasting landscape and the changing way in whichpeople access content.

We can now go further. As part of the changes tothe public service remit for television describedin Chapter 3, we will for the first time make theimportance of programmes broadcast in the UK’s
indigenous regional and minority languages clear inlegislation, by including it in our new public service
remit for television.

The Government recognises the hugely valuable
contribution that MG ALBA makes to the lives andwellbeing of Gaelic speakers across Scotland and theUK, including through its unique partnership with the
BBC in the provision of BBC ALBA. Such a partnershipmust ensure high quality, diverse Gaelic language
content continues to be readily available so that Gaelic
culture is protected in the years to come. We also
recognise that certainty of future funding is importantfor MG ALBA being able to deliver for Gaelic speakers.

The Government remains committed to helping S4C
adapt to the changing media landscape and remain
relevant as an independent modern public service
broadcaster in the UK.

The Government also funds the Irish Language
Broadcast Fund and Ulster-Scots Broadcast Fund toprovide high quality content for a Northern Irelandaudience and to support the independent production

Up Next: The Government’s vision for the broadcasting sector

sector in Northern Ireland. Following the commitmentin the New Decade New Approach political agreementin 2020, the Government provided an additional £2
million funding in further support of these objectives.
We will also continue to support long term
commitments to support cross-border broadcasting on
the island of Ireland including funding for the Northern
Ireland digital terrestrial television multiplex that has
carried RTÉ and TG4 services to Northern Ireland since2012. We will also consider the scope to ensure theprominence of regional and minority language services.

21

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Up Next: The Government’s vision for the broadcasting sector

Chapter 3: A new system of public service
broadcasting for a new era
The UK’s system of public service broadcasting for
television is second-to-none. At the touch of a button,
viewers have access to thousands of hours of highquality, locally produced programmes, whether in theform of TV staples or new cutting edge dramas anddocumentaries. This has been helped by the fact thatour public service broadcasters (PSBs) have often led
the way globally when it comes to delivering that
content to audiences. The BBC started to roll out
iPlayer in 2005, and Channel 4 undertook a full launch
for 4OD – the precursor to All4 – back in 2006, when
Netflix was still a DVD rental business. British content
is loved by audiences across the UK and envied theworld over – and this is how the Government wants
it to stay.
Audiences in the UK have access to hundreds of TV
channels, but only a fraction of these are public
service channels. The main public service channels
are BBC One, BBC Two, Channel 3 (currently ITV1or STV depending on region), Channel 4, S4C, andChannel 5.
These channels are operated by our public service
broadcasters (PSBs): the BBC, ITV, STV, Channel 4,
S4C and Channel 5. By virtue of their status as PSBs
these broadcasters have additional obligations – forexample to broadcast a certain amount of news
and current affairs programmes. However, theyalso get benefits, including the right to appear
prominently on electronic programme guides (seesection 3.2). This exchange is sometimes referred toas the PSB ‘compact’.
Unlike many other countries internationally, theUK benefits from having multiple PSBs. As set out
in Chapter 2, some are publicly owned, and others
are privately owned, but they are all responsible forthe success of the overall system. And, in turn, our
PSBs sit at the heart of a vibrant broadcasting sector(see Chapter 4).

This chapter sets out the conclusions of theGovernment’s strategic review of public service
broadcasting, and the immediate steps we are taking toprotect what is most important.

3.1 A new public service remit
for television
The Government’s strategic review has been
considering whether public service broadcastingremains vital in the modern media age, and if so, how
the PSB system should contribute to economic, culturaland democratic life across the UK.
In response to the first question, the answer is a
resounding yes. Public service broadcasting continues
to be associated with a wide range of high quality
content that is made available to, and highly valuedby, viewers from all backgrounds and in all cornersof the UK.
Nevertheless, the last time the system was significantly
updated was in 2003 – when television broadcasting
was still predominantly analogue, and prior to theemergence of video-on-demand services and global
streaming services. This means that if we want thesystem to continue to deliver for audiences – into
the coming decade and beyond – then it is vital that
it is updated in the context of the latest trends anddevelopments in the sector which are addressed in
Chapter 1.
This leads into the second overarching question fromthe review: what is the purpose of a modern system of
public service broadcasting? We believe the answer issimple: to ensure that viewers continue to have accessto a wide range of public service content on a freeto-air basis.
In the context of this new remit, we recognise thatpublic service content takes many forms, including:• Culturally relevant content that reflects the United
Kingdom of today and the values that define it;

23

Up Next: The Government’s vision for the broadcasting sector• Economically important content produced byindependent producers and across the UK; and3.2 Ensuring public service content iseasy to find and watch• Democratically impactful content such as trusted,
impartial news and current affairs.

An important aspect of the UK’s PSB system is ensuringthat public service content is readily available to as
wide an audience as possible and easy to find.

Given the answers to these questions, we will replace
the outdated set of fourteen overlapping ‘purposes’ and‘objectives’ that our public service broadcasters must
contribute to with a new, shorter remit, focussed on
the things that they are uniquely positioned to deliver,and would make us poorer as a nation – culturally,
economically and democratically – if they were notprovided. We will make it clearer that PSBs must
contribute to this remit and will be accountable for theextent of their contributions.
In light of the changes in technology that we havewitnessed since 2003, the Government will legislate togive our public service broadcasters greater flexibility
in how they deliver their remits, while ensuring there
are effective powers available should intervention
be necessary. This will make it easier for them tomake their content available on a wider range offree‑to‑air platforms.
In addition to ensuring more culturally relevant content
that reflects the United Kingdom, and the values weshare, forms a part of the new remit as describedabove, we will consult on embedding the importanceof this distinctively British content directly into theexisting quota system. Any legislative approach wetake will allow for further consideration to ensure it is
proportionate and achieves its aim of guaranteeing thecontinued production of content that could only havebeen made for British audiences.
We will be clear that this includes programmes thatreflect the lives and concerns in different parts of
the UK, from Bangor to Bognor and Dunmurry to
Dunblane. And we will take action to support regionaland minority language broadcasting in the UK (seeChapter 2).
The Government also continues to recognise thatpublic service broadcasting needs to produce content
that people want to watch and engage with – showsthat are loved and admired not just at home, butaround the world. As now, PSBs will have their own
individual channel remits, which will help ensure thatthe current high standards of programme quality are
maintained, and that they continue to produce a wide
range of content for viewers to enjoy irrespective of
their precise tastes and preferences.

To enable this, broadcasting legislation incorporates
a ‘prominence’ framework which makes valued
public service content easy to find and watch. This iscurrently achieved for linear broadcasting through rules
set out by Ofcom that affect the position (channel
numbers) of designated channels when accessed via
an electronic programme guide. The current legal
framework guarantees that the first five channels the
British public find when they switch on their TVs areoperated by PSBs.
This framework not only provides important culturaland societal benefits, allowing viewers to easily
discover their favourite programmes, but also provides
important commercial and economic benefits for
PSBs. PSB prominence plays a crucial role by boosting
viewership and engagement, which is important toadvertising revenue and brand value for PSBs. This
ensures that they can continue to deliver high quality,
original programming. It therefore forms a key part of
the PSB compact referred to above.
There are also separate rules which require PSBs
to ‘offer’ their channels to broadcast TV platforms,
which are in turn required to ‘carry’ them. These
rules collectively ensure that the Freeview platform
and current satellite and cable services like Sky
and Virgin have to make PSB channels available on
their platforms.
However, the current regulatory framework forprominence, and the existing rules covering what must
be offered and what must be carried, do not extend to
the PSBs’ on-demand services. Due to a range of factors
discussed in Chapter 1, such as increased competition,
PSBs are finding it increasingly difficult to secure
their presence on global platforms, maintain theirprominence on those platforms, and secure fair value
for the services they provide.
Audiences increasingly watch content online, and inmany cases bypass traditional distribution platforms
altogether. These trends are likely to further accelerate,
creating challenges to the long term sustainabilityof the PSB system in the UK. If PSBs are not given
adequate prominence online, then our longstanding
commitment to ensuring public service content is
widely available and easy to find will also be at risk.

