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Channel 3 and Channel 5 licence renewals: renew, extend ... or auction?

On 31 December 2014, the licences that ITV plc, STV, UTV and Channel 5 require to run their channels on buttons 3 and 5, with access to half of the second Freeview multiplex, require renewing.

On 31 December 2014, the licences that ITV plc, STV, UTV and Ch
published on UK Free TV

Today, Ofcom has published the legal "advise the Secretary of State" looking at the options for TV channels 3 and 5.

Since the formation of the ITV network in the 1950s, the licences to operate the services have been put up for auction with changes to the services happening in the 1960s, 1974, 1982 and 1993.

However, due to the digital switchover (and successful lobbying from ITV plc) the licences helf by ITV, STV, UTV and Channel 5 have been renewed "automatically".

Ofcom’s report today considers whether the existing licence holders will be able to contribute, at a commercially sustainable cost, to public service broadcasting in the 10 years from 2015.

Ofcom says it will be looking at:

Delivering benefits to viewers

The licensees provide public service programming, such as news and current affairs, which is valued by viewers. In return, they receive benefits, such as the right to appropriate prominence on TV listing guides and access to spectrum to broadcast on digital-terrestrial television (Freeview).

In the report to the Secretary of State, Ofcom has outlined three credible options for the licences and considers that each could deliver benefits for TV viewers. These are

1. Renew existing licences

The licensees have told Ofcom that, in broad terms, their existing public service obligations could be sustainable in the next licence period*. Ofcom’s analysis shows the Channel 3 and 5 licensees could continue to make a sufficient contribution to public service broadcasting beyond 2015.

This includes the possibility of establishing a separate, stand-alone licence for Channel 3 in Wales. We also suggest that changes to the Channel 3 service received by viewers in the south of Scotland may be appropriate to ensure the provision of Scottish news in that area.

2. Auction new licences

Re-auctioning would open up licensing to a competitive process. It may also test whether potential bidders – including the current licensees – could consider fresh approaches to public service broadcasting.

3. Extend the current licences

Extending the current licences for a shorter period could allow for a full review of public service broadcasting as part of a future Communications Bill. It could also give Parliament a chance to consider how public service content could be delivered in a world changed by the growth of digital media.

Ofcom believes that the three options are credible. The decision now rests with the Secretary of State.



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Comments
Wednesday, 30 May 2012
Rog
1:00 AM

Of cause it depends on the size of your TV screen and picture as to the real benefit of so called HD - lets face it in the 1940's 405 line black and white (VHF) was referred-to as 'High Definition'(compared to 30 lines vertical it certainly was) - in the 1950's and to the late 1960's we had one or two TV stations (BBC or ITA) late 60's BBC2 on 625 lines UHF only still b/w; but because the new 21" TVs produced a degraded 405 line picture 625 (UHF) had to come, meanwhile Hollywood and Pinewood were loosing audiences even of full colour star studied movies to say at home TV, so into cinemas came wide screen as it was thought TV would 'never be able to show Cinemascope' etc and in USA NTSC Color TVs were expensive and big, full of tubes and 'Never The Same Color' at each scan.
After a couple of decades when TV was in a sort of limbo in the UK after BBC and ITV had started in 625 then PAL colour along came Sky dishes and BSB 'table mats' but then came the clever move of the TV manufacturers (90% non-British) to push the UK public into wide screen , big screen, digital , p.c. linked , led and lcd (young chaps in TV shops explained to customers CRT is dead - I suspect half didn't even know what CRT stood for!) anyway it was away from the box in the corner to the flat screen hanging on the wall time (bad for your eyes and your neck)so to the tip with the 28" and to Currys for a 50" so you could watch the movies meant for the cinemas - what comes around goes around .......

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Rog's 39 posts Bronze Bronze GB
Saturday, 2 June 2012
Briantist
10:42 AM

Rog: It's a shame you missed out what people say "PAL" stood for: People Are Lavender.

BSB wasn't PAL, of course, it was D-MAC. Which sorted out the colour problems, BSB pictures were technically the best by a country mile.

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Briantist's 38,757 posts Owner Owner GB
Wednesday, 6 June 2012
A
Andy Ripley
12:45 PM

I can see the biggest problem about the ITV licence renewals being the lack of competition. Gone are the days when there were numerous bidders, they've all been swallowed up and become ITV plc. I expect them to downgrade their regional content, after all it costs money and they're struggling for revenue. As for the public service element, watch them wriggle out of any commitments.

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Andy Ripley's 32 posts Bronze Bronze GB
Sunday, 10 June 2012
D
David Pinfold
10:38 AM Banbury

The only realistic option is to renew the existing licenses and make it a condition that Channel 5 takes up the 5th freeview HD slot. The only advantage that these channels gain from their PSB status is their position on EPG's (3/103 & 5/105).In an era of multichannel broadcasting the real value for any channel is the content they broadcast. For example, if ITV1 lost out to a new bidder they could move to a commercial freeview mux & stay on freesat / sky (in a different EPG channel number) but crucially they would retain the rights to their biggest shows, e.g. Coronation St & X-Factor & would be freed from their PSB obligations. This would make it extremely difficult for a new bidder to enter a very competitive market place.

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David Pinfold's 41 posts Bronze Bronze GB
David's: Freeview map terrain plot frequency data R&TI Service digitaluk trade DAB coverage
Tuesday, 3 July 2012
C
chris king
1:45 AM

Being back regional itv was a better service me thinks and a regional itv1 hd yorkshire for us in yorkshire as we went calendar news

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chris king's 1 post GB
M
Mark Fletcher
2:57 AM Halifax

Chris King.Being born in Halifax myself in my honest opinion the day Yorkshire TV replaced Granada TV in the town back in 1968 was a big mistake,and i was born the year later.The same happened to nearby Todmorden back in 1982 when Yorkshire TV replaced Granada TV in that town and if i recall many Todmordians were up in arms when that happened,and similarly in 2009 when BBC1 Look North from Leeds replaced BBC1 North West Tonight from Manchester there too.Luckily most households in Halifax especially to the west of the town facing Lancashire can receive Winter Hill transmissions thus listening to BBC1 North West Tonight and ITV1 Granada Reports local news bulletins.

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Mark Fletcher's 671 posts Gold Gold GB
Mark's: Freeview map terrain plot frequency data R&TI Service digitaluk trade DAB coverage
Saturday, 28 July 2012
N
Nick Anderson
10:55 AM

The problem with ITV1 today is that there is no flexibility in the regions to opt out at times other than the restricted regional news magazine slots to broadcast anything of interest to the region unlike the BBC which does have greater flexibility to opt out for programmes of particular interest to the region. This situation could and should change.

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Nick Anderson's 58 posts Bronze Bronze GB
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