Ofcom says BBC hinders local commercial news | Dale Vince interested in buying Observer
Plus veteran freelance Rob McGibbon crowdfunds for a title to cover Chelsea and we have your news diary for the week ahead
Welcome to your daily newsletter from Press Gazette on Monday 2 December 2024.
Ofcom has confirmed what many in the local news sector have long claimed: the BBC is actively harming the efforts of commercial publishers.
It is a damning finding from the media watchdog which casts into question the BBC's use of public money to intervene in the local news sector.
The BBC has shifted investment away from radio in recent years and ramped up its investment in local online news in a way that brings it into more direct competition with local newspaper publishers.
There is clearly a role for public money in the local news sector as evidenced by the 165 BBC-funded local democracy reporters embedded in commercial newsrooms who provide a vital watchdog role.
But today's report will lead to further questions over whether the BBC's role should be to replace existing local news providers, or fill in the gaps where ad funding can no longer support coverage.
One of those news gaps is Chelsea, an affluent part of London with 38,000 inhabitants which hasn't had a dedicated local news source since at least 2017.
Veteran freelance reporter and long-time Chelsea resident Rob McGibbon is hoping to fill the news vacuum on his patch with a crowdfunded title called The Chelsea Citizen.
He says: "The key is to deliver great local content that creates a highly engaged readership. If you build it, the revenue will come."
With 4,000 businesses based in Chelsea and average house prices of £1m, if an ultra-local site is going to work anywhere it has a decent chance there.
On Friday afternoon Press Gazette was first to report that Labour-backing businessman Dale Vince is poised to step in if Guardian News and Media fails to finalise a deal to sell The Observer to Tortoise Media. He says he would like to put The Observer into a trust to safeguard its independence.
The news is significant because Guardian and Observer journalists have been told there is no credible alternative to the Tortoise Media bid. They are set to walk out on strike on Wednesay for 48 hours in protest at the proposed Observer sell off.
On Press Gazette
BBC headquarters in London. Picture: Shutterstock
Ofcom says BBC has become hindrance to local news commercial sector
Ofcom’s final report on the state of local media in the UK has been seen by some publishers as a vindication of their view that the BBC’s shift in investment from broadcast into online is crushing commercial competition.
Businessman Dale Vince confirms interest in buying Observer
“I understand talks with Tortoise are at an advanced stage and in an exclusive period – I’ve confirmed that should there be a problem concluding that deal I would like to enter negotiations and would be interested in the idea of holding the title in a trust.”
Reporter launches funding campaign to bring local news back to Chelsea
London is one of the most thinly covered parts of the UK for local news. Chelsea in west London has 38,000 residents, and average house prices in excess of £1m, but no dedicated local news source since the closure of the Kensington and Chelsea News in 2017.
Reach editorial boss: BBC should work with us, not against us
“If the BBC can establish an expectation that users can access local news across the nation without having to endure any advertising at all, nor provide even so much as an email address by way of value exchange, what avenues will commercial providers have to build the revenues required to pay for their journalism?”
News diary 2 – 8 December: Observer and Guardian strike, MPs debate NI contributions
A look ahead at the key events leading the news agenda this week, from the team at Foresight News.
News in brief
A coalition of major Canadian news publishers, including CBC/Radio-Canada, Postmedia, Metroland, the Toronto Star, the Globe and Mail, Postmedia and the Canadian Press, have joined together to sue OpenAI for copyright infringement. (Press Gazette)
OpenAI is considering introducing ads on its products, its chief financial officer has told the Financial Times.
The Government is to review alternative funding options for the BBC before its current Royal Charter period ends in 2027, the Culture Secretary has said. The review will include a public consultation. The annual colour TV Licence Fee is meanwhile set to increase by £5 in April, to £174.50.
National World has acquired The Business Magazine Group for an undisclosed sum. The Camberley-based company publishes two regional business publications and runs B2B events for the business community in the south of England.
The Verge is set to roll out a paywall on Tuesday, according to Semafor. A subscription to the tech news site will cost $7 a month or $50 for the year, and will also buy access to its already-paywalled newsletters Command Line and Notepad. (Semafor)
Also on Press Gazette:
Lord Kinnock joins chorus of concern for future of The Observer
Bluesky already delivering more referral traffic than X for some publishers
The Swedish regional newsbrand driving subscriptions via Google Discover
Why publishers deserve more than 50/50 generative AI revenue share
How Capital Economics made leap to personalised multimedia publishing (promoted)
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Podcast 79: How Bluesky became News-sky, Google Discover, US election lessons
Press Gazette editor-in-chief Dominic Ponsford talks about the benefits of Bluesky for publishers with the zeal of a new convert, reporter Bron Maher explains how publishers are getting new traffic from Google via Discover and Charlotte Tobitt reveals the biggest lessons for the news industry from the US presidential election.