My report regarding the future of BBC3, 2014


Assess the capacity of an online BBC3 to meet the requirements of a Public Service Broadcaster (as laid down in the BBC charter) in relation to that of the current digital channel.


Table of Contents

1. Introduction

2. Executive summary

3. British Broadcasting Company (BBC)

   3.1. Definition and remit

   3.2. BBC3 as a digital channel

   3.3. BBC & Internet television provision

         3.3.1. iPlayer viewership in comparison to television viewership

   3.4. Removal of BBC3 as an on-air broadcaster

         3.4.1. Advantages of closing BBC3 for the British Broadcasting Corporation

         3.4.1. Disadvantages of closing BBC3 for the British Broadcasting Corporation

4. Conclusion

5. Recommendations

6. Bibliography 

                                                               


1.    Introduction
This report examines the capacity of an online BBC3 to meet the requirements of a Public Service Broadcaster (as laid down in the BBC charter) in relation to that of the current digital channel. It covers the conditions regarding the validity of BBC3 as an online channel & also the current conditions under which the BBC broadcast & will also briefly cover the characteristics of Public Service Broadcast.  It assesses these points and examines the prospective future of BBC3 as a channel in relation to the impending closure of the BBC3 as an on-air channel in autumn 2015. It looks to analyse the consequence of the alteration of BBC3 from a digital television channel to an internet based streaming service and how the audience of the current channel will be effected by this change in service.
2.    Executive Summary
It examines the pros and cons of a transfer from the current digital service provided by BBC3 to an online service. This will entail –
§  How the BBC will fulfil what is currently required of them according to the current BBC charter.
§  How the current audience of BBC3 will be impacted by the transition from digital to online service provision.
§  How an online version of the channel will be executed in terms of providing programming to its audience.
§  How online programming (eg. BBC’s iPlayer service) is impacting television & how the ratings that programming broadcast on television are effected

3.    British Broadcasting Company (BBC)
3.1) Definition and remit – The British Broadcasting Company (BBC) is a public service broadcasting corporation. The BBC is one of the key media broadcasters in the UK, with a 32.3% audience share by BBC channels from September 2012 to September 2013 in the UK (BARB, 2013) Its primary source of revenue is television licence fee (£145.50), which is paid annually to all households within Britain that are in possession of equipment that is being used for the purpose of viewing live television broadcasts. In the most recent BBC charter (2006), the BBC summarise their requirements as a Public Service Broadcaster as –
“(a) sustaining citizenship and civil society;
  (b) Promoting education and learning;
  (c) Stimulating creativity and cultural excellence;
  (d) Representing the UK, its nations, regions and communities;
  (e) Bringing the UK to the world and the world to the UK;
  (f) In promoting its other purposes, helping to deliver to the public the benefit of emerging
       communications, technologies and services and, in addition, taking a leading role in the
       switchover to digital television.” 
The charter is renewed on a by the BBC every 10 years, with the latest renewal taking place in 2006. The requirements outlined in the charter are applicable to the contemporary decision put forward by the BBC to transfer BBC3 from its current residency as a digital channel to an online channel. The charters assertion that part of the BBC’s responsibility as a public service broadcaster is “helping to deliver to the public the benefit of emerging communications, technologies and services” is directly relatable to the plan by the BBC to cut their expenses and move BBC3 as a channel online. In transferring the channel to an online service, the BBC is utilising newer technology and services as a way of delivering their content to the public.

  3.2) BBC as a digital channel – The BBC established BBC3 in February 2003 as a digital channel. BBC3 took the place of BBC Choice, the second non terrestrial channel launched by the BBC in 1998. “Choice” also aired children’s programming until the launch of the BBCs two specifically child orientated channels “CBBC” and “Cbeebies” in 2002, just prior to the shutdown of “Choice” and the rebranding as “BBC3” and the alteration in target audience from a broader audience to a more specific bracket (BBC, 2014). The channel airs from 7pm in the evening to the early hours of the morning, approximately 4am. In terms of content that is expected to be broadcast by the channel, Zai Bennett states -
  “BBC 3 is a mixed genre channel for young audiences” with an intended audience of “16 – 34 year olds”

