Media Convergence: Communications Committee Report

Lord Stevenson of Balmacara Excerpts

Wednesday 30th October 2013 Lords Chamber

[Lord Stevenson of Balmacara (Lab)]

My Lords, I thank the committee for its excellent report. I probably should say “latest in a range of excellent reports” because in recent years the committee has been doing exemplary work, stalking around the areas to do with communications and the audio-visual sector more generally and bringing forward a range of proposals and ideas which are fantastically useful to those who are interested in this area. Indeed, it confirms the rightness of your Lordships’ House in deciding that the committee should continue; long may it do so. I also thank those who have contributed to the debate today. We are small in number but high in quality. We have certainly given most of the main recommendations in the report a good whirl.

The report starts in relatively easy mode. It takes as its typical reader someone—not unlike myself, I suspect—who does not really understand what exactly they are talking about, and tries to explain what media convergence is. I was okay for the first three or four lines. In fact, I think I could answer a certain number of questions on the first three or four paragraphs. I liked the bit that said that it was a technological phenomenon where the various platforms come together, but that does not really help us get into the question of how, when and on what basis regulatory and other measures might be needed to deal with this brave new world.

I was happy to read the quote from Lara Fielden, who explains in essence what we are talking about:

“Newspapers are not just printed but online and carry video packages with the look and feel of traditional TV; broadcasters publish websites including text-based articles similar to online print offerings; scheduled programmes are broadcast but also available on-demand, on digital channels and a variety of websites; user-generated material vies for online audiences alongside professionally produced content; professional and amateur bloggers share the same debates”.

As the noble Lord, Lord St John of Bletso, said, our kids consume all of this, and more, all the time. I often come home to discover them lounging on a settee watching television, plugged in to an iPod, listening to other music that is playing loudly and also texting and doing other things. How do they do it? Indeed, it occurs to me that the need for regulation is probably in inverse proportion to the number of platforms a person consumes on average. Think about it.

The value of this sector to the UK economy is some £53 billion. The sector is growing, providing jobs and new business opportunities, creating exports and boosting inward investment, generating benefit for the UK. All the signs are that this will continue. As the report recognises, intellectual property is a crucial element in this mix and while the report acknowledges it, it is a pity that the committee has not, so far, dealt with it. I hope that it will return to this topic. That aside, it seems to be generally accepted that convergence has the potential to increase the value that this sector generates even further, allowing new business models to emerge and offer people exciting and innovative new products and services which will bring about great benefits for consumers and businesses alike.

However, I have some sympathy with those who warn that, while technology and consumer behaviours are changing, it is important to remember that the process of convergence is taking place unevenly. Different media are becoming more converged in different ways and at different speeds and we find that audience expectations have not changed as fast as the technology or the markets. It is interesting that audiences have continued to distinguish between content on the basis of where they find it and on what service it is provided. Indeed, in that respect they may be ahead of both this report and the Government.

If I have one concern about the report, it is that it implicitly gives the impression that, other things being equal, more convergence will require more regulation. I can see the arguments for that, but I am not sure that the evidence is there yet. It may be that smarter, different regulation is what is required, but, at least in the interim, I hope that we can all agree that there should be no movement to reduce the amazing opportunities that are presented by convergence and the internet more broadly. I agree with the committee’s assessment that a flexible, industry-led approach will be key to addressing the challenges and making the most of the opportunities of convergence.

The Government say that they have been undertaking a wide-scale review of the sector over the past two years—it seems like a lot longer than that—and it has been good to read that, shortly, they will be publishing their strategy and vision for the sector. Will the Minister enlighten us on the timetable for legislation? Are we to see more publications along the lines of the ones that have already been produced, perhaps even the long-promised White Paper, first referred to in this House in about 2010, but which seems no nearer publication?

We have had a good discussion about the detail and I shall pick up on two points. The committee points out that the process of convergence poses a challenge in ensuring that public expectations about content standards are met. I note that the Government do not believe that the time is yet right for convergence of linear and non-linear regulation. I should be very grateful if the Minister could say more about that because we do need clarity here—indeed it came up as a Question in the House only yesterday. The committee makes good points about news and its imaginative proposals for non-linear news provision have some merit. I hope that its suggestion of legislating early on the principles but holding back on the detail will catch the eye of the Government. It may be that the age-rating system that was referred to during the debate could work, although I have to say that I have my doubts, particularly if the British Board of Film Classification system was to be expanded wholesale.

There are some recommendations for content standards in the section on “A safer internet”. That area has many challenges. Clearly, we need to make sure that children experience the internet in as safe a way as possible. However, their parents have major responsibilities in this area, and it is also important that the internet is open and transparent, in line with the aspirations of its founding parents. At this stage a self-regulatory approach is surely the right one for non-broadcast material. As has been said, securing the engagement of industry and organisations across the whole value chain, from internet service providers, mobile phone operators and device manufacturers, to retailers, software developers and parents, should deliver results. It would be good if the Minister could outline his Government’s expectations on this issue.

The quality and diversity of our content is something for which the UK is admired internationally and UK-originated content is a successful export. Research commissioned by PACT and UKTI shows that the revenue generated from international sales of UK television programming and associated activities grew by 9% between 2010 and 2011. We all want to ensure the continued health of the industry as a whole and continued investment in UK content both by public sector broadcasters and non-public sector broadcasters. That suggests a need for stability and certainty in the sector to avoid any potentially chilling effect on such investment in the longer term.

As my noble friend Lord Gordon noted, the report rightly raises the importance of ensuring that terrestrial television has sufficient spectrum to enable it to compete effectively with other platforms. The report covers the worries that exist in the industry about the long-term future of DTT and makes points about the possible impact of Ofcom’s administered incentive pricing scheme. Again, it would be useful if the Minister could share the emerging thinking on this point.

Finally, before my voice finally deserts me, the committee should be congratulated on an excellent report, and on being so far ahead of the game—so far ahead that it has produced a very limp response from the Government so far. As the noble Lord, Lord Clement-Jones, says, what is the strategy here? I should be grateful if the Minister could enlighten us.

At the start of his remarks the noble Lord, Lord Inglewood, drew attention to the royal charter sealing which was scheduled for about now. He may not know it, but we have been able to find out—by skilful use of devices on a multi-platform basis—that an appeal has now been lodged in the Royal Courts, and so the sealing may be delayed. Nevertheless, that means that we are thoroughly up to date. We are catching up with the committee, which is far ahead of us at all times, but it has left us with a very good report that we hope will stimulate the long-needed debate in this area.