Media Bill

Viscount Colville of Culross Excerpts

Committee stage
Wednesday 22nd May 2024 Lords Chamber

[Baroness Berridge (Con)]

My Lords, first, I need to apologise to noble Lords that I was not present at Second Reading. I am grateful to a number of local radio stations, and especially to Rob Persani of Rutland radio, which is where the Vale of Catmose is, for bringing to my attention the issue in Amendment 72. I am also grateful to the noble Viscount, Lord Colville, and the noble Lord, Lord Foster, who have put their names to the amendment. I also want to thank my noble friend the Minister for the meeting yesterday with the Secretary of State and the MP for Rutland and Melton, Alicia Kearns.

I support Amendments 71 and 73 in the name of the noble Lord, Lord Storey. The purpose of Amendment 72, however, is to ensure that Ofcom issues licences where there is no digital coverage. I accept that the wording of the amendment would need redrafting on Report to more clearly define the test needed where there are areas of no coverage. Applying for licences needs to be in the system outlined in Amendments 71 and 73. Ofcom does not need to run expensive competitions any more for FM licences, and it is not surprising that no new FM licences have been issued since 2009 if it has to run such a competition. As has been outlined, if you have a DAB licence, your FM licence is now automatically renewed. That simple process of renewal online with the payment of a fee could apply to new licences, rather than the expensive competition process that we had previously.

Commercial radio stations used to come in all shapes and sizes, so it is sad to learn, as the noble Lord, Lord Storey, outlined, of the demise of local radio. “Much in little” is Rutland’s motto, and there are about 41,000 people living there, plus tourists. Rutland radio is a great way to find out what is happening in the local area, especially as you drive around, but it has areas where digital has no reach.

The vision of Ofcom for the digital switchover for local radio is called small-scale DAB—smaller areas where it issues what are called polygon licences. I assume for the purpose of Amendment 72 that, as with the internet, His Majesty’s Government’s policy is that everyone should have radio access. Looking at SS-DAB and FM, even if small-scale DAB was the answer technically, it is not small scale enough to work economically.

Instead of the one frequency that you need for an FM station—at a cost, I am informed, of around £15,000 plus your annual fee to Ofcom—under a polygon licence a station such as Banbury radio, as the noble Lord just mentioned, would have to buy three such licences for that small-scale area delineated by Ofcom, at triple the cost. The local economy of advertising, which is what supports those local FM radio stations, just cannot sustain that; the areas envisaged by small-scale DAB are just too big.

I am grateful that the noble Viscount, Lord Colville, will cover the more technical issues relating to small-scale DAB, but, as I have outlined, it does not reach everywhere. In a place such as Rutland, it comes in and out when you drive between the villages and the two towns—yes, villages and two market towns is Rutland. Alicia Kearns MP recited to us yesterday how the digital signal goes out for lengthy periods when driving around. SS-DAB is fine for areas of greater population, but those areas do not need it. Apparently, there are pockets all around the country where you cannot get digital radio. No one is sure precisely where all those are, but it would be interesting to know from His Majesty’s Government whether they have looked at where the gaps are and what the internet coverage is in those areas. I suspect that there is quite a lot of correlation, but it is merely a suspicion.

Internet radio is also not the solution for those areas. Statistics from the UK Consumer Digital Index from Lloyds Bank show that 2.1 million people in the UK are offline, and 4.7 million people do not access the internet. Age UK did a survey of over-65s, and 2.7 million people, which is about 22% of that age group, are not accessing the internet. That could be due not to lack of coverage but to disability, cognition failure or vision problems. They will continue to rely on digital or FM radio.

It was rather prescient that, only yesterday, we raised with the Secretary of State that national resilience needs FM. In the national resilience strategy, it turns out that FM is the most resilient form of communication, so we will not be switching off FM in the near future. In the event of power outage or solar flares, it is the most resilient. Today, it just so happens that the Deputy Prime Minister is outlining the preparedness of household strategies to boost national resilience. The advice is to boost your analogue capabilities and buy a wind-up radio—but to receive what? FM, of course.

