Media Convergence: Communications Committee Report

Lord Gardiner of Kimble Excerpts

Wednesday 30th October 2013 Lords Chamber

[Lord Gardiner of Kimble (Con)]

My Lords, I in turn thank my noble friend Lord Inglewood and all members of the committee for their report. The Government very much welcome this second report into media convergence. Noble Lords have asked a number of questions, some of them a shade too technical for me. I hope that they will forgive me if some of the answers come in written form; perhaps they will then get a better response. Like the noble Lord, Lord Stevenson of Balmacara, I congratulate your Lordships on setting out in the report an excellent description of what convergence in the world of media content means. I must say that it was extremely helpful to me.

Each of us enjoys content, be it news or entertainment, and modern technology offers a plethora of ways of accessing that news and entertainment. Only last week I read that viewing of BBC TV programmes on mobiles and tablets accounted for 41% of the 176 million requests for the iPlayer in September of this year. The noble Lord, Lord Gordon of Strathblane, raised the issue of this new technology for so many that is proving so popular. That is why convergence is an exciting prospect and a daunting challenge.

The Government have recently completed a review of the legislative framework that governs the media and telecommunications sectors to ensure that it remains appropriate for the digital age. That culminated in the publication in July this year of our strategy paper, Connectivity, Content and Consumers: Britain’s Digital Platform for Growth. Our discussions with industry, regulators and consumer groups demonstrated that the present framework is broadly working well, is generally working for the consumer, and is supporting economic growth and innovation. I was particularly taken by what a number of your Lordships said about the need for evolutionary rather than revolutionary change. That has been borne out in the discussions that have taken place.

The internet and the growing technology to access it both create advantages. There is the advantage, to which my noble friend Lord Inglewood referred, of being able to move seamlessly from television channels regulated by the broadcasting code to channels streamed directly from the internet. There are also the disadvantages for users confronted with unregulated content that they might not have wanted. I understand that point.

The committee’s valuable report presents a comprehensive overview of the converging media landscape and the opportunities and challenges that it creates. We must look at how best to address those challenges. We know that some issues will need to be discussed on a European or even a global level in the future. However, we are not yet living in a fully converged world, so the Government seek to address issues that can be tackled on a national level to achieve the best outcome for our country. We also seek a safer internet environment by working closely with member states as part of the EU Commission’s Safer Internet programme.

The value of the media sector to the UK and the economy is not to be underestimated. Over the past decade it has gone from strength to strength. It is also crucial to us all as consumers, allowing us to communicate as never before and giving us access to ever more sources of information and content. However, sometimes having more information does not necessarily mean that we receive better information, so we should look at ways in which we can be sure of the reliability of that information.

Convergence has the potential to increase the value that this sector generates even further, allowing new business models to emerge that offer people exciting and innovative new products and services, and bring about great benefits for consumers and business alike. We therefore fully agree with the committee’s view that there should be no movement to reduce the exceptional opportunities presented by convergence and by the internet more broadly.

We have also taken into consideration wider international discussions that will impact on the audiovisual sector—for example, about issues such as copyright—and which are briefly mentioned in the report. I shall take this issue a little further to draw attention to the UK’s support for a comprehensive multilateral treaty that protects the same rights in different technologies, and covers traditional wireless broadcasting, as well as internet broadcasting and rebroadcasting.

As your Lordships’ report states,

“the fluidity of change is uncontested; dramatic developments in media industries and audience behaviour will continue to run on in the wake of convergence”.

While technology and consumer behaviours are changing, it is important to remember that, as noble Lords have already mentioned, different media are converging in different ways and at different speeds. Indeed, people still expect that their television, radio, newspapers and social media will encompass and embrace different opinions, different values and, indeed, different levels of partiality. My noble friend Lord Inglewood also referred to this. What is important is that we should identify the source of the news or content we are accessing, so that we can feel comfortable in applying those expectations.

The Government believe that our basic approach to regulation in this area, through Ofcom and the Authority for Television on Demand, strikes the right balance between the freedom of the internet and the tighter regulation of live broadcast material. It is impossible to predict with any certainty how convergence will continue to develop and at what pace. All noble Lords who have spoken referred to this. We do not want to make the mistake of attempting to predict the course of developments and of inadvertently stifling growth. The noble Lord, Lord Stevenson of Balmacara, hit the nail on the head: we must be careful that we do not choke off desirable advances by seeking to regulate. That is an important feature that we need to study carefully. In many respects convergence has not yet significantly affected consumer behaviour, but predictions for future developments regarding technical development and consumer behaviour are uncertain. That continues to bear out our approach.

The Government therefore favour greater partnership working and collaboration with industry across the media market. Your Lordships’ report reflected comprehensively on the issue of common media standards. We agree that non-broadcast content providers should be positively encouraged to ensure that there is a common framework for media standards in preparation for a more converged future. However, we want industry and regulators to work together on a voluntary basis to achieve this.

The recommendations in the committee’s report for content standards refer to content standards on TV and TV-like services. We agree with the committee’s characterisation of the emerging environment for content standards with the convergence of live and on-demand TV-like content, and the increasing role of the internet in providing content. We are also in agreement with your Lordships’ report that the process of convergence poses a challenge to how we continue to ensure public expectations about content standards are met. However, we believe that the time is not yet right for convergence of broadcast television and television-like content regulation, because, since the process is incomplete, we can only speculate at this moment on how best to manage it.