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Up Next: The Government’s vision for the broadcasting sector

As the DCMS Select Committee made clear in theirreport The Future of Public Service Broadcasting, swift
action is required to address this disparity between
traditional TV platforms and new ones. Building on
the recommendations made by Ofcom in 2019 and
2021, we will introduce a new prominence regime foron-demand television.47 This will ensure public service
content is both available and easy to find on designatedTV platforms. This includes appropriate recognition
for the unique relevance of the public service content
produced by STV and S4C in particular areas of the UK.
We will achieve this by legislating for a new principlebased legislative framework, whereby the providers ofdesignated TV platforms – those used by a significant
number of UK viewers as a main way of watching
television content on-demand – will be required togive appropriate prominence to PSBs’ designatedon-demand services. We expect TV platform providers
which are in scope to include popular Smart TVs, pay
TV operators, and global TV platform providers. This
new regime is to be enforced by Ofcom, who will be
required to develop and maintain guidance on the
new framework.
Our new prominence regime for on-demand services
will be proportionate and flexible, so it can adapt tothe differences across the market and ongoing changes,
without creating undue burdens and negatively
impacting consumer choice and experiences. Ofcom
will also be given the necessary new enforcement
powers, including information gathering powers
and the ability to impose financial penalties whereappropriate in the event of non-compliance.
The regime will incorporate new rules to ensure
availability of content on relevant TV platforms byrequiring PSB providers to offer their designatedon‑demand services to platforms and requiring
platforms to carry these PSB on-demand services.
This will be underpinned by statutory objectives
which include:• ensuring that PSB on-demand services are available
to view by as many members of their intended
audiences as practicable;• ensuring that PSB on-demand services are
given appropriate prominence on relevant TV
platforms; and47• ensuring that PSB on-demand services are madeavailable on terms that are consistent with thesustainable delivery of PSB obligations, but which
also do not place disproportionate restrictions on
consumer choice or TV platforms’ ability to innovate.
Ofcom will also be given a dispute resolution function,in line with the recommendations made in its Small
Screen: Big Debate review. PSBs and platforms should
always seek to pursue mutually beneficial commercial
arrangements in the first instance, but if for whateverreason that is not possible then it is appropriate for the
regulator to have the necessary powers to intervene insupport of effective negotiations.

3.3 Events of national interest
As set out above, it is important that viewers have easy
access to culturally relevant content. This includes
certain sporting events of national interest, like theFIFA World Cup and the Wimbledon Tennis Finals. The
Government believes that where possible these eventsshould be shown on free-to-air television so that they
can be enjoyed by as wide an audience as possible.
The listed events regime works by prohibiting thebroadcast of exclusive rights of an event on the list
without prior consent from Ofcom. The current
list is divided into two categories (Group A andGroup B) and where rights holders make an event
available, full live coverage must be offered forpurchase first to free-to-air channels for events inGroup A. Group B events may have live coverage on
subscription TV provided that secondary coverageor highlights are offered for purchase first to freeto-air broadcasters. However, no rights holder canbe compelled to sell its rights, and no broadcastercan be compelled to acquire rights.
The Government recognises that the sale ofbroadcasting rights to subscription TV providers
generates income for sports bodies, which enables themto invest in their sports at both the elite and grassroots
level. The legal framework therefore needs to strike anappropriate balance between retaining free-to-air sports
events for the public, while allowing rights holders
to negotiate agreements in the best interests of theirsport. We believe the current list of events achieves this.
However, we are also of the view that more could bedone to improve the diversity of the list, which is why

Digital, Culture, Media and Sport Committee. The Future of Public Service Broadcasting. 2021.

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Up Next: The Government’s vision for the broadcasting sector

we added the Paralympics in 2020, and have recently
added the FIFA Women’s World Cup and the UEFA
Women’s European championships.

opportunities for our world-renowned production
sector to innovate and grow even as technology andviewing habits change at an unprecedented pace.

However, the current framework was devised in adifferent media landscape where competitors to freeto-air broadcasters were limited and UK-focussed. The
consumption habits of viewers are changing rapidly andbroadcasters are now required to compete for rights
with global media platforms. As such we see a need fora small number of important reforms to modernise thecurrent framework.

To support these ambitions, the Government has been
piloting contestable funding, a new way to directly
support underserved public service content. Since
2019 the Young Audiences Content Fund and Audio
Content Fund have received almost £48 million of
public funding and supported 220 hours of children’s
television content and more than 700 hours of radio
content to date.

In recognition of the key role that our public service
broadcasters play in distributing content which isboth distinctively British and of interest to British
audiences – and recognising that all current services
that qualify for the listed events regime are operated by
the PSBs – we will look at making qualification for thelisted events regime a PSB-specific benefit.

The three-year pilot phase of the Contestable Fundconcluded on 31 March 2022. We will conduct anevaluation of the pilot and will consider in detail thelessons in determining whether a contestable fundmodel would – in the longer term – provide additional
value to the breadth and availability of high quality
UK‑produced public service content, which might
better meet audience needs.

The current legal framework was established in 1996
at a time when just 4% of UK households had accessto the internet.48 Consequently, although digital rights,
including on-demand rights, have now become an
important element in the sale of sports rights, they
are not covered by the listed events regime. This raises
questions about whether the objectives of the existing
regime are still being met and whether they will continue
to be met in the future. If for example the Olympic
100 metre final was broadcast live in the middle of thenight on the BBC, but all streaming and catch-up rights
were sold to a different broadcaster and kept behind a
paywall, then a culturally relevant event might not be
available to a wide audience on a free‑to-air basis.
We want to ensure that as viewing habits change andtechnology evolves the regulatory framework remains
fit for purpose. We will therefore undertake a review tolook at whether the scope of the listed events regime
should be extended to include digital rights.

3.4 Contestable funding
The UK is home to a thriving broadcasting industry,
and the Government is determined to make sure it
continues to go from strength to strength. To do so,
it must ensure that all UK audiences have access toa broad range of high quality content which reflects
the diversity of our nation. It must also provide

3.5 Channel 3 and 5 licensing
The size and plurality of public service broadcasting
provision in the UK is one of the aspects that makes it
unique. An important element of this is the Channel
3 and Channel 5 commercial licences, which set out
the detailed obligations on individual licensees. The
Channel 3 licences in England, Wales, Northern Ireland,
the Channel Islands and the south of Scotland are heldby ITV plc; and the licences for northern and central
Scotland are held by STV plc. Channel 5 Ltd, controlled
by Paramount Global (formerly ViacomCBS), provides
the Channel 5 service.
These broadcasters play a specific and important role
not only in the public service broadcasting system, butalso in the wider broadcasting ecology. ITV employs
more than 6000 people and spends more than £1 billion
per year on content, the majority of which is on original
UK content, including regional news.49 Channel 5 wasawarded ‘Channel of the Year’ at both the Broadcast
Awards and Royal Television Society Programme
awards in 202050 and its children’s programming block,
Milkshake!, reached 19.5 million viewers in 2019.51
Both the Channel 3 and Channel 5 licences are due toexpire in 2024. As required by the Communications
Act 2003, the Government is expecting to receive a

DCMS. The Review of the BBC’s Charter. 2003.
ITV. 2021 Annual Report and Accounts. 2022.
50
Ganatra, Shilpa. Channel 5’s drive for drama. 2021.
51
ViacomCBS and Channel 5. Written evidence submitted by ViacomCBS and Channel 5. Digital, Culture, Media and Sport Committee. 2020.
48
49

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Up Next: The Government’s vision for the broadcasting sector

report from Ofcom in June 2022 in connection withthe potential renewal of the Channel 3 and Channel 5
licences. We look forward to reviewing Ofcom’s report
later in the year.

