Ofcom to dig deeper into the impact BBC’s online expansion is having on local news providers
Media regulator Ofcom is still failing to recognise the impact the BBC’s mass expansion into local news online is having on publishers — and putting jobs at risk as a result.
The New Media Association has now urged the regulator, which last week published an interim update of its Local Media Review — while welcoming the body’s work on recognising the damaging impact big tech is having on local journalism
The Ofcom interim report states local media has a vital role to play in the social fabric of the UK, with most people preferring online sources over print.
Ofcom said its research found people will also adjust their choice of content platform based on the level of urgency or accuracy of the content they need — often trading their greater trust in the accuracy of traditional media sources, for the speed of social media or messaging apps where a situation is rapidly developing.
It also found that a lot of news consumption is passive, and driven by algorithms.
“Online platforms have significant influence over people’s news diets through the way that they curate and present news articles,” said Ofcom.
Ofcom said willingness to pay for online local news and information is low in the UK. It also noted that new small or community news providers, often struggle to thrive, with Ofcom saying: “There are questions about whether such outlets can be sustainable across the country without support.”
On the impact of big tech platforms, Ofcom said: “Tech platforms, like Facebook and Google, also now play a significant role in the news value chain, and many local news providers feel there is limited transparency around these platforms’ recommendation algorithms and search rankings, which can impact website traffic.”
And for the first time, Ofcom has recognised concerns about the BBC’s large-scale move of resource to compete directly with existing publishing in the local online news space. Previously, it had backed BBC claims the plans would have little, if any, impact on local journalism already being produced.
Publishers say they can already see the impact the BBC is having — and that local journalism is being put at risk as a result.
Ofcom said: “The BBC’s local online content is currently the area of greatest contention. The BBC’s decision to increase its online local news content has resulted in some regional publishers arguing that the BBC is duplicating their commercial output, putting them in direct competition for audiences and online search rankings, and placing additional pressure on their revenues.
“However other stakeholders felt the BBC’s changes to its online local news have increased plurality and met the needs of audiences who are increasingly moving online.
“More broadly, across the sector, providers were concerned that staff they are training are leaving their organisations to join the BBC, suggesting it is often able to offer larger salaries.
“Some news providers from across the local media spectrum also felt that the BBC could play a bigger role in supporting the wider local sector, though many were wary of using part of the BBC licence fee to fund other local media providers.
“The BBC points to its investment in its own output, its existing partnership commitments and the need to balance this against the wide range of public service obligations it must also fund.”
Ofcom has now confirmed its final report will determine the impact the BBC’s recent changes have had on the media sector, with further work with ‘stakeholders’ ongoing.
It will also conclude its view on what the BBC’s role should be in the local news sector.
It will also consider any changes which could positively support the sector.
Following publication of the report, Owen Meredith, CEO of the News Media Association, said: “Ofcom has rightly recognised the vital role local news media plays in “the social fabric of the UK,” underlining its role in fostering local democracy and promoting democratic engagement, as well as highlighting the industry’s efforts to innovate and adapt to the evolving media landscape.
“Their acknowledgement that Google and Facebook play a significant role in the “news value chain” further emphasises the necessity for Big Tech to engage in negotiations for fair compensation for the use of local news content, allowing publishers to continue investing in high-quality local journalism — and again, showing why the CMA and the new government must move quickly to implement the Digital Markets, Competition and Consumers Act.
“However, Ofcom’s report fails to recognise the scale of impact of the BBC’s online news offer, which directly competes with commercial publishers. Ofcom must go further in tackling the BBC’s dominance in online news, by encouraging the BBC to collaborate with the local media sector, placing firm guardrails on the scope of their online news services to establish a clear remit and ensure that any future plans do not further undermine the opportunity for commercial news publishers to adequately monetise journalism online.
“This is an interim report, and we look forward to engaging with Ofcom as they continue to gather evidence and draw conclusions for their final report in the autumn. By using their powers, Ofcom must put appropriate constraints on the size and scale of BBC’s news websites, and in doing so, strengthen the local media landscape and ensure the continued provision of high-quality news and information to local communities across the country.”