  3.3) BBC & Internet television provision – The BBC launched their internet catch-up service “BBC iPlayer” on the 25th of December 2007. In the monthly performance pack for iPlayer published by the BBC, the BBC conclude that the audience of the iPlayer service is “under-55 in terms of age, which is younger than the typical TV viewer or radio listener’s profile (although more in line with home broadband users)” (BBC, 2013.) The service is accessible from a number of platforms & technologies (including computers, games consoles, mobile phones, tablets and televisions with internet connection capabilities. The peak time of iPlayer usage is between 7pm and 8pm. The vast majority of the content broadcast on BBC channels is available on iPlayer after it has been aired on television. The service organises BBC programming into sections that reflect the genre or format of the material and allows users of the service to search for content according to channel (eg. programmes specifically aired on BBC3) & also content based on region, the day it aired and the time slot. The service also allows for the streaming of BBC’s radio programming in a similar format to that of the television catch up service, with radio programmes separated by radio channel & the day of original broadcast.
         3.3.1.) iPlayer viewership in comparison to television viewership – The iPlayer has garnered
         increasing ratings over its lifetime. In the BBC’s iPlayer summary for October 2013 –
“261 million BBC iPlayer requests in October - up +23% on October 2012, with 199 million TV requests – the third highest figure ever recorded. Mobile and tablet requests increased to a new high of 37% of total requests, and are almost in line with computers which reached 39%.” (BBC, 2013)
A growth in mobile and tablet technology with streaming capabilities has significantly impacted the viewership of BBC programming via iPlayer in place of viewing conventionally on scheduled television. Television as a medium of viewership is still at the forefront in terms of overall audience share, but viewing figures on the whole are being significantly altered by online streaming, with audiences opting to view content in the days following the original broadcast rather than it’s originally scheduled airdate.
  3.4.) Removal of BBC3 as an on-air broadcaster – In a formal statement issued in March 2014, the British Broadcasting Corporation announced the discontinuation of their channel BBC3 as an on-air broadcast. The channel is planned to be removed from air as of autumn 2015. The channel will not be entirely eradicated, and will be re-launched as a new online service following the end of the digital channel (BBC, 2014). This decision followed a statement issued by the British Broadcasting Corporation director general Tony Hall that the BBC was aiming to achieve £100 million in savings for the corporation by 2016. (BBC, 2014)

3.4.1.) Advantages of closing BBC3 for the British Broadcasting Corporation
The current annual production budget for the BBC3 channel is £85 million. With the closure of the channel aimed at an autumn 2015 deadline, the BBC will make a significant move towards the target £100 million in savings for 2016.
In terms of BBC3s current audience share in the UK, in a September year-to-year report by the Broadcasters Audience Research Board (BARB) the channel averaged at a 1.4% share, a fraction of the 20.1% share held by BBC1 and the 32.3% share that is held by the BBC for all of its channels overall. (BARB, 2013)
The decision to move BBC3 online in place of one of the BBCs other smaller channels (eg. CBBC, BBC 4, BBC Parliament) was decided upon by BBCs director of television, Danny Cohen -
The decision to move BBC3 rather than BBC4 online was taken because its audience was more likely to be able to adapt. It was a strategic decision" (Cohen, D cited in Plunkett, J. 2014)
The strategic decision further reinforces the ideals put forward in the BBC charter (“helping to deliver to the public the benefit of emerging communications, technologies and services”) by encouraging the streaming of their content online, with BBC3 content being released exclusively online, the use of emerging technologies (i.e. tablets, mobiles) will be embraced further.  The decision is formed around the basis of BBC3s intended audience age of 16 to 34 (Bennet, Z. 2014) and its branding as a youth orientated channel. The decision also seeks not to alienate the audience of BBC4, a channel with a more mature intended target audience age. BBC4 is intended to cater to a target audience of around 34+ (BBC, 2013)
The decision regarding BBC3s closure over the closure of BBC4 also puts the BBC at an advantage financially in terms of obtaining the £100 million budget savings target for 2016. In comparison to the £85 million budget that BBC3 receives annually from the BBC, BBC4 receives £49 million. The removal of BBC3, a channel more costly to maintain on a yearly basis over BBC4, a considerably less costly channel to maintain (with a budget of £36 million less than its BBC3 counterpart) the decision will significantly impact the BBCs target budget cuts.
Due to the limited amount of content that was broadcast by BBC3 (only airing from 7pm – 4/4am) and the regular re-use of material in order to fill the schedule, an online streaming service in place of a television channel may be a more desirable option. An online streaming service would not be bound by the time slots put in place for the digital channel & would make content more readily accessible to its audience. The service can provide new content as it is produced, rather than recycling older material repeatedly in order to fill up a time slot. Director of television for the BBC put forward a statement when announcing the plans for the future of BBC3 –
It will not just be a TV channel distributed online. There is a wonderful creative opportunity here to develop new formats with new programme lengths – and to reach young audiences in an ever growing number of ways” (Cohen, D. 2014)
3.4.2) Disadvantages of closing BBC3 for the British Broadcasting Corporation
The decision may come as a disadvantage to the BBC due to various factors. In their decision to cut BBC3, the BBC may not have correctly identified their financial shortcomings. While the BBC spends £85 million annually on the budget for BBC3, the budget for BBC2 is £415 million. The viewership figures observed by the Broadcasters Audience Research Board show that the average viewership in terms of percentage of audience share on BBC2 from September 2012 to September 2013 was 5.8%, only 4.4% higher than that of BBC3, despite the considerable difference in budgeting.
Further disadvantage may come at the result of this decision due to a possible alienation of the BBC3 digital channels audience in its relocation from television to online. The same audience that was inclined to watching BBC3 programming on television may not necessarily be inclined to seek out the same programming online.
The decision assumes that the BBC3 audience all have internet access at a reasonable capability in terms of ability to stream television via the internet. It also assumes that the audience of the channel are all in ownership of a device that would enable them to stream the content.

