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Digital Economy Bill [HL]

My Lords, I shall speak also to Amendments 4, 6, 7 and 31. These five amendments fall into a few different groups. Amendments 3 and 6 serve two purposes—first, to create a level playing field with respect to investment in media content, and, secondly, to highlight a further concern that this subsection may have on Ofcom’s ability to function properly. By removing the phrase "public service" from this duty, we are attempting to create a level playing field in the media sector. We on this side of the Committee want to attract investment into UK content in general, rather than just public service content. Without this amendment, such a duty may put off potential investment into the UK media sector, because it would create a fear that Ofcom may intervene to the detriment of those not producing public service content. We do not believe that the state should choose what type of content non-public service broadcasters invest in. Consumers value choice above all else, and these amendments would ensure that this is protected. More broadly, it would be helpful if the Minister could clarify whether the Government have considered the potential impact of this subsection on the way that Ofcom functions. If Ofcom has a duty to promote investment in media content—public service or otherwise—is there not a danger that this could be used by companies to appeal against any regulatory decision that Ofcom makes? If, for instance, Ofcom decided to change the levels of advertising that ITV is allowed to show and ITV believed that this would result in a decrease in its income, it could argue that this would stop it investing in certain types of content. As such, Ofcom would have failed in its duty to promote investment in media content. How do the Government see this clause working in practice? Amendments 4 and 31 move the focus in the other direction and define the content more narrowly. Ofcom’s new duty is extended solely to content made by public service broadcasters. In tabling these amendments, I hope to draw out from the Minister a more precise explanation of the types of content that the Government hope this duty will cover. We believe that public service broadcasters should be encouraged to make their content available across all platforms. In today’s digital age, the idea of public service content being just about broadcasting is becoming anachronistic. Video on-demand services are incredibly popular. The BBC iPlayer has more than 1.5 million download or stream requests a day, and 30 per cent of adults already watch content online. We accept that simply looking at broadcasting would not reflect the way that audiences consume content. These amendments would mean that Ofcom’s existing duties were updated whereby this shift in consumption was better reflected, but would limit this to broadcasters that were licensed to meet public service objectives. Rather than promoting investment in public service content by anyone meeting the general criteria contained in the Communications Act, Ofcom’s duty would simply apply to online content made by the public service broadcasters. Public service broadcasters exist to provide public service content, and it is right that Ofcom has a role in ensuring that this happens. However, without Amendment 4, Ofcom would have a duty to promote public service content from non-public service broadcasters. This would represent an unnecessary extension of Ofcom’s powers into non-public sector broadcasting companies. Do the Government want Ofcom to regulate Sky whereby it must favour one type of programming over another? If not, can the Minister explain how this would not be the case? These amendments seek to ensure that we do not inadvertently enhance Ofcom’s powers beyond that which is appropriate. I admit that this is an attempt to make an unnecessary clause slightly more workable and we remain unconvinced about the need for the clause at all. However, if the Government insist on retaining it and do not accept the amendments, they need to be much clearer on the types of online content that they are talking about. I look forward to clarity from the Minister in due course. Amendment 7 is simply a probing amendment to highlight the criteria contained in Section 264A of the Communications Act. As has been mentioned, these are so wide-ranging that I would imagine that almost any web service could be included within this definition. Assurances within the accompanying fact sheet that this applies only to specific web services is not sufficient to allay our concerns, although the Minister has said that he will communicate on this. I beg to move.