Category: BBC; New Media
Date: 31.08.2006
Printable version
The BBC Governors announced today that the first Public Value Test - to be carried out on an application from BBC management to launch the BBC's new on-demand proposals (including BBC iPlayer) - has begun.
The Governors have this week received BBC management's formal application for approval of BBC iPlayer, a service to unify the BBC's provision of audio and video content on-demand and to make it available to UK audiences over the internet.
The application proposes a service that would consist of:
Seven day TV catch-up over the internet
Simulcast TV over the internet
Non-time limited audio downloads over the internet
The three internet-based offerings would be combined into a direct-to-consumer offering, BBC iPlayer, which would incorporate all the existing BBC players such as the Radio Player.
In addition, the application also covers seven day TV catch-up over cable.
The Public Value Test
The Public Value Test (PVT) is one of the key tools underpinning the radical change in the BBC's system of governance, which takes effect with the new Charter and Agreement on 1 January 2007.
In future, the test must be applied by the BBC Trust to provide a consistent and evidence-based framework to inform their decisions about significant service-related investment proposals from BBC management.
All major service-related investment proposals will be subject to a PVT to assess the net public value created once measured against market impact.
The Governors have previously made clear their commitment to subject any proposal from BBC management to a PVT if that proposal would qualify under the terms of the new Charter.
There are two parts to the Public Value Test:
The Public Value Assessment (PVA), which measures the public value which would be created by a service. This is conducted by the Governors' own advisers in the Governance Unit.
The Market Impact Assessment (MIA), which measures the likely impact on existing or potential value created in the wider market as a result of the change.
As outlined in the Charter and Agreement, the MIA will be carried out by Ofcom under terms agreed by a Joint Steering Group comprised of BBC Trust and Ofcom representatives.
Notes to Editors
1. Under the new Charter and Agreement the PVT is normally expected to take six months. Under such a timetable the final decision on the PVT for the BBC's new on-demand proposals is likely to be a matter for the new BBC Trust in early 2007.
2. The Governance Unit will shortly be seeking representations from interested parties on the Public Value Assessment. A further notice will be published by the Governors before the end of September to co-ordinate with Ofcom, who will separately be seeking representations on the MIA.
3. The BBC Trust will publish its interim decision, together with the completed PVA and MIA, early in 2007. Following a public consultation on the findings and its interim decision as required under Article 26 of the new BBC Agreement, the BBC Trust will reach its final decision.
