Streaming services facing tighter regulation in UK broadcasting shake-up

Streaming services are to be regulated by Ofcom for the first time, according to new government proposals.

Netflix, Disney+, Amazon Prime Video and other streamers are getting new rules that bring them in line with traditional broadcasters.

The culture minister said the move would protect audiences from harmful material.

The government also reaffirmed its intention to proceed with the privatization of Channel 4.

The broadcasting reforms were set out in a white paper – a policy document – from the Department for Culture, Media and Sport (DCMS).

They are said to usher in a “new golden age” of British television and “help the country’s public broadcasters thrive”.

Culture Secretary Nadine Dorries said: “The UK television and radio industry is world-renowned for its creativity, driven by exceptional talent delivering ground-breaking public service programmes.

“Against the backdrop of the digital transformation of our viewing habits, today’s plans will overhaul decades-old laws to help our public broadcasters remain competitive in the internet age.”

While linear TV broadcasters are currently required to comply with Ofcom’s rules, most video-on-demand (VoD) services are currently not subject to the regulator’s Broadcasting Code.

The proposed changes would oblige VoDs to protect audiences from harmful or objectionable material and to abide by rules of accuracy, fairness and privacy.

The move is welcomed by public service broadcasters (PSBs), who have campaigned for several years to ensure streaming services are subject to the same regulations as them.

The Government said the new rules would primarily affect “TV-like” VoD services such as Netflix, ITV Hub and Now, creating a “level playing field”.

Currently, BBC iPlayer is the only VoD service required to comply with Ofcom’s Broadcasting Code.

But the proposals mean Ofcom would have the power to draft and enforce a new VoD code to ensure all streamers are subject to stricter rules.

The Government said the maximum penalty for regulated VoD services that break the rules will be £250,000 or an amount of up to 5% of an organisation’s revenue, whichever is greater.

The Government’s intention to privatize Channel 4, which is currently publicly owned but commercially funded, is also set out in the White Paper.

It says a “change of ownership at Channel 4 will give it the tools it needs to thrive as a public broadcaster in the future while maintaining its distinctiveness”.

But the proposals were unpopular with Channel 4, which said earlier this month it was disappointed with the plans.

CEO Alex Mahon said there was no evidence the channel would benefit from the privatization.

Labor is also opposed to the move, with shadow culture secretary Lucy Powell telling the Commons: “Nothing calls for leaderless government like the fixation on running Channel 4 while people’s energy bills are through the roof. Why sell Channel 4 and why now? “

Ms Powell added that the privatization of Channel 4 “will mean fewer British-produced programs for British audiences and fewer British jobs”.

But the government argues that Channel 4 faces unprecedented competition for viewers.

It says it has sought advice on how best to ensure the channel’s future success and sustainability and believes this is the right time for a change of ownership.

The government also plans to introduce legislation to ensure public broadcaster content is featured prominently on connected devices and major online platforms, including smart TVs and set-top boxes. This includes services like BBC iPlayer, ITV Hub, All 4 and My 5.

The first five linear channels the public will find when they turn on their televisions are PSBs, the white paper notes, because these slots are reserved in electronic program guides on televisions, including on platforms like Sky and Virgin Media.

However, the government acknowledged that PSBs are finding it increasingly difficult to secure their presence and maintain their prominence on newer and global platforms, which the new rules would address.

Plans to change digital broadcasting rights for major sporting events such as the Olympic Games, Men’s World Cup Final, Men’s FA Cup Final, Grand National and Wimbledon Singles Final are also outlined.

Current broadcasting regulations state that events of national interest should be available live and free of charge to as wide an audience as possible. As a result, broadcasters such as the BBC, ITV and Channel 4 currently broadcast most major sporting events.

However, digital rights are not covered by current legislation known as the Listed Events Regime. This means that public service broadcasters can broadcast events live, but do not always have catch-up rights.

For example, if the Olympic men’s 100-meter final took place overnight and another broadcaster owned the catch-up rights, a wide audience could miss out on seeing it for free, the newspaper said.

The proposals will strengthen PSB’s position at a time when many are struggling to hold some of their biggest sporting events.

Last year, viewers complained that BBC coverage of the Tokyo Olympics was down on previous years after the International Olympic Committee (IOC) struck a deal with US broadcasting giant Discovery.

An Ofcom spokesman told BBC News: “We are pleased that the Government is taking forward many of our recommendations, particularly in relation to ensuring the prominence of public service content on demand. We will continue to offer assistance in developing future legislation.”

In a statement, ITV said: “We will be looking carefully at the content of the white paper once it is published, but see many of its proposals – notably reform of prominence and inclusion rules, a more flexible approach to tasks and changes to listed event regimes You look very sensible.”

Channel 4 said it would “study the white paper issued by DCMS and a considered response will follow”.

It added: “However, Channel 4 remains committed to upholding and maximizing its mission and public service purpose, which has enabled it to shape the UK’s creative culture and make a significant contribution to the creative industries.”

Netflix and the BBC have been contacted for comment.