UK video-on-demand providers must pay a combined £375,000 to two bodies that will regulate their industry.
The Association for Television On Demand (ATVOD) was last week confirmed by Ofcom to co-regulate, along with it, the VOD sector under last year’s UK implementation of the European Commission’s 2007 Audio-Visual Media Services directive.
But the pair of bodies say running costs for December 2009 to March 2011 are £426,388, and that the VOD providers themselves should pay fees totaling £375,000 between them to finance the operation for the 2010/11 fiscal year (the rest is from taxes).
Ofcom says 150 VOD services must pay the fees – but, despite reviewing the sector last year, it has not published a list identifying the companies affected.
Indeed, singling out those services which fall under the joint Ofcom-ATVOD auspice is tricky. The EC directive applies to “TV-like” services, which it says “must not contain any incitement to hatred based on race, sex, religion or nationality
Why does this require another regulatory quango – ATVOD? Why can’t this be added to Ofcom’s remit with saddling this nascent sector with absurd costs and requirements?
Yet another Labour scam then. The VOD providers should get together and refuse to pay a penny.