BBC Director-General Mark Thompson is back on again trying to justify to the British government why the BBC should be allowed to increase their licence fee above the Retail Price Index (RPI).
Thompson’s main thrust for the increase is the cost of going digital. It’s a clever approach as the UK government has publicly committed itself to switching off analogue TV in favour of digital. Thompson also knows that once the analogue spectrum is freed up, the government may make bucket loads of cash from making that spectrum available.
Thompson ratcheted up the pressure on the Government to comply, by reminding them the risks of digital transition, “If it is under resourced it will fail. It’s as simple as that – and the failure will impact on many millions of households.”
The UK public has for a long time been told, primarily by the BBC, that Digital will be amazing and their lives will somehow become increasingly glorious once they get a Digital TV. Only now are they starting to understand that it’s going to cost them more to have.
Until today, Thompson was asking for an increase in the licence fee of RPI plus 2.3%. today it’s dropped to +1.8%. Under the adjusted figures, the license fee would be £149 in 2013/14 by today’s prices. The reduction has been helped by Ofcom making the decision to no longer charge the BBC a spectrum tax.
Being publicly funded, this kind of argument discussion is very important to the BBCs future ambitions – digital and otherwise. The license fee is payable by all UK residents who have a TV.
A survey released by Best of Stuff suggests that nearly a third of Brits own up to 15 gadgets.
The trusty ol’ gogglebox came in a close second with 27 per cent of the vote, and 46 per cent of those surveyed reckoned that the fabbest new innovation in the market is HDTV.
But it’s not all love-love-love in the world of gizmos, with 40 per cent of respondents declaring themselves disappointed with their gadget’s battery life, pointing the finger of blame at MP3 players, laptops and mobile phones as the worst offenders.
NTL, UK Cable provider, has announced a quad-play offering for £40.
Bigging the service up and attempting to create extra excitement for the future, Neil Berkett, chief operating officer of ntl Telewest, enthused: “Quadplay demonstrates the unique power of the cable-Virgin Mobile union and this is just the beginning. Our new package represents unbeatable value while meeting a wide range of consumers’ entertainment and communication needs.
Last week was the annual get together of TV ‘luvvies’ in Edinburgh and this year, as for the last few years, the current moguls felt it necessary to behave like Scrooge, reflect on their previous misdemeanours and take a bit of a look at TV to come.
The spectre of Banquo’s ghost in the shape of everyone’s (now) favourite caterer, Mr Charles Allen, was there and delivered the keynote address, he of course blamed all and sundry for the mess ITV is in – ‘nothing to do with me guv’ should have been the title.
Samsung is getting ready to unveil what it reckons is the first 70in HD (high-definition) LCD (liquid crystal display) panel.
Executive Vice President Kim Sang-Soo of Samsung Electronics was ready to parp his company’s PR trumpet: “Our new 70-inch LCD is not only significantly larger, but also sets a new benchmark of excellence in terms of video image reproduction, viewing angle and image quality. We’ve designed it to dramatically enhance the large screen LCD TV user’s viewing experience. ”
Market reaction
Steve Case, co-founder of AOL, now ex-chairman of AOL-Time Warner, has said he was sorry for the merger between AOL and Time Warner. It is widely regarded as a deal that didn’t go very well, leading to internal wrangling and huge amounts of money being knocked of share values.
When pushed, Case said from the point of shareholders of the two companies, employees & customers – it didn’t go as he’d hoped, it had been a disappointment and a source for frustration. Given the wide range of those included by Case, we don’t know who else might be disappointed who wasn’t included.
Today it was announced that Whitehaven, Cumbria will be the first area in England to have its TV reception changed over from analog to digital.
Shaun Woodward (right) the MP famed for the twin disgraces of his defection from the Conservatives to Labour and a stint working with Esther Rantzen on That’s Life, is now Creative Industries minister and is busy singing the virtues of the UK’s Digital TV switchover plans.
Digital UK had the current 98.5% coverage as a target and expects to meet this with additional coverage being by satellite, cable and broadband. Current figures indicate a rump of around 2% of refuseniks, those viewers content with a meagre 4 or 5 channels who see no value in multi-channel viewing, but expectations are this number will shrink as the digitisation spreads across the country like a warm front.
One of the challenges facing Stephen Carter’s replacement as head of the UK communications regulator Ofcom, is how the frequency spectrum released by the move to digital terrestrial TV will be allocated. Not only is the decision crucial for Ofcom, who must reconcile both the requirement to allow the market to operate while taking into account the British citizen, but it also figures in the BBC’s strategy around the impending licence settlement and the organisations’ worldwide ambitions.
How will displays receive the content to create the impetus for a large scale take up? The likely options are; Cable under what is expected to be a Virgin branded offering; Sky who are pushing HD to protect and grow their revenue; the BBC who are committed to both an alternative to Sky on Satellite and providing their content on all viable platforms and broadband, which looks increasingly viable by virtue of higher transfer rates to the home, along with improved digital compression technologies.
France, slower off the blocks in moving to a Digital Terrestrial TV service, with its’ amusingly acronym-ed TNT, has a solution that builds in HD capabilities, and for sure the UK will not wish to be seen falling behind mainland Europe.