3.6 Opening up the system to
new providers
Commercial providers such as Sky, Discovery andBT, whilst not being public service broadcasters
themselves, still play a hugely valuable role inour broadcasting ecology. In particular they
commission and produce a wide range of highquality content, including news, and invest in newtechnology and production facilities.
Sky operates the largest non-PSB TV news service –Sky News – which is available free-to-air, andhas been named ‘News Channel of the Year’ at
the Royal Television Society Awards for five years
running.52 As of 2020, their Sky Arts channel isalso available to watch without subscription on
Freeview and Freesat. In 2019, Sky announced plansto double its investment in UK originated content
by 2024, and is developing a new studio complex
at Elstree which it estimates will add £3 billion
to the creative economy during its first five yearsof operation.53
Discovery are significant investors in original
UK content, particularly in genres such as
natural history and factual – and that spend
continues to rise as they compete in the global
streaming market. BT Studios is used to create
sports programming and is also available for UK
independent production companies to hire. BT havealso fronted a number of high profile public interest
campaigns, such as its ‘Draw The Line’ campaign
targeting online abuse and hatred.54
The Government recognises that a wide rangeof providers produce high quality, UK-originatedprogrammes for television. This includes the public
service broadcasters themselves. But it also includes awide range of commercial broadcasters who produce
hundreds of hours of public service-like content despite
being under no obligation to do so – in particular
UK‑based original news, drama and arts programming.

In their recent recommendations to government,
Ofcom recommended opening up the public service
broadcasting system to new providers by putting inplace a system for designating additional public service
broadcasters. They suggested that this could boost
innovation and help with sustainability.55
As set out above, the Government is taking forward a
number of other changes to the UK’s system of public
service broadcasting, and is minded to let these bed in
before considering further reforms. Nevertheless, wewill continue to consider the case for future reforms
as we work to update the PSB framework to ensure its
long term sustainability.

3.7 Local TV
Since 2013, a total of 34 local television services havebeen launched across the UK, each serving a particulararea with local news and local content.
The climate for local television since 2013 has beena challenging one in terms of services being able todevelop local advertising. A number of the initial licenceholders – including STV in 2018 – sold their interests as
the sector consolidated operations and services in orderto reduce costs. Ofcom has supported this process byagreeing to proposals to reduce the number of local
production hours that stations were required to deliver
while ensuring that all local television services continue
to provide a core local news service. In addition, thelicensees in Belfast, Brighton, London, Maidstone,
Nottingham and Sheffield have been able to operate
local services as single entities and continue to deliver
bespoke local services with a strong ethos towards
training, skills as well as to local journalism.
The launch of local television was initially supported
by up to £40 million of BBC licence fee funding which
covered the development of the local digital terrestrial
TV (DTT) multiplex and support for news content.
The scheme to provide local television news, run by
the BBC, ended in 2020 and local television currently
receives no public subsidy but continues to benefit
from significantly reduced DTT transmission costs dueto the commercial revenues generated by the spare
DTT video streams as well from prominence on DTT
and other TV platforms.

Sky News. Sky News wins three RTS awards including News Channel of the Year. 2022.
Sky. Written evidence submitted by Sky. Digital, Culture, Media and Sport Committee. 2020.
54
BT. Draw The Line: BT launches campaign to tackle online hate. 2021.
55
Ofcom. Recommendations to Government on the Future of Public Service Media. 2021.
52

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Up Next: The Government’s vision for the broadcasting sector

In September 2021, the Government announced
changes to national DTT multiplex licensing legislation.
The changes enable Ofcom to extend licences issued to
the BBC, other PSBs and to other commercial operators
until 2034 (subject to a new revocation power, whichcannot take effect before the end of 2030).
In the light of this, the Government intends to makechanges to the local TV licensing regime to enable
the extension of the local TV multiplex licence until
2034 and subject to the same conditions (including
revocation power) that apply to the national DTT
multiplexes. We plan to consult by the end of 2022 on
the detailed arrangements for the renewal of the local
television multiplex licence and conditions for renewal.
We will consult on options for the renewal or relicensingof individual local television services at the same time.

3.8 The benefits of collaboration
As described in more detail in Chapter 4, the UK’s
broadcasting sector is a rich and varied one, with manydifferent actors. The Government believes that changes
and consolidation in the sector pose strategic questions
as to whether our public service broadcasters need topursue more collaboration, either with each other orwith external partners.
Radioplayer was established in 2010 as a way
to offer simple and accessible listening to radio
online. It is a not-for-profit venture between the
BBC and commercial radio broadcasters (its current
shareholders are the BBC, Global, Bauer Mediaand Radiocentre). Since 2014 it has licensed its
technology to consortia of broadcasters in other
territories and has partnership agreements with
14 other countries.
In recent years, Radioplayer has significantly
expanded its activities using its backend technology
to deliver broadcaster metadata to vehicles
to power hybrid radio. This allows drivers toseamlessly switch between FM, DAB/DAB+ andstreaming while providing a richer and more visualexperience. Radioplayer has signed partnershipagreements with VW Group and BMW Group,
which together represent a third of all European car
sales, and has produced a hybrid radio app (DAB,
DAB+, FM, Internet) in Android Automotive which
can be adapted by car companies for free or at cost.

56

Digital Radio and Audio Review. 2021.

There are plenty of examples of this collaboration
happening already. For example, Freesat – a venture
first established by the BBC and ITV in 2007 tocreate a free-to-view satellite platform to support
TV switchover – recently merged with Freeview tocreate a shared platform for the BBC, ITV, Channel
4 and Channel 5. Similarly, Radioplayer, a not-forprofit venture between the BBC and commercial radio
broadcasters, has licensed its technology to consortiaof broadcasters in other territories and has partnershipagreements with 14 other countries since 2014.56
Channel 4 and Sky’s partnership – particularly sharing
sports rights – has helped create moments that bringthe country together.
In the context of a fragmented but highly competitive
broadcasting landscape, especially where broadcasters
are no longer just competing with each other forviewership and revenues, but also with other typesof content and global platforms, these strategic
partnerships become even more important. We do
not want to repeat the mistakes of the past –mistakes which, for example, led to the Competition
Commission blocking Project Kangaroo (a video-ondemand joint venture between ITV, Channel 4 and BBC
Worldwide) in 2009 after it was deemed too muchof a threat to the UK’s nascent streaming market.
This allowed international competitors to steal amarch on our domestic broadcasters and left themplaying catch up.
In addition to supporting the sustainability ofthe sector, the Government believes that thesepartnerships also bring benefits to viewers – forexample, being able to discover content moreeasily in one place, or providing the technology thatallows broadcasters to help reach new and diverse
audiences around the world. The BBC Charter contains
a requirement for the BBC to work collaboratively
with other organisations, particularly in the creative
economy, and we will continue to look at how thisbehaviour can be encouraged throughout the wider
PSB system. Collaboration can also help ensure thataudiences continue to benefit from a plurality of voices
and perspectives.

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Up Next: The Government’s vision for the broadcasting sector

Chapter 4: A vibrant broadcasting ecology
The contribution of the creative industries to the UK
economy increased significantly in the last decade– nearly 50% between 2010 and 2019.57 The number ofthe people they employ has grown by more than a third
since 2011.58
This thriving and diverse ecosystem has built a virtuous
circle. It makes the UK a very attractive place in which
to invest and allows UK creatives to produce highquality, original content that audiences love. We want
to see these trends continue, and our internationallyrenowned broadcasting sector – which forms a key
pillar of the creative economy – go from strength
to strength.
This chapter sets out the steps we are taking both toprotect that virtuous circle, and to help the sector
respond to the challenges and opportunities it faces.

4.1 Championing our production sector
Thanks to the Government’s action and intervention,
TV production is booming across all parts of our union.
As set out in Chapter 1, this success has been fuelledboth by traditional investment from our domestic
broadcasters and by the UK’s success in attracting
international investment.
Total TV production revenues more than doubled
between 2004 and 2020, with more than £1 billionof annual revenues coming from inward investment
from outside the UK.59 Even when faced with thechallenges of COVID-19, the industry reached nearrecord levels of spend – the combined spend byfilm and high end television production during 2021

reached £5.64 billion, the highest ever reportedand £1.27 billion higher than for the pre-pandemic
year 2019.60
Of course, it was not just industry or broadcasters
alone who have achieved this, with Government
intervention during the pandemic ensuring the safe
continuation of production. Over 1,100 productions
have signed up to the Government’s Film and
TV Restart Scheme so far and over £2.9 billion of
production spend would not have been possible
without the scheme, which has supported more than
95,000 jobs. PACT, the industry group representing
film and television producers recognised this when theysaid that, “...the Government’s Film & TV Production
Restart Scheme provided the critical business support
for the sector, enabling them to start or restart theirproductions, keeping people in jobs and getting newcontent on UK screens”.61
This is a truly globally leading sector and its successis felt in all four corners of the nation, be that Line ofDuty in Northern Ireland, Poldark in Cornwall, Peaky
Blinders in Yorkshire, Outlander in Scotland, or Brassic
in Wales – this Government will safeguard and buildon that success. Recognising that at the highest end,
the gap between TV and film production requirements
has fallen away, the Government is also determined tohelp the broadcast and wider screen production sector,
including film, thrive together, including introducing
measures which enable film production companies toswitch between Film Tax Relief and High-end TV Tax
Relief during production.62

