The Media Act: What you need to know in a nutshell

Following a 4-year legislative process that began in November 2020, the Media Act (the "Act") received Royal Assent on 24 May 2024 and was finally published on 4 June 2024.

The previous government's call for a general election saw a limited number of bills pushed through the final committee stages during the 'wash up' period, which included the Act. The Act was therefore enacted with few changes from the draft Media Bill (from November 2023).

As outlined in our previous post, the Act represents the most significant change to broadcasting / PSB regulation in over twenty years and aims to modernise the existing regulatory framework (namely the Communications Act 2003 and Broadcasting Act 1990) to reflect changes in content consumption habits during this period. In particular, it intends to level the playing field between traditional broadcasters and on demand platforms from a competition, accessibility, safety, and accountability perspective. The Act will bring new services within Ofcom's jurisdiction for the first time (including connected TV platforms, voice-activated services and some non-UK based VoD services).  This move rides on a global regulatory trend, with similar pieces of legislation being introduced or increasingly enforced in other markets and economies – such as, Canada, India, and the EU.

Ofcom originally set out its phased approach to implementing the Act in its Roadmap to Regulation published in February 2024, with each part of the Act being subject to a different implementation period. The regulator envisaged that full implementation would take place over the next two years (taking into account the need to designate seven relevant services, to develop new codes and new guidance for industry, as well as necessary changes to licences and the need for secondary legislation).

Most provisions of the Act are expected to apply in a staggered manner between 2025 and 2027. Whilst the new Labour party may choose to dedicate more time and resource to achieving the goals of its manifesto (rather than implementing the legacy of a previous government), this overall timeframe for application of the Act remains. However, Ofcom's slightly updated roadmap is also now available at its Media Act Implementation Hub. 

Top ten takeaways

1. Changes in consumption habits: The changes recognise and endorse the changing shift in content production and consumption patterns from traditional broadcast channels to video-on-demand services ("VoD"). While consumption over broadcast TV has reduced by 30% since 2014, 67% of households in the UK have at least one VoD subscription. The Act takes forward many of Ofcom's recommendations to deliver a "stronger system of public service media fit for the digital age" following Ofcom's review "Small Screen: Big Debate".
    
2. Greater regulation of VoD services: To reduce the gap between regulation of traditional broadcasters and on demand platforms, certain VoD services will be designated as Tier 1 by the Secretary of State and be subject to greater content regulation. Whilst the criteria for this designation is still to be confirmed, we expect it is likely to apply to the larger, more TV-like platforms. All Tier 1 VoD services will need to comply with a new VoD code (similar to Ofcom's Broadcasting Code), which will be drafted and enforced by Ofcom – with some Tier 1 VoD services falling within Ofcom's regulatory remit for the first time, particularly those headquartered outside the UK.
    
3. PSB reforms: PSBs have been offered greater flexibility around how they fulfil their PSB remit, for example, on-demand programming with editorial control will now count towards the PSB quotas. This flexibility is also accompanied by new Secretary of State powers that can require a PSB to produce more of a certain type of content, if appropriate and proportionate where audiences are being underserved (these powers must, however, be exercised with Ofcom approval). Ofcom is also entitled to take action against a failure to fulfil PSB remit when it is “serious and is not excused by economic or market conditions”.
    
4. Changes to Listed Events: The Listed Events Regime has been updated to include both television and internet programme services and to qualify for the regime, the event must be free-to-air by a PSB. The Act also closes a loophole that potentially allowed unregulated TV streaming services to buy the rights for a listed event and put them behind a paywall. In parallel, more changes can be expected as the government finalises its digital rights review.
    
5. Channel 4 reforms: Unlike initial government proposals, Channel 4 will not be privatised. Given that Channel 4's digital advertising revenue has not fully compensated for the decline in linear television advertising in recent years, the Act envisages Channel 4 diversifying its revenue stream beyond just advertising. Channel 4 will, now be permitted to produce (and monetise) its own content. It also has a new legal duty to consider its long-term sustainability, alongside greater powers to assess its own PSB remit fulfilment, which had previously been assessed by Ofcom. The government will increase the independent production quota level for Channel 4 as well.
    
6. Changes to prominence regime: The Act creates complex new rules to ensure designated on-demand public service content is available, prominent and easily accessible on certain "television selection services" (such as smart televisions, set top boxes and streaming sticks). These obligations are set out in the Act as a new "must-offer and must-carry" regime, affording similar prominence protection to PSB VoD services as is currently the case for linear PSB channels on regulated electronic programme guides (EPGs). We can expect Ofcom to provide clarity on the regime (including what constitutes the "appropriate" level of prominence) in its codes of practice in due course.   
    
7. Accessibility requirements: All Tier 1 VoD services must comply with certain minimum requirements in relation to their accessibility offerings.
    
8. Regulation of commercial radio stations: Commercial radio stations will also have less stringent format, genre, and age group requirements, and be given increased power to amend their services without needing consent from Ofcom. In addition, all smart devices must provide access to all licensed UK radio stations, regardless of size. While regulations are largely pro-radio stations, clarifications have allowed smart speakers some degree of commercialisation.
    
9. Advertising on VoD services: Although advertising and sponsorship are not directly in scope of the Act,  the legislation does extend requirements around harmful material, advertising, sponsorship and product placement from just UK headquartered on demand programme services (as is currently the case), to a wider range of platforms including Tier 1 services - therefore extending Ofcom's mandate to certain international on demand programme services in this area as well. The regulatory spotlight on VoD services is only expected to grow with the advent of the Online Advertising Programme as well.
    
10. Fees: The Act will require changes to Ofcom's fee structures for many services that it currently regulates and will also bring new services within its regulatory remit. The regulator will therefore need to establish new funding regimes during the later part of the implementation programme (originally planned to be in place before April 2026).

A deeper dive

We will be following this nutshell with some more focussed pieces shining the spotlight on a range of areas as they progress, including what the Act means for each of PSBs, VoD services and the prominence regime.