DUBAI: Streaming services in the UK are to be regulated by the country’s Office of Communications, known as Ofcom, in line with existing rules governing traditional media outlets.
In a government white paper on the matter, Nadine Dorries, the secretary of state for digital, culture, media and sport, said that “changes in technology, viewing habits and the entrance of global players have introduced new challenges for British broadcasters.”
The government needs to take action “to support British broadcasters” and “ensure public-service broadcasters remain at the heart of our plans,” she added.
The white paper details the proposed reforms, which include efforts to ensure that all “TV-like content, no matter how audiences choose to watch it, is subject to similar standards.” This suggests that video-on-demand services will be obliged to adhere to standards equivalent to those that traditional broadcasters must abide by.
The move aims to regulate “TV-like video-on-demand providers” such as Netflix, Disney+, and Amazon Prime Video, among others, “who target and profit from UK audiences under Ofcom jurisdiction.”
Traditional TV channels are required to abide by Ofcom’s broadcasting code but, until now, VOD services have been unregulated. Under the proposed changes, Ofcom will gain the power to draft and enforce a new video-on-demand code. The maximum fine for services that break the rules will be £250,000 ($310,000) or up to 5 percent of revenue, whichever is higher.
The announcement comes at a critical time for British broadcasters, who increasingly have been competing with streaming services, especially since the start of the COVID-19 pandemic. The number of subscriptions to streaming platforms shot up by 50 percent in the UK to more than 30 million during the health crisis, according to an Ofcom report. This helped Netflix overtake pay TV providers in terms of subscribers for the first time last year. Meanwhile, broadcast TV’s share of total viewing dropped from 67 percent in 2019 to 61 percent in 2020.
In response to the white paper, Netflix said: “As we’ve previously said, we are supportive of measures to update the legal framework and bring our service in the UK under Ofcom’s jurisdiction.
“We look forward to reviewing the White Paper’s other proposals and continuing to engage with the government on their plans.”