Why not allow those who want a new licence to broadcast on an FM frequency that will remain for the foreseeable future? All the commercial risk is on the operators. It will not cost His Majesty’s Government a penny. Also, the more people who continue using FM radios, the more resilient households are. They will know that their FM radio works and will not be scrambling around in the back of the wardrobe to dust it off in an emergency—but perhaps I am only the person who, on reading the national resilience strategy, is wondering where the batteries are for that torch that I bought, and where the candles are that I bought when the Deputy Prime Minister last talked to me about resilience.

Finally—and to give my second “it just so happens”—your Lordships’ House has just had a repeat of an Urgent Question from the other place on South West Water. In areas with no digital coverage and an emergency that is not a power outage, sometimes there is time to communicate with your population—for example, if there is flooding or a forest fire. But if you need to tell the public, “Stop drinking your tap water”, that is an immediate message. I hope that His Majesty’s Government are looking at how South West Water managed to communicate with all its customers in the local area. Sadly, as we renew only 0.1% of our mains water network each year, instead of the 1% average on the continent, I think that such incidents will be more frequent.

Many in your Lordships’ House will know of “Rutland Weekend Television” by Eric Idle, but the local coverage of Rutland radio and other local stations is not a comedy; it is essential. I hope that my noble friend the Minister will have some good news to tell your Lordships’ House on this amendment.

[Viscount Colville of Culross (CB)]

My Lords, I rise to speak to Amendment 72, to which I have put my name, and also to support Amendments 71, 73 and 74 in the name of the noble Lord, Lord Storey. These amendments will do much to support local radio.

The noble Lord, Lord Storey, has already explained to us the regionalisation of local radio and the destruction it has caused. This has not been helped by cuts at the BBC, which are forcing many of its stations to regionalise as well. In the area in which I live, East Anglia, BBC Suffolk and BBC Norfolk broadcast the same content for much of the day. These stations are not local; they are regional, and in some cases national. They have fired local staff and closed local studios, and as brands move towards national broadcasting there are fewer regional centres.

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[Baroness Thornton (Lab)]

The last group was fascinating and, in a way, this debate moves us on to how to future-proof access to radio stations. I will also speak to Amendment 78, to which I have added my name, and Amendment 81 from my noble friend Lord Bassam.

In the course of discussions with stakeholders in preparation for the Bill, it emerged that there is an issue about radio selection services. It was expressed to us as a matter of some concern. Given that the Bill is about future-proofing, the amendments in this group address an issue with regard to radio selection services in car entertainment systems, through which a person navigates access to the radio as well as using voice activation. The Bill seems to address the issue of selection services only with regard to internet radio services, which are of course a new category of designated radio selection services. These services are voice assistance services that enable listeners to select and listen to internet radio services by using voice-activated audio devices.

These amendments address the issue of how people might access radio not through internet or voice-activated mechanisms. Certainly, my car is much too old to do anything quite so sophisticated. They also address what happens to FM, which is very important. What concerns us is the place of public service broadcasters in such a system. Who decides on that prominence? I imagine that car manufacturers might be quite pleased if they also knew who deals with the regulatory regime that would apply under these circumstances. I read the Explanatory Notes to the Bill, since the Bill itself is a bit dense on this matter. I cannot see where the issue of public service broadcasting radio is addressed. My first question is: can the Minister tell us that?

Who will ensure that car manufacturers are—“doing the right thing” is not quite the right expression—making sure that our public service broadcasters are not neglected? As an avid Radio 4 and Classic FM listener, I really want to jump between the two with the sort of ease that I can at present. These amendments seek to address such issues, as well as the mandate to Ofcom, the accountability of the Secretary of State and Parliament, and how that might be best achieved.

My noble friend’s Amendment 81 is also about future-proofing, and would require the Secretary of State, through regulations, to expand the new protection for on-demand and online-only content, such as on-demand listening and podcasts. This is a group of amendments some of which are probing and some of which address quite a serious matter, which I suspect will have to be looked at as time goes on. I look forward to the Minister’s remarks on them.

[Viscount Colville of Culross (CB)]

My Lords, radio is the background to my life; I have it playing at home, in the car and even when I am walking about, whether it is the BBC, Global’s LBC or Bauer’s Greatest Hits stations. I cannot be alone in enjoying this wonderful medium, so I am glad that today it is getting the attention it deserves.