On a GVA basis: DCMS. DCMS Economic Estimates 2019 (provisional): Gross Value Added. 2021.
DCMS. DCMS Sector National Economic Estimates: 2011 to 2020. 2021.
59
Oliver & Ohlbaum for Pact. UK Television Production Survey: Financial Census 2021. 2021.
60
BFI. Official 2021 BFI statistics reveal a record £5.64 billion film and high-end TV production spend in the UK. 2022.
61
Quoted in BFI. Peaky Blinders, Midsomer Murders for television; feature films Mothering Sunday, Benediction and a Christmas Number One in £1.9 bn Production
Recovery Thanks to Restart Scheme. 2021.
62
HMRC. Switch between Film Tax Relief and High-End TV Relief during production. 2021.
57

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Up Next: The Government’s vision for the broadcasting sector

Beyond TV, UK audio production continues to diversify
away from radio as demand for podcast content
continues to grow. Around 10 million adults listen to
podcasts weekly and UK podcast advertising revenue is
expected to double to £75 million per year by 2024.63
As discussed in Chapter 1, the UK’s independent
television production sector has grown rapidly inthe last decade, with revenues increasing over 50%
between 2010 and 2019.64 Now, in shaping thefuture landscape of UK broadcasting, we will ensure
the UK remains a thriving production hub for both
domestic and international content producers. Thismeans protecting the UK’s ‘terms of trade’ regime,
while simultaneously updating it to reflect changes
in technology and the way viewers are watchingcontent from our PSBs. We will also consider whether
there is a need to extend aspects of this regime toradio and audio producers that produce programming
for the BBC.
At the same time we want to ensure that the benefitsof the terms of trade regime, and the quota for
independent production which operates alongsideit, accrue to SMEs who will benefit most from theseinterventions. The sector’s impressive growth has
facilitated the emergence of so-called ‘super indies’
which – whilst still classed as independent – are often
larger than the broadcasters they work with. We
therefore plan to initiate a review looking at whether
to introduce a revenue cap for ‘qualifying independent’producer status, to ensure that that status remains aneffective lever in promoting the growth of the sector.
We also recognise that the UK’s success in attracting
inward investment is based on the unique interplay of
those attributes which make us the number one global
destination for production: a stable and generous
tax relief system; a skilled workforce; strong andgrowing physical infrastructure; supportive institutions
and wider screen ecosystem, and the creativity anddynamism of UK citizens.
As the Chancellor has previously noted, theGovernment will continue to support our highly
skilled and innovative creative industries throughcreative sector tax reliefs.65 Recent research has
demonstrated their phenomenal impact, for example
every £1 of High-end TV Tax Relief delivers returns of£6.44.66 At the same time, production supported bythat tax relief increased from £1.2 billion in 2017 to£4.1 billion in 2021.67
In addition, recognising that all this investment,
particularly for larger productions, requires suitableinfrastructure, the Government stepped in to fund theBritish Film Commission an extra £1.6 million a year
from 2020/21 to 2022/23 to facilitate the developmentof more sound stages UK-wide. This investment
has already played a significant role in meeting thehuge demand for screen infrastructure, supporting
productions of all sizes.
TV is a global marketplace and we both want to attract
inward investment and want to help UK content to findthe widest possible international audiences. We know
other nations are doing the same, and looking to the
UK with envy, so we must act to ensure our reforms
support what works and protect the UK’s status as aleading destination for TV and film production.
These measures, as well as others set out in thisdocument, form part of our vision for the creative
industries. The Creative Industries Sector Vision, due tobe published in summer 2022, will set out a long term
strategy for the sector and deliver on the Government’s
levelling up, Global Britain and net zero objectives. This
strategy will be developed as a partnership between
government and industry.

4.2 Supporting the UK’s commercial
radio sector
Radio broadcasting has been a part of the UK media
landscape for more than 100 years and remains a
cornerstone of public broadcasting. In recent years –and never more so than during the pandemic – the BBC,the commercial radio sector (which will be 50 years
old next year) and community radio have all shown
radio’s extraordinary resilience and value to the nation,
be this keeping people up to date with the impacts of
COVID-19 within their community, being a free-to-air
source for entertainment and discovery, or simply inproviding companionship.
The Government wants to support and strengthen
UK radio. We will continue to encourage and foster
cooperation between the BBC, commercial radio andDigital Radio and Audio Review. 2021.
Oliver & Ohlbaum for Pact. UK Television Production Survey: Financial Census 2020. 2020.
65
Olsberg•SPI with Nordicity for the BFI. Screen Business. 2021.
66
Olsberg•SPI with Nordicity for the BFI. Screen Business. 2021.
67
BFI. Official 2021 BFI statistics reveal a record £5.64 billion film and high-end TV production spend in the UK. 2022.
63

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community radio – as most recently demonstrated
through the Digital Radio and Audio Review.68
The Government strongly welcomes the recent
announcement by the BBC and commercial radioof new investment in, and continued support for,Radioplayer to help secure radio’s place across a rangeof digital platforms as more radio and audio listening
goes online.
The current rules for licensing commercial radio weredeveloped as part of the 1990 and 1996 BroadcastingActs in order to open up the airwaves for more choice
to FM and to support the development of digital radio
services. But while commercial radio is among themost trusted parts of UK media, it is coincidentally themost regulated sector, a legacy of restrictive localness
requirements on analogue licensed services introduced
nearly two decades ago.
With digital now accounting for 64.4% of UK radio
listening69 and with new challenges from online
audio providers that operate with no regulation, we
remain of the view that the regulatory structure forcommercial radio needs bringing up to date. We wantto ensure that commercial radio is able to operate
under a more flexible regulatory framework that is
fit for the modern age. We will therefore – as soon as
parliamentary time allows – introduce measures toremove outdated character of service requirements
such as music formats and reform the current rules on
where local radio programmes are produced, while atthe same time strengthening requirements for its vital
local news and local information services, including
measures which allow for the protection of local news
on digital platforms.
The Government consulted on a package of measures
to deregulate commercial radio in 2017. Since then the
Digital Radio and Audio Review, which was publishedin October 2021, has assessed the potential impact of
the rapid changes in technology and listener behaviour
on future radio listening, reaching a clear conclusionthat a greater focus is needed on investment in radio
and audio content and in how this reaches listeners.
The Government remains committed to legislating togive effect to the conclusions of the 2017 consultation
on radio deregulation70 when parliamentary timeallows. This will include allowing Ofcom to be able tolicense some overseas radio services for the first time –Digital Radio and Audio Review. 2021.
RAJAR. RAJAR data release: Quarter 4, 2021. 2021.
70
DCMS. Commercial radio deregulation consultation: Government response. 2017.
68
69

specifically those based in the Republic of Ireland – andfor the DCMS Secretary of State to add other countries
to the list of services that Ofcom can license.
The Government also agrees with the main conclusionof the Digital Radio and Audio Review that a switch
off of FM services should not take place until atleast 2030. However, there is a need to update thelegislation to help encourage the ongoing transition
towards digital radio. We therefore plan to:• give Ofcom powers to extend FM licences in theevent of confirmation of a switchover date to ensurethat FM services can continue, if required, right up to
any transfer date;• ensure that the three independent national radio
services (Classic FM, TalkSport and Absolute Radio)
are able to access guaranteed capacity on the
D1 national DAB multiplex should they decide atsome point before a future switchover to ceasebroadcasting on AM or FM and hand back theiranalogue licences to Ofcom; and• remove onerous requirements for local multiplex
operators to have to seek Ofcom consent when
station lineups change.

