Digital Economy Bill

Debate between Baroness Garden of Frognal and Viscount Colville of Culross

Committee: 2nd sitting (Hansard - continued): House of Lords
Thursday 2nd February 2017 Lords Chamber

[The Deputy Chairman of Committees (Baroness Garden of Frognal) (LD)]

I must advise the Committee that if Amendment 73 is agreed to, I cannot call Amendment 73A by reason of pre-emption.

[Viscount Colville of Culross (CB)]

My Lords, I declare an interest as a director and producer of television programmes for public service broadcasters. I have put my name to Amendments 73 and 235 because I want the public service broadcasters in this country to benefit as soon as possible from the repeal of Section 73. I also support Amendment 73A, which seems a very sensible use of any money the PSBs might garner. The question of whether there should be a transitional period after the repeal of Section 73 seems to revolve around the issues of whether underlying rights need to be worked out as part of the retransmission negotiations and whether it will take time to introduce a new structure for negotiating licensing arrangements between PSBs and cable providers.

At the moment, all channels, including the PSB channels, routinely buy the rights for “traditional” cable retransmission if they anticipate content being carried on cable, so rights should not be a problem. Therefore, any negotiations will focus on the licensing arrangements between the PSBs and the cable providers. As there is already a structure in place for the licensing arrangements of the PSBs’ non-core digital channels, this surely cannot be an excuse to put off the introduction of a similar framework for the core channels the moment Section 73 is repealed. I, too, am saddened by the extraordinary amounts of money that seem to be made by the streaming catch-up websites, such as TVCatchup and FilmOn. The litigation appears to suggest that millions of pounds has been made by these websites and therefore lost by the PSBs. The sooner we can stop that loophole, the better.

There is a genuine need to give extra financial support to the PSBs in this country. As the noble Lord, Lord Clement-Jones, said, they are the major customers for original UK content in all genres. They are threatened by the success of BSkyB and, in the BBC’s case, threatened with a 20% cut in funding as it takes on the burden of the concessionary TV licence fees. The noble Lord, Lord Clement-Jones, said that huge amounts of money would not be made by the repeal. However, the 2013 NERA report in the US noted that the free-to-air American broadcasters received $3.3 billion in retransmission payments, while the fees accounted for less than 3% of the cable operators’ cost. Therefore it seems that while UK PSBs will be able to raise extra money from new retransmission fees to invest in new content, the repeal will not have much impact on the price charged to the viewer. The removal of Clause 29(3) and the rapid introduction of the repeal of Section 73 will benefit both the PSB content providers and the creative industries across this country.

Media: Plurality

Debate between Baroness Garden of Frognal and Viscount Colville of Culross

Wednesday 7th March 2012 Lords Chamber

[Baroness Garden of Frognal]

How could I not agree with my noble friend? Yes, indeed, and of course the Communications Committee continues to produce very well-respected and in-depth reports for your Lordships’ consideration.

[Viscount Colville of Culross]

My Lords, surely the battle is now on for control of access to the digital media. Ofcom took three years to review pay TV, which is dominated by BSkyB. Does the Minister feel that the media regulatory framework is nimble enough to respond to a fast-changing media marketplace?

[Baroness Garden of Frognal]

The noble Viscount makes a very valid point and we are hoping that it will be nimbler, with the reviews that are under way at the moment. We are not intending to delay any recommendations that come out of the Leveson inquiry, or any recommendations from Ofcom. As the noble Viscount rightly says, it is a very fast-moving world.