Information on the principles followed by Ofcom in determining the additional payment due in respect of qualifying revenue and multiplex revenue paid by television and radio broadcasters.
Under the terms of the 1990 Act, Ofcom is required to draw up, and from time to time review, a statement setting out the principles to be followed in ascertaining the ‘qualifying revenue’ of certain of its licensees for the purposes of any provision of Part I or Part II of the 1990 Act.
The 1996 Act extends this requirement to ‘multiplex revenue’. Specifically, Ofcom must draw up a statement setting out the principles to be followed in ascertaining the multiplex revenue in relation to a licence holder for the purposes of section 14 of the 1996 Act, and the share of multiplex revenue attributable to a person in relation to any multiplex service for the purposes of any provision of Part I of 1996 Act.
The Third Edition of the Statement of Principles was a combined statement to meet both these statutory requirements and the Fourth Edition simplified the administrative procedures for the collection of additional payments from licensees and removed procedures in respect of the Channel 4 Support Scheme, which ceased in 1998. The Fifth Edition clarifies the interpretation of Qualifying Revenue, as defined in the 1990 Act, as it applies to the Digital Replacement Licences, sets out more clearly relevant administrative arrangements and makes various consequential amendments following enactment of the Communications Act.
Qualifying revenue and multiplex revenue for television licensees (PDF, 113.8 KB) - 16 Dec 2004
Ofcom is required under the Broadcasting Act 1990 ('1990 Act') and Broadcasting Act 1996 ('1996 Act') to draw up, and from time to time review, a statement setting out the principles to be followed in determining the additional payment due in respect of Qualifying Revenue, which is paid annually by Independent National Radio (INR) and Additional Service (AS) licensees. There is a similar requirement under the 1996 Act to draw up a statement of principles for the additional payment due in respect of Multiplex Revenue which relates to the National Radio Multiplex (NRM) licence.
This statement is published by Ofcom in order to confirm its interpretation of Qualifying Revenue and Multiplex Revenue, the methodology for calculating Qualifying and Multiplex Revenue additional payments and to set out more clearly the administrative arrangements. Additionally it makes necessary consequential amendments to the previous statement as a result of the Communications Act 2003.
Qualifying revenue and multiplex revenue for radio licensees (PDF, 222.6 KB) - 26 Oct 2006