4.3 Strengthening community radio
Community radio stations typically cover a small
geographical area and are run on a not-for-profit basis.
They can cater for whole communities or for different
areas of interest – such as a particular ethnic group,
age group or interest group. There are stations whichcater for urban or experimental music, while others are
aimed at younger people, religious communities or the
Armed Forces and their families.
Community radio has grown since its formal
establishment in 2005 and has become a vibrant andincreasingly mature part of the UK’s radio sector. There
are now more than 300 community radio stations
on air all across the UK and new digital services areplanned as part of the successful development ofsmall-scale DAB, something strongly championed by
the Government.
This growth is in part thanks to the Government’s
sustained support through the Community Radio Fund.
Administered by Ofcom, the fund provides grants to
support the development of community radio stations.

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Up Next: The Government’s vision for the broadcasting sector

The fund received targeted uplifts of £200,000 in both2020/21 and 2021/22, enabling Ofcom to allocate
more funding to more stations than ever before.
However, licences for the first community stations
launched in 2005 are due to expire in 2025.71 We wantto make sure that community radio has the right
structure to ensure that existing stations can continue
to develop their services and that new community
radio stations can be developed on digital radio.
While we want to maintain community radio’s modelof delivery through community based, not-for-profit
companies or charities, we want to look again at the
restrictions on advertising revenue that prevent somecommunity radio stations from fully monetising theircontent. We also want to ensure that there is a muchwider availability of community radio services, such as
through Ofcom’s digital licensing process, as part of theGovernment’s broader levelling up agenda.
We therefore plan to consult in early 2023 on newproposals to champion the community radio sector
and, where necessary, will bring forward changes tolicensing requirements through amendments to theCommunity Radio Order 2004.

4.4 Improving access andrepresentation in the sector
Broadcasters and the wider media have an important
responsibility to reflect 21st century life in the UK. It
is important that the broadcasting industry – bothon- and off-screen – is representative of the country
in which we live and offers opportunities for people
from all backgrounds to contribute and achieve.
A more diverse workforce can also directly benefit
broadcasters, helping them to find new audiences andcreate more authentic and informed content.72
Although the Government recognises the editorial
and operational independence of the broadcasting
sector, we do want to ensure that we see progress inrepresentation and inclusion across the sector. UK
broadcasting – as well as the wider creative industries –should represent the whole of the UK population.
Evidence suggests there are multiple hidden barriers,

particularly for under-represented groups andthose from working class backgrounds, to entry andprogression in these sectors. Research by the Creative
Industries Policy and Evidence Centre into social
mobility in the creative economy found that “thosefrom a privileged background are twice as likely to be
employed in the Creative Industries than their working
class counterparts”.73 Furthermore, COVID-19 has
worsened this divide, with the proportion of workforcesfrom working class backgrounds dropping up to four
percentage points in ‘Film, TV, Video and Photography’
by September 2020, compared to 2019.74
Under the Communications Act 2003, Ofcom has aduty to promote equality of opportunity in relation
to employment in the broadcasting sector (for both
TV and radio) and has powers to ask broadcasters toprovide information about their diversity policies andthe make-up of their workforce. Although Ofcom’s
five year review of diversity in broadcasting (publishedin September 2021) demonstrated a general trend
towards a more representative industry, there is a lotof room for improvement, particularly in terms of the
proportion of TV employees who are disabled, which
is projected to fall over the next five years, as wellas poor levels of representation of ethnic minority
groups at senior levels.75 Ofcom also found that greater
progress was particularly needed in the retention anddevelopment of diverse talent in the sector.
The issues raised by Ofcom’s five year review ofdiversity and equal opportunities in UK broadcasting
were also considered by the recent Digital Radio andAudio Review. There have been clear moves by the
BBC and commercial radio broadcasters to boost
diversity both across their on-air and online services
and within their wider organisations, through changes
in recruitment and their approach to training andskills. However, research carried out for the Digital
Radio and Audio Review highlighted the need andopportunity for radio to ensure that it continues to
speak to communities across the UK.76, 77 For this reason
the Government will work with radio broadcasters
to identify opportunities to expand radio and audio
services for underserved communities – building on
the existing provision offered by commercial andcommunity radio stations.

Community radio stations that operate on FM or AM are licensed for five years and the legislation allows for three further renewals (20 years in total).
Ofcom. Diversity and equal opportunities in television 2018. 2018.
73
Creative Industries Policy and Evidence Centre. Social Mobility in the Creative Economy. 2021.
74
Creative Industries Policy and Evidence Centre. Social Mobility in the Creative Economy. 2021.
75
Ofcom. Five-year review: Diversity and equal opportunities in UK broadcasting. 2021.
76
Dynata. Ethnic Minorities Radio Listening Project. 2021.
77
Ethnic Opinions. Ethnic minority audience perceptions and consumption of radio and alternatives. 2021.
71

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Changes to the global market and the rise ofvideo‑on‑demand services, as well as the impactsof the pandemic, continue to reshape the sector as
we know it. We are keen to see on-demand services
become a greater part of the conversation on diversity,and to see more collaboration across industry to findinnovative and effective ways to reduce barriers toentry and progression and improve representation.
We also welcome the work being done by a numberof our public service broadcasters and other industry
participants who have also launched their own
diversity and inclusion strategies and initiatives.
The Government calls on UK broadcasters to do
everything they can to address critical areas ofunder‑representation in their organisations and thewider sector, particularly around accessibility for thosefrom working class backgrounds, and to demonstrate
a greater commitment to diversity of opinion amongst
staff, rather than group-think. In doing so the ambition
should be for real change and not just warm words.

4.5 Protecting free speech
A free media is one of the cornerstones of ourdemocracy. The Government recognises the vitalrole the media, including our television and radio
broadcasters, play in holding people to account andshining a light on the issues which matter most. The
central importance of having access to trusted andimpartial news in particular has been underscoredduring the recent invasion of Ukraine, which has seen
journalists, working for the BBC, ITN, Sky and othernews outlets, risking their lives to bring us unbiased andaccurate news from a live war zone.
In support of these principles, we rightly have arobust system of communications regulation led
independently by Ofcom. In relation to broadcasting
it remains entirely appropriate that Ofcom continues
to have responsibility for maintaining the Broadcasting
Code as it regulates issues such as fairness, as well as
due accuracy and impartiality. A code which whollyreflects broadcasters’ right to freedom of expression
and audiences’ right to receive information and ideas.
In this regard it is also important that UK broadcasting
law reflects the UK’s freedoms and traditions. Following
the implementation of the Audiovisual Media Services
Directive, UK legislation currently references theCharter of Fundamental Rights of the European Union
in a way that we are concerned may have a chilling
effect on free speech. As part of the Government’s

broader efforts to amend or remove outdated ‘retained
EU law’ – legacy EU law kept on the statute book after
Brexit – we intend to replace the EU definition in theCommunications Act 2003 with a UK specific measureover the coming months.
We are also concerned about the implications formedia freedom from actions by major tech platforms.
UK news publishers – whether on television, radioor in print – have a strong history of championing
media freedom and for reporting and commenting
fearlessly on events. Television and radio services are
directly regulated by Ofcom whilst there is a system
of independent self-regulation for the press. However,there is a potential tension between these regulatory
frameworks and separate decision-making by online
platforms, on whom news publishers are increasingly
reliant for distribution of their content. For example,
in 2021, YouTube temporarily closed the service of
TalkRadio because of content which had already beenbroadcast on national radio and was therefore subject
to direct regulation by Ofcom. The Government is clearthat news publishers’ content, and wider journalistic
material, should be given greater protection online.
We have therefore included provisions in the Online
Safety Bill to exempt news publishers’ content from thesafety duties in the online safety legislation and ensurethat relevant platforms put in place safeguards forjournalistic content shared on their services.

4.6 Levelling up
In February this year, the Government set out anambitious plan for a complete ‘system change’ of how
government works that will be implemented to levelup the UK. At the heart of this new way of making andimplementing policy will be 12 bold, national missions.
These missions, which will form the heart of our agenda
for the 2020s, will be cross-Government, cross-society
efforts. The first mission, for instance, will see pay,
employment, and productivity grow everywhere, andthe disparities between the top and worst performing
areas narrow.
Broadcasters and the wider media have significant
potential to contribute to levelling up. They can dothis by reinvigorating local economies post-pandemic
to drive regional growth, and strengthening a sense ofidentity and connection with local communities, byallowing people to see themselves and their way of life
reflected on screen.

