BBC Local Video
The BBC Trust has refused permission for the broadcaster to a launch a local video service.
It said local video would not improve services for the public enough to justify either the investment of licence fee funds or the negative impact on commercial media.
The BBC had proposed launching an enhanced version of the ‘BBC Local’ websites to be available on any internet-enabled device.
Public Value Test
The BBC Trust carried out a Public Value Test (PVT) into the plans which looked at both the value to the public of the proposed service and its impact on the wider market.
As part of that process Ofcom undertook a Market Impact Assessment (MIA).
We concluded that the planned service would have a ‘significant negative impact’ on commercial providers who had plans in this area.
It revealed 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.
This is an Ofcom report.