BBC Public Purpose Remit: Emerging Communications December 2007 Emerging communications You can expect the BBC to help everyone in the UK to get the best out of emerging media technologies now and in the future. What the BBC will do to achieve this Purpose 1. Make engaging digital content and services available on a wide range of digital platforms and devices. The BBC will offer interesting and enjoyable programmes and services that can be received through many different devices such as digital television, digital radio, mobile phones and the internet. 2. Work with the industry to deliver a UK-wide network of digital television. The BBC should work closely with other key parts of the UK digital industry to offer digital television through DTT1, DSat2 and cable3. 3. Increase coverage of Digital Audio Broadcasting (DAB). The BBC should increase the number of transmitters to extend DAB coverage to at least 90% of the UK outdoor population. 4. Support Digital UK’s communications activity to build awareness of, and readiness for, digital switchover. The BBC should work with Digital UK to ensure that all UK television viewers know about switchover and have the opportunity to prepare for it. 5. Work in partnership with other organisations to help all audiences understand and adopt emerging communications technologies and services. The BBC should work with other UK bodies to end the ‘digital divide’ between those who enjoy the benefits of digital technologies and those outside that group. 6. Support the Government’s targeted help scheme to help the most vulnerable during digital switchover. During digital switchover some vulnerable groups will need help to buy and install new equipment. The BBC should help deliver the Government support scheme for these groups. 1 DTT – Digital Terrestrial Television (Freeview; Top Up TV) 2 DSat –Digital Satellite (BSkyB, Freesat) 3 Cable (Virgin Media, Home Choice) Guidance on how the Trust intends to measure performance against the Public Purpose priorities is contained in Annex I. Annex II explains the priorities, and how they have been developed, in more detail. Annex I: Purpose Remit Measurement In order to monitor the BBC’s delivery of the Public Purposes, the Trust will use largely quantitative measures based on licence fee payer perceptions of the BBC's delivery of the Purpose priorities. In some cases it will be necessary to supplement or replace such measures with qualitative research on priorities which are not readily amenable to survey questions and therefore require more in-depth research. Where appropriate, the Trust will also gather comparative data, using its survey questions, to assess the BBC’s performance relative to other media providers. For details about how the Trust will use these measures in evaluating the BBC’s effectiveness in delivering its Public Purposes, please see the Purpose Remit Operating Framework. Priority (i): Make engaging digital content and services available on a wide range of digital platforms and devices. The Trust will measure (using specific technology examples): Audience perceptions of the BBC providing content on a wide range of technologies, which they enjoy and find useful. Priority (ii): Work with the industry to deliver a UK-wide network of digital television. Broadcast coverage achieved for DTT [source: Ofcom]. Penetration of homes with digital TV [source: Ofcom]. Priority (iii): Increase coverage of DAB. Broadcast coverage achieved for DAB [source: Ofcom]. Penetration of homes with DAB [source: Ofcom]. Priority (iv): Support Digital UK’s communications activity to build awareness of, and readiness for, switchover. Awareness of switchover by region and overall [source: Digital UK]. Understanding about switchover [source: Digital UK]. Attitudes towards switchover [source: Digital UK]. Intention to switch - within 12 months [source: Digital UK]. Priority (v): Work in partnership with other organisations to help all audiences understand and adopt emerging communications technologies and services. The Trust will measure this priority qualitatively using specific technology examples to monitor adoption and understanding of emerging communications technologies amongst the audience. Priority (vi): Support the Government’s targeted help scheme to help the most vulnerable during digital switchover. Digital conversion amongst vulnerable consumer groups [source: Digital UK]. Satisfaction with digital TV amongst vulnerable consumer groups [source: Digital UK]. Annex II: Explanatory Note Introduction This Annex explains the background to the development of the ‘emerging communications’ Purpose Remit. Under its Charter and the Agreement the BBC has six Public Purposes, which are: 1. sustaining citizenship and civil society; 2. promoting education and learning; 3. stimulating creativity and cultural excellence; 4. representing the UK, its nations, regions and communities; 5. bringing the UK to the world and the world to the UK; 6. in promoting its other Purposes, helping to deliver to the public the benefit of emerging communications technologies and services and, in addition, taking a leading role in the switchover to digital television. For each Public Purpose the Trust must adopt a Purpose Remit setting out priorities and specifying how the Executive Board’s performance against these priorities will be judged. The Trust must consult publicly in developing the Purpose Remits before adopting them. The six Public Purposes should not be seen as entirely separate aims but as parts of a whole whose boundaries necessarily overlap. The six Remits should therefore be read together – and within the context of the BBC’s overall mission to inform, educate and entertain. Subsequent to public consultation, the Trust will use the Remits to commission Purpose Plans from the Executive Board. These will set out how the BBC's services and supporting activities will deliver the Purpose priorities. Once it has approved the Purpose Plans, the Trust will amend Service Licences, as necessary, to reflect the role that services play in delivering the priorities set out in Purpose Remits The ‘emerging communications’ Public Purpose will be achieved by the BBC as a part of promoting its five other Public Purposes. The Trust will conduct a full review of the Purpose Remits in 2011/12. This Annex is divided into three sections: 1. Scope of the Public Purpose This sets out the types of output and activities to be covered by the Purpose, as required by the Charter and Agreement. 