Ofcom calls for shakeup of how TV is made and broadcast as audiences flock to streaming services

Digital streaming platforms such as Netflix could be brought in to provide public service content alongside traditional broadcasters, Ofcom has said, as the media regulator warned a “blizzard of change and innovation” had left the likes of the BBC and ITV struggling to retain audiences.

Ofcom said laws and regulation must be overhauled to protect public service broadcasting, which was at a “critical juncture”, while “vital” areas such as news should be safeguarded.

The regulator said the rules around public service broadcasting largely date from when the internet was still in its infancy – and they remain focused on traditional broadcasting.

Audiences are increasingly turning away from terrestrial channels such as the BBC, ITV, STV, Channel 4, S4C and Channel 5 in favour of global streaming and online services.

Last year, only 38 per cent of 16- to 34-year-olds’ viewing habits were made up of traditional broadcast content. That figure rose to 67 per cent among all adults.

“Our traditional broadcasters are among the finest in the world. But television has witnessed a blizzard of change and innovation, with audiences turning to online services with bigger budgets,” said Dame Melanie Dawes, Ofcom’s chief executive.

“For everything we’ve gained, we risk losing the kind of outstanding UK content that people really value. So there’s an urgent need to reform the rules, and build a stronger system of public-service media that can flourish in the digital age.

“That could mean big changes, such as a wider range of firms tasked with providing high-quality shows made for, in and about the UK.”

Ofcom said public service broadcasters are still credited with bringing society together, through events and programmes watched by millions.

News is seen as its most important offering, with more than seven in 10 viewers placing importance on regional bulletins.

But in a review of public service broadcasting published on Tuesday, Ofcom said new providers could help also deliver public-service media in future.

This new content could focus on specific groups of people or types of programmes, with digital streaming services tapped for different skills, expertise and online experience.

Amazon’s Prime Video, Apple TV, Now TV and Netflix are among the new providers attracting millions of subscribers, often with big-budget productions that reach a global audience.

Original UK children’s programming, education and religious programming, made specifically for the UK, are seen as public service content that the market is unlikely to provide.

Public service broadcasting also faces falls in advertising revenue, the costs of growing digital services, and challenges brought on by the coronavirus pandemic.

A BBC spokesman said: “We welcome Ofcom's consultation showing that public service broadcasters are highly valued by UK audiences.

”A publicly funded BBC is at the heart of a thriving UK creative sector. We're also pleased to see Ofcom's call for regulatory reform that's fit for a global, digital market place. We'll look at any proposals carefully and respond fully in due course.“

Netflix is not regulated by Ofcom, as it is headquartered in the Netherlands, so falls outside of the body’s jurisdiction.