Ofcom’s decision not to investigate Project Canvas under the Competition Act removes one more regulatory obstacle to the launch of the broadband connected TV service with the brand name YouView

It looks increasingly as if the YouView launch will experience further delay, with autumn 2011 looking steadily more likely as disputes continue over the satisfactoriness of the technical specifications released by YouView for meeting manufacturer needs

Although backed by powerful broadcast and ISP interests, YouView faces stiff challenges to achieving widespread adoption among ‘Freeverse’ homes, with much depending on YouView’s ability both to deliver consistent product quality and to get its message across

Subject to BBC Trust approval, Canvas looks almost certain to launch in spring 2011 after the OFT decided that it did not have the jurisdiction to review Canvas under the merger provisions of the Enterprise Act 2002. The OFT decision does not rule out complaints on other grounds, but the chances of persuading the regulators look very small

The launch of Canvas promises to strengthen significantly the free-to-air digital terrestrial platform, otherwise very limited compared with satellite and cable platforms in terms of bandwidth, but mass adoption poses numerous challenges and it is open to question whether Canvas will ever extend to more than half the DTT base

In the long term, it is hard not to see Canvas as an interim step in the growing convergence between the TV screen and the internet, raising the question of how successfully its PSB TV-centric approach can adapt to the coming challenges of the full blown digital age

Kangaroo, the BBC/ITV/Channel 4 VOD project, looks unlikely to see the light of day any time soon, based on the Competition Commission’s (CC) provisional findings announced on 3rd December

 

 

 

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

 

 

 

Channel 4 has announced the immediate withdrawal of its majority stake in 4 Digital Group, a new venture that was awarded the licence by Ofcom in 2007 to build the UK’s second national commercial radio DAB multiplex, and Channel 4 will not be launching its promised portfolio of broadcast radio channels

The obvious culprit is the weak economy, with mobile telecoms seeming to be more vulnerable to consumer cutbacks than previously thought, a hypothesis supported by recent consumer research

With European economic growth forecast to decline further, revenue growth is likely to drop below zero by the beginning of 2009, and then progressively worsen through 2009 as regulatory effects worsen, creating a very tough environment for mobile operators to preserve margins

 

This report considers recent activity concerning the radio sector’s Digital Audio Broadcasting (DAB) platform and examines the implications, particularly in view of the recent establishment of a government working group examining the future of digital radio, and given weak consumer acceptance of DAB. It concludes that overcapacity of DAB spectrum is an issue that will only be exacerbated by the planned launch of a further DAB national multiplex by Channel 4 in 2008