The way we listen is changing, and Clause 48 recognises this with the acceptance that, in the future, most people will be listening to the radio online. It covers the Ofcom-regulated stations—BBC, Bauer, Global and others—which make up 85% of our listening, but the methods by which we listen to this medium are changing fast. I have tabled Amendment 78—I thank the noble Baroness, Lady Thornton, and the noble Lord, Lord Foster, for their support—because I want to ensure that the way we listen is future-proofed, and that in the future online radio can be listened to wherever people are and on whatever device they want to use.

I very much appreciate that this clause is the Government’s response to fears that deals can be done between the manufacturers of listening devices, such as voice-activated speakers, to promote their own radio content, or even the content of stations which have paid them to promote their content over that of the Ofcom-regulated station. The clause’s “must carry” obligations for the top three voice-activated speakers takes its cue from the work that Ofcom has done on prominence in TVs, which has already been debated. However, my concern is that the focus on these three big voice-activated devices will be to the exclusion of other methods of listening to radio.

I also support Amendment 77, in the name of the noble Baroness, Lady Thornton, about the benefits of being able to listen to relevant internet radio services on in-car radio, which is not voice-activated and not covered by Clause 48.

Myriad different devices that might carry these stations in the future are also not covered. We need to be certain that our PlayStations, iPhones and even fridges, to name but a few devices, will carry these popular stations. For example, Sony Interactive Entertainment, which owns PlayStation, is a very competitive and successful company; it could do a deal with a youth station to the exclusion of other stations, stopping gamers accessing and being introduced to the joys of what is described in the new section inserted by the clause as “relevant internet radio services”. I know that the criteria for the “must carry” devices is set out in new Section 362BC(4) and that the Secretary of State can amend this section, but my amendment seeks to anticipate these changes, calling for a review of what devices people are listening on. The Government see this clause as a regulatory burden for the biggest speaker manufacturers, but I see it as protection both for the listening public and the nascent radio selection services.

I want to throw in another important thought here. The Government have been worrying so much about device manufacturers not carrying radio content that they have introduced a “must carry” burden on them. However, new Section 362BA requires an internet radio service to offer to a DRSS. There is no mandatory requirement for a relevant internet radio station to carry its service. I want the Minister and the Bill team to think very carefully about a world in which designated internet radio stations themselves do a deal with the big device manufacturers to carry their radio channels exclusively. I am sure that whenever this idea was raised during the drafting of the Bill, civil servants would have asked why a radio station would not want to be on a device.

Your Lordships have to look only at what has happened in television to see that content providers are just as active in creating monopolies for their channels as device manufacturers. Netflix and Amazon drove their own discreet prominence regime with specific TV manufacturers for vast sums of money, as noble Lords have already heard in the debate on prominence. It was the content suppliers that drove manufacturers to put a Netflix or an Amazon button on the channel controller and to ensure that they dominated the home screen.

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[Lord Parkinson of Whitley Bay (Con)]

As noble Lords have recognised, the provisions in Part 6 of the Bill are designed to secure the ongoing availability to listeners of UK radio services and will help to maintain the huge public value that radio provides as online listening continues to grow.

Turning first to Amendment 77 in the name of the noble Baroness, Lady Thornton, the Government fully recognise how important it is that radio continues to maintain its presence in the car. On the provisions in the Bill, I confirm that, where a radio selection service using an in-car device is voice-activated and connected to the internet, it will fall within the definition of a “radio selection service” for the purposes of Part 6. Indeed, that is further clarified by new Section 362BB(2), which ensures that the assessment of whether the use of a radio selection service is significant can take account of specific usages, including the level of radio listening via that platform that takes place in a vehicle. Therefore, should a selection service have significant usage among in-car listeners, it would be subject to potential designation under this part of the Bill.

However, it is correct that there are no requirements on car manufacturers more generally, as the measures are focused on designated platforms that provide a radio selection service. Amendment 77 would extend the definition of “radio selection service” to include services not connected to the internet but accessed via the in-car system provided by car manufacturers. We are not persuaded that it is necessary to extend specific regulatory protections further, given that the evolution of systems and their integration into cars is ongoing, and given the progress made by the radio industry in the UK and across Europe in securing partnerships with car manufacturers and platforms.

