ATVOD

12 Dec 2007

Speech by the Right Honourable James Purnell, MP, Secretary of State, Department of Culture, Media and Sport (as delivered)

Introduction
Well, it's a great pleasure to be here and it's very appropriate that we are being stared down on by John Reith, the first main purveyor of radio whether you like it or not, as we move forward into the slightly different medium of video-on-demand. And it's a particular pleasure to be here to launch your new code of practice. I do see this new code as a very positive response from the on-demand industry to rapid changes in the media landscape.

Elizabeth has already referred to the very fast pace of change in your industry, particularly the growth in the take-up of on-demand services.

All the forecasts predict that on demand services will be a key part of how we watch and listen in the future. And indeed, we have recently seen a huge stride in that direction with the launch of 'Kangaroo', bringing together BBC Worldwide, ITV and Channel 4 which are brand names that everyone recognises and 10,000 hours of programming that an awful lot of people will want to watch. So the presence of all of you in this room, the presence of all the providers who are here, shows the importance of the code of practice that we are launching today. And the DCMS is glad to endorse it, not just in godparent-role, but also just watching the way that the Code has come on and the organisation has come on since the 2003 Act.

Self-regulation
This Government does believe that when we regulate, we have to strike the right balance between protection of the consumer and growth and freedom for the industry. It's important that we regulate in a way that allows businesses to flourish because otherwise both consumers and people in the industry suffer. And that's what we see in your new code of practice - we welcome very much the balance that you strike. You are taking responsibility for how the landscape is changing, both for your members but also your customers

The principles-based approach you've chosen is clearly the right one to reflect that rapid pace of change. But it does rely on three essential building blocks:

• Firstly, commitment from all sides to the aims and principles of the Code of Practice,
• Secondly, that we all understand the process and find it workable, and obviously the appointment of an adjudicator in that sense is very important,
• And, then the third factor is that everyone buys-in to it. And I think it is important for the credibility of the system that everyone who is supposed to be covered by that regulation is buying in to that system.

So we have come a very long way since the 2003 Communications Act when we were thinking in a very initial way about what the approach to the on-demand sector should be.
At the time, the DCMS response was to encourage the leading companies to work together to create a self-regulating body during the passage of the Act. And I do want to congratulate those companies who took up that challenge and are making it happen. You have created something that is proving effective, practical and consumer-focused.

Aims of regulation
What we have shown between us - flowing out of the Communications Act with you taking up that challenge - is that regulation can be designed that works for all sides. If you are in business, it's good news to have a principles rather than rules-based code to follow, that will allow you to adapt quickly as has already been said. If you are a consumer - and we all are consumers - it's good news because this code will help to simplify your life. If you have a problem - whether with access or signposting or inappropriate content - it's clear who to complain to, how to complain, and what happens next. It is this combination of flexibility and consumer focus that makes your new code a model of effective selfregulation.

European regulation
So the UK did lead the way I think, in 2003, and now, on a European level, we have the opportunity to lead the way again. I don't think there is another European organisation like yours and that allows us to set the model and hopefully be the best practice that other people emulate. You are operating in an environment where, by necessity, because these services do cross national borders, lighter touch regulation has to be the most effective way of ensuring that regulation can cross borders and even continents. And we know from the negotiations we have been having around the Audio Visual Media Services Directive that there is interest in ATVOD developing into a European-wide body.

The signs were there a while ago when Commissioner Reding acknowledged the role of ATVOD in 2005 - and the value of having a trusted self-regulatory regime as the market develops. And I think it is worth saying in passing that when the government was making the argument about what was then the updating of the TV without Frontiers Directive, the fact that we were not arguing about self-regulation in general or coregulation in general but were able to point to real examples of it made a real difference to how convincing our arguments were on a European level.

The now renamed Audio Visual Media Services Directive will cover 'non-linear' services such as videoon- demand as well as the traditional 'linear' services. The Directive was formally approved by the Parliament in its second reading on 29 November and we expect to see the full Directive in the next couple of weeks. And then of course, we will have two years for implementation after that. The DCMS is currently working up plans to implement the revised Directive in discussion with Ofcom and the Department for Business.

And one of the key planks of that implementation will be the regulation of video on demand and the work that we are talking about today.

Thanks to the work that you have done, I do think we are in a position to be able not to throw the baby out with the bathwater. I think we'll be able to implement the European legislation in a way that is light-touch but achieves the goals which lie behind the Directive. While there will have to be some legislation to implement the Directive, I can tell you very clearly today that we are in no way intending to gold-plate that legislation. So we'll be in close contact with you and with consumer groups as the work progresses. What we get from you is first-hand experience of delivering what your customers want, and what your members want. And we get your expertise in anticipating where they are going to go next month and next year. So you can be sure we will be looking for your continued input as we develop the options for implementation.

Conclusion
Let me finish by reiterating what you can expect from the government.

• We want to ensure that the legislation is as light-touch as possible.
• We want to build on co- and self-regulatory models wherever possible.
• We want a system that will reflect the rapid pace of change.
• We want one that gives consumers the tools rather than trying to impose things from the centre.

We think that the approach that you are launching today is exemplary in that regard and we look forward to working with you on taking it forward.
Many many thanks