Ofcom rebuffs BBC Sounds competition concerns in blow to Murdoch
Ofcom has rejected calls to probe competition concerns over the BBC’s move into on-demand audio in a blow to Rupert Murdoch’s rival media empire.
The media watchdog last year launched a review into BBC Sounds, the streaming platform hosting online radio and podcasts from the public service broadcaster, amid concerns about its impact on the wider market.
Murdoch’s Wireless Group, which runs Talk Radio, Talk Sport and Virgin Radio, had complained that BBC Sounds was “perpetuating an unequal playing field in UK audio production, broadcasting and distribution”.
“The scale of the BBC’s podcast output and commissioning resources have resulted in significant market imbalances, contributing to the growth of BBC Sounds, but impeding the development of the independent podcast sector,” it wrote in a submission.
But in its initial findings published today Ofcom said it did not believe the app was harming competition in the audio market.
It found that commercial radio groups, which include Global and Bauer as well as Wireless, had been more successful at attracting online audiences than the BBC.
The watchdog also concluded that BBC Sounds listeners also listened to other platforms, while the UK podcast sector had a wide range of non-BBC content and producers were able to generate revenue.
The decision will come as a blow to Murdoch, who has frequently accused the BBC of distorting the UK media market.
In 2019 a major review into news provision in the UK, led by Dame Frances Cairncross, concluded that Ofcom should review the BBC’s online news service over concerns it was “crowding out” local commercial publications.
But while the regulator ruled in favour of the BBC, its findings raise concerns over the success of BBC Sounds, which has garnered criticism over its functionality since its launch in 2018.
Ofcom also hinted that the BBC could be made to collaborate with its commercial rivals on the Sounds platform to help support the wider UK radio market.
A spokesperson for Radiocentre, which represents commercial radio in the UK, said: “We are pleased that Ofcom has recognised the need for improvements in how BBC Sounds is measured and assessed, as well as the way the BBC engages with stakeholders on the potential impact of its plans.
“However, Ofcom’s resistance to a broader review of the impact of BBC Sounds could risk looking complacent and seems at odds with its duty to hold the BBC to account”.