Media Bill (Sixth sitting)

Debate between Stephanie Peacock and Kirsty Blackman

Committee stage
Tuesday 12th December 2023 Public Bill Committees

[Stephanie Peacock]

Clause 49 introduces schedules 10 and 11, which provide further information about enforcement and how it relates to the new prominence regime for our public service broadcasters, as well as the new regime for radio services on smart speakers and voice-activated platforms. I will speak briefly about both schedules in turn.

Schedule 10 sets out how penalties for failure to comply with the relevant regimes will be calculated. The ability to issue penalties is an important backstop that will ensure compliance with the regime while incentivising mutually beneficial commercial partnerships. However, to secure the integrity of the regime, it is important that there is consistency and fairness in how the backstop can be used, so it is good to see set out in legislation the principles that Ofcom must apply when determining the amount of any penalty, as well as how maximum penalties will be calculated. It is right that these should have the potential to be significant—they can amount to either £250,000 or 5% of the person’s qualifying worldwide revenue—so that they can serve their purpose as an effective deterrent. I am also pleased that the schedule allows for those amounts to be adjusted, should they need future-proofing in any way. Any change would be subject to the affirmative procedure, which would allow for scrutiny. Overall, I believe that schedule 10 is a necessary consequence of the regimes that the Bill sets up, and I have no particular issues to raise with the way that they have been drafted.

Schedule 11 is an important extension of the backstop powers awarded to Ofcom. It sets out the liability of parent entities and subsidiaries, and explains how confirmation decisions, penalty notices or provisional notices may be issued to them. Having that clarification in the Bill will hopefully make for a clear enforcement framework for Ofcom, and will make clear the responsibilities on those to whom the rules apply, so I welcome the inclusion of the schedule, which is necessary to the introduction of the two prominence regimes.

Question put and agreed to.

Clause 49 accordingly ordered to stand part of the Bill.

Schedules 10 and 11 agreed to.

Clause 50

Awards of costs

[Kirsty Blackman (Aberdeen North) (SNP)]

I beg to move amendment 41, in clause 50, page 112, line 33, at end insert—

“(4) This section does not have effect until both Houses of Parliament have passed a motion in the form ‘That this House is satisfied that an effective alternative method is in place of persuading publishers to become members of an approved regulator; and therefore approves the repeal of Section 40 of the Crime and Courts Act 2013.’”

Media Bill (Fifth sitting)

Debate between Stephanie Peacock and Kirsty Blackman

Committee stage
Tuesday 12th December 2023 Public Bill Committees

[Kirsty Blackman]

I absolutely agree. It is really important for voice activation. It is also really important for physical activation as well in terms of on-screen navigation, because of that massively high proportion of listening that takes place in the car.

For an awful lot of people, that is the only way that they hear news. They are not listening to the radio to hear news; they are listening to the radio to hear music, but they catch news bulletins on commercial radio. By the way, commercial radio stations put an awful lot of time, effort and journalism hours into ensuring that they have accurate news bulletins and that they are providing updates. For a significant proportion of people, that is the only form of news that they hear, and they hear international and national news as well as local news on those services. Therefore, it is important not just from an entertainment point of view, but from a resilience and an information point of view.

We have talked already about democracy and access to democracy and democratic services. Some people only get those updates from the radio; they only know that a general election has been called because local radio has told them. [Interruption.] Don’t worry, a general election has not been called this morning—I am sure that Government Members would know before I did, anyway. [Interruption.] I am sure that some Government Members would know before I did, anyway.

I would like the Minister to be very clear that he attaches importance to radio and to commercial radio and that he understands the ways that people use it. I would also like him to commit to giving some consideration to how this Bill could be future-proofed to ensure that those screen and button navigations also allow people to get the service that they want and that they do not have to use voice activation. If he can give me that reassurance, I may not push the amendments to a vote.

[Stephanie Peacock (Barnsley East) (Lab)]

As I mentioned on Second Reading, part 6 is one of the most contentious parts of the Media Bill. The Culture, Media and Sport Committee picked up on it immediately and published a dedicated report on the radio clauses prior to its report on the Bill more broadly. The report highlighted issues with the drafting as well as with the content, which I will speak about in more detail as we debate the various aspects of, and additions to, this part. It also expressed full support for the inclusion of measures intended to protect our treasured radio services. I wanted to mention that at the beginning of my remarks.

I have been extremely supportive of radio and the principles of inclusion, but I know that platforms are extremely concerned. A few weeks ago, I hosted a roundtable with radio services and platforms and we had a really constructive discussion about the Bill. It was one of the first times that stakeholders had been invited together to have a discussion, albeit a virtual one. During the discussion, it was clear that platforms were largely happier, albeit to varying degrees, with the latest version of the Bill compared with the draft. That is to the credit of the Committee and the Department, which took seriously the matter of rectifying some of the problems with the Bill while maintaining a commitment to the importance of the part and radio as a whole. I believe the Bill is all the better for it. We are now on a much better footing for discussing some of the remaining issues in the clause. We can focus on the nuances, rather than discussing whether our radio services should be protected.

I therefore approach the amendments today keeping in mind the fact that a good balance has been struck. My overwhelming priority is to ensure that radio services get the protections they have been waiting for. I do not wish to cause any major further disruption to a part of the Bill that has been fine-tuned, to the benefit of both radio and platforms.

To address amendments 42 to 44 specifically, as with the smart speakers explicitly included in the Bill, car entertainment systems are a platform that have the potential to make it hard for users to find radio services. Some sophisticated car entertainment systems, for example, have the ability to preference their own content over radio services, to force users to swipe through pages of options to find their favourite radio station, or indeed to refuse to offer radio, full stop. Radiocentre claims that some recent models of Tesla cars do not have a broadcast radio at all, and though it is theoretically possible to stream radio through an interface on such models, no protections are in place to ensure that that will remain the case in a genuinely accessible and convenient way.

