BBC video scheme would have damaged local newspapers

The BBC Trust said the plans would not improve public services enough to justify either the use of licence fee funds or the negative impact on commercial media, including local newspapers like your Worcester News.

Sir Michael Lyons, the trust's chairman, said: "It is clear from the evidence that, although licence fee payers want better regional and local services from the BBC, this proposal is unlikely to achieve what they want.

"We also recognise the negative impact that the local video proposition could have on commercial media services which are valued by the public and are already under pressure.

"We believe the BBC's priority should be improving the quality of existing services.”

Ofcom said the BBC proposals would have a "significant negative impact" on commercial providers.

The communications regulator's independent market impact assessment found annual revenues of regional newspapers and commercial TV and radio stations would fall by up to 4% if local video services were launched.

Ofcom said the plans would also be detrimental to future innovation in online news, sport and weather services by the commercial sector, particularly newspapers.

The BBC's proposal - estimated to cost £68 million by 2012/13 - envisaged websites with on-demand videos, primarily of news and sport but also including weather and user-generated content.

Worcester News editor Kevin Ward, who has campaigned against the proposals, said: “I am delighted the BBC Trust has reached this sensible conclusion. The newspaper industry has no fear of competition, providing it is fair.

“These proposals would have created unfair, state-funded competition at a time when local newspapers are fighting for their very survival at a time of economic turmoil. It is not how public money should be spent and it is not what the BBC should be doing.”

Mr Ward said he was grateful for the support of local MPs Peter Luff, Sir Michael Spicer and Mike Foster in lobbying the BBC Trust and Ofcom.