Responding to Ofcom's consultation on modernising the BBC's operating licence, National World - which publishes hundreds of websites and newspapers including the Yorkshire Post and The Scotsman - has warned that there is no longer a level playing field.
The publisher believes the BBC must reduce its market share in online news to below 25 per cent 'which is the usual measure of a monopoly.' This can be achieved by restricting BBC online content to that which supports its broadcast output.
Deputy editor in chief Gary Shipton said: "There is a need to level up the media - otherwise local publishers will increasingly go out of business because of the calculated and predatory behaviour of this publicly funded competitor. The BBC speaks with one voice, directed from the centre, whereas local people and local editors independently drive products that genuinely reflect the differences in communities.
"It would be considered unthinkable for the BBC to launch local newspapers that contained no advertising, had no cover price, were of limitless pagination and consequently offered a premium user experience, in markets served by traditional, commercial publishers. But this is what they are effectively doing by continuing to invest in local news websites in direct competition to commercial news organisations which cannot offer the same UX and upload speeds because of the advertising they carry to sustain their journalism."
He pointed out that the new Culture Secretary the Rt Hon Michelle Donelan MP has previously gone on record that the licence fee is unfair and should be removed. "Our argument is consistent - it is unfair to use a forced tax to dominate a commercial sector and severely constrain diversity and consumer choice."
Mr Shipton pointed out that refocusing its creative efforts on broadcasting and finding a new non-licence funding model also made sense for the BBC.
"More than a year ago, a National Audit Office report found that the BBC faces 'significant' uncertainty over its financial future due to changes in viewing habits.
"Frankly, the BBC is spreading itself far too thinly while audiences - especially younger ones - shrink and fewer and fewer people legitimately no longer need to buy a TV licence."
During the past four years some one million households have stopped paying the £159 annual fee - and those who do fork out for the mandatory charge to watch any live TV are watching fewer BBC programmes.
To support long-term sustainability of local, regional and national news, he said:
- The BBC should withdraw the proposals set out in its ‘Across the UK’ plan. At the same time, it must go much further and reduce its market share in online news to below 25 per cent which is the usual measure of a monopoly. This can be achieved by restricting BBC online content to that which supports its broadcast output.
- Provide a level playing field which is impossible all the time the BBC continues to seek to dominate the local news online arena.
- Limit soft news, comment and analysis (e.g., human interest and entertainment stories, long reads, etc.).
- Improve communication of BBC plans inside and outside of the BBC’s Annual Plan.
- Withdraw BBC News Daily email which directly competes with commercial alternatives.