That issue is only more worrying when coupled with the reality that listening via car entertainment systems is on the rise, in particular among younger people. Ofcom reports that 9% of people listen to a streaming service via an in-car system, rising to 19% in the 16-to-24 age group. I therefore ask the Minister why such car systems were not considered for inclusion in the initial definition in the Bill alongside smart speakers. The CMS Committee report said that

“the Government may have overestimated the extent to which listeners are easily able to find their preferred stations in in-car systems.”

I agree with that statement and with the Committee’s recommendation to the Minister and Ofcom that they keep the issue under “close review”.

The Government agreed to that in their response to the Committee report, so how do they actively plan to do it? At what threshold will they consider extending the regime to cars or to any other device that poses similar problems? While I am in favour of exploring the inclusion of car entertainment systems, given the scope in the Bill to extend the regime, I think it is important that any extension is properly consulted on; in particular, car manufacturers themselves will need to be consulted.

Similar to the prominence regime for public service broadcasters, , it is right the Bill should be future-proofed so that new technologies can be accounted for, not just with cars, but further into the future. I hope that the Minister will consider that and will explain with clarity how we can be sure the Bill does enough to protect radio not just in today’s world, but in the years to come.

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[Kirsty Blackman]

I accept and understand the Minister’s reassurances. I am pleased to hear his support for radio, and his understanding of its importance, particularly in relation to car and van use. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

[Stephanie Peacock]

I beg to move amendment 32, in clause 48, page 89, line 21, at end insert—

“(4A) A statutory instrument containing regulations under subsection (1) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.”

This amendment would ensure that regulations which designate and specify descriptions of radio selection services are subject to the affirmative procedure.

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[Kirsty Blackman]

These amendments would ensure that the regulations were subject to the affirmative procedure when they were first created, and advance consultation on any changes to those regulations. Have I got that correct? If so, I am happy to support the hon. Lady.

[Stephanie Peacock]

Yes. We understand why the Bill is not prescriptive in setting out designated radio selection services, but if that is to change, there should be further parliamentary scrutiny.

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[Kirsty Blackman]

I will be fairly brief. Amendment 45 is about the scope of regulation of the selection services, and about internet radio services, including on-demand and internet-only content provided by the BBC or Ofcom-licensed radio stations.

There are some issues with the definition, given the changing nature of radio and listening; the fact that people listen to services on demand and to internet radio; and the possibility of a time lag between internet or digital radio broadcasting, and broadcasting on analogue services. Some services are in scope only if they are broadcast on digital radio at the same time as being broadcast on the internet. If there is a time lag between the two, then they are not broadcast at the same time—and they may be broadcast only a few seconds apart. I would like clarity from the Minister on whether “at the same time” means “sort of at the same time.” If someone accidentally listens to the radio via two different methods at once, they may find that what is being played is slightly out of sync. I might do that when I move between the car and the house, or move between listening on my mobile phone to listening on my television. I may have different ways of listening to a service.

To be fair, I do not differentiate between listening on the internet and listening to digital audio broadcasting radio. If someone asked me whether what was coming through my car speakers was being streamed through the internet, coming from DAB or on an analogue service, I probably could not say. All I know is that I am listening to Northsound Radio, or BBC Radio Scotland; the method I am using does not make a difference to me.

There is also some stuff here about Ofcom-licensed radio that is broadcast only on the internet. That is also important, because again, people listening to Classic FM have no idea whether the programme is available only on DAB or on the internet. They just know that they are listening to Classic FM. For those people, the definitions do not matter; nor do they matter for licensing. Classic FM and BBC radio are licensed in the same way, through Ofcom, whether people listen to them online or via DAB. They are held to the same standards. The question is therefore whether the Bill does what the Minister and the Government intend: ensure that regulations and protections are in place, whether programmes are broadcast via digital radio, the internet or analogue services.

[Stephanie Peacock]

I will begin by addressing amendments 45 to 47 and new clause 3, which I tabled. I am disappointed that on-demand and podcast listening appear to have been excluded from the new radio protections. As the BBC points out, it is somewhat unusual that the Government have recognised the need to legislate in the Bill for on-demand TV content, and acknowledge its growing role in people’s viewing habits, yet have neglected to recognise the same patterns emerging for audio content and the rise of podcasts, and are failing to provide appropriate protections as a result. Some 10 million adults listen to podcasts every week, and there are estimates that in just 3 years’ time, there will be more than 28 million podcast listeners in the UK. Likewise, of BBC Sounds’ 417 million plays between October and December 2022, 193 million were on demand. It seems somewhat counterintuitive, therefore, that the Bill tries to protect the future of radio through a clause that does not pay any attention to one of the fastest growing ways of listening to audio.

To use an example provided by Radiocentre, under the current system, a user would be able to tune in to the LBC breakfast show with Nick Ferrari but could not be guaranteed access to the hugely popular podcast “The News Agents”. The same applies to on-demand radio: a user could listen to “World at One” or “Today in Parliament” live, but cannot be sure of catch-up access. Of course, given the breadth of podcasts available, it makes sense that any change might begin with ensuring access to podcasts associated with Ofcom-regulated stations. That would give a reasonable limit, so that platforms are not given the extra burden of onboarding a number of unregulated services that are not already within scope of the Bill. However, given the popularity of podcasts and the Government’s intention to protect valuable UK audio content, excluding podcasts altogether seems like missing a huge opportunity. I hope that the Minister understands that that is a contradiction, and will lend his support to some of the amendments.

