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- The Guardian,
- Wednesday January 11 2006
The media regulator Ofcom has given broadcasters and independent producers two months to settle their differences over new media broadcasting rights or face intervention.
The arrival of video on demand (VOD), mobile telephone television and programme downloads over the internet represent a potential windfall for the television industry but broadcasters and production companies are at loggerheads over how to exploit this new commercial territory. Under current guidelines, the "secondary" rights to programmes - such as overseas sales - are owned by independent producers and the "primary" rights - the first broadcast and a repeat - can be bought by broadcasters.
The dispute centres on the definition of a primary right in the new media age, with broadcasters arguing that the first screening ought to include new platforms as well as conventional television. Channel 4 has also lobbied for a hiatus between the television broadcast and the producer making the show available over the internet, on VOD or via mobile phones.
Ofcom has given both sides a second chance to reach an agreement, proposing "principles" to underpin talks. It said a "primary" right should apply across all platforms and the broadcaster should be allowed a "holdback" period in which the likes of Channel 4 and ITV could stop independent producers offering a programme over the the internet or on VOD.
The watchdog expects broadcasters and producers to thrash out the length of holdback periods and the cost of new primary rights without intervention. However, it added that if both sides did not reach a deal by March 21, then it would enforce changes to the terms of trade.