The noble Lords, Lord St John of Bletso and Lord Stevenson of Balmacara, spoke powerfully about the recommendations on content standards in Chapter 4, headed “A safer internet”. We agree with the committee’s findings about the challenges and opportunities of the internet, and what UK citizens expect in relation to this. The Government have been working through the UK Council for Child Internet Safety and with industry to drive action that will help ensure that parents can keep their children safe while online. My noble friend Lord Clement-Jones rightly referred to the major speech that the Prime Minister made on 22 July, in which he set out a range of measures that he has asked internet service providers, mobile network operators, public wi-fi providers and Ofcom to deliver to ensure the UK stays at the forefront, internationally, of delivering a safer internet.

Much online activity takes place in the home. Providing parents and guardians with easy-to-use and effective tools to help limit the content that children can access is a key aspect of the overall package of measures that should be available. The Government recognise that some parents may be less comfortable using the internet and may feel unsure about how to go about keeping their children safe. That is why we have charged the internet service providers with making the parental control tools they are developing as simple as possible. The noble Lord, Lord St John of Bletso, raised the question of awareness. Internet service providers will run an awareness campaign early next year with advice to help parents become more confident in setting up parental controls tools.

In addition, as part of the Government’s reforms to the national curriculum, we have strengthened the requirements to teach e-safety as part of the changes to the new computing programmes of study. From September next year, e-safety will be taught to pupils at all key stages.

The Government have been working with industry to secure the commitment that, by the end of this year, the four largest internet service providers will provide, free of charge, family-friendly network-level filtering for new customers. This means that, when someone sets up a new broadband account, the settings to install family-friendly filters will be automatically selected and will cover all devices in the home connected to that service.

Internet service providers have also committed to contacting existing customers during next year and providing them with an unavoidable choice on whether to set up filters. The Government believe that working with and through industry is the most effective way in which to increase the safety of children online through securing the engagement of industry and organisations across the whole sector. This is an essentially international situation. I know that the Secretary of State visited America precisely to have discussions on this issue.

Ofcom has been asked to report, by the end of this year, on a number of areas in relation to child internet safety, predominantly around parental awareness of—I hope that that will be endorsed by the noble Lord, Lord St John of Bletso—and confidence in using, the available internet safety tools.

The recommendations on content set out a clear picture of how public service broadcasters—PSBs—have an important and continued role within the wider context of content creation and commissioning in the UK. I listened very carefully to what the noble Lord, Lord Gordon of Strathblane, said. Indeed, the Government are about to update existing regulation on PSB prominence. The quality and diversity of our content is something for which the UK is admired internationally, and the PSBs are central to this success. I applaud all the channels that work so hard and are so much part of our creative industries. They invested £2.8 billion last year in UK content. Non-PSBs have also increased the amount they invest in UK content. In addition, UK-originated content is a successful export. Research commissioned by the Producers Alliance for Cinema and Television and UKTI shows that the revenue generated from international sales of UK television programming and associated activities grew by 9% between 2010 and 2011 to a figure of £1.475 billion.

We want to ensure the continued health of the industry as a whole, and continued investment in UK content both by PSBs and by non-PSBs. Further, we are mindful of the need for stability and certainty in the sector, to avoid any potentially chilling effect on such investment in the medium to longer term. Again, the noble Lord, Lord Stevenson of Balmacara, referred to that. We need sometimes to be cautious. That is why we have set out the outcomes that we want to see, and the action that we will be taking in working in partnership with the industry.

All noble Lords asked about legislation and consultation. The Government will consult on a range of issues. There will be a consultation on broadcasting competition, to which my noble friend Lord Clement-Jones referred, and if necessary, legislation may follow. We will also consult on electronic programme guides and the level of payments. We intend to legislate on nuisance calls, spectrum, switching the bundles, R18 video on demand content and premium-rate services. The Government believe that the right way forward is to legislate on the key areas of concern and not have—I think the committee’s report endorses this—new and radical root and branch new legislation that would be unhelpful to the sector.

A dynamic and competitive broadcasting industry is essential to boost growth, encourage creativity and innovation and improve consumer choice. We recognise that the current competition regime is not perfect, particularly in a converged world. This reflects the thrust of the committee’s report in this area. We are looking at how we can improve it for the benefit of consumers and industry. We committed to consult on broadcasting competition, as I have said, in our paper, Connectivity, Content and Consumers. We will keep the legislative framework under review, but we do not consider that wholesale changes, either at national or EU level, are necessary or appropriate. It is important that EU regulation in this area could be a negative if it were to stifle growth. We need, again, to be careful and cautious on that.

In considering how best to address the challenges and, indeed the issues of regulation, I believe that there is no single bullet. Technology is constantly changing, as the noble Lord, Lord Gordon of Strathblane, said. I agree entirely with him that legislation should be less complex and more understandable, but there are occasions when the draftsmen defeat us all. I believe that we should avoid legislation with a short shelf life, particularly in a changing environment. We must, however, have a framework in which the industry can grow and in which consumers—most important of all—are protected. Various strands of ongoing work are in place that aim to address many issues set out in the committee’s report, and there are still further developments to consider all the time as convergence evolves.

The noble Lord, Lord Stevenson of Balmacara, challenged me on what might be called the strategic priorities for the Government. That is why the paper was produced. The Government wish to establish world-class connectivity throughout the UK, to support the production of world-beating, innovative content and services that originate in this country, and to ensure consumer safety in an increasingly online world. We also wish to keep the cost of living down by ensuring that consumers have choice.

I assure noble Lords that we have discussed both the committee’s report and the paper, Connectivity, Content and Consumers with colleagues and officials. The Select Committee’s report has given great insight into many issues with which we are all having to wrestle during this continuing process. I assure your Lordships that we think that much of what the committee proposes should be developed further. I renew my thanks to all who have worked on this report and acknowledge it as a valuable resource that has indeed helped enormously in addressing the challenges that undoubtedly lie ahead.