Tell Them What You Think ^beta

1.1 This consultation considers a proposal from BBC Free to View Ltd (the "BBC") that would require the inclusion of content management technology in receivers for High Definition Television (HDTV) services on the Freeview Digital Terrestrial Television (DTT) platform. This technology would enable broadcasters to control the copying of content from high definition receivers to other consumer devices and its distribution to others over the internet.

1.2 Under the Communications Act 2003, Parliament gave Ofcom additional responsibilities for the regulation of DTT that are wider and deeper than on other television platforms, reflecting the important role that DTT has in making public service broadcaster (PSB) content available to all. In view of this special role, we believe it is important that the regulation of DTT should continue to foster innovation and the development of new services so that it can continue to deliver maximum value to consumers and citizens.

1.3 Our aims in assessing the BBC's proposal are to ensure that citizens and consumers have access to the widest possible range of HD television content on DTT, whilst not unduly restricting their use of this content and the range of receiver equipment available in the market.

1.4 The BBC's proposed content management approach would require Ofcom to grant an amendment to its multiplex licence, subject to Ofcom's approval of specific proposals, to allow the BBC to restrict the availability of programme listing information for HDTV services only to receivers that implement content management technology.

1.5 In this consultation document, we have considered whether to approve both the proposed licence amendment and, if we were to do so, whether or not Ofcom should approve the detailed proposals of the BBC in relation to the implementation of content management through the restriction of programme listing data.

1.6 We note that in considering the BBC's proposed licence amendment Ofcom is not being asked consent to the deployment of content management on DTT. Rather, we are being asked to consider the appropriateness of the method by which the BBC proposes to deploy content management, which has been arrived at based on industry consensus in the Digital Television Group (DTG).

1.7 As digital television switchover rolls out across the UK and increasing numbers of consumers purchase HD Ready TV sets, HDTV is becoming an increasingly important service upgrade on DTT. The success of this upgrade will contribute to the future success of the DTT platform and its ability to continue to perform its important role of ensuring that everyone in the country has access to PSB content free to air.

1.8 The BBC believes its content management proposals would contribute to the success of HDTV services on DTT by ensuring that the widest possible range of attractive HD services made are available to citizens and consumers. The BBC's aim is to ensure that rights holders, such as film makers and TV production companies, have confidence that the copy management system on DTT is effective. This they argue will mean that HD content is made available by rights holders to free to air broadcasters on DTT on similar commercial terms and in similar time release windows as those on alternative digital TV platforms, such as Freesat, Sky, Virgin Media or BT Vision.

1.9 The content management technology required to be implemented in receivers under the BBC's proposals would permit unrestricted recordings of HD content onto digital video recorders (DVRs) but would enable broadcasters to control the copying of this content onto other devices and its distribution over the internet. The HD content would only be accessible on other consumer devices which support the same content management technologies as those used in HD receivers.

1.10 This consultation follows an initial request in August 2009 from the BBC for a change to its digital multiplex licence. Ofcom published a letter on 3 September 2009 asking stakeholders for their views on the BBC's proposed licence amendment and received a large number of responses, in particular from consumers and consumer groups. These raised a number of potentially significant questions regarding compliance with copyright law and competition issues that were not addressed in our original letter.

1.11 In view of these responses we asked the BBC to provide more information and evidence on the anticipated benefits to citizens and consumers of the proposed licence amendment and how they intend to preserve the legitimate use of HD content by citizens and consumers. We also asked for an explanation of possible alternative approaches that would potentially impact less on competition in the receiver market, and the extent to which those alternatives would be able to deliver similar outcomes and benefits for citizens and consumers' to those the BBC claims would be delivered by their proposal.

1.12 A copy of the BBC's fuller submission which seeks to address the consumer copyright law and competition issues raised by respondents to the first consultation is provided in Annex 6 of this document. This sets out why the BBC believes copy management would broaden the range of HD content available on DTT, and hence would deliver benefits to citizens and consumers, and why the proposed licence amendment represents the most proportionate means for securing these benefits. The BBC also sets out a number of proposed commitments towards safeguarding the use of HD content by consumers.

1.13 In view of the fuller submission provided by the BBC, Ofcom is currently minded to approve its request for a multiplex licence amendment subject to consultation responses, on the basis that in principle, content management is a justified objective which ensures that the broadest range of HD content is made available to citizens and consumers.

1.14 Ofcom has considered alternative proposals for implementation put forward by the BBC and is minded to grant approval under the amended licence on the basis that the proposals are the least intrusive means of achieving effective copy management to deliver the benefits of a wider range of content to consumers.

1.15 Ofcom has also considered proposals put forward for the application of content management by the BBC, and whether these would secure a broader range of content without placing undue restrictions on how content can be used by consumers. Ofcom is currently minded that this outcome could be achieved based on the BBC proposals and intends to require that these proposals are implemented by the BBC before it could limit the availability of programme listings information for the purposes of securing content management.

This consultation started on 22nd January 2010 and ended on 2nd April 2010.

Here are the documents we were able to locate that relate to this consultation: