PERSPECTIVE. Setting Public Goals, Defining Public Value, Securing Public Support the challenge for Europe s PSBs. 25 April 2008 Tim Suter

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1 Part of the Ingenious Consulting Network Setting Public Goals, Defining Public Value, Securing Public Support the challenge for Europe s PSBs 25 April 2008 Tim Suter Strasbourg, July 2008 Part of the Ingenious Consulting Network

2 Agenda The context its more than just politics Two questions one old, one new, but neither of them avoidable The three stage response which is more than just a Public Value Test Four pre-requisites without which any process will be compromised And two final caveats

3 The context PSBs must respond to the political challenge to justifying the public investment in their service From Europe Review of 2001 Broadcasting Communication 20 adjudications since 2001 covering 8 member states AVMS Directive extends scope of regulation: principle of technology-neutrality From National Governments Ex ante public value tests now applied in UK and Denmark Plans to apply tests in Germany, Ireland, Belgium, Hungary and Norway But even without the political challenge, the context requires them to ask these hard questions The consumer challenge of on-demand greater personalisation The market challenge of new entrants disruption to the business model and value chain Which leaves PSBs facing two key questions one old, and one new Competition where and how to compete? Technology what to invest in?

4 Two questions: Question 1: How to compete PSBs have always needed to justify how and why they will compete. Now that pressure is even greater Competition for Quality PSBs need to demonstrate that they are raising quality, and providing creative challenge in all the areas they compete in Challenge of defining quality with definitions that can go beyond PSBs Competition for all audiences Traditional audience definitions are breaking down ability to target and reach communities in different ways Some audiences particularly commercially attractive Competition in all genres Traditional broadcasting model relies on the concept of the mixed schedule still relevant? Genres a less relevant concept in on-demand world

5 Two questions: Question 2: What technology to invest in PSBs face unprecedented pressure to make, and justify, investment in new means of production and distribution External justification Although all policy definitions are striving towards technology neutrality, expanding on-line and into new services creates new market distortions Business plans in new media space may be fragile public investment may foreclose market If the investment does not displace existing services, a new case for funding needs to be made Internal justification Decisions on new services and distribution platforms require hard decisions about funding priorities assuming no new money More than just technical decisions: the whole editorial process and organisational behaviour has to change

6 Three stage response Stage 1: Setting Public Goals Setting the remit for PSBs involves finding the right balance between broad and narrow definition Broad Focusing on outcomes Wide discretion in how they should be delivered Consistent with a broadcasting based approach the concept of the mixed schedule An enabling approach Narrow Focuses on outputs Limited discretion in how they should be delivered Easier to apply in a thematic and nonlinear world where services have clear propositions A market failure approach Who decides?

7 Three-stage response Stage 2: Defining and Measuring Public Value Any test must balance to answer three linked questions Does the new service deliver public value? Reach Quality Need Value for money Who decides? Is the impact on the market outweighed by the public value? Static effects the market now Dynamic effects the market of the future Is the broadcaster the right institution? Would public needs be better met by public spending on other institutions? What is the impact on the delivery capacity / innovation of other parts of the public sector?

8 Three-stage response Stage 3: Securing Public Assent An internal process will not be sufficient Audience / citizen / consumer insight Audience need Citizen benefit Consumer willingness to pay Competitors Full and meaningful consultation Widest possible range of competitors engaged with Genuine understanding of current and future market conditions Who decides?

9 Four Prerequisites All of the preceding stages will be irrelevant unless PSBs can demonstrate that these four pre-requisites are in place Transparency Of process, of decision making, of strategy and goal setting Measurability Of more than just inputs and outputs both audience and market impacts Consistency Of market and audience definitions, of strategic direction Independence From government, from market

10 Two final cautions Beware. the inevitable: do this for the right reasons Beware. the BBC: they have many, but not all, of the answers and their answers are UK specific