5 Digital UK is the independent, not-for-profit organisation leading the switchover to digital television in the UK. It was established at the request of the Government and is jointly owned by the UK public service broadcasters. 6 Building Public Value – Renewing the BBC for a digital world, BBC; June 2004 2. Market Context and BBC Role In this section the overall market context for the delivery of the Purpose is described, including major developments in terms of technologies, audiences and the wider political and policy context. Against this background, the BBC's particular role in delivering the Purpose is outlined. 3. Priorities This section sets out, in detail, the priorities that the Trust has set the Executive Board. 1. Scope of the Public Purpose4 The Charter and Agreement require the Trust to ensure that the BBC helps to deliver to the public the benefit of emerging communications technologies and services. In addition, the Agreement requires the BBC to take a leading role in the switchover from analogue to digital television by supporting Digital UK5, by improving the technical infrastructure and by providing information and support to audiences. These goals will in part be achieved through the BBC’s activities in promoting its other five Public Purposes, in particular by the production and promotion of high-quality digital content and services that encourage audiences to obtain the maximum benefit from the opportunities available. The BBC is committed to achieving these aims in the most cost-effective way possible.6 2. Market Context and BBC Role The remit of this Public Purpose reflects in part current and expected developments in the media markets. This section sets out some of the main characteristics of these markets which directly affect the BBC’s commitment to emerging technologies and digital switchover. 2.1 Market Context and Developments Take-up of digital services has been more widespread in the UK than in any other Western European country. Audiences have shown strong demand for high-quality digital content and services across many platforms. The market is growing rapidly, with many new entrants as well as traditional providers developing new content and distribution methods, including new devices. However, there remain large 7 ‘The UK Media Market: Trends and Implications for The BBC’s Public Purposes’, a report for the BBC Governance Unit; Susan Denham & Caroline Murphy; June 2006. 8 Ofcom: The Communications Market 2007. 9 Ofcom: The Communications Market 2007. numbers in the UK who have not yet experienced the benefits of these emerging technologies. Major trends are emerging in media markets. Amongst the key trends driving the media markets, the BBC has identified five which are likely to be among the major forces driving developments in emerging technologies in the foreseeable future.7 They offer great potential benefits to digital audiences. These trends are: .. Convergence .. Mobility .. On demand .. Personalisation .. Participation Convergence is the coming together and interoperability of once- separate technologies and industries including computing, telephony, consumer electronics and media, to produce, for example, mobile phones that can receive and transmit audio, video and text, as well as giving access to the internet. Mobility enables audiences to access, receive or transmit information and content while on the move. On demand enables audiences to access whatever content they choose, whenever they want it. Personalisation enables audiences to receive only content they choose and to screen out the rest. Participation is the ability of audiences to interact, with each other and with media providers, and to create and publish content - transforming audiences from passive consumers into active participants. Digital take-up in the UK varies widely across platforms. Digital TV has spread rapidly in the UK. By 2007, around 80% of UK households were receiving digital TV8, the highest such figure in Europe. The spread of personal video recorders was enabling time- shifted viewing. However, radio listening via DAB has grown more slowly. In 2007 it was estimated that about 17% of UK homes had a digital radio and some 5 million DAB radios had been sold in the UK9. More than half UK households can access the internet. By March 2007, some 71% of UK households were online, of which around 64% had a 10 Switchover Progress Report Q2 2006, Ofcom and Digital UK Switchover Tracker Survey; July 2006 high-speed broadband connection. Broadband penetration was rising rapidly and ADSL broadband was almost universally available. UK ownership of mobile digital devices is high. By 2006, 80% of UK adults had mobile phones; 20% had MP3. More than half of all UK internet households had a games console, many of which could be used to access the internet and play against other players around the world. At the start of the current Charter period, millions in the UK had not yet entered the digital universe. By March 2007, some 20% of UK households did not have digital television and it is estimated that 50% of television sets in use cannot receive digital signals. The overwhelming majority of households listened to radio via analogue, and some 30% of households did not have internet access. There was evidence that around a third of the population was still unaware of the digital TV switchover.10 These individuals are denied the great benefits available to digital audiences. 