±«Óătv Trust approves proposals for ±«Óătv Store
Today, the ±«Óătv Trust has announced it has approved proposals from the ±«Óătv Executive to launch a new online commercial service for audiences to buy and keep ±«Óătv programmes.
±«Óătv Store will allow users to buy new programmes and a selection of content from the ±«Óătv archives, on a download-to-own basis. , the ±«Óătv's commercial arm, will establish and run the service. ±«Óătv Store is distinct from ±«Óătv iPlayer, which will remain a free catch-up service funded by the licence fee. Ěý
As a commercial service, Trust approval of ±«Óătv Store was based on an analysis of public value, commercial efficiency, the potential reputational impact on the ±«Óătv, and compliance with competition and state aid rules. As part of its assessment, the Trust secured independent economic and state aid advice.
While the proposal is for a commercial service, it involves changes to ±«Óătv iPlayer, one of the UK public services. As a result, in addition to the commercial service approval, the Trust carried out a separate assessment to establish whether the proposed changes to ±«Óătv iPlayer that arose as a result of ±«Óătv Store were significant and required a Public Value Test – the regulatory process for any proposed new ±«Óătv service. The Trust sought advice from Ofcom as part of this process. Ofcom identified some areas of potential impact from the changes to iPlayer. As suggested by them, the Trust conducted further analysis in each of these areas and concluded that the proposed changes did not trigger the requirement for a Public Value Test. Its findings are published below.
Suzanna Taverne, lead trustee on the assessment, said:
"The ±«Óătv needs to respond to significant changes in the way audiences now buy programmes. The creation of ±«Óătv Store will enable it to do so, and to release a greater selection of classic shows from the ±«Óătv archive.
"In considering ±«Óătv Store, the Trust conducted a robust assessment and sought the advice of external parties. It concluded that ±«Óătv Store is a worthwhile commercial service that supplements what the ±«Óătv makes available through the licence fee and promises to bring value not only to audiences but also to the wider creative industries."
The Trust’s regulatory assessment can be found below:
The advice provided by Ofcom on the potential 'impact on others' of the changes to ±«Óătv iPlayer can be found below:
The changes to the service licence for ±«Óătv Online and Red Button can be found below:
, PDF (85KB)
The RBB report commissioned by the Trust as part of its assessment of ±«Óătv Store can be found below. We have redacted a small amount of information from the published document. This is because disclosing it would either be commercially prejudicial, or would inhibit the provision of free and frank advice. The redactions are clearly marked.
Notes to editors
The ±«Óătv Executive’s proposal to extend the catch up window from seven to 30 days is subject to ±«Óătv Trust approval and will be considered at a later date. However, the cumulative effects of an extended 30-day window was factored into the analysis of ±«Óătv Store. The Trust considered this was likely to be slight and did not affect the overall decision on impact.
The Trust is awaiting formal proposals from the ±«Óătv Executive for future plans to ±«Óătv iPlayer, which will be subject to Trust approval.
Commercial services approval
The regulatory procedure for the approval of commercial services is different from the process followed for public services. Under the Charter and Agreement, all commercial services must meet all of the following criteria:
- they must fit with the ±«Óătv’s Public Purpose activities
- they must exhibit commercial efficiency
- they must not jeopardise the good reputation of the ±«Óătv or the value of its brand
- they must comply with fair trading guidelines in force and in particular avoid distorting the market.
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