Post by Teddy Bear on Jun 24, 2008 22:11:29 GMT
BBC to be scrutinised by Ofcom over plans to expand website
By Nicole Martin, Digital and Media Correspondent
Last Updated: 10:39PM BST 24/06/2008
Plans by the BBC to expand its website are to be closely scrutinised by the telecoms regulator amid fears that the corporation's online activities are stifling competition.
The BBC wants to broaden the reach of its website, bbc.co.uk, by spending £68 million over the next five years on more localised news services for people across the country.
However, the plans have been roundly condemned by cash-strapped regional newspaper owners who fear that the BBC will take readers away from their sites.
They say that the corporation should not be using licence-fee payers' money on duplicating services already provided by local newspapers.
The proposals, which were published on Tuesday, will be assessed by Ofcom, which must evaluate the impact any new BBC service might have on commercial rivals - in this case, local newspapers, local radio stations and mobile telephone services.
The BBC Trust, the corporation's governing body, will have the final say on whether the plans go ahead.
The review comes only weeks after it emerged that the BBC had spent £36 million more than it had planned on its website last year.
The site, one of country's largest with almost 17 million visitors a month, had a budget of £74.2 million but spent £110 million, prompting accusations from regional newspapers that the BBC was monopolising the internet.
A local service is already available on bbc.co.uk, but coverage is patchy and the BBC wants to enhance it by adding "bespoke" local video footage to the existing 60 BBC local websites.
Under the proposals, the number of local websites would increase to 65 and would be expanded to include three daily bulletins for news, sport and weather.
The service, which the BBC wants to roll out from next year, will cost £68 million over the next five years, and £23 million a year thereafter.
The BBC insists that it will stay clear of local paper staples such as jobs, holidays and property, and is proposing "a self-imposed limit" of no more than 10 local video stories a day.
However, The Newspaper Society, the trade body which represents local newspapers, said the proposals threatened the future of local papers.
"The BBC should not spend public money duplicating local news services already provided by existing local media companies," said David Newell, its director.
"This was acknowledged by the BBC when it withdrew its plans for ultra-local television last year. Yet today's proposals to strengthen the BBC's local online news services are simply ultra local TV in a different guise."
He added: "The BBC's 60 local websites already compete head-to-head with regional newspaper websites and its expansion plans, combined with its cross-promotional power, threaten to steal away audiences and undermine the ability of publishers to pursue their own digital development strategies, which are so important to the future of local media in the UK."
As one of Britain's largest websites, bbc.co.uk offers more than 200 separate sections, or "microsites", that cover subjects from parenting advice and religion to cookery tips and football transfer rumours.
It was forced to close down several of its microsites in 2004, including those devoted to soap operas, after a report concluded that they were "not sufficiently distinctive from commercial alternatives".
The BBC Trust will evaluate the proposals to assess whether they offer licence-fee payers value for money.
The results of the review will be published on November 18 alongside Ofcom's report.
By Nicole Martin, Digital and Media Correspondent
Last Updated: 10:39PM BST 24/06/2008
Plans by the BBC to expand its website are to be closely scrutinised by the telecoms regulator amid fears that the corporation's online activities are stifling competition.
The BBC wants to broaden the reach of its website, bbc.co.uk, by spending £68 million over the next five years on more localised news services for people across the country.
However, the plans have been roundly condemned by cash-strapped regional newspaper owners who fear that the BBC will take readers away from their sites.
They say that the corporation should not be using licence-fee payers' money on duplicating services already provided by local newspapers.
The proposals, which were published on Tuesday, will be assessed by Ofcom, which must evaluate the impact any new BBC service might have on commercial rivals - in this case, local newspapers, local radio stations and mobile telephone services.
The BBC Trust, the corporation's governing body, will have the final say on whether the plans go ahead.
The review comes only weeks after it emerged that the BBC had spent £36 million more than it had planned on its website last year.
The site, one of country's largest with almost 17 million visitors a month, had a budget of £74.2 million but spent £110 million, prompting accusations from regional newspapers that the BBC was monopolising the internet.
A local service is already available on bbc.co.uk, but coverage is patchy and the BBC wants to enhance it by adding "bespoke" local video footage to the existing 60 BBC local websites.
Under the proposals, the number of local websites would increase to 65 and would be expanded to include three daily bulletins for news, sport and weather.
The service, which the BBC wants to roll out from next year, will cost £68 million over the next five years, and £23 million a year thereafter.
The BBC insists that it will stay clear of local paper staples such as jobs, holidays and property, and is proposing "a self-imposed limit" of no more than 10 local video stories a day.
However, The Newspaper Society, the trade body which represents local newspapers, said the proposals threatened the future of local papers.
"The BBC should not spend public money duplicating local news services already provided by existing local media companies," said David Newell, its director.
"This was acknowledged by the BBC when it withdrew its plans for ultra-local television last year. Yet today's proposals to strengthen the BBC's local online news services are simply ultra local TV in a different guise."
He added: "The BBC's 60 local websites already compete head-to-head with regional newspaper websites and its expansion plans, combined with its cross-promotional power, threaten to steal away audiences and undermine the ability of publishers to pursue their own digital development strategies, which are so important to the future of local media in the UK."
As one of Britain's largest websites, bbc.co.uk offers more than 200 separate sections, or "microsites", that cover subjects from parenting advice and religion to cookery tips and football transfer rumours.
It was forced to close down several of its microsites in 2004, including those devoted to soap operas, after a report concluded that they were "not sufficiently distinctive from commercial alternatives".
The BBC Trust will evaluate the proposals to assess whether they offer licence-fee payers value for money.
The results of the review will be published on November 18 alongside Ofcom's report.