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Up Next: The Government’s vision for the broadcasting sector

Rebalancing spend and activity across the country, withgreater emphasis outside London and the South East,
will help to bring the economic and social benefits ofmedia and broadcasting to people across UK regions.
Our public service broadcasters have specific quotas
for commissioning programmes from outside London.
These quotas are set and monitored by Ofcom andhave been effective in driving growth across the UK.
For example, the BBC and ITV have already establisheda vibrant media cluster in Salford’s MediaCityUK
from where major UK national programmes including
BBC Breakfast and Coronation Street are made andbroadcast. The BBC’s Across the UK strategy notes that
half of the BBC’s economic impact is already outsideof London and it has identified further significant newcommitments to regional commissioning and talentdevelopment.78 This includes to increase the proportionof BBC TV and radio spend that is outside of London to
60% and 50% respectively by the end of the current
Charter period, a commitment that the Government
welcomes. Likewise, Channel 4 has commissioned morethan half of its programming from producers basedoutside London every year since 2013.79
But we have taken steps to go further. DCMS funding
to the British Film Commission is supporting thefurther growth of seven geographic production hubs –including one in each nation – and numerous newstudio developments all across the UK. In each of theseregions there are already some of the most talented
creative and commercial individuals of any industry,
and the skills landscape must evolve to take advantageof this opportunity. The National Film and Television
School, with support from DCMS, has opened sites
in Glasgow, Yorkshire, and Cardiff with the aim ofstrengthening local talent pipelines for productions
across the UK. There are also a number of cases ofindividual communities taking action; for example,
through the Belfast Region City Deal, £38 million
was secured for the Future Screens Northern Ireland
Creative Cluster – Northern Ireland’s first screen andmedia innovation lab. This will be complemented by£2.9 million funding from Round One of the Levelling
Up Fund for a Flexible Production Studio in Belfast,
to expedite the growth of the city as a competitive
creative cluster for film and screen. These investments
will ensure that the industry is well positioned to
expand on its contribution towards driving regional
economic growth across the UK.
BBC. The BBC Across the UK. 2021.
Ofcom. PSB Annual Compliance Report 2021. 2021.
80
DCMS/Wavehill. Evaluation of the Community Radio Fund. 2022.
78

79

Of course, levelling up is also about supporting
connected communities and fostering pride in place.
Here too our broadcast sectors can contribute. As
touched on above, community radio is a growing
sector, staffed mainly by local volunteers and delivering
numerous social impacts to regions, including fostering
civic pride, increasing community participation andalleviating loneliness. Stations receiving money fromthe Community Radio Fund to date have helped to
improve lives in their communities, for instance in the
promotion of local fundraising causes, coffee mornings
for socially isolated or vulnerable groups, and exerciseclasses. DCMS’ recently commissioned evaluation of
the fund found that grants had provided a lifeline tosmaller stations and boosted their growth.80

4.7 Meeting our commitment to
net zero
The Government recognises the urgency of tacklingclimate change. Following the successful COP26 UN
Summit held in Glasgow in November 2021, the UK
will continue to hold the COP Presidency until COP27
in Egypt in 2022, where we will further drive progresson this important issue. We remain committed toachieving net zero emissions by 2050, with a targetof reducing emissions by 78% compared with 1990
levels by 2035.
The broadcasting sector has an important role to playhere. The Government particularly welcomes the workof BAFTA albert in addressing this issue as the leading
sustainability initiative for film and TV productionin the UK. By providing practical tools and support,
albert is enabling the industry to actively tackle
carbon emissions and limit waste from production
activities. Many funders, including broadcasters andthe Government’s arm’s length body the British Film
Institute, require many if not all of the productions
they fund to use BAFTA albert’s carbon calculator andcertification tools in order to access funding.

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Up Next: The Government’s vision for the broadcasting sector

Carbon emissions in the broadcasting sector have a number of sources, including:
Production. According to the latest review from albert, during 2020 there was a 52% reduction in emissions forthe average hour of TV from 9.2 tonnes to 4.4 tonnes CO2 equivalent.81 Half of this reduction can be attributed
to restrictions introduced as a result of the COVID-19 pandemic, particularly the reduction in travel. It is likelythat as production not only returns to normal but surpasses previous highs, impacts on the environment will
once again rise. However, this should not deter industry from continuing to build on the positives we can takeaway from this period and the new ways of working that have come about as a result of the pandemic.
Distribution. The Carbon Trust has estimated that the average carbon footprint in Europe per hour of video
streaming is approximately 55g CO2 equivalent (comparable to boiling an average electric kettle three times)
per viewer. Their white paper published in 2021 estimates that the energy use associated with watching on a
50-inch TV is around 4.5 times that of watching via a laptop, and 90 times that of a smartphone.82 At the sametime, the UK radio industry is calculated to consume around 115 GWh/year for transmission – the electricalenergy equivalent to that used by 30,000 households.83
Device manufacture. Evidence suggests that the manufacture of a typical flat screen television contributes
around half of the greenhouse gas emissions of its entire lifecycle.84 It also requires the use of a numberof metals including indium, one of the least abundant minerals on Earth.85 Extending the useful lifetimeof televisions, and ensuring they are ultimately recycled, therefore have a key role to play in supporting
sustainability. The Government is pleased that companies are becoming much more conscious about
their carbon footprint. For example, last year saw the launch of the world’s first certified carbon neutral
TV, Sky Glass.86
The Government also welcomes the work individual
broadcasters are doing to support the UK’s net zerotarget for carbon emissions by 2050, and appreciates
the positive precedents the UK sector is already setting.
The pioneering work done by Sky has set an especiallyhigh bar, and we strongly welcome the subsequent
commitments by other broadcasters to being carbon
neutral by 2030, including BBC, ITV and Channel 4,
and we call on other British broadcasters to follow
this example.
This issue is not unique to television. The recent Digital
Radio and Audio Review included a comprehensive
assessment of energy use resulting from analogue anddigital radio broadcasting and a clear commitment
from the radio industry that they should, as part of
future planning assumptions, commit to targets tolower energy use for transmission and radio sets.
The Government recognises the importance of thebroadcasting sector’s contribution, not just in termsof emissions but also public service messaging. That
is why we were pleased to see the industry jointly
announce their ‘Climate Content Pledge’ during

COP26. This is a new commitment convened by
BAFTA’s albert, with 12 signatories so far (including theBBC, ITV, Channel 4, Channel 5, STV and Sky) to use
their content to educate audiences about the need totackle climate change, as well as inspire and informgreen choices.
In addition, the Government remains active inpromoting action on this important matter with ourinternational partners. During 2021 the UK held thePresidency of the European Audiovisual Observatory,a Council of Europe body with a remit covering theaudiovisual sector. As part of this, the Government
worked with albert, the British Film Institute, anda range of international industry and Government
partners to encourage discussion of environmental
sustainability, culminating in a UK-led conference on‘Sustainability in film and TV production’. Thanks to
the UK’s leadership and through discussion with ourinternational partners, the Observatory has confirmed
it will incorporate this important topic into its research
moving forwards, which will provide the UK and othernations with a valuable evidence base to continue toplay a leading role on this important issue.

albert. Annual Review 2020-21. 2021.
Carbon Trust. Carbon impact of video streaming. 2021.
83
Digital Radio and Audio Review. 2021.
84
European Topic Centre on Waste and Materials in a Green Economy. Electronic products and obsolescence in a circular economy. 2020.
85
European Topic Centre on Waste and Materials in a Green Economy. Electronic products and obsolescence in a circular economy. 2020.
86Sky. Sky Glass: The World’s First Carbon Neutral TV. 2021.
81

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Up Next: The Government’s vision for the broadcasting sector

