BBC Trust blocks BBC proposals for local video news

Decision by the BBC Trust not to approve the proposal from BBC management to launch an online local video news offering (26-page PDF). This is the first time that the BBC Trust has rejected a proposal from BBC management to introduce a new service. The Trust says that it is not satisfied that any likely adverse impact on the market is justified by the likely public value of the local video proposal.

The Trust's decision seems to be based on a view that the proposed new service would not be a worthwhile use of licence fee income and on concerns about adverse market impacts:

"Whilst local video had potential to deliver some public value it did not represent the most efficient use of licence fee funds, especially given access issues for non-broadband users and limited reach to key audience groups. We also recognised the negative market impact that could result from an expansion of BBC online news provision at a local level, at a time when commercial providers face structural and cyclical pressures".

The decision follows publication of the Trust's consultation and Ofcom's market impact assessment in November 2008.

For further information or advice please contact Nicholas Francis.

Filed under BBC, Media.

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