Protecting the Public

Interest under Global

Convergence

Chris Marsden
PCMLP/IPPR Seminar
Nuffield College, Oxford
27 April 2001
 Assessing pluralism &
diversity in 1996 Act
 1999: Council of Europe Report; ‘Pluralism and
Diversity in the Multi-channel TV Market’
 www.ijclp.org

 1999: Regulating Media Owners in Digital TV:

Lessons from UK Analogue Policy
 17 Cardozo Arts & Ent. Law Journal

 2000: Not So Special? Media Pluralism Merges with

Competition and Industrial Policy
 2 info 1 (Camford Publishing)
Council of Europe Report
 Digital TV: markets are immature
 Analogue pluralism and diversity tightly controlled in a
rationed market
 Politicians captured by pubcaster/pay-TV regulatees
 Programming ‘must carry’ should be extended from
public service to include all news programming
 Bottleneck technical interfaces: CAS, EPG, API, ISP
 ISPs should carry pubcaster/e-government icon
 UK digital terrestrial carve-up prevented entry
 concentrating on internal diversity and

 competition between platforms

Regulating Media Owners
 Global convergence overtakes pluralism
 ‘Media exchange rate’ inspired by BMIG
 Industrial policy response to Sky and MNCs
 Better approach would be revenue-based
 Internal pluralism should take priority
 ‘Astonished at their moderation’
 Media owner freedom of the fox in the barnyard
How do existing PIT and
competition tests work?
 Radio Authority: high-profile vetoes
 Newspaper Panel: equally high-
profile
 ITC: regional diversity post-merger

 Is it broke? Does it need fixing?

 Does OfCom change anything?
What can competition
teach?
 Merger conditions substantial:
 Vivendi
 Forward-looking analysis:
 Warner-EMI
 Divestments common:
 Telia-Telenor
 Market analysis at micro-level
 Watchdog with teeth, not crying wolf
A better solution?
 OfCom concentrates on:
 Technical bottlenecks
 Diversity, regionality, quality
 Competition Commission:
 Media Panel
 Expands work of newspaper panel
 PIT from Radio Authority and ITC
 Politically independent and rigorous
 DTT Multiplexes 1997:
Many Channels, Few Voices
6 m u lt ip le x e s
'b o x w a r ' w it h B S k y B
C a n a l+ s y s t e m

id T V o r O N D ig it a l s e t - t o p d e c o d e r
f r e e ly a v a ila b le f r o m M a y 1 9 9 9
A c c e s s t o a ll 6 m u lt ip le x e s

2 1 / 2 x p u b lic s e r v ic e 3 x O N D ig it a l 1 / 2 S 4 C m u
m u lt ip le x e s n e w c o m m e r c i a l m [ Cu la t ib p l le e t x e e l / s U
B B C , I T V , C 4 , C 5 'c o n s o la t io n

B S k y B U K T V
B B C - I T V - C 4 - C 5 p sr e e mr v ii uc em s p r o g ro a r mi g i mn a i n l / gp a c k a g e d p r o g
r e in f o r c in g e x i s i t i n mg o l i vc ie e ns c a n e ds s p o B r t B s C
e jo in t v e n t u r e w
f r e e t o D T T c u s t o m e r s F le x t e c h / T C I I n c . [ A T
r e la x e d p u b lic s e r v ic e c o n t e n t

O N D ig it a l p r o g r a m m in g
n e w / p a c k a g e d / p r e m iu m
C a r lt o n M o v i e s
G r a n a d a P lu s
 ITV Terrestrial Interests 1997
O w n e r s h ip o f 1 2 I T V A n a lo g u e T e r r e s t r ia l C o m
a n d D ig it a l M u lt ip le x e s
( e x c lu d e s U ls t e r , C h a n n e l a n d B o r d e r )

G r a n a d a U N & M
G r o u p p lc p lc

C h a n n e l 5
L W T G r a n a d a Y o r k s h ir e n a t io n a l lic e n c e
L o n d o n N o r t h w e s t - T T T V 3 0 % in t e r e s t
w e e k e n d N o r t h - E a s t ( 2 )

M e r id ia n H T V A n g lia
S o u t h e r n W a le s E a s t e r n
& W e s t

C a r lt o n S c o t t is h M e d ia
p lc G r o u p p lc

C a r lt o n C e n t r a l T S W S T V G r a m p ia n
L o n d o n M id la n d s S o u t h w e s t S t r a t h c ly d e H ig h la n d s
w e e k d a y

O N D ig it a l IT V / IT V 2 S 4 C C h a n n e l 5
G r a n a d a - C a r l t o n 1 m u l t ip l e x 1 / 2 m u l t ip l e x p a r t m u l t ip l e x
3 m u l t i p l e x e s 5 0 o- 5w 0 n e d b y a l l IT V 3 0 % U N & M U N & M 3 0 %
l ic e n s e e s
Developments 1995-2001
 Market:
 Internet & mobile Internet
 Digital satellite, cable & terrestrial TV
 Huge mergers in US:
 Disney-ABC
 AOL-TimeWarner
 AT&T-MediaOne-TCI
 Regulation:
 US: 1996 Telecoms Deregulation Act
 EU: Convergence drift 1996-2001
 Can 1995 proposals be
updated?
2001 Tiers Regulatees Pluralism Diversity
Tier 3 BBC National Strong internal
diversity
monopoly
Tier 2 ITV Regional ITN separated
monopoly
Tier 1 Broadcasters Substantial Financial and
international
from MNCs news dominates

Tier ‘0’ ISPs Substantial: Huge diversity; low

audience share
TV, newspaper, (except
MNC Reuters/BBC/AP-type
portal news)
Communications Bill 2002
 OfCom to adjudicate PIT
 ITV and radio to consolidate
 BBC JV & WWW ventures
investigated
 No specific internal pluralism test
 Newspaper regime continues in
Competition Commission