UK broadcast regulator Ofcom has published its review of the BBC’s assessment of whether its proposals for three new music streams on BBC Sounds constitute ‘material changes’ to its public service activities.Before making any changes to its licence-fee funded services, the BBC must first, under the Charter and Agreement, consider whether the changes are material. This involves assessing whether the changes may have a significant adverse impact on fair and effective competition.In this case, the BBC concluded that its proposed new music streams on BBC Sounds – which are extensions of its current music networks BBC Radio 1, BBC Radio 2 and BBC Radio 3 – are not material changes.Ofcom says it has “carefully” reviewed the BBC’s assessment, along with further evidence supplied by the Corporation and other industry stakeholders.Ofcom has concluded that the planned launch of the Radio 2 extension stream on BBC Sounds may have a significant adverse impact on fair and effective competition. As such, it considers it does represent a material change.Given Ofcom’s materiality finding, it is now directing the BBC to stop carrying out this aspect of its proposals. Should the BBC wish to continue to launch the Radio 2 extension Sounds-only stream, it would need to conduct a public interest test (PIT).With regard to its proposed Radio 1 and Radio 3 extension streams on BBC Sounds, Ofcom agrees with the BBC that, individually or cumulatively, they are not changes that may have a significant adverse impact on fair and effective competition, and so are not material. Ofcom also agrees that the BBC’s planned changes to its existing Radio 1 Dance stream are not material. This means that the BBC may proceed with these elements of its plans.Ofcom’s review of the BBC’s materiality assessment for the proposed new BBC Sounds streams is a distinct process from the BBC’s ongoing PIT on four planned new DAB+ radio stations – two extensions of Radio 1, as well as Radio 2 and Radio 3 extensions.Upon receipt of the BBC’s PIT, and following Ofcom’s initial assessment, Ofcom will carry out a competition assessment within six months, to determine whether or not the BBC may proceed with these changes.
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