UK to Step up Regulation of Video Streaming Giants to ‘Level the Playing Field’

UK to Step up Regulation of Video Streaming Giants to ‘Level the Playing Field’
File photo of programme viewing apps, including Amazon Video, BBC iPlayer, Netflix, Google Play, and Youview, on March 19, 2019. (Nicholas T. Ansell/PA Media)
Alexander Zhang
3/29/2023
Updated:
3/29/2023

The UK government is planning to exert more regulatory control over streaming platforms in order to “level the playing field” and make British public service broadcasters more competitive in the media market.

Under the draft Media Bill published on Wednesday, video-on-demand services such as Netflix, Amazon Prime Video, and Disney+ will be brought under rules that already apply to traditional broadcasters.

The government said it is part of its plan to “modernise decades-old broadcasting legislation,” which it set out in a white paper last year.

According to the latest research from Britain’s broadcasting regulator Ofcom, traditional “linear” TV viewing—where viewers watch programmes broadcast at a scheduled time usually via terrestrial or satellite—is down more than 25 percent since 2011, and down 68 percent among 16–24-year-olds.

Undated photo showing a logo of Ofcom, the UK's broadcast and communications regulator. (Yui Mok/PA Media)
Undated photo showing a logo of Ofcom, the UK's broadcast and communications regulator. (Yui Mok/PA Media)

‘Protect Audiences’

The draft legislation will give Ofcom oversight of content from the U.S. streaming giants, a move the government said would “level the playing field” for British public service broadcasters—the BBC, ITV, Channel 4, Channel 5, STV, and S4C.

Streaming platforms operating in the UK will be brought under a new Ofcom content code for the first time to “protect audiences” from “harmful material” including “misleading health claims.”

The bill will “strengthen Ofcom’s duty” to assess protection such as age ratings and viewer guidance, and allow “more robust powers” to force change, said the Department for Digital, Culture, Media and Sport (DCMS).

This includes issuing fines of up to £250,000 ($309,000), and in the most serious and repeated cases “restricting a service’s availability in the UK.”

The bill will also allow viewers to formally complain to Ofcom about content on streaming platforms.

Streaming services will be required to become “more accessible” to those with seeing and hearing impairments, having to provide subtitles on 80 percent of their programmes, while 10 percent must have audio description and 5 percent signed interpretation.

‘Unleash Their Potential’

Meanwhile, the government said, the bill will give Britain’s biggest broadcasters “new privileges and freedoms to make more hit shows and better compete with global streaming giants,” and will “unleash their potential to grow.”

The new rules will lift the ban on Channel 4 producing its own content “if it chooses to do so” and it will get “a new legal duty to consider its long-term sustainability alongside the delivery of its public service remit,” the DCMS said.

The bill also includes action to ensure video-on-demand viewers can more easily discover public service broadcast services such as BBC iPlayer and ITVX on smart TVs, set-top boxes, and streaming sticks.

In addition, new measures have been proposed to “protect the position of UK radio on smart speakers,” as listeners increasingly move away from AM and FM stations in favour of internet-based services.

Smart speaker platforms—such as Google and Amazon—will be required by law to ensure access to all licenced UK radio stations, from major national stations to the smallest community stations. Platforms will be banned from charging stations for being hosted on their services or overlaying their own adverts over the top of those stations’ programmes.

The bill will also reduce regulatory burdens on commercial radio stations, relaxing content and format requirements developed in the 1980s which tie them to commitments to broadcast particular genres of music or to particular age groups.

The new regime will give stations more flexibility to update or adapt their services without needing consent from Ofcom.

‘Unprecedented Pressure’

Culture Secretary Lucy Frazer said: “Technology has revolutionised the way people enjoy TV and radio. The battle to attract and retain audiences has never been more fierce.

“British content and production is world leading but changes to viewing habits have put traditional broadcasters under unprecedented pressure.

“These new laws will level the playing field with global streaming giants, ensuring they meet the same high standards we expect from public service broadcasters and that services like iPlayer and ITVX are easy to find however you watch TV.”

Dame Carolyn McCall, chief executive of ITV, said the bill will “modernise the framework for a public service broadcasting system,” which she described as the “cornerstone” of the creative economy.

She added: “We welcome the publication of the Media Bill today as a decisive staging post on the journey to a modern and flexible regulatory regime for TV and media in the UK.

“The UK is a global leader in the creative industries and this legislation will help to maintain and strengthen that position.

“Given the profound and dynamic changes in the global media ecology, the need is urgent and we would encourage the government to ensure the bill becomes law as soon as possible.”

The main opposition Labour Party also urged the government to bring the changes into law without further delay.

Shadow culture secretary Lucy Powell said: “After the government wasted a year pursuing their disastrous plans to sell off Channel 4, it is now deeply disappointing that we will see further delays as the government has only published a draft bill with no clear timetable for implementation.

“Meanwhile British broadcasters and UK radio have lost market share and lost prominence on smart devices.”

Netflix said last year it was “supportive of measures to update the legal framework and bring our service in the UK under Ofcom’s jurisdiction.”

The streaming giant added that it was looking forward to reviewing government proposals and would continue to engage with the government on its plans.

PA Media contributed to this report.