My new clause 3, and amendments 45 to 47, make very similar requests of the Government on this topic, though new clause 3 is less prescriptive. If the Minister chooses not to support these amendments, it would at least be a good opportunity for him to explain why podcast services have been excluded. I point out again that the last chance we had to create media legislation was 20 years ago. What if another opportunity does not arise for 20 years? Does he not think that it will seem rather out of place for there to be no protection for on-demand audio content? Many measures in the Bill were crafted specifically to allow for future-proofing and a forward-looking vision. This is one area where such a vision has unfortunately been lacking, and I hope to rectify that through the amendments, with the support and co-operation of the Committee; I know that many of its members are in agreement with me on this.

On amendment 51, there have been various concerns, during the Bill’s formation, about the definition of an internet radio service, and the reference to programmes being provided in the same way and at the same time as the broadcast service. I am therefore glad that since the draft Bill, tweaks have been made to ensure that adverts are disregarded when it comes to considering whether a programme is being provided at the same time as a broadcast service. That change will have come as a great relief to providers of radio services that rely on a certain level of customisation when it comes to adverts. However, I know that Radiocentre and others still have concerns that the Bill does not account for minor differences in output, or time lags. Will a small difference, such as a time lag between a broadcast and an online radio station’s output, be considered a breach of the definition, and exclude a station from being designated as an internet radio service? At the very least, I hope that that was not the intention of the wording. It is important to clarify that explicitly in the Bill.

Media Bill (Fourth sitting)

Debate between Stephanie Peacock and Kirsty Blackman

Committee stage
Thursday 7th December 2023 Public Bill Committees

[Stephanie Peacock]

I am, of course, aware of the complexity of removing the tier 1 element from the Bill at this stage, and I acknowledge that agreeing to this set of amendments would create difficulties for the Bill more generally. I was aware of that when drafting the amendments, but I wanted to raise the issue that the Bill is perhaps not clear enough about—what the video-on-demand provisions will apply to and how audiences would receive the certainty they need. The Minister has alleviated some of those concerns today, so I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

[Kirsty Blackman (Aberdeen North) (SNP)]

I beg to move amendment 38, in clause 37, page 77, line 34, at end insert—

“(5A) In section 368C (Duties of the appropriate regulatory authority), after subsection (6) insert—

‘(6A) The appropriate regulatory authority must draw up, and from time to time review and revise, appropriate guidance relating to the duty of providers of on-demand programme services to ensure the archiving and retrieval of programming delivered by these services for the purposes of preserving cultural heritage.

(6B) The guidance under subsection (6A) must include guidance on providers’ relationships with—

(a) the British Library;

(b) the National Library of Scotland (Leabharlann Nàiseanta na h-Alba);

(c) Llyfrgell Genedlaethol Cymru (the National Library of Wales);

(d) the Library of Trinity College Dublin;

(e) the British Film Institute.’”

This amendment would place a duty on OFCOM (or other regulator) to draw up guidance aimed at streaming services giving them duties to liaise with legal deposit libraries and the BFI to ensure that appropriate measures and strategies are in place for the archiving of video.

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[Kirsty Blackman]

The hon. Lady is making a powerful and important point. All of us feel better when we can see lives like ours reflected on the television screen. She is absolutely right that we currently see extremes for disabled people; we do not see them on television programmes living their lives as they do. It is all about, “That person is disabled, and that is why they are on this programme,” rather than, “That person is on this programme; they are living their life and they happen to be disabled,” which is much more reflective of life in general.

[Stephanie Peacock]

I completely agree. That is the point I am attempting to convey to the Committee: that we want to see everyday life reflected on television, and that obviously includes disabled people. What work is the Minister’s Department doing to open up opportunities for disabled people in the creative industries and to encourage better representation in the media?

As I have said before, if we to implement a new regime whose effects we really believe in, but that regime relies on Ofcom being a strong regulatory presence, Ofcom must be empowered to act with strength where that is needed; otherwise, the desired impact will not be realised. As such, I am happy with the powers set out in schedule 6, but what recent conversations has the Minister had with Ofcom about its capacity to carry out all the new duties bestowed upon it by the Bill? It is important to the integrity of the new regime for on-demand services, and to the Bill more widely, that there is confidence on all sides in Ofcom’s ability to enforce the new regulation.

Schedule 7 amends references to tier 1 services in the Representation of the People Act 1983, the Communications Act 2003, the Wireless Telegraphy Act 2006 and the Online Safety Act 2023. I will speak specifically about the amendments to the Broadcasting Act 1996, as those changes will have a more tangible impact. The changes in this schedule require Ofcom to create a tier 1 fairness and privacy code and to bring tier 1 services in line with Ofcom’s enforcement powers on breaches of the fairness and privacy code. Hopefully, that will protect members of the public from unwarranted infringements of privacy resulting from the activities of video-on-demand services, but some on-demand and streaming services, particularly Netflix, have raised concerns about the impact on their content and on Ofcom’s resources. They warn that, since the fairness and privacy code will enable complaints to be made from outside the UK, Ofcom could become something of a global policeman, and will have use its resources dealing with complaints from people who do not live in the UK but have failed to seek redress elsewhere.

That practice—complaint tourism—is of particular concern to Netflix in relation to its catalogue. It says it is aware of international complainants previously trying to use the UK regulator to get material removed. It appears from the pre-legislative scrutiny process that Ofcom does not share those concerns. Its approach seems to be that if harm is happening, or there is a risk of harm to UK audiences, it wants to know, regardless of whether a complaint is being raised by someone outside the UK. However, it would be reassuring if the Government and Ofcom worked together to monitor the extent to which the code requires Ofcom to manage a high volume of complaints from abroad, to ensure that genuine complaints can be handled appropriately and that complaints with malicious intent are not encouraged.

Overall, I hope it is clear that I am pleased that the on-demand services will finally be regulated. I look forward to hearing more from the Minister in response to my questions about the details.

Media Bill (First sitting)

Debate between Stephanie Peacock and Kirsty Blackman

Committee stage
Tuesday 5th December 2023 Public Bill Committees

[Kirsty Blackman]

Absolutely. If there were a requirement for more broadcasting, not just outside the M25, and for looking at population share, even reporting on spend and population share, there would be clarity and transparency about that spend, and whether it is anywhere close to population share. I think that public sector broadcasters would have a look and think, “Actually, we could probably do better than this. We could produce more content that is more exciting and relevant to people across all of these islands, produced in places with incredibly diverse scenery and people taking part in it.”

As for the Government’s position on levelling up, a fairly general statement on content produced outside the M25 is not going to cut it. It will not bring about levelling up or an increase in broadcasting in places that do no currently see significant amounts. As I said, I appreciate that the Minister and his Government are trying with the outside-the-M25 quota, but it could be done better in order to encourage more content, or at least transparent reporting on the level of broadcasting, spend and content creation in various parts of the UK. As expected from an SNP MP, I have highlighted Scotland, but many parts of these islands could make a pitch for more content to be made in their area, or at least reporting on the level of spend and content created in each region.

[Stephanie Peacock]

Not too long ago, just after the Scottish Affairs Committee concluded its important inquiry into the topic, I was joined by colleagues in Westminster Hall to talk about Scottish broadcasting. One of the biggest takeaways from the debate was just how important the sector is to people.

Scottish broadcasting brings communities together. It promotes pride in place and strengthens local economies. For those reasons, and many more, I strongly believe that Scottish broadcasting can and must continue to form a vital piece of the puzzle in the UK’s creative sectors. Indeed, Scotland is already a popular destination for broadcasters. Not only is it home to Amazon, but the BBC and Channel 4 operate there alongside STV, which in 2021 reached 80% of Scottish people through its main channel. Content made in Scotland often represents Scottish people’s lives and the diversity within them. That sort of representation matters. I know, for example, that it was exciting for many when the first Scottish family finally appeared on “Gogglebox”.

I am very sympathetic towards the aspect of the amendment that looks to ensure that the level of content made in and for Scotland is proportionate to the number of people who live there. However, I have questions about the mechanism used to achieve that. For example, what are the implications of directly attaching spend to population? How would population be measured and how frequently, and how would that impact the legislative requirements to match it? I wonder whether this issue could be better addressed through individual channel remits. For example, both the BBC and Channel 4 have existing nation quotas. Perhaps it would be better to focus on that rather than insert a strict spend requirement, tied to population, on the wider remit.

I would like to show my support for Scottish broadcasting, but further investigation might be needed into how we can best ensure that there is a comprehensive and holistic package of regulation and legislation to secure its future.

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[Stephanie Peacock]

On the whole, I am pleased to welcome the clause, which looks to simplify the public service remit, and to allow broadcasters to contribute to the remit with programmes that are made available on a wider range of services, including their on-demand service.

Clause 1 makes an important attempt to simplify the public service remit. Currently, the remit consists of a set of purposes that public service television must fulfil in accordance with a different set of public service objectives. The Bill condenses those requirements, so that the PSB remit is considered fulfilled when providers together make available a wide range of audiovisual content that meets the needs and satisfies the interests of as many different audiences as possible. A list is then provided, setting out the types of content that can form part of such a contribution.

That simplification is, on the whole, a welcome idea, and the inclusion of minority language services and children’s programming in the remit is is great to see. However, the Voice of the Listener & Viewer, the Media Reform Coalition, the International Broadcasting Trust and others have expressed concerns that the simplified format has been coupled with the removal of requirements for public service broadcasters to provide specific genres of content.

When the Government first released the “Up next” White Paper that preceded the Bill, it made no mention of references to genres such as entertainment, drama, science and religion being removed from the remit, as they have been in the Bill. Content from those genres is important to people, and has huge societal and cultural value. If we remove explicit reference to them in the remit, there is a risk of less programming in those areas, particularly where they might be of less immediate commercial benefit. That is surely contradictory to the aim of having a public service broadcaster, which is fundamentally to ensure that public benefit is balanced against purely commercial interests.

The change is especially concerning at a time when, commercially, there is more choice than ever before in popular genres such as entertainment and drama, and less choice when it comes to dramas that provide diversity and difference for UK audiences. This would not be the first time that a reduction in requirements for PSB content led to a decline in culturally valuable content. As the Select Committee on Culture, Media and Sport highlighted in its report on the draft Bill, Ofcom identified how provision of non-animation programming for children became limited outside the BBC after the quota for children’s programming was removed.

I am pleased that the public service broadcasters have issued reassurances that the new remit will not significantly impact programming in the removed areas, and I am glad that, since its draft version, a small protection has been added in the Bill to secure

“an appropriate range of genres”.

However, the removal of references to specific genres is still a concern, even after these reassurances and amendments. Indeed, if there is no clear specification of what counts as a “range of genres”, there is no guarantee that Ofcom will monitor the amount of content in each of the removed genres. Without such monitoring, falls in provision will be difficult to identify and rectify.

It is with that in mind that I proposed amendment 19, which would ensure that public service content continues to be provided across a range of genres, including entertainment, drama, science, and religion and other beliefs. Further to that, in combination with the powers in clause 10, the amendment would enable Ofcom to properly monitor those genres and make proper suggestions, where content is lacking.

I want to be clear that this addition is not intended to change the nature of the remit, so that the issue would be covered by the PSBs as a whole. I understand that it is not, and should not be, the responsibility of each and every individual public service broadcaster to hit each and every one of the remit requirements, and that is no different for the provision of genres. For example, ITV provides nations’ and regions’ news in a way that means it is not realistic for it to meet some of the other obligations; those are then covered by the likes of Channel 4 and Channel Five, which do not provide the same level of news coverage. That sort of balance works well, and I want to explicitly state that I do not propose that every genre would have to be addressed by every provider. I hope that, bearing that in mind, the Minister can take on board what amendment 19 proposes. Simplifying the remit is a good idea, but not if is done at the cost of the kind of content that sets our public service broadcasters apart.

I move on to the other major consequences of clause 1: the changes that allow content provided through a wider range of services to contribute to the remit. This change makes sense as viewing habits start to shift in a digital age. As the Government know, last year, the weekly reach of broadcast TV fell to 79%, down from 83% in 2021. That is the sharpest fall on record. Meanwhile, on-demand viewing increased, reaching 53 minutes a day this year. Having the flexibility to meet the remit through an on-demand programme service is reasonable, given that this pattern is likely to continue for years to come.

In the meantime, online content can also help to deliver content to niche audiences. Indeed, ITV estimates that 3.8 million households in the UK are online only, meaning that they have no traditional broadcast signal. However, it is important to note that, while habits are shifting, a number of households still do not have internet access. Having previously served as shadow Minister for Digital Infrastructure, I have engaged extensively with telecoms providers and organisations such as the Digital Poverty Alliance, all of which have shared their concern and acknowledged that not everyone has access to or can afford a broadband connection. There is a movement to ensure that social tariffs and lower-cost options are available, as well as to improve the roll-out of gigabit-capable technology, so that as many people as possible can be connected.

Regardless of those efforts, there has been and will remain a section of the population for whom broadcast signal is their sole connection to media, news, entertainment and information. It is incredibly important that those people, who are likely to be older citizens, families in rural areas and those struggling with bills as a result of the cost of living crisis, are able to access public service content as usual on linear channels, delivered through a broadcast signal. That case has been argued extensively by the campaign group Broadcast 2040+, which is made up of a number of concerned organisations. We recognise that the direction of travel is that people are watching content online more than ever, but that does not need to mean diminishing content on broadcast linear services, especially where that content caters to a local audience. That belief goes beyond this Bill and ties into wider worries about the impact that a digital-first strategy will have on traditional means of broadcasting, and, as a result, on audiences.

It has been four months, for example, since the BBC decided to replace some of its vital and unique local radio programming with an increase in online journalism, which has been to the detriment of local communities up and down the country. That decision was made without consulting the communities that would be impacted, and it could easily be repeated in other areas, since there is nothing to stop many more services being axed in favour of online services. This is not to say that there will be no decline in audiences in the years to come as the rise in online content consumption continues, but no co-ordinated effort has been made to ensure that our infrastructure is ready for a mass movement toward online broadcasting. That effort must be made before such a transition takes place. The consequences for the internet capacity that will be needed to cater for spikes, and the implications for national security in a world where TV and radio are no longer methods of communication between the Government and the public, have not been thought through. As long as that remains the case, we must think of those for whom internet connection is not an option. That is why I tabled a new clause to protect the provision of high-quality content on linear services.

The new clause would introduce a safeguard, so that if Ofcom believes that the delivery of PSB content on broadcast linear services is less than satisfactory, it will have the powers needed to set a quota—to ensure that a certain proportion of public service content remains available to linear audiences through a broadcast signal. In short, quality content should remain available to those families up and down the country who rely on their TV rather than watch online content. The new clause makes no prescriptive requirements on how that should be achieved; nor does it set a specific figure for how many programmes must be available to a certain percentage of people. It simply allows Ofcom to monitor the effect of the Bill, which allows PSB content to be delivered online, and allows Ofcom to intervene with such measures as it sees fit if the new remit has unintended negative outcomes.

As well as encouraging him to accept the new clause, I urge the Minister to update us on whether the Government intend to support linear broadcasting beyond 2034. If they do not, what plans are they putting in place to manage a possible transition away from linear services? We have simply not heard enough about this from the Government, and I would be grateful to hear today what the Department’s position is and what work it is already doing on this.

Finally, I come to the rules that state that for on-demand content to count toward the remit, it must be available for at least 30 days. In the draft Bill, public service broadcasters including ITV and the BBC raised concerns that that minimum period was not appropriate for every type of content, because on-demand rights in certain areas, especially sport, news and music, often mean that such programmes are available for limited periods. It is welcome that those concerns are recognised in the Bill, and that an exemption is being introduced for news programmes and coverage of sporting events. Did the Department consider adding programmes covering music events to the list of exemptions? If it did, why was the decision made not to do so? Overall, I support a simplified remit, and the change in clause 1 that allows online content to count toward the remit, but further safeguards around certain genres of content and linear television are needed to protect against unintended or negative consequences.

I am broadly happy with clauses 2 and 4, which are consequential to clause 1. Clause 2 updates Ofcom’s reporting requirements to reflect the changes being made; likewise, clause 7 makes consequential changes to section 271 of the Communications Act 2003. On those issues, I refer Members to my remarks on clause 1 as a whole.

[Kirsty Blackman]

I want to pick up a couple of points relating to clause 1 that I have not mentioned yet, but that the shadow Minister has mentioned.

I am happy to support the provision in new clause 1 that would ensure that public service content is available on linear TV, but I do not think it goes far enough, and it does not add much to Ofcom’s requirements. The same concerns arise around matters such as “significant prominence”. The Minister said from the Dispatch Box on Second Reading that the move away from broadcast terrestrial television would not be made until the overwhelming majority of people in the UK were able to access television by other means. I hope that is a fairly accurate version of what he said. I am concerned that the phrase “overwhelming majority” is also not specific enough, although I appreciate the direction of travel that the Minister was indicating with that remark. My concern, like the shadow Minister’s, about the potential removal of terrestrial TV and non-digital output is for the groups who would be significantly disadvantaged by that loss.

Media Bill (Second sitting)

Debate between Stephanie Peacock and Kirsty Blackman

Committee stage
Tuesday 5th December 2023 Public Bill Committees

[Stephanie Peacock]

I do not believe so, no, but obviously the Bill is changing, and giving more powers to, Ofcom. Like any regulator, it needs to be able to enforce them properly; so it is really a preventive measure. We hope that the Minister will take the amendment in the spirit in which it is put forward.

[Kirsty Blackman (Aberdeen North) (SNP)]

I rise briefly to support the amendment. This changes the remit requirements on public service broadcasters. I do not think that anyone is disagreeing with some of the changes that are being made. It makes sense for the public sector remit to be able to be fulfilled on some of the on-demand services, for example, in a way that currently they are not. However, the concerns that were raised earlier around genres, for example, are not written into the Bill. There is a requirement for there to be a range of genres but those definitions are no longer included. The system will probably need to bed in; it will probably take a bit of time. I agree with the shadow Minister that we do not expect public service broadcasters actually to create serious risk or enter this situation. If they do, though, I believe it is better for everyone for Ofcom to be able to intervene at an earlier point, for a number of different reasons.

If Ofcom can intervene earlier and is empowered and asked to do so, it will be cheaper, easier and quicker to sort out the issue. If it can act only once the issue is serious enough, then undoing that harm is difficult. Stopping the harm is better for the general public, better for the broadcasters, better for the staff who work within those broadcasters, and better for Ofcom, which will have to spend less time clearing up a mess and ensuring that a mess can be cleared up.

On the empowerment that it gives to Ofcom, I agree with the shadow Minister that it will not be used terribly often, but it does give Ofcom sufficient power to say to the broadcaster, “Things are not going right here. We think there is a risk of things becoming serious, so we would like you to make some changes,” particularly when some of the quotas have been removed, for example, or some of the requirements for genres have been changed. It is going to take a while for the system to work as intended. The Government do intend it to work—I have no doubts that that is the case—but Ofcom needs to be empowered to ensure that it can do that.

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[Stephanie Peacock]

I will speak to each clause in this grouping in turn, starting with clause 10, which enables the Secretary of State to create additional quotas for audio-visual content by licensed public service channels. On the whole, I welcome the clause. In particular, I am pleased that changes have been made to the draft version of the Bill to ensure that the Secretary of State can make regulations only following a recommendation from Ofcom. As the Culture, Media and Sport Committee observed, no explanation was given regarding the circumstances in which it would have been necessary to use this backstop without an Ofcom recommendation. Media regulation is rightly independent from Government through Ofcom, and the adjustment will ensure that there are no concerns about a shift away from that.

On the intent of clause 10 more broadly, in theory, the new power that it provides is important. It is right that Ofcom should be able to mandate new quotas if it believes that audiences are being under-served. This is particularly true given the adjustments in clause 1 that make a number of simplifications to the remit, most notably removing explicit mention of the genres of content that must be provided, including, as we discussed, science, religious beliefs and matters of international importance. However, given that the genres have been removed, Ofcom’s ability to monitor and recognise the gaps is unclear. That creates a sort of paradox: how can Ofcom judge whether audiences are being served properly if it is no longer monitoring the genres of content needed to ensure that there is a good service for those audiences? For that reason, I tabled amendment 19, which would ensure that genres would still be explicitly mentioned in legislation so that could be monitored accordingly. Without such a measure, the clause is at risk of failing to live up to its potential as a backstop measure to ensure that audiences are protected from a fall in quality programming.

Clause 11 underpins almost all the clauses in the first section of this Bill by defining phrases such as make available and “qualifying audiovisual content”. Those phrases allow for on-demand content to count towards remit and quotas, and as such, it is important that they are properly and sensibly defined. I am happy with the definitions on the whole, and it is pleasing that there is also room for additional audio-visual services to be added to the list of qualifying audio-visual content, subject to consultation with Ofcom and the affirmative procedure. That will effectively future-proof the measures in the Bill, subject to proper parliamentary scrutiny.

Clause 12 allows the Secretary of State to make regulations regarding whether content that is made available multiple times—more commonly known as repeats—counts towards production quotas. As I mentioned during the discussion on clauses 8, 9 and 14, some have raised concerns about how changes in this area could impact the ability of public service broadcasters to fulfil their quotas. At present, programmes that have been broadcast before in substantially the same form count towards some of the production quota. Any change, therefore, that results in repeats no longer counting towards those quotas, will mean that the quotas are harder to reach. For example, excluding repeats from counting towards quotas on original content will mean that more original content will have to be produced to meet existing obligations.

However, in the context of on-demand content, which will now count towards quotas, it is unclear how the concept of repeats could possibly be applied. Indeed, when viewing on-demand content, it is usually available 24/7 at the choice of the viewer, rather than run multiple times at the choice of the broadcaster, as is the case on linear. That brings up complex issues relating to how the contribution of repeats will be calculated as counting towards quotas in the digital age, the detail of which will need to be worked out promptly.

I therefore ask the Minister for guidance on how the Department intends to proceed in this area and use the power that the clause will give to the Secretary of State. Will repeats continue to be counted towards quotas on both linear and on-demand content, and if so, how will a repeat be defined on the on-demand service? Ultimately, it is important that the way that repeats count toward quotas and the level of new quotas are considered hand in hand. We must ensure that the quotas remain at levels that are meaningful enough to ensure quality content for audiences and encourage a healthy broadcasting ecology in the UK, while being at a reasonable level, given the economic constraints on the broadcasters.

Finally, I turn to clause 13. As I am sure we will touch on in more detail when we discuss the changes made to Channel 4’s publisher-broadcaster restriction, our public service broadcasters are crucial to the success of the wider UK TV production sector. As stated in the submission from the Producers Alliance for Cinema and Television to the Culture, Media and Sport Committee, PSBs account for 77% of original UK commissions and, as a result, hold immense buyer power in the UK domestic commissioning market. Given their role and bargaining power in the sector, it is crucial that fair principles apply when public service broadcasters commission independent productions. The terms of trade regime, which was established following the Communications Act, has done a good job so far of ensuring that that is the case.