4.8 Encouraging
responsible advertising
The Government recognises the importance ofadvertising in contributing to the vitality and strengthof media markets, particularly broadcasters. We
support the broadly self-regulatory approach takenby the advertising industry, but we also see the valueof limited legislation and regulation where we believe
it necessary.
This is why, to help tackle childhood obesity, we are
introducing restrictions on the advertising of lesshealthy food and drink products. Our analysis estimatesthat in 2019 there were an estimated total of 2.9 billion
child impacts on TV for less healthy food and drink
products. These new measures could remove up to
7.2 billion calories from children’s diets per year in theUK, reducing the number of obese children by 20,000.87
We recognise that these new restrictions will impact
on broadcasters’ future revenue streams. That is
why we have introduced a number of exemptions
and exclusions to balance the anticipated healthbenefits and impacts on business and create a spacefor broadcasters to continue to generate revenue.
For example, brands will be allowed to continue toadvertise, allowing major food and drink companies tocontinue to market themselves. We will continue towork with broadcasters and monitor the effect of the
new measures.
We will also explore other ways to support UK
broadcasters through possible changes in the wider
advertising ecosystem. For example, through theOnline Advertising Programme we intend to consider
how to create a more level playing field between
broadcast and online advertising, including on the issueof platform liability, as we consider what measures
could be introduced to improve accountability andtransparency. The Online Advertising Programme
consultation was launched on 9 March 2022.88

4.9 Preserving our cultural heritage
As well as its commercial value, television, alongsidefilm and other screen activities, forms an importantpart of the UK’s cultural wellbeing and heritage. It
reflects and shapes opinion, captures moments in time,and enables us to better understand ourselves and ourcountry. For that reason it is critical that we preservethat culture, and that content, for generations to come.
The British Film Institute (BFI) currently operates
the BFI National Archive, to which commercial
PSBs are required to make financial contributions.
Under the Broadcasting Act 1990, Ofcom oversees
these contributions and determines the amountappropriate for the holders of the Channel 3, Channel
4 and Channel 5 licences to contribute towards theexpenses of maintaining the Archive. The BFI also
works closely with the BBC and its archival activity to
avoid duplication.
Over time, relevant screen content which shapes UK
culture is increasingly being made outside the PSB
ecosystem. It is therefore important that the Archivecontinues to stay aligned to the changing cultural
output of the UK, and we would welcome moreproactive engagement from non-PSB content makers
with the Archive about how they will contribute to andsupport the UK’s store of culturally significant content
moving forwards. Looking ahead, and working with
relevant partners, we will consider and act on how best
to secure the nation’s cultural screen heritage so that it
can be understood by generations to come.

4.10 Working with our global partners
Free trade is evolving, and the UK has an important
opportunity to trade more and trade differently. We areembarking on a new era in our trading relationships,
negotiating innovative and world-leading free trade
agreements with the markets of the future. By aligning
our trade agreements and relationships to UK priorities,
we are creating export opportunities that work for allparts of the UK.
The Government is proud of the UK’s strong audiovisual
sector, which produces world-class content andattracts investment from around the globe. The UK’s
talent and infrastructure has made it the destination of
choice to shoot major film and TV series such as Star
Wars and The Lord of the Rings: The Rings of Power. The
Government is also acting to support UK independent
content to be seen more widely and was pleased toconfirm that, as part of the wider almost £50 million
Creative Industries package announced in the recent
Spending Review, we will be investing a further £21

DCMS. Introducing a 2100-0530 watershed on TV and online restriction for paid advertising of food and drink that are High in Fat, Salt and Sugar (HFSS) products. 2021.
88
DCMS. Online Advertising Programme consultation. 2022.
87

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Up Next: The Government’s vision for the broadcasting sector

million in the UK Global Screen Fund. That Fund will
create more opportunities to build international
partnerships and share UK stories with the world, witha particular focus on ensuring that even more of ourcritically acclaimed UK independent screen content
reaches global audiences.
The audiovisual sector is a complex ecosystem, andits success is supported by a suite of public policy
interventions, many of which are laid out acrossthis document. The Government is committed tomaintaining and developing the strength of the sector,
including through our international trade agenda.
In particular, we will ensure that the UK’s trade policy
complements and protects the UK’s audiovisualpublic policy framework, including maintaining ourmembership of the Council of Europe’s Convention
on Transfrontier Television and, consequently, ourEuropean Works status. This status ensures that the
UK continues to contribute to vital cultural enrichment
across nations, allowing us to collaborate effectively
with our European neighbours and distribute culturally
important works across Europe. For example, itmeans that broadcasters across Europe have accessto UK content that is hugely popular with European
audiences, increasing choice and engagement, while
also helping to ensure UK audiences have access tothe best European content. It also supports UK andEuropean producers in working together to produce
content across Europe, thereby helping to ensure thatcountries across Europe maintain their own vibrantbroadcasting systems.

4.11 Promoting competition indigital markets
Rapid changes in technology, viewing habits andthe entrance of global players have introduced newchallenges for British broadcasters, as explainedin Chapter 1.
In other sectors the emergence of global tech giants
and the wave of consolidation they have promptedhave raised questions about the impact on competition
and the risk to the range of potential perspectives
available to consumers.
The Government set out its proposals for a new
pro‑competition regime for digital markets in a public
consultation in July 2021, and we will publish our
response in due course. This regime will drive a morevibrant and innovative digital economy across the UK

and will complement the existing competition regime
and regulatory powers available to sectoral regulatorssuch as Ofcom.
The regime will be overseen by the new Digital Markets
Unit inside the Competition and Markets Authority
and will include new rules to ensure consumers andbusinesses are treated fairly and level the playing fieldso that new and innovative tech firms can flourish.
The new rules will apply only to a small number of themost powerful tech firms to shape their conduct in themarket and protect those who rely on them, which insome circumstances may include broadcasters and/or platform operators. The Digital Markets Unit will
be empowered to tackle both the underlying sourcesof market power and its consequences throughthe introduction of conduct requirements and procompetitive interventions. For example, it will beequipped with a range of tools to ensure the mostpowerful tech firms operate on fair and reasonable
terms with third parties.
The Government will legislate for this new procompetition regime when parliamentary time allows.
It will then be for the Digital Markets Unit, as anindependent regulator, to determine how to utilise
their new powers.
Over the longer-term, as the broadcasting sector
continues to evolve, we will continue to consider
how digital markets are impacting broadcasting
and whether further bespoke market interventions
are necessary.

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Up Next: The Government’s vision for the broadcasting sector

Chapter 5: New and emerging technologies
Advances in technology mean that today’s viewers andlisteners now have a huge amount of choice in termsof what they watch and how they watch it, and they
are taking advantage of it. Alongside live TV and radio,audiences now divide their time amongst an increasing
number of providers and devices.
This chapter sets out the Government’s approach toregulating these technologies – encouraging innovation
while maintaining a level playing field for participants.

5.1 Content regulation onvideo‑on‑demand services
Video-on-demand services such as Netflix and Amazon
Prime Video provide huge value to UK audiences, andin many cases significant, and growing, contributions
to the UK economy. Viewers now have access tothousands of hours of on-demand programmes at
the touch of a button across hundreds of different
video-on-demand services, each of different scale andambition and audience reach.
However, these on-demand services, other than BBC’s
iPlayer, are not subject to Ofcom’s Broadcasting
Code, which sets out appropriate standards forcontent including harmful or offensive material,accuracy, fairness and privacy. This means that theTV-like content you watch is regulated differently
depending on how you choose to watch it. Equally,
this is one area of significant innovation and growthin the industry. Consumers enjoy the broad rangeof on-demand services available and we would notwish regulation to impede this experience or to makethe UK a less attractive market in which to operate
video‑on‑demand services.
That is why we launched a consultation to consider
whether it is necessary to level the rules for traditional
broadcasters and video‑on‑demand services.89

89

DCMS. Audience protection standards on Video-on-Demand Services. 2021.

A full response to that consultation has been
published alongside this white paper, which outlinesthat the Government intends to legislate in a lighttouch manner to give Ofcom powers to draft andenforce a new Video-on-demand Code, similar to
the Broadcasting Code, to ensure TV-like content,
no matter how audiences choose to watch it, will be
subject to similar standards. These changes will mean
UK audiences will be better protected from harmful
material and better able to complain to Ofcom if theysee something they are concerned about.
This world-leading regime will be aimed at the largest,
most TV-like video-on-demand services to ensure thatmajor services which engage UK audiences at scale
are subject to the same or similar obligations as UK
broadcasters. This will also ensure that larger TV-like
on-demand providers that are not currently regulated
in the UK but who target and profit from UK audiences
will now rightly come under Ofcom jurisdiction. The
specific services that will be subject to new regulation
will be determined by the Secretary of State following areview by Ofcom.
This will mean that larger on-demand streaming
services will have the same or similar obligations as
traditional broadcasters, including effective handling ofcomplaints. Ofcom tools to regulate video-on-demand,such as information gathering and enforcement
powers, will also be brought in line with existingbroadcasting regulation.
In our light touch regime, increased conformity on
protection tools and measures, like age ratings, PIN
codes and warnings, will not be made compulsory.
Instead, Ofcom will be given an ongoing duty to assess
on-demand providers’ audience protection measures.
This will ensure that the systems put in place by videoon-demand providers are effective and fit for purpose,and allow Ofcom to secure change if needed.

