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News Release

5 June 2008

BBC LOCAL SITES AMONG LEAST VALUED
DESPITE £36M OVERSPEND ON BBC.CO.UKdotted divide v2

The NS responded last week to the BBC Trust’s review of bbc.co.uk. The review found that, although bbc.co.uk was highly valued by users, spending on the website was out of control, links to external sites were poor, and the BBC local sites were among the least valued and distinctive parts of the service.
 
David Newell, director of the NS, said: “The BBC Trust has acknowledged the validity of the Newspaper Society’s concerns over BBC local news online, which is using sizeable sums of licence fee money to replicate services already provided by local media companies and using its cross-promotional power to attract audiences away from local media sites.
 
“The fact that the BBC management has been found so lacking in financial control or accountability that it has overspent on its website budget by £36m only underlines our worries. The Trust has pointed out in its report that the BBC local sites are among those not perceived to be original or different and has stressed that more needs to be done to ensure that all parts of bbc.co.uk are distinctive. Yet these are the areas of the website into which the BBC wants to divert more public money, encroaching further into the local news market.
 
“We will need to consider whether the measures outlined in the Trust’s report would provide sufficiently effective controls to safeguard plurality of local news for UK audiences."
 
One of the Trust’s three main conclusions was that “it is essential that the service remains distinctive and the boundaries in which it operates are strong enough to make this a reality.”
 
Dame Patricia Hodgson, BBC Trustee who let the review, said: “The Trust endorses that management’s plans to develop the service further … but we need to be sure that additional investment of licence fee payers’ money will deliver their expectations and – in doing so – does not stifle enterprise from others who seek to offer excellent online services to the public.”
 
Meanwhile, the BBC’s proposals to strengthen its local news online with video content across 60 regions will be the subject of a separate public value test. The NS will be responding formally on this once the proposals have been published.
 
As well as 1300 core regional and local newspapers, the industry has over 1100 websites, many with video streaming and online audiovisual services, plus a variety of online service and mobile telephone services, 750 magazines, 36 local radio stations and even two traditional television channels.
 
"The local market is well-served and there is no gap which the BBC needs to fill,” said David Newell.
 
 

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For further information please contact Lynne Anderson on 020 7632 7421 or e-mail lynne_anderson@newspapersoc.org.uk.
 
The NS, the voice of Britain’s local media, represents 1300 newspapers, 1100 websites, 750 magazines, 36 radio stations and two TV stations.