Monday, April 07, 2008

'Public Value' or 'Commercial Value' Test

Having worked in a public brodcaster for some time the BBC 'public value test' seems a curiously political beast. It has been unfortunate to see a very popular project such as the wonderful interactive education site BBC Jam pulled last year because of a perceived conflict in 'public value'. See comments from trust

Surely the test of public value must be reflected in the uptake, popularity and use of a digital service. In reality it is more the conflict with 'commercial value' that is at issue here, perhaps it should be called the 'commercial value test'. Does this mean that the BBC should not put into the digital media space any product that is commercially competitive?

What then does this mean for products such as the iPlayer which having passed the 'public value test' in early 2007 is now out in the market and doing very well?

The public value test itself takes 6 months to complete which would in effect mean the BBC would lose any competitive advantage in a fast moving market place.

The test is described on the BBC website as follows;

'The Public Value Test is a mechanism for weighing public value against market impact.

The BBC Trust uses it to determine the value to the public of, say a proposed new BBC service, and also to calculate its impact on the wider market – say, to other suppliers whose business might be affected by the proposed BBC launch.

Only if the Trust is satisfied that any likely adverse impact on the market is justified by the likely public value of the change, will the proposal go forward for consultation. At the end of the consultation, the BBC Trust will then make its decision.'

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