We must serve the viewer when and how they want - comment on the Trust review of the BBC's distribution arrangements

This piece first appeared in Broadcast Magazine on 7 February 2014.

Changing viewing habits are a challenge, but the BBC is rising to it, says Diane Coyle.

Tablets outpaced computers for the first time after Christmas as the device of choice for people to catch up with their favourite programmes on the BBC iPlayer. The affordability and portability of these devices is only likely to increase.

So as our consumption of media changes, how well equipped is the BBC to deliver its content and services to audiences as they choose to access them in the future?

The BBC Trust this week published its latest Value for Money study on the corporation’s distribution arrangements. Mediatique, which conducted the review, found that the BBC’s current distribution arrangements meet the aims of universality and convenience, and said the BBC’s spend on distribution compares favourably with spending by other broadcasters. So far so good.

The report also looked at how the BBC should deliver its content in the future. Mediatique forecasts that TV’s non-linear share will double from its current 12 per cent to almost 25 per cent of all viewing by 2017. BBC iPlayer is also set to represent a much larger share of non-linear viewing as people choose to view on demand rather than record programmes on their PVR. Linear television viewing isn’t going to diminish quickly, though, and is expected to remain integral in the future – especially for live events. Only around two per cent of people solely use catch-up to watch the BBC’s output.

As audience habits shift, the BBC will face a challenge to maintain its record for efficiency and good value in distribution. We shouldn't forget that the BBC was a pioneer of catch-up television and is well placed to continue innovating. Since the iPlayer’s launch in 2007, the BBC has regularly adapted its technology to the changing viewing and listening habits of audiences. In 2007 the Trust approved a syndication policy, subsequently updated in 2012, allowing the BBC to work with commercial partners to give audiences easy access to BBC content through apps on mobile phones and tablets or on catch-up TV platforms provided by other broadcasters and providers.

In October 2013, BBC Director General, Tony Hall announced his ambition for a new generation iPlayer and the greater personalisation of on-demand services, with iPlayer having its own online channels. Viewers would become schedulers, planning their own viewing. iPlayer would become much more than just a catch-up platform. These plans are still subject Trust approval, but we are encouraged that the BBC is continuing to evolve its thinking.

Rising demand for non-linear viewing pushes up costs. The Mediatique report suggests that even with inflation and the expected rise in demand for online services, the BBC will still be spending less than 10 per cent of licence fee income on distribution up to 2017.

To ensure that the BBC continues to meet its distribution obligations, we will be working with BBC Distribution to work out how to monitor its performance in the future, to ensure it remains as effective and good value as the technology changes. Later this year we’ll be publishing a framework document for distribution, similar to the service licences we already set for each BBC service, which will set out future objectives.

The record so far is very encouraging, but of course the BBC must continue to provide audiences with the content they love in the ways that they want it. And that’s quite a challenge.