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The final Ofcom statement on the future of PSB advocates fixing the commercial PSB crisis by designating Channel 4 as the core alternative provider of public service programming to the BBC, and freeing up ITV and Five commercially by means of considerably lightened PSB obligations

The fundamental issue of the Channel 4 (or any other) solution is funding the new commercial PSB model. Eyes are now being set on a Channel 4 partnership with BBC Worldwide, centred on its UK assets as the marriage made in heaven

Another major recommendation of the Ofcom PSB proposal is the abolition of the national Channel 3 breakfast time licence, currently held by GMTV, which is running a viable business with its own sales force. This recommendation appears at odds with Ofcom’s commitment to plurality in news provision and its statutory duties to encourage competition in the communications industries

Major record labels will allow iTunes to sell all its music stripped of digital rights management (DRM), removing a barrier to digital music buying, while iTunes will introduce in April the tiered pricing the industry wants

We expect no real bounce in demand, however, as Apple’s DRM was not a restriction for iTunes customers as most owned iPods, the dominant music player in a market which is almost fully matured – we expect few iPod customers to pay to upgrade their libraries to DRM-free

News of peace breaking out between iTunes and the recorded music industry was overshadowed by reports of the continued steep decline in CD volumes sold in the US market, down almost by one fifth in 2008 from 2007, with digital increases again failing to offset the decline

The consultation period for the second phase of Ofcom’s Second Public Service Broadcasting Review closes on 4th December 2008. The central issue before Ofcom is that the current PSB model is broken, lacking the flexibility to “adapt to audiences’ evolving needs”. The primary concern lies with the commercial sector, which is under increasing strain to deliver its PSB commitments due to structural changes in the television medium that have been compounded by the present economic crisis. This presentation sets out our views about the role of structural changes in restraining TV net advertising revenues (NAR) growth in recent years along with our latest TV forecasts to 2013. Whilst some of the current downward pressures on TV NAR may be expected to ease, a new structural change that threatens the commercial PSB sector is the growing chasm between BBC investment in its PSB services and the advertising revenues of ITV, Channel 4 and Five

 

 

 

The recorded music market decline continued without pause in 2007, with global sales down an estimated 11% in value. Physical and internet piracy continue to drive the CD sales decline, along with substitution to downloads, and the bankruptcies of physical retailers in the US and UK. Meanwhile, Apple’s iPod+iTunes music ecosystem continues to be favoured by customers, driving the growth of the digital music market, as ringtones stabilise globally. These recorded music market trends are reducing music publishers’ associated royalty income, although offset by rising royalties from the use of music on broadcast media, film, advertising and the internet

Powered by strong computer sales at Apple stores and surging European sales (and the weaker dollar), Apple’s dollar revenue for Q1 FY2008 rose 35% year-on-year to $9.6 billion, exceeding guidance of 29%

Apple has now launched downloads of 28 US TV series in the UK, hoping to drive demand for portable video watching on iPod or for home viewing via Apple TV