The Governors will ensure that all major service-related investment proposals will be subject to a Public Value Test to assess the net public value created against market impact.
The Public Value Test (PVT) is one of the key tools underpinning the radical change in the BBC's system of governance, which takes effect with the new Charter and Agreement on 1 January 2007.
The PVT is a means by which public value and market impact are taken into account for all major service-related investment proposals. Under Article 25 of the new Agreement the BBC Trust will be required to apply the PVT before a decision is taken to make any significant change to the BBC's UK Public Services (which can include introducing a new service or discontinuing a service).
The BBC Governors have also made clear their commitment to subject any proposal received from BBC Management under the existing Charter to a PVT if that proposal would qualify under the terms of the new Charter.
There are two parts to the Public Value Test:
• The Public Value Assessment (PVA), which measures the public value which would be created by a service. This is conducted by the Governors' own advisers in the Governance Unit.
• The Market Impact Assessment (MIA), which measures the likely impact on existing or potential value created in the wider market as a result of the change.
As outlined in the new Charter and Agreement, the MIA will be carried out by Ofcom under terms agreed by a Joint Steering Group comprised of BBC Governors and Ofcom representatives. Details of the MIA can be found here.
A summary of the PVT process and interim rules for the conduct of the PVT can be found below:
BBC Management's on-demand proposals (including BBC iPlayer)
On 31 August 2006 the BBC Governors announced that an application had been received from BBC management to launch the BBC's new on-demand proposals (including BBC iPlayer). The press release is available here.
Indicative timetable
NB - This timetable is not intended to be binding on the BBC Governors, Ofcom or the future BBC Trust, but is intended to provide licence fee payers, other stakeholders and interested parties with an approximate indication of the timings for the PVT on the BBC's on-demand proposition.
A summary of the on-demand proposals can be found below.
More detailed information on the proposal can be found below.
The period for representations to the Governance Unit on the public value of the on-demand proposals has now closed. The BBC Trust will consider the Public Value Assessment and the Market Impact Assessment in January, and will consult on its interim conclusions in the PVT in February. Details on how to make submissions will be posted on the new BBC Trust website when the consultation is launched.