No ‘healthy’ streaming industry without British broadcasters – BBC executive

A BBC executive has said that without “healthy competition” from British broadcasters than streaming companies like Netflix will not make as much local UK shows.

There has been a downturn in TV advertising revenue that has hit various UK channels, and the BBC has also had to deal with two years of having the licence fee frozen during the pandemic.

Director of BBC iPlayer and channels Dan McGolpin told the Edinburgh TV Festival on Wednesday that there are “dangers about gatekeeping” under the new Media Bill, which updates broadcasting laws for the streaming age.

He said: “So if you look at the Media Act that has now passed, which is fantastic, but there’s a lot of interpretation there.

“For Ofcom… in fact, it enshrines appropriate prominence for the PSBs (public service broadcasters) in those places.

“But how that’s interpreted is still slightly open to question. We need to look at that … in the end, we all want a healthy PSB ecology to live alongside streamers, and that’s good competition.

“That’s closest to the golden age you’re talking about. That may not happen unless we ensure that those PSB programmes do get seen.

“So there are some risks there. I do think we need to support the media act and make sure it’s followed through.”

He also suggested that tax rules should be changed.

“I think we need initiatives as well, like specific things like comedy, for example, you only get tax breaks if it’s super high end, but actually, very few people are investing in comedy any more, the BBC wants to, but why should it only be tax breaks at the very high end?

“If you want that to be a successful genre, and that’s got its challenges in terms of short term gains, we need things like that.

“So there are lots of things like that I think the industry can think about in order to make sure we have that thriving PSB ecology in the future. Because, remember, the streamers are doing a lot of local stuff, partly because they’re competing with a thriving PSB ecology.

“So that’s … a really key point of why the PSBs need to be strong in this in the future, so we all get healthy competition.”

Ahead of the session on the future of TV, the BBC’s analysis editor Ros Atkins outlined issues within the entertainment industry.

He said the BBC, ITV, Channel 5 and Channel 4 are all “facing significant challenges”.

Atkins added: “For example, with broadcast, the electronic programme guide gives PSBs guaranteed prominence. That’s regulated. The same guarantees don’t exist in the streaming world. And the consumer is making different choices there, too.

“The viewing hours on streaming for this year show that Netflix is over twice as big as anyone else. BBC is next, then Disney+ and Amazon Prime.

“Let’s stop to think what this shows – based on everything we’ve already considered.

“In the streaming market – where we know viewers are heading – where big tech is competing for ad revenue – where expensive tech development is crucial – the PSBs are there, they’re growing – but the majority of viewing isn’t with them – it’s with the global players.

“The merits or otherwise of this can be discussed. If that continues, there are a range of commercial and cultural consequences that may follow.”