4.    Conclusion
In terms of the capacity of an online BBC3 to meet the requirements of a Public Service Broadcaster in relation to the channel as it currently exists, it would appear that there is indeed a capacity to fulfil these requirements. The BBC has already shown their capability in terms of distributing television material via an internet platform & they are clearly aware of the capabilities and relevance of online streaming as an ever-growing medium. A channel such as BBC3 and its content will likely fare better in an online streaming format, due to the channels established young target audience, whom will likely be more adapt to viewing television content online, rather than through the conventional medium of television.  The plan put forward by the BBC will be effective if enforced well.
5.    Recommendations
The recommendations for this report are relatively brief, as the plans laid forward by the BBC regarding BBC3 have been largely covered by the corporation. An issue that should be addressed is the maintenance of the quality of content over the transfer from digital channel to online streaming. It is important that the content being produced for the online streaming service maintains the same qualities and concepts that made up the programming on the digital channel so as to not alienate the channels already developed audience. 
Also, while the BBC may boost their credibility by embracing newer technology, they should consider a particular area of the market that may be alienated by their choice to make the BBC3 content online only & perhaps seek a way to rectify this.

6.    Bibliography
TV Licensing . (2014). TV Licensing . Available: http://www.tvlicensing.co.uk/. Last accessed 28th Mar 2014.

BBC. (2006). BBC - Royal Charter for the continuance of The British Broadcasting Corporation. Available: http://downloads.bbc.co.uk/bbctrust/assets/files/pdf/about/how_we_govern/charter.pdf. Last accessed 28th Mar 2014.

Bennet, Z. (2014). Commissioning . Available: http://www.bbc.co.uk/commissioning/briefs/tv/browse-by-channel/bbc-three/. Last accessed 28th Mar 2014.

BBC. (2013). BBC iPlayer Summary. Available: http://downloads.bbc.co.uk/mediacentre/iplayer/iplayer-performance-oct13.pdf. Last accessed 29th Mar 2014.

BBC. (2014). BBC Three to be axed as on-air channel. Available: http://www.bbc.co.uk/news/entertainment-arts-26447089. Last accessed 28th Mar 2014.

Cohen, D. (2014). BBC announces plans to close BBC Three as a TV Channel in 2015. Available: http://www.bbc.co.uk/mediacentre/latestnews/2014/bbc-three-tv-closure.html. Last accessed 29th Mar 2014.

Broadcasters' Audience Research Board. (2013). BARB publishes The Viewing Report. Available: http://www.barb.co.uk/whats-new/284. Last accessed 28th Mar 2014.

Cohen, D. (2014). BBC3 closure: now director of TV refuses to guarantee the future of BBC4. Available: http://www.theguardian.com/media/2014/mar/06/bbc3-no-guarantee-future-bbc4-danny-cohen. Last accessed 28th Mar 2014.

BBC. (2013). BBC Audience Information. Available: http://downloads.bbc.co.uk/aboutthebbc/insidethebbc/howwework/accountability/pdf/summary_audience_information_january_march_2013.pdf. Last accessed 28th Mar 2014.

BBC. (2014). BBC Three: From digital first to online only. Available: http://www.bbc.co.uk/news/entertainment-arts-26452235. Last accessed 29th Mar 2014.


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