Westminster Media Forum Panel: Key Issues for PSB

The event was chaired by Lord Watson of Invergowrie who set the tone of the meeting in his opening words, saying that in his view, the landscape of children's content provision was not as bleak as a year ago, particularly in the context of the potential re-regulation of the commercial PSBs. He introduced the first speaker, Tim Westcott, Director of Channels and Marketing IHIS Markit.

Tim gave an overview of the current landscape for children's content in the UK. He highlighted the changes in children's viewing habits, and the increasing popularity of accessing content online, a theme which ran throughout the morning. He described the very large amount of content available to view in various ways, ranging from 18 linear channels, including free to air PSBs, pay-TV channels included in satellite and cable subscriptions, and the proliferation of On Demand services, both free and commercial. These include advertising-funded services like CITV, and Tiny Pop and YouTube Kids for preschoolers, plus services services available via subscriptions, e.g. Sky Kids, Hopster and Azoomee.

Touching on sources of funding, he pointed out that the amount of investment from broadcasters was relatively small, largely due to the fact that, on the whole, kids' content does not make money. He concluded that that being the case, regulation and quotas should be welcome, at least to the producers, giving them reassurance of potential commissions.

The next speaker was Anna Home, Chair of The Children's Media Foundation. She outlined the current state of play and the CMF's position. She echoed Lord Watson in saying it was more encouraging than it had been for many years: the BBC had headlined children's as one of its key genres and committed an extra £34 million investment. There was a dramatic last minute amendment to the Digital Economy Bill permitting Ofcom to regulate the commercial PSBs, and the potential of the £60 million Public Service Contestable Fund pilot provided a real opportunity to revitalize original content for kids in the UK.

She pointed out that the amendment to the Digital Economy Bill did not specifically refer to original content for British children, but PACT believed that this was an underlying part of the PSB requirement. She stressed that by supporting the amendment PACT had not intended to press for unrealistic quotas for the commercial PSBs, appreciating that they are working in a challenging market.

She welcomed the Contestable Fund, and said that it and the new PSB criteria complement each other, the Fund encouraging the PSBs to commission more content. She raised the issue of "dead weighting," using the fund just to make programmes that would have been made anyway. She suggested that part of the Fund could be dedicated to development, or used to encourage new entrants into the market, particularly in the digital space, or possibly it could be used as a top up fund.

Rosina then raised the issue of producers' rights in the online space. She argued that they need a fairer deal, and more control over their rights. She cited the example of Netflix, and how even though they have available funding, their requirements are challenging in terms control of both content and rights. She concluded by stressing the importance of supporting a healthy domestic market, particularly in the context of Brexit, in order to ensure that UK content continues to travel well overseas.

The next speaker was Douglas Lloyd, co-founder of Azoomee. Douglas explained that Azoomee was the "new kid on the block," three years old and founded as a result of the clear movement of kids from linear to online media in terms of consuming content. Azoomee's content is available in the UK on any app store, and on any mobile device. It is sold direct to the customer via the app stores or through agreements with O2, Argos, and soon on Amazon.

It is not funded by ads, rather purely by subscription, and funding is challenging. Originally they funded content themselves, but found it was not commercially viable to do this and fund a platform as well. They are prepared to invest in original British productions, but can't do it alone. Therefore, the Contestable Fund would be valuable to them. He stressed that as a partner, Azoomee had the advantage of being able to move quickly, and have a simpler commissioning process than others.

Douglas went on to talk about games, and suggested that part of the fund should be spent on them. Games would deliver real value for money, and as more companies would benefit, the commercial industry would grow.

His final point was on safety and security, which is the reason Azoomee (which means a "safe place" in Japanese) exists. They are currently working with government on wider internet safety matters.They believe that through the way they produce kids' content they can address safety issues in a way which will satisfy both parents and children, without the need to be aggressively educational.

Kate O'Connor, the Executive Chair of Animation UK, spoke next. She explained the new role of the organization which now represents the whole animation sector, with the remit to create the right conditions for the industry to flourish in business terms, as well as artistically and culturally. She argued that the animation sector is brilliant, and that the children's area is particularly significant, but despite the proven success of the genre it is a "Cinderella" sector, hidden and unrecognized despite its potential for commercial success - a sector she had until recently felt was an endangered species.

Following the developments discussed above, she too was feeling more optimistic. Animation UK had also argued that the pilot of the Contestable Fund should be devoted to children, and that the other underserved PSB genres could be reflected in the commissioned kids' content. However, Animation UK will argue for a focus on animation so that in conjunction with existing tax breaks and new quotas, a climate will be created where the business base is substantially improved, and the animation sector can redevelop and grow.

She agreed with Rosina about a role for the Fund in supporting development, in particular short form development. Animation UK are already talking to the BFI and the Arts Council about this. She concluded by talking about the need for inward investment strategies to work well, and the need for an export strategy for animation which supports producers who want to export, and helps them gain a position in the market, a strategy which promotes the whole industry. This is an issue they are currently discussing with the Department for International Trade.

The final speaker was Jeanette Steemers, Professor of Culture, Media and Creative Industries, Kings College London, and Trustee of the Voice of the Listener and Viewer. Speaking on behalf of the VLV, Jeanette used her time to reflect on a number of themes which had emerged during the morning, and despite the mood of cautious optimism, to raise a few concerns and caveats.

Firstly, she pointed out that the new proposals still focus primarily on traditional broadcasting. She is concerned that unless changes in the marketplace are better addressed by policymakers, the new initiatives may soon become irrelevant and have to be rethought. Next she warned the audience members in the room about lack of engagement with politicians and policymakers. She argued that producers should be more actively engaged in the protection of UK-made content. She said that viewers, both parents and children, did not understand and were unaware of the pressures, and would only notice when UK content disappeared, but producers do understand and should therefore speak out.

Finally, she looked at the state of home grown content outside the UK. It was only good in countries with strong, well-funded public broadcasters such as Germany and the Scandinavian world. In countries where there is no regulation at all, children's provision is a wasteland. This includes Arab countries and countries in Eastern Europe, where before Communism there was a flourishing animation industry.