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08/11/2023

Streaming Giants To Be Hit With £250,000 Fine If They Violate Terms In New U.K. Media Bill

The United Kingdom’s Government safeguards on Media has received the royal seal of approval in the King’s Speech written by the Prime Minister. King Charles III, in a tradition dating back centuries, laid out the series of laws in the Media Bill, marking the first time a King has done so in seven decades. This legislative milestone aims to bring streaming services in line with regulation of traditional broadcasters for the very first time.

The Media Bill’s headline policy aims to subject U.S. streaming platforms to Ofcom’s regulatory framework, holding them accountable for harmful material. This means that these platforms could face fines of up to £250,000 or even restrictions in the UK, akin to the rules that have long applied to public broadcasters.

The government’s notes on the King’s Speech emphasize that the bill’s objective is to “better protect children by applying similar standards for TV to the streaming giants.” To enforce these standards on video-on-demand services, a new Video-on-demand Code will be drafted and enforced by Ofcom.

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“Internet access and streaming services have fundamentally changed how audiences access broadcast content, but our public service broadcasters are governed by laws written 20 years ago,” said the government. “The Media Bill is needed to enable these broadcasters PSBs to compete in this new world, so they can continue developing skills and driving growth in the creative industries across the UK.”

Companies like Netflix is expressing concerns about the bill’s impact given the substantial investment in UK content and talent by the U.S. giants.

The bill also addresses the long-standing issue of prominence for UK broadcasters, requiring global TV platforms to prominently feature VoD players like iPlayer, ITVX, and Channel 4. This ensures that public service content remains easily accessible and discoverable for UK audiences.

In a rapidly changing digital landscape, where internet access and streaming services have transformed how audiences access broadcast content, the Media Bill is a crucial step to enable public service broadcasters to compete in this new world and continue driving growth in the creative industries.

Furthermore, the bill introduces provisions allowing Channel 4 to produce and own the rights to its programs for the first time in its 40-year history. This move opens up possibilities for content monetization, similar to BBC Studios and ITV Studios. While the change has faced criticism from the UK producer body Pact, it represents a significant shift in Channel 4’s role and comes in the wake of the government’s U-turn on Channel 4 privatization.

Carolyn McCall, ITV boss Carolyn McCall has welcomed the move and said the update is a “critical step towards ensuring that public service broadcasters can continue to invest in the brilliant British content our audiences love, because our shows will be available and easy for people to find on all major TV platforms and devices.” the prominence update is a “critical step towards ensuring that public service broadcasters can continue to invest in the brilliant British content our audiences love, because our shows will be available and easy for people to find on all major TV platforms and devices.”

In addition to these key developments, the bill will modernize the mission statement for broadcasters, encouraging them to focus on what makes them distinctive within a new framework.

The Media Bill’s passage through the King’s Speech marks a significant step in the regulation and evolution of the UK’s media landscape. It addresses the changing dynamics of content consumption and aims to ensure that public service broadcasters can thrive in this ever-evolving digital era. The commitment to protecting children and promoting standards on streaming platforms, alongside enhancing prominence for UK broadcasters, showcases a holistic approach to the changing media landscape. With Channel 4’s new production capabilities and a renewed focus on what makes each broadcaster unique, the UK’s media industry is poised for a dynamic future.

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