Dec 8, 2005 • 1 min read

OfCom and ITV chief contribute to BBC Charter debate

Ofcom wants the BBC charter to include cross-promotion rules, while ITV's Charles Allen calls the BBC's proposed licence fee increase ridiculous.

Talking of the Beeb, media regulator OfCom are urging the government to include rules covering cross promotion akin to those that apply to commercial broadcasters in the new BBC charter. OfCom themselves have revamped the cross-promotion rules governing the commercial TV channels - in particular ensuring that when promoting their other channels ITV et al do not give biased information on the best way to receive those channels (Sky, cable, Freeview etc), and that cross promotional airtime is used to promote a network's other TV channels, and not any other commercial ventures they may be involved in. OfCom has no powers over the Beeb, but it said this week that it strongly feels that the BBC should be subject to the same restrictions in this area as the commercial players. In a statement the regulator said: "Ofcom considers it important that the [charter review] White Paper should require the BBC to adhere to the same set of requirements as that imposed on ITV1, Channel 4 and Five."

Meanwhile, the boss of ITV has described plans by the BBC for an inflation-busting licence fee increase as "ridiculous". Addressing a House Of Lords Select Committee on the BBC Charter renewal, Charles Allen said that the licence fee should be rising at less than the rate of inflation, not more. He said that, if the government allowed the licence fee increases that the Beeb wants (about 2.3% above inflation each year), the Corporation's income in 2013 would outstrip the combined ad revenues of every commercial broadcaster which, he says, buts the BBC at a considerable unfair advantage.

Allen: "The quantum is ridiculous. No one's clocked the scale of it and it would distort the market. If the BBC got anywhere near the increase they are asking for it would be ridiculous ... The BBC should be more efficient over time and we should be looking at an RPI [retail price index] minus settlement."

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