A 'New Media' Act in this Parliament?

A media sector in need of more support?

The UK has a vibrant media ecosystem built over centuries. Daily newspapers entered circulation three centuries ago under Queen Anne. Radio stations and film studios emerged in the 1920s and 30s. In 1936, BBC television made its first transmission, and in 1955, commercial public service broadcasting arrived with the birth of the Independent Television (ITV) network. British media remains the envy of much of the world today. The BBC, Guardian and Daily Mail are among the most-read news websites in the world. Films funded by the BBC, Channel 4 and the BFI, like Poor Things, regularly win Oscars. Blockbusters like Wicked and Barbie are made on British sets, in the rich tradition embodied by the James Bond movies, filmed at Pinewood Studios since 1962.

The UK’s competitive advantage in these industries is founded on physical infrastructure built over years and a highly skilled creative workforce. It has been spurred by market intervention and support – regulatory and financial – by successive governments, based on freedom of the press and of artistic expression.

The sands, however, are shifting. The long-term downturn in linear advertising revenue, inflated production costs, evolving commissioning strategies from public service broadcasters and streamers, the burden of maintaining old distribution networks, international factors such as Hollywood strikes, and, above all, the shift of audiences away from long-form news and entertainment towards shorter-form video content and social media continue to disrupt the sector.

The last Conservative Government legislated to protect news and the creative industries in a series of new laws. The Labour Government is already facing calls to go further. Compounded by concerns about social unrest last summer, and the rise of populism, could a ‘New Media’ Act be on the cards during this Parliament?

A heavy regulatory agenda

Following years of campaigning from the media sector and civil society, new regulations are already being implemented. The Online Safety Act 2023 will prevent the largest platforms from removing or moderating news publisher content without notice and right of appeal. The Competition and Markets Authority has launched several investigations into large platforms, using new powers in the Digital Markets, Competition and Consumers Act 2024. These include an investigation into search advertising, which news publishers hope will lead to them receiving greater payments from platforms. Public service broadcasters and radio stations will gain prominence on smart TVs and smart speakers, and Ofcom is drafting a version of the Broadcasting Code that will apply to Video-on-Demand, following the passage of the Media Act 2024. Much to the sector’s relief, the Labour Party is also maintaining the higher tax credits for independent film and visual effects costs announced by the Conservatives.

Labour is also proceeding with a ban on high-fat, salt and sugar (HFSS) advertising, despite concerns from broadcasters and digital platforms, and the businesses whose ads they carry, about the impact on their revenues. From 1 October 2025, HFSS ads will be banned on TV and on-demand before the watershed, and online at all times. Whether advertising showing the brand but not the product remains permissible is now in contention, with the Advertising Standards Authority claiming that the legislation prohibits it, and the Government pushing back

The Government is also proposing important changes to the rules governing media mergers. The Enterprise Act 2002 allows the Culture Secretary to refer a transaction involving a newspaper or TV company to Ofcom and the CMA for scrutiny before either approving, approving with conditions, blocking or unwinding it. In 2024, the Conservatives amended the regime to prevent the sale of printed publications to foreign states. Labour has yet to confirm if it will exempt some types of transactions to avoid chilling investment. The Government is proposing, however, to extend the regime in a limited manner to online news publications.

All of this underlines a tension – redolent across Government – between Labour’s pro-growth and deregulatory agenda, and its more interventionist instincts.

A ‘New Media’ Act?

With such a substantial package of regulatory interventions, would the Government even entertain new media legislation in this Parliament, so soon after the last?

Rioting in the wake of the Southport killings and Donald Trump’s re-election is shining a light on the role of our media in shaping our society and democracy. Strengthening British public service media, which operates with editorial accountability and brings cultural and democratic benefits to the nation, is one lever to pull.

With a packed legislative session – 16 Acts of Parliament passed already and 22 more bills in train – could the second half of the Parliament start to look more threadbare without new vote-winning bills to ‘deliver’ before an election?

There are currently two major media policy files in development: hotly disputed reforms to copyright in the age of AI, and the BBC’s 2027 Charter renewal. Neither is designed to address the financial difficulties faced by the wider media sector; liberalisation of copyright laws is indeed seen as a bogeyman by traditional news outlets and wider rightsholders.

What could new legislation to support the sector contain? The House of Lords has called for online intermediaries to be brought within the scope of the media mergers regime, in recognition of the role they play in the news British citizens read and watch. Ofcom’s upcoming Public Service Media Review is likely to focus heavily on this issue, but is unlikely to endorse the same solution. The House of Commons has called for a streaming levy, increased tax credits for smaller high-end TV productions, and reforms to ‘Terms of Trade’ so production companies can keep intellectual property when making shows for streamers. These parliamentarians believe such measures would bolster domestic production.

The Culture Secretary has asked video-sharing platforms to promote higher-quality children’s content, but cannot compel them to – while some public service broadcasters have been asking for laws to ensure their content is prominent on digital platforms, not just on smart devices. Should the Government’s stakeholder forum on the future of TV distribution decide to support a transition towards distribution through the internet (IPTV) after 2034, or alternatively to continue requiring companies to distribute over terrestrial networks, then government support, both through legislation and funding, may be necessary too.

The President in the room

Ultimately, two factors stand in the way of new legislation. Domestically, Starmer and his Chancellor, Rachel Reeves, have been eager to promote investment, pushing Ofcom and other regulators to demonstrate how they are encouraging growth. For all the societal and cultural benefits of media policy interventions, they would come with economic costs to some of the UK’s most successful inward investors, while supporting the position of domestic players.

Internationally, there is the added complexity of UK-US relations under Trump, whose administration takes a dim view of foreign regulation of US platforms and of the concept of public service broadcasting itself. Trump has indicated that he “would not allow” foreign governments to “require American streaming services to fund local productions” and will ask Congress to defund his own public service broadcasters, NPR and PBS.

Two scenarios are plausible. In the first, Starmer prioritises reaching a trade deal to protect British manufacturing, making more regulation unlikely. In the second, where the Republicans perform poorly in the 2026 midterm elections, Anglo-American relations sour, or there is another crisis like last summer’s riots, Starmer determines to act later in Parliament. Defending British media companies becomes a potential retaliatory measure in this scenario.

While new media legislation seems unlikely in this Parliament, it is not impossible. To reconcile industry demands for support with domestic growth and US trade, the Government could instead look to alleviate the regulatory burden on public service media – potentially a more significant shift.

This blog was written by Manager Pierre Andrews, Specialist Partner Dame Sue Owen and Specialist Partner Steve Unger. Pierre was a Special Adviser to the Secretary of State for Culture, Media and Sport 2023-24, Dame Sue was Permanent Secretary of the Department for Digital, Culture, Media and Sport 2013-19, and Steve was Chief Technology Officer 2009-19 and Board Member of Ofcom 2015-19.