That is not to say that the landscape operates perfectly, and I know that some have raised concern over the rise of super-indies, which may make it more difficult for smaller indies to compete. Overall, however, it is welcome that the clause looks to maintain a successful supply side to the market by ensuring that the terms of trade regime will apply to any qualifying audio-visual content. That is important for the health of the sector as a whole. In particular, it has been welcomed by PACT, which has worked hard at many stages of the Bill to ensure that independent production companies are well represented and do not feel adverse effects as a result of the Bill.

[Kirsty Blackman]

I am pleased that the Minister has confirmed, for all these clauses, that any changes by regulation must be made using the affirmative procedure. Particularly on clause 10—a power he suggested would be used very rarely, if at all, and only if needed—it makes sense, given the level of importance attached to the power that it should have to go through the affirmative procedure to be implemented. I appreciate that the Government have chosen to do that.

It is important that additional services can be added by regulation rather than by primary legislation, particularly when there are continual updates and renewals—on digital platforms especially, we are seeing changes on a very regular basis. As I said, I was on the Online Safety Bill Committee, and it was so important to ensure that that Bill was future-proofed as far as possible. There are potentially on-demand services that we cannot conceive of or genres that currently do not exist that will be a massive part of daily life in a few short years. The Minister has ensured that there is flexibility, in concert with the Secretary of State and Ofcom, and then through the affirmative procedure in the House. I think it is sensible to future-proof the legislation by allowing regulations to be decided on using the affirmative procedure.

The same applies to the requirement of quotas for potential genres or ways that television is delivered that we cannot foresee today. I agree with the points made by the shadow Minister, the hon. Member for Barnsley East. It is important to look at what happens with repeats and to ensure that everybody is clear about what happens. I probably do not have a firm view of how those should be judged, but I do have a firm view that everybody should understand how they are judged, and people should understand it in advance, so that they know what the expectations are of them.

A clear definition of what a repeat looks like on an on-demand service is important. If something is available for 30 consecutive days, goes away for a day and then comes back for 30 consecutive days, would that be a repeat, or would it not? Would it be included in the quota? It is important that some of the public service broadcasters that are producing this stuff can take it down so that they can sell it abroad for a period of time if they need to in order to generate some income. As long as it is on the service for a length of time here—they are required to include it for those 30 days, for example, or longer—I think it is perfectly acceptable for them to use some of the productions to gain some cash to continue to produce their excellent programmes.

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[Stephanie Peacock]

This grouping covers clauses 15 to 17, schedule 1, and a small set of Government amendments. I will address all of those briefly in turn.

Clause 15 makes amendments that are largely consequential to the issues already discussed. It acknowledges the ability of public service broadcasters to use qualifying audio-visual services to meet their remits, and ensures that that also applies to requirements around network arrangements. I have mentioned previously that I am in favour of that new flexibility for broadcasters, given changing audience patterns, and I believe it makes sense to mirror this change in network arrangement requirements.

Clause 16 removes the Channel 4 quota to create a specified level of programmes intended for use in schools. It is my understanding that the quota is currently set at the low bar of 30 minutes, as the Minister has just mentioned. Channel 4 surpasses that quota, and it is somewhat arbitrary, given Channel 4’s wider commitments around education. These wider themes around educational content are extremely important, but it seems that this specific quota is no longer making an active contribution in the way it once did. I am therefore happy to move on without raising any particular issues. I also have no particular issues with the Government amendments, which are largely technical and consequential, and clear up confusion in some areas.

Finally, clause 17 and schedule 1 primarily echo the major changes made in this part of the Bill for ITV, Channel 4 and Channel 5, applying them to the BBC and S4C too. That includes confirming that quotas on independent content will be set at a number of hours, rather than as a percentage for both S4C and the BBC. The concern around a move to pure number targets from percentages is something I have already raised, but I wish to note that the BBC in particular took objection to that during the process of pre-legislative scrutiny. In its submission to the Committee, the BBC argued that the Government should take advantage of the distinctive regulatory framework to maintain proportional targets. Would the Minister use this opportunity to explain whether that was something which the Department explored?

[Kirsty Blackman]

I have some questions from colleagues about channel 3, in particular on the provision of ITV Border, which is the cross-border channel 3 provider that operates around Dumfries, Galloway and, across the border, Carlisle. People in the south of Scotland in such areas do not receive STV; they receive ITV Border, with its regional news and other channel 3 provision.

One of my colleagues, Emma Harper, who is a Member of the Scottish Parliament and has done a significant amount of research and work on this on behalf of her constituents has expressed concerns about the percentage of the content made south of the border compared with the proportion made north of the border. If we are to ensure that, for example, the regional dialects and languages of the UK are part of the public service remit, having a significantly unbalanced situation with ITV Border is a slight concern. It is a bit of an issue for my colleague’s constituents.

Another matter that comes into play concerns news, or updating the general public and ensuring that they are aware of issues. STV—channel 3—is a significant place for people to get access to local news in particular so that they can understand what is going on in their areas more widely, as well as nationally. People in the ITV Border region are being given information about school, legal and policing policies that apply south of the border, but not in Scotland. The content has to be significantly delineated because it is split across two very different jurisdictions—that is in some, not all, legal areas, such as school policy. For example, the school systems are completely different north and south of the border.

What consideration has the Minister given to asking Ofcom to look at ITV Border and whether it is best serving the populations on both sides of the border to ensure that everyone has the most up-to-date regional content in their area? I am not suggesting that we should always have certain delineations, but in this sector in particular, which people rely on for news services and updates, having a disparity that particularly affects the people of the Scottish Borders, rather than the English borders—because more content is made in the south—is a concern.

I would very much appreciate it if the Minister agreed to have a look at this, or to have a chat with Ofcom about the provision of ITV Border to ensure that he and Ofcom believe that the broadcaster is appropriate and properly serving people on both sides of the Scotland-England border.