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Up Next: The Government’s vision for the broadcasting sector

Respecting issues of free speech and proportionality,
smaller, lower risk on-demand services in the UK willcontinue under existing rules, ensuring smaller services
are not unfairly or unnecessarily penalised.

5.2 Ensuring all audiences can accessvideo-on-demand services
More than three quarters of households now use videoon-demand services, but the provision of subtitles,
signing and audio description on these services has
lagged behind broadcast TV. While statutory targets
exist for access services (subtitles, signing and audio
description) on broadcast TV, these are not replicatedfor on-demand services, meaning that a significant
proportion of the UK population is being prevented
from enjoying TV at their convenience.
The Government is committed to a digitally
inclusive society, in which television content shouldbe accessible for all UK audiences, regardless ofthe platform chosen to access content. Under theCommunications Act 2003 (as amended by the Digital
Economy Act 2017), the Secretary of State has thepower to impose requirements on service providers
for the purpose of ensuring that on demand services
are accessible to people with disabilities. This includes
requirements in relation to subtitling, audio description
and sign language.
As part of the process to implement these newrequirements, the Government asked Ofcom to provide
recommendations on how legislation could make ondemand services more accessible. Ofcom published an
initial report in December 2018, and then, following arequest from DCMS, carried out an additional targeted
consultation to inform further recommendations on
how the new requirements would work in practice.
These proposals were published in July 2021 and we areworking with Ofcom to develop legislative proposals to
address the divergence in provision of access services
between broadcast and on demand services. We will
engage with relevant stakeholders to ensure thatlegislation is clear, proportionate and fit for purpose.

5.3 Digital terrestrial television

allocated to DTT to ensure that content on theplatform is universally available, due to its nearly 99%
coverage across the UK.
In December 2020, the Government carried out aconsultation which sought views on the renewal of
five national multiplex licences on the DTT platform
expiring in 2022 and 2026. The consultation closed
in February 2021 and the Government publishedits response on 17 August 2021. In our response we
confirmed that we would put in place legislation to
give Ofcom the power to carry out a renewal of all fivenational multiplexes until 2034, accompanied by theappropriate regulatory flexibility via the inclusion of a
new revocation power where revocation cannot takeeffect before the end of 2030.90
This legislation is now in force and the longer-term
renewals recognise our commitment to the DTT
platform. Our expectation, based on the high levelof DTT used by households across all parts of the UK,
is that it will continue to be an important content
distribution channel for at least the remainder of the2020s and likely into the early 2030s.
We recognise that the DTT platform and its future
will continue to remain an ongoing area of interestfor the sector and that this will be an important area
for the UK in developing the UK’s position for the next
International Telecoms Union World Radio Conferencein 2023 where the future allocation of the spectrum
currently allocated to DTT will be a substantive
agenda item. Maintaining investment and confidence
in the future of the DTT platform is important which
is why the Government has enabled the long term
renewal of the licences through to 2034. In addition,
the Government will ask Ofcom to continue to trackchanges to DTT viewing and to undertake an early
review on market changes that may affect the future ofcontent distribution before the end of 2025.

5.4 Internet-delivered television
Despite the arrival of video-on-demand services in the
UK and the convenience it offers, live TV remains the
go-to choice for millions of households in search ofnews, entertainment or something new.

Digital terrestrial television (DTT), better known toaudiences as the Freeview platform, is a popular andimportant part of the UK’s broadcasting system.
Sufficient spectrum (certain radio frequencies) is90

DCMS. Consultation on the renewal of digital terrestrial television (DTT) multiplex licences: full government response. 2021.

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Up Next: The Government’s vision for the broadcasting sector

Internet-delivered television – also known as IPTV –raises the prospect of the best of both worlds,
combining the convenience and choice provided bymodern internet-enabled platforms with the familiarity
and serendipity of linear television.
The UK continues to be at the forefront of these
innovations, supported by our 96% coverage ofsuperfast broadband91 and world-leading rollout ofgigabit broadband to more than 17.5 million homes.92
The Government is committed to ensuring that, by
2025, at least 85% of premises have access to gigabitcapable networks and will seek to accelerate roll-out
further to get as close to 100% as possible. At the sametime, new product launches from platforms including
Sky, Virgin and BT and the further development of
Freeview Play-enabled devices are extending thetake‑up of IPTV services to a greater number ofhouseholds than ever before.
Last year the Government made a clear commitment
to DTT as the primary delivery platform for live TV for
many years to come, but there are many who believethat IPTV could replace DTT over time, just like DTT
replaced traditional analogue television. In time, this
could free up the airwaves for other uses – as theswitch-off of analogue services facilitated the rollout of
the 4G mobile services – though an increased relianceon internet bandwidth for TV distribution could createpressures on fixed networks. Any consideration ofswitching away from DTT would need to reconcile
more wide-ranging issues, such as the fact thatreceiving and watching DTT is ‘free’ if you pay for yourTV licence, but to receive and watch IPTV also currently
requires that consumers have access to a sufficiently
fast broadband connection. While the future of
distribution is uncertain, and decisions on IPTV do notneed to be taken now, there will need to be extensive
public debate on these issues in due course. These arealso the type of issues we would expect Ofcom’s 2025
review of DTT to start to consider.
There must also be a level playing field between theproviders of IPTV services and traditional broadcasters.
As an initial step, we will close the loophole that allows
unregulated IPTV services to appear on TV sets in the
UK by designating additional regulated electronic
programme guides. This will have the effect of bringing
IPTV services listed on those guides within the scope of91
92

Ofcom. Connected Nations 2021. 2021.
Building Digital UK. Project Gigabit Delivery Plan: Autumn update. 2021.

regulation by Ofcom. We will also keep under review
the information gathering and enforcement powers
available to Ofcom in this area.

5.5 Connected audio devices used in
the home and in vehicles
There has been a rapid change in how people listen toradio over the past five years, since the arrival of thefirst connected audio devices – ‘smart speakers’ – into
the UK market.
The future of radio is therefore no longer astraightforward question of an analogue to digital
switchover – listening over smart speakers alreadyrepresents nearly a fifth of all radio listening, andthis is only likely to increase over the coming years
as the base of connected speakers in UK households
continues to grow.
The rapid growth of smart speakers places radio in aposition in which it has never been before, with third
party technology having the capability to manage (andlimit) access to much-loved stations.
The Digital Radio and Audio Review has made a strong
case for action to protect radio and the huge public
value it provides in the face of technological change.
We agree with the conclusions of the Review that newmeasures may be necessary to ensure audiences areable to access radio services on new devices without
undue interference to those services or access charges.
However, this will not be straightforward. Any
significant intervention in this area will need to beconsidered in the wider context of other work that
we are carrying out, particularly in relation to digitalmarkets and data protection reform. We will also needto engage further with the radio industry, and to gaina deeper understanding of the policies and practicesof the smart speaker platforms, in order to ensure that
we are putting in place the best possible regime toallow radio to continue to reach its listeners well into
the future.

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Up Next: The Government’s vision for the broadcasting sector

Acknowledgements
The Government would like to thank the organisations and individuals who helped shape
the policy proposals set out in this document, including:• Ofcom, and others who contributed to their recent review of public service
broadcasting;• Members of the Public Service Broadcasting Advisory Panel;• Contributors to the Digital Radio and Audio Review;• Respondents to the Government’s consultations, including in relation to audience
protection standards on video-on-demand services and a potential change ofownership of Channel 4; and• Members of the Lords Communications and Digital Committee and the Digital,
Culture, Media and Sport Committee for their previous work in this area.

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