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21|11|08

BBC Local Video

BBC proposals to launch a local online video service would have a significant negative impact on commercial providers, Ofcom says today.

The BBC proposes to launch an enhanced version of the ‘BBC Local’ websites to be available on any internet-enabled device.

The service would provide local news, sports and weather in 60 areas across the UK, with an additional five Welsh language sites.

But an independent Ofcom Market Impact Assessment (MIA) has concluded the planned service would have a ‘significant negative impact’ on commercial providers.

Local and regional newspapers

Ofcom carried out the MIA as part of the BBC Trust’s Public Value Test for a new BBC service.

It looked at the likely impact of the proposal on commercial providers, including:

• local and regional newspapers and their associated web services;
• local radio stations and their associated web services;
• local and regional TV services and their associated web services;
• mobile TV services; and
• other services including third party content providers, journalistic services, and Welsh language news services.

The MIA reveals that if the BBC Local Video services were launched then annual revenues from existing commercial providers would fall by up to 4%.

More significantly, the launch of BBC Local Video services would have significant negative impact on future innovation in online local news, sports, and weather services by the commercial sector, particularly newspapers.

'Negative impact'

Commercial providers have strong ambitions to develop these parts of their businesses, despite commercial uncertainties. There is already a prevalence of local news sites across the country.

Ofcom also considered potential modifications to the BBC’s proposals that might reduce their negative market impact.

However, the MIA concludes that the modifications would not offset the negative impacts that the BBC Local Video services would have on other providers.

Read the full Market Impact Assessment.

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