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[Kirsty Blackman]

Those organisations have been consulted. My hon. Friend the Member for Paisley and Renfrewshire North has been clear on the roundtable discussions he had, including with the Scottish Football Association, which is open to this happening. New clause 8, on the financial support fund, which we discussed previously, was partly to ensure that those smaller organisations are able to claim back, should they lose out on a significant amount of revenue as a result. As I say, these organisations have been consulted, and the SFA is open to this happening.

It is important to ensure that organisations have enough money to invest in their sport. I do not think there will ever be any lack of young men keen to play football; the number certainly does not appear to have reduced in all the years I have been alive. There are still many children at my kids’ school who are very keen to get involved in football. There are still the grassroots structures there. However, I agree that for organisations involved in women’s football, for example, or involved in nations with lower levels of participation, it may be an issue.

I would be very keen to press both new clauses 6 and 7 to a vote when it comes to that point.

[Stephanie Peacock]

I begin by echoing the comments of the hon. Member for Aberdeen North on the women’s parliamentary football team, having been involved a little over the years. I will address clauses 22 and 23, as well as the associated amendments. It appears from the Government’s explanatory notes on these clauses that their intention is to ensure that partnership arrangements between qualifying and non-qualifying broadcasters on providing coverage of listed events continue as they do now.

I know that many of our commercial and public service broadcasters alike feel they have strong partnerships that allow sporting events to be shown to as many viewers as possible. Indeed, where an event is not on the listed events regime, this kind of commercial partnership is inevitably even more common; for example, Channel 4 has historically teamed up with Sky to show Formula 1 events to many viewers across the UK. These kinds of cross-industry partnerships are integral to the overall ecosystem of sports rights, and I therefore support any movement that seeks to protect these relationships and dynamics.

However, the BBC has raised concerns that clauses 22 and 23 together could undermine the listed events regime, in particular with regard to multi-sport group A events—the summer Olympics and Paralympics and the winter Olympics and Paralympics. In effect, the BBC says the clauses could potentially mean that Ofcom consent is not required for events where there are partnerships such as the BBC and Discovery deal for the Olympics, as long as each partner has adequate live coverage, which lowers the bar from the current expectation of having full and comprehensive rights on both sides. How much that bar is lowered is difficult to gauge. However, given that the Bill does not define what adequate will mean in this context, it only opens the door for live coverage and adequate coverage to be defined. It would be most unfortunate if a Bill that aimed to modernise and protect the listed events regime inserted a change that, in effect, allowed for exclusive rights to parts of the Olympics to be held behind a paywall.

I therefore ask the Minister for a clear indication of what “adequate” is now to be defined as under these new clauses. Further, why were these changes not included in the original drafting, and for what specific purpose did the Government choose to introduce them today? There was a detailed scrutiny process through the Culture, Media and Sport Committee, and it would have been beneficial for these additional clauses on the listed events regime to be analysed by those who know the regime best. If we cannot be absolutely clear on the real intent behind this clause and the impact that it will have on the listed events regime, it will be difficult to support it at this stage.

Let us move on to new clause 6. I hope that by this point it is clear that I am a strong supporter of the listed events regime. It is important in ensuring that British audiences are able to view moments of national sporting importance. However, many Scottish campaign groups and Scottish Members have been long discontented that the definition of such national moments did not seem to encompass crucial events that define their national sporting story. I am aware that these feelings are likely to be echoed by those in Wales and Northern Ireland, too, and I want to be clear that I believe the regime must not be overtly discriminatory in this sense. There has been particular concern over the lack of a formal plan to encourage making Scottish international football free to watch, something which may seem counterintuitive given the intent of the listed events regime. I understand that the new clause hopes to address this issue and to create equality of access to qualifying events for every UK nation.

When considering additions to the listed events regime, however, there is always a careful balance to be struck. It is important that sporting moments are available to watch, but is also important to secure investment in sports through the revenue generated by selling rights. The fact that the number of events in the regime is limited is indicative of the need to recognise that.

I also want to highlight the fact that the listed events regime is not the only method of ensuring that sports are available on a free-to-air basis. As I mentioned when praising commercial partnerships, it was extremely pleasing to see Sky and STV come to a formal agreement that allowed Scots to watch the World cup qualification play-off final. That was a truly beneficial outcome that did not rely on the structure of the regime.

Has the Department thought about the definition of a moment of national sporting importance? It is a fluid concept given changing public attitudes, and it is further complicated by the fact that inclusion in the regime can bolster the status of an event in the public consciousness. However, I think that there will be many more cases in which an argument is made for an event to be added to the regime, and there could therefore be merit in knowing the criteria that events are judged against when considering whether they should be included in the regime.

Finally, I would like to speak to new clause 7. As per section 97 of the Broadcasting Act 1996, the Secretary of State is required to consult

“(a) the BBC,

(b) the Welsh Authority,

(c) the Commission”

and rights holders before drawing up or revising listed events. I understand the intent behind that clause, especially given that many argue that Scottish football and sport has not been duly incorporated into the listed events regime.

Further, we have also discussed at length the desire to improve parity across broadcasting legislation between S4C and Gaelic language services. With that in mind, I believe that there would be benefits to broadening consultation requirements, so that the Gaelic viewpoint can be better taken into account when amendments to the list are being considered.

We could do with more clarity on how decisions about inclusion in the listed events regime are made. There would be a better sense of the fairness of such decisions if requirements to consult those who may be impacted by such a decision were expanded. In fact, the scope of this could have been broadened even further to require consultation with other relevant persons that the Secretary of State deems necessary. That could have perhaps included the other PSBs or relevant stakeholders, such as sporting bodies.

I do not wish to make additions to the listed events regime more onerous than they need be. However, having strong and varied input into decision making would certainly save time in the long run. I hope it is clear that I understand the intent of new clauses 6 and 7, but that I will need answers to my questions on clauses 22 and 23.