UK media regulator Ofcom has published a discussion paper and research report on the future of children's television programming assessing the current delivery and future prospects for a wide range of high-quality and original programming for UK children.

Ofcom’s review has analysed the children’s television market and for the first time provides a significant evidence base for an informed debate about the future delivery of public service broadcasting for children. Ofcom’s analysis raises issues for children’s television that reflect those facing UK public service broadcasting overall.

While a clear majority of parents regard public service programming for children as very important, less than half think it is being delivered satisfactorily, especially in reflecting a range of cultures and opinions from around the UK. The gap between expectations and delivery of this characteristic is greater for children’s programming than for adults programming. Parents are relatively content with provision for pre-school and younger children, but want more drama and factual programming for older children and young teenagers.

The future provision of new UK-originated content for children, particularly drama and factual programming, looks uncertain other than from the BBC. Investment in first-run original programming by the commercial public service broadcasters – ITV1, GMTV, Channel 4 and Five - has halved in real terms since 1998.

While the commercial children’s channels (like Disney Channel, Nickelodeon and Cartoon Network) commission some UK programming, this represents only 10 per cent of total investment in new programmes. This decline in investment reflects the increasingly unattractive economics of some types of children’s programming for the commercial public service broadcasters, relative to other output.

While BBC hours and spend on children’s programming have actually increased over the period, its long term commitments to children’s programming are by no means guaranteed; the BBC service licences do not reflect the BBC’s current delivery of children’s programming and the BBC could, at least in theory, reduce its output and spend significantly below current levels.

The BBC’s programming is highly valued by parents, but these trends lead inevitably to questions about whether it is in the audience’s long-term interest for the BBC to be by far the largest commissioner of UK children’s programming. Ofcom adds that its research demonstrates that parents appreciate programming from a range of different voices.

The global scene: Children’s television markets internationally have been shaped by two underlying trends: the increase in multichannel penetration and the growing number and popularity of dedicated children’s channels. In 2006, the vast majority of households in Germany (98 per cent), Sweden (87 per cent), Canada (81 per cent) and the US (86 per cent) had multichannel television with over 80 per cent take-up.

The UK is now approaching these markets, with a 79 per cent take-up rate, while multichannel penetration in France (46 per cent) and Australia (41 per cent) is lower.

In 2006, the UK had the highest number of dedicated children’s channels among the countries surveyed, with 18 channels (excluding time-shifted channels). France had
the second highest level of dedicated provision, with 17 channels, followed by the US with 15.

As the number of children’s channels grows, viewing is migrating away from the main channels to dedicated outlets. The relative decline was highest in the UK, where children’s viewing of the main five terrestrials fell by nearly a third between 2002 and 2006. The highest absolute decline, of 23 percentage points, was in Sweden. The declines were slowest in Canada and the USA – the two markets where dedicated channels have long dominated children’s viewing.

In countries with historically high multichannel penetration, dedicated channels dominate children’s viewing, suggesting that this is the likely direction for the UK market. The top three dedicated children’s channels accounted for 42 per cent of all children’s viewing in Germany and the USA in 2006, while in Canada 38 per cent of children’s viewing went to the top three children’s outlets.

In comparison, in the UK the top three dedicated children’s channels (CBeebies, CBBC and Disney Channel) jointly attracted 8.5 per cent of children’s viewing in 2006).

The overall provision of children’s programmes on the main channels in the UK (4,252 hours in 2006) is similar to that of France (4,191 hours) and above that of Germany (2,843 hours), Sweden (2,267 hours), Australia (3,968 hours) and the US (3,723 hours).

7.2.6 The UK trend of declining children’s output on the main commercial mixed-genre channels is echoed in other markets. In Germany, the main mixed-genre commercial outlets showed 46 per cent fewer children’s hours in 2006 (1,603 hours) than in 2001.

In France, commercial free-to-air channels reduced output by 22 per cent since 2001, to 1,441 hours in 2005. Similar trends can be seen in Sweden and the US. Despite a 12 per cent fall since 2002, the UK had the highest level of provision to children on its main national commercial channels at 2,437 hours in 2006.

Broadcaster spend on children’s television in the UK (£149 million in 2006, excluding spend on repeats) was below estimated spend in the US (£183 million), but significantly
above all other markets surveyed. Broadcasters in France (£74 million) and Germany (£73 million) are estimated to have spent half as much as UK broadcasters.

Estimated broadcaster funding levels are lower in Canada (£43 million), Australia (£38 million) and Sweden (£16 million).

UK broadcasters had a relatively high share of originations, accounting for 73 per cent of the total broadcaster spend on children’s television. This was below that of their US
(80 per cent) and Canadian (77 per cent) counterparts but above that of German (71 per cent), French (54per cent) and Swedish (52 per cent) broadcasters.

Data suggests that the children’s production sector in the UK is more dependent on broadcaster funding (75 per cent of funding in 2006 although this varies by sub-genre)
compared to some other markets. For example, in Canada, only 30 per cent of funding for children’s programmes comes from broadcasters, with the rest accounted for by a
combination of government funding, foreign and co-production spend, private investment and other industry funds.

Overall, in the short term, investment in original children’s programming in the UK is likely to continue to decline but by a lesser margin than in previous years, with continued
decline by commercial PSBs offset by an increase by the BBC. The BBC’s expenditure in 2007 is likely to increase to 2005 levels, following a fall in 2006 due to phasing of spend and staff changes in the children’s department.