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UK terms of trade remain unchanged

John Whittingdale speaking in Edinburgh

John Whittingdale speaking at last year’s Edinburgh TV festival

Culture secretary John Whittingdale has decided against making changes to the UK’s terms of trade, eight months after ordering media watchdog Ofcom to review the TV rights regulations.

Whittingdale sent shockwaves through the country’s TV production community last September when he asked the regulator to conduct a review of the terms, which give producers ownership of the shows they make.

Ofcom published its findings in December but said there was no need for a change. However, Whittingdale has kept quiet on his decision until now.

“The independent television production sector in this country is a fantastic success story, generating around £3bn [US$4.39bn] in revenue each year,” Whittingdale said in a statement.

John McVay

John McVay

“I have considered carefully Ofcom’s report on the television production sector and decided that the regulations continue to be effective and play a key role in supporting a diverse and vibrant production sector. We have therefore decided to make no change.”

UK producers’ organisation Pact, which has been campaigning to save the terms for some time, hailed the decision as a “victory.”

Pact CEO John McVay said: “I am personally very pleased that John Whittingdale has considered the extensive evidence that was provided by Ofcom and ourselves, and in spite of a constant complaint to change the terms of trade by Channel 4, he has decided that they are not only meeting their original purposes, but also remain necessary in today’s fast moving UK market.

“I hope that following this comprehensive review and the secretary of state’s clear decision that it is clear to all that there no case to answer.”

The news will come as a blow to UK broadcaster C4, which has been calling for changes to the terms.

C4 chief David Abraham used his speech at 2014’s Edinburgh International Television Festival to side with his opposite number at the BBC, Tony Hall, and director of television Danny Cohen in their calls for revisions to the terms between pubcasters and the different-sized producers they work with. However, the BBC revised its campaigning on the matter after the creation of BBC Studios was approved.

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