Post by Teddy Bear on Nov 21, 2008 22:43:08 GMT
For once, the BBC's greedy fingers have been slapped.
Regional newspapers boosted as BBC bosses are pressured into rejecting £68m plan for local news websites
By Paul Revoir
Last updated at 10:36 AM on 21st November 2008
The BBC's controversial plans to increase its online local news coverage were thrown out today.
The corporation was hoping to invest £68million upgrading its local websites, including adding more video footage to the stories.
But the BBC's governing body today rejected the proposal saying it would not improve public services enough to justify either the use of licence fee funds or the negative impact on commercial media.
The proposal had led to growing anger that the expansion could kill of regional newspapers and other media competitors and scores of MPs voiced their opposition.
The governing body's decision may have been influenced by research by media regulator Ofcom showing that the scheme for 65 local video services could severely distort the market.
The announcement on the proposals follows months of campaigning by opponents.
Shadow culture secretary Jeremy Hunt warned this month it would be 'a disaster' if the corporation's proposed new online service led to the death of local newspapers.
In a letter to Trust chairman Sir Michael Lyons, Mr Hunt said: 'It would be a disaster, and certainly not in the public interest, if BBC action in the provision of local news killed off under pressure commercial operators in this sector.
Sir Michael Lyons, chairman of the BBC Trust, who rejected the £68m plans to increase its online local news coverage
'Such a result would mean the public relied overwhelmingly on the BBC for its local news.
'Given that Ofcom recently found that 86 per cent of the public value having more than one provider of news programming, and 76 per cent value having more than one provider of programming about their nation or region, there is a clear appetite for competition in this area.'
As part of the plans which would have been introduced next year, the number of local websites would have increased to 65 and expanded to include three daily bulletins for news, sport and weather.
The service would have cost £68million over the next five years, and £23million a year from then on.
The scheme was roundly condemned by regional newspaper owners who feared that the BBC will take readers and advertisers away from their websites.
ITV also believes that public money should not be spent on duplicating a service already provided by the commercial sector.
It feared that the future of ITV Local, its own online local video news service, would have been at risk if the BBC's plans were approved.
Newspaper Society director David Newell said: 'We are pleased that the BBC Trust and Ofcom have responded to the industry's concerns and rejected the BBC local video plans for the time being.
'This is a proposal which the BBC should never have made and would have severely reduced consumers' media choice and the rich tapestry of local news and information provision in the UK.
'We will be seeking an urgent meeting with the Secretary of State to discuss the future roles of the BBC, BBC Trust and Ofcom and the current challenges facing regional and local media.
'We must be on our guard to ensure that the BBC is not allowed to expand its local services by alternative means.'
By Paul Revoir
Last updated at 10:36 AM on 21st November 2008
The BBC's controversial plans to increase its online local news coverage were thrown out today.
The corporation was hoping to invest £68million upgrading its local websites, including adding more video footage to the stories.
But the BBC's governing body today rejected the proposal saying it would not improve public services enough to justify either the use of licence fee funds or the negative impact on commercial media.
The proposal had led to growing anger that the expansion could kill of regional newspapers and other media competitors and scores of MPs voiced their opposition.
The governing body's decision may have been influenced by research by media regulator Ofcom showing that the scheme for 65 local video services could severely distort the market.
The announcement on the proposals follows months of campaigning by opponents.
Shadow culture secretary Jeremy Hunt warned this month it would be 'a disaster' if the corporation's proposed new online service led to the death of local newspapers.
In a letter to Trust chairman Sir Michael Lyons, Mr Hunt said: 'It would be a disaster, and certainly not in the public interest, if BBC action in the provision of local news killed off under pressure commercial operators in this sector.
Sir Michael Lyons, chairman of the BBC Trust, who rejected the £68m plans to increase its online local news coverage
'Such a result would mean the public relied overwhelmingly on the BBC for its local news.
'Given that Ofcom recently found that 86 per cent of the public value having more than one provider of news programming, and 76 per cent value having more than one provider of programming about their nation or region, there is a clear appetite for competition in this area.'
As part of the plans which would have been introduced next year, the number of local websites would have increased to 65 and expanded to include three daily bulletins for news, sport and weather.
The service would have cost £68million over the next five years, and £23million a year from then on.
The scheme was roundly condemned by regional newspaper owners who feared that the BBC will take readers and advertisers away from their websites.
ITV also believes that public money should not be spent on duplicating a service already provided by the commercial sector.
It feared that the future of ITV Local, its own online local video news service, would have been at risk if the BBC's plans were approved.
Newspaper Society director David Newell said: 'We are pleased that the BBC Trust and Ofcom have responded to the industry's concerns and rejected the BBC local video plans for the time being.
'This is a proposal which the BBC should never have made and would have severely reduced consumers' media choice and the rich tapestry of local news and information provision in the UK.
'We will be seeking an urgent meeting with the Secretary of State to discuss the future roles of the BBC, BBC Trust and Ofcom and the current challenges facing regional and local media.
'We must be on our guard to ensure that the BBC is not allowed to expand its local services by alternative means.'