UK's Ofcom Recommends Loosening Local Media Ownership Rules
July 31 2009 - 7:35AM
Dow Jones News
U.K. media regulator Ofcom has proposed loosening the rules
governing media ownership to allow local news providers to own
different types of media.
In a document published Friday, Ofcom has recommended to the
Secretary of State for Culture, Media and Sport, Ben Bradshaw,
changes to the media ownership rules that reflect the economic
issues the industry now faces as the Internet cannibalizes an
already shrinking advertising revenue pool.
Local newspaper publishers like Trinity Mirror Gourp PLC
(TNI.LN), Johnston Press PLC (JPR.LN) and the U.K. publishing arm
of U.S.-listed Gannett Co. Inc (GCI) have faced plunging revenue as
advertising sales migrate online or dissapear entirely because of
the recession.
The regulator is proposing that all restrictions on cross media
ownership are lifted except where a company owns a local newspaper
with more than 50% market share, a local radio station and a
regional ITV PLC (ITV.LN) licence.
Ofcom also proposed removing the rules that govern local and
national radio multiplex ownership.
The recommendations take into account the fact that consumers
still use television, radio and newspapers as their main source of
local news even though there has been a change in the distribution
channels that people can get their news from, specifically the
Internet.
Ofcom recommended not to change the rules governing national
newspapers and other restrictions designed to safeguard one
broadcaster having undue influence, as well as the media public
interest test, which allows the Secretary of State to step in to
protect plurality of news.
Company Web site: www.ofcom.org.uk
-By Kathy Sandler, Dow Jones Newswires; 44-207-842-9293;
kathy.sandler@dowjones.com