All3Media chief backs BBC and C4 PSB roles

Steve Morrison

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All3Media chief executive Steve Morrison has thrown his weight behind a PSB model that protects the public service role of the BBC and Channel 4 and introduces competitive funding for any other PSB content.

Morrison proposed introducing European-style levies that would provide more than £400m a year to support public service broadcasting.

Many European countries use levies on recording equipment for personal use, such as PVRs, on retransmissions and on pay TV and cinema to support domestic film and quality TV drama.

French president Nicolas Sarkozy is currently pushing through a 0.9% levy on telecoms and ISP providers that will raise 380m Euros a year. A similar tax could raise £210m for the UK, Morrison argued, and could also be used to charge the likes of Google for its free distribution of UK-generated news from PSB broadcasters.

Speaking at a debate about the funding of PSB in London yesterday (Wednesday), Morrison urged Ofcom to learn from the UK music industry, which collected £430m through performing rights and levies last year.

"Every year, we spend £1bn on arts, heritage and sport, but don't  think of spending on that scale on audio-visual culture," he said.

DCD Media chairman David Elstein took another view, and is backing a broader competitive funding model that invites C4 to pitch against other commercial broadcasters for PSB funds.

He accused C4 of lacking transparency over an estimated £200m investment in ventures such as pay-TV channels that then became free, its abandoned film arm and now digital radio.

Ofcom strategy and market developments partner Peter Phillips said research showed consumers were leaning towards competitive funding models. Most said they did not want the BBC to be the only provider of PSB content.

Next week, Ofcom chief executive Ed Richards will give an RTS speech about the second phase of the regulator's PSB review, which will be published on 25 September.