Ofcom Recommends Relaxation of Cross Media Ownership Rules

Ofcom has recommended to the government that cross media ownership rules be relaxed to increase flexibility for media companies while maintaining plurality of news sources.

Ofcom’s final report is based upon evidence from its consultation document published in July, and stakeholder responses, which include a submission from the NS, to that consultation.  It also draws on the Local and Regional Media in the UK paper published in September.

Submitted to culture secretary Ben Bradshaw this week, the report recommended two main changes:

• Liberalising the local cross media ownership rules so that the only restriction is on ownership of all three of: a local radio station; local newspapers (with 50 per cent or more of the local market share); and a regional Channel 3 licence.
• Removing the rules around local radio service and multiplex ownership and national multiplex ownership. by one operator in a local area, alongside the BBC local radio services.

Ofcom said its recommendations “would reduce the regulatory burden on the local media sector and the radio industry in particular” allowing for local content to be maintained.

It acknowledged the need to protect media plurality as “consumers still rely on television, radio and press for news”.

Ed Richards, Ofcom chief executive, said: “These proposals would allow local media companies more flexibility to respond to the challenges that they are facing while at the same time protecting plurality for listeners and viewers; it is for Government and Parliament to take any decisions in this area.”

Santha Rasaiah, NS PERA director, said: “The Newspaper Society supports the liberalisation of local cross-media ownership.

“This is important to the future development of regional multi-media companies, as they innovate, sustain and expand the journalistic and other services across media platforms which they provide to their local communities.

“Relaxation of cross-media ownership rules also needs to be accompanied by a more realistic approach to local media mergers and assessment of competition in local media markets by the competition authorities, under the merger regime.

“The NS welcomes Ofcom’s recognition that relaxation of local cross-media rules is necessary. However, we would view their recommendation as the minimum change and would welcome further radical reform as soon as possible.

“The NS’s view continues to be that all local cross-media ownership rules, including the media public interest test, should be removed completely, rather than any restrictions remain upon the owner of a newspaper with 50 per cent plus local market share from ownership of both a local radio station and the regional Channel 3 licence.”

For further information, contact Santha Rasaiah on 020 7693 0433 or email santha_rasaiah@newspapersoc.org.uk.