Channel 4 has hit out at plans to close the so-called “iPlayer loophole”, arguing that it would penalise other public service broadcasters.
The government has proposed changing the current licence fee regulations, which only cover live TV viewing, to include on-demand TV such as the iPlayer.
Channel 4 said that while there is scope to reform the licence fee system – C4 chairman Lord Burns is particularly keen on the BBC eventually morphing into a Sky-style pay-TV subscription service – it has “significant concerns” about the government’s plans.
The broadcaster says the current proposals are inappropriate as they would also ensnare the catch-up TV services of other public service broadcasters such as ITV, Channel 4 and Channel 5.
This would mean that if a household did not pay the BBC licence fee then commercial public service broadcasters would have to also block them from using services such as ITV Player, All4 and Demand 5.
“We believe that the current proposals are poorly targeted, placing an additional burden on commercial PSBs who receive no benefit from the licence fee,” said Channel 4 in its submission to the Commons culture, media and sport select committee’s review of the BBC charter. “[It would also place] commercial PSBs at a direct disadvantage to rival commercial video on demand services by requiring them to limit access to non-licence fee paying households.”
Channel 4 said that if the legislation cannot be implemented to fairly cover all TV on-demand services than it must only focus on the BBC iPlayer.
The broadcaster’s relatively brief six-page submission is broadly supportive of the BBC, although it does offer the occasional warning.
Channel 4 notes that while it is “vital” that the corporation continues to offer a wide “breadth and range” of content to maintain public relevance, it “does not need to do everything in depth” and crowd out commercial rivals.
Channel 4 also argues that there is a case for Ofcom to take over regulation of the BBC and that it should also have a unitary board – which Channel 4 does – but there would need to be “arm’s length” separation between governance and funding.
“If Ofcom was to take on greater responsibility for the BBC, Channel 4 believes it would be appropriate to ensure there is an arm’s-length separation between Ofcom and the allocation of funding and scrutiny on how the licence fee is spent,” said Channel 4. “One option would therefore be to establish an expert panel of advisers within, but functionally separate and arms-length from, Ofcom to deal with these issues.”
Unsurprisingly Channel 4 is against the idea of options such as a sell-off of BBC Worldwide – the broadcaster is itself being evaluated by government for a potential £1bn privatisation – as such moves could “risk upsetting the delicate balance of funding that exists in the PSB ecology without clear strategic benefits to the sector or licence fee payers”.
