LONDON -- The U.K.'s culture secretary Tessa Jowell announced Wednesday that the government plans to protect the schedules of ITV and Channel 5 from being flooded with cheap, U.S. imports if ownership of either web changes.
The communications bill, currently going through parliament, will allow U.S. companies to own either network. Independent producers, broadcast execs and David Puttnam's review of the bill have all warned against relaxation of ownership rules.
Jowell has accepted all but two of the recommendations by TV watchdog the Independent Television Commission into the program supply market. Review was initiated in August last year after concerns were raised by the industry that broadcasters were exploiting indie producers.
ITV, Channel 4, Channel 5, and S4C must draw up new codes of practice based on guidelines produced by super-regulator Ofcom. BBC must have its codes approved by the secretary of state.
Ofcom will have the power to measure broadcasters' quotas by value and volume, if necessary, and force channels to make up any shortfall in subsequent years. Currently the quota stands at 25% of programs broadcast.
New targets for regional production and investment for C5 will be introduced and a new regional investment target for C4 will be added to its existing regional production target. Currently 30% of C4's programs must be made outside London.
Commenting on the changes, Jowell said, "I want to provide the help that the independent sector needs to grow and flourish. I want to protect it, but not mollycoddle it. As far as the BBC is concerned I wan to make sure the license fee really does become venture capital for this important sector of broadcasting. The measures I am accepting today will help achieve these goals."
Jowell has asked the ITC to continue monitoring the program supply marketing, with a view to Ofcom undertaking a formal market investigation once it is up and running later this year.
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