2.2 The BBC Role These market conditions suggest two clear public service imperatives within the scope of the ‘emerging communications’ Public Purpose. The first is to ensure that the benefits of emerging communications technologies are extended to audiences who have not yet taken up digital services to a significant extent. The second is to extend and enrich the digital content and services for those who have already made the transition. The BBC should continue to innovate in the digital realm – especially in areas the market may find less attractive - as well as working with commercial partners and with Digital UK to achieve these objectives. Awareness of these goals should be reflected in the pursuit of the BBC’s other Public Purposes. It is important to note that the BBC must ensure that television services are available to audiences in analogue form until digital switchover is completed on a regional basis and the BBC should support audiences who choose to stay with analogue services until switchover. Wherever possible the content of BBC One and BBC Two should be the same whether broadcast on digital or analogue 3. Priorities 11 Beyond Broadcast, BBC Creative Future; 2005 12 Building Public Value – Renewing the BBC for a digital world, BBC; June 2004 13‘Progress Towards Digital Switchover’, BBC Report; April 2004 14 ‘Willingness to Pay’ study, MORI; March 2005 15 Licence Fee Value Survey, BBC/TNS; 2003 In delivering this Purpose, the Trust will focus on the following priorities for the Executive Board. The Trust has developed these with reference to the requirements of the Charter and Agreement, the emerging market context in which the BBC is operating and an understanding of the needs of licence fee payers. (i) Make engaging digital content and services available on a wide range of digital platforms and devices. The ways in which audiences consume content are changing rapidly and the rate at which they adopt new media technologies is accelerating.11The provision of BBC content must take full account of these changing audience trends. This means that in order to maintain the principle of universality, the BBC must provide a range of distribution outlets for its content. New content should be developed to exploit the potential of emerging technologies and existing content repurposed for new platforms in order to meet audience demand. In promoting its five other Public Purposes, the BBC should produce, acquire and distribute a range of engaging digital output and services that encourage adoption of the technologies and services necessary for their enjoyment. (ii) Work with the industry to deliver a UK-wide network of digital television. Universality – content for everyone and freely available to everyone – is one of the founding principles of the BBC.12 Universal access to digital is unlikely to happen quickly if left to the market alone.13 Audiences believe that universality of digital access is an important goal for the BBC14 and licence fee payers are understandably frustrated at being asked to pay for digital services if they cannot receive them.15 In order to meet its Public Purpose of taking a leading role in the switchover to digital television as set out in the Charter and Agreement, the BBC will co-operate with and support other digital stakeholders, including Digital UK, other public service broadcasters and licence holders, to offer a choice of freely available services. (iii) Increase coverage of DAB. 16 Review of the BBC’s Royal Charter: BBC Response to ‘A Strong BBC, Independent of Government’, DCMS; May 2005 17 A public service for all: the BBC in the digital age, DCMS; March 2006 18 Review of the BBC’s Royal Charter: BBC Response to ‘A Strong BBC, Independent of Government’, DCMS; May 2005 19 Please refer to clauses 34-41 of the Agreement for a more detailed description of the BBC’s role in Digital Switchover. The principle of striving for universality applies to all the BBC’s digital services, including radio. The BBC is committed to increasing support for the roll-out and take-up of digital radio. It is therefore investing in the BBC’s national DAB network to ensure that at least 90% of the UK outdoor population are within range of DAB transmitters, in partnership with commercial radio through the Digital Radio Development Bureau. The BBC is committed to designing, commissioning, building and operating an appropriate number of transmitters to extend coverage of the BBC’s national DAB multiplex from 85% to 90% of the outdoor population.16 (iv) Support Digital UK’s communications activity to build awareness of, and readiness for, digital switchover. The Agreement requires the BBC to ensure that all viewers of UK public service television are aware in general terms of the nature of digital switchover, the reasons for it, and its timetable. The BBC will achieve this through its support for Digital UK, which will develop and implement a communications plan. The BBC will itself also act as a trusted guide to audiences during the transition to digital.17 (v) Work in partnership with other organisations to help all audiences understand and adopt emerging communications technologies and services. Strategic collaborations between the BBC and public; private; not-for- profit; or voluntary sector organisations can deliver public value for the BBC, its partners, and the public. In pursuing its digital Public Purpose, the BBC should work in close partnership with other organisations to end the ‘digital divide’ between those enjoying the benefits of emerging technologies and those outside that group. Audiences have responded positively to the question: ‘Do you agree that the BBC should be a responsible leader in helping the public to adopt and use new technologies, including digital television?’’18 (vi) Support the Government’s targeted help scheme to help the most vulnerable during digital switchover.19 It is clear that some vulnerable groups will need particular support during digital switchover to help them cope with buying new equipment and installing it. In 2005, the Government announced a support scheme for such vulnerable groups. The BBC has been tasked by the Government to support this scheme.