However, we recognise that ensuring continued access to radio in the car will be an important part of the review of the radio market in 2026—to which the Government committed in their response to the digital radio and audio review of April 2022—and we will continue to keep the matter under consideration. New Section 362BA also contains powers to amend the definition of a radio selection service, if needed in future, as listening habits change. While I thank the noble Baroness for the opportunity to set that all out, I hope she will be satisfied and willing to withdraw her amendment.

Turning to Amendment 78, tabled by the noble Viscount, Lord Colville of Culross, I agree with the sentiment that the definition of a radio selection service could change as technology evolves and listening habits change. New Section 362BA also contains powers to amend the definition of a radio selection service, if needed in future. That could include amending the definition to include different ways in which radio stations are selected if a clear need arises in future. As I mentioned earlier, in their response to the digital radio and audio review, the Government committed to a further review of the market in 2026, and the growth and direction of online listening will be an important part of that review. While I am happy to talk to the noble Viscount, if he wishes, I think he will have discerned our reservations about the need for what he proposes, and I hope he will be content to withdraw his amendment.

[Viscount Colville of Culross (CB)]

The Minister has not responded to my concern that there could be a stitch-up between the device manufacturers and the radio providers. Therefore, we should talk about whether there should be a “must offer” component in the Bill to ensure that the designated radio services actually offer their services. It is not just the device manufacturers that may need to be pushed, but, in a very competitive media world, the radio station providers.

[Lord Parkinson of Whitley Bay (Con)]

As I said in relation to the amendment tabled by the noble Baroness, Lady Thornton, we are heartened by the progress made by the radio industry in the UK and in Europe in securing partnerships with car manufacturers and platforms. We considered representations for a “must carry” provision, including from aggregators, but we concluded that it was not necessary and best left to commercial discussions between radio station platforms and aggregators. If the noble Viscount wishes to speak further about that, I am happy to do so.

The noble Lord, Lord Foster of Bath, tabled Amendments 79 and 80, on access to user data. While I appreciate the intention behind his amendments and the support from both the BBC and Radiocentre for them, the Government consider that it would not be appropriate to include such provisions in the Bill. This part of the Bill contains provisions to address issues specific to radio, such as securing the continued ability of BBC-licensed and Ofcom-licensed commercial and community stations to access their listeners via voice-activated connected audio devices. By contrast, the issues raised in the noble Lord’s amendment are common across a wide range of sectors. The Government have been taking forward broader work on competition, including in digital markets. For example, the Competition and Markets Authority will gain powers under the Digital Markets, Competition and Consumers Bill which could, in certain circumstances, be used to tackle the unfair use of data by the most powerful technology firms.

I hope the noble Lord will also be reassured by the protections that the provisions in new Sections 362BI(3) and 362BI(4) will afford. These measures will allow radio stations to nominate a preferred route for their service to be delivered to listeners, provided that that route is not unduly burdensome for the platform to deliver. As such, they provide scope for routes through which—subject to a listener’s consent; for example, through logging in—a broadcaster may be able to access valuable data, enabling them to improve their service. I hope the noble Lord will appreciate why we cannot agree to his Amendments 79 and 80.

I am grateful to the noble Lord, Lord Bassam of Brighton, for his Amendment 81, which seeks to extend provisions in Part 6 to cover a wider range of audio content that is accessible on connected devices by expressly including a power that would require Ministers to extend the provisions in Part 6 to online only and on-demand content. The amendment would require Ministers to bring forward secondary legislation within a specific timetable to broaden the scope of this legislation significantly, extending the regime to cover online radio and other audio content that is not currently regulated. This could include content that originated outside the UK and is available via the internet.

I have noted the points made about the need to future-proof the regime, and Part 6 includes a number of powers to enable the new regime to stay up to date to reflect market and listener behaviour. This includes the power to change the definition of a radio selection service. At the moment, the Government believe that there is no need for powers further to extend the scope to other on-demand audio content available online. That would significantly widen the scope of content covered and create additional uncertainty burdens on the platforms that might be designated without a clear reasoning or evidence that this was necessary on wider public value grounds. But the Government recognise that audio markets and listening habits will continue to evolve. That is why we have committed in our response to the Digital Radio and Audio Review to revisit in 2026 the issues raised in that review.