Ofcom: BBC should rethink VOD plan

British regulator Ofcom has ordered the BBC to reconsider its plans for an on-demand, broadband TV plan, which sees BBC programming running simultaneously online as on television. Ofcom noted that: "There is evidence that certain aspects of the proposals may have a negative effect on investment in similar commercial services which would not be in the long-term public interest." A report from Ofcom also predicted that the BBC could account for 11 billion viewer and listener hours by 2011. Ofcom also said it believes VOD services will create a decline in DVD rentals and sales, so the BBC should forget about on-demand. Also, viewers should be allowed to store old programs on a DVR for 14 days not 13 weeks as the BBC had proposed.

For more on Ofcom's orders to the BBC:
- read this BusinessWeek article