BBC Trust rejects local video websites plan

LONDON (Reuters) - The BBC's governing body on Friday rejected plans for the broadcaster to launch local video services arguing they would have a negative impact on commercial media and did not justify licence fee funds.

The BBC's 68 million pound plans would have seen local new, sport and weather launched on websites covering 60 areas across Britain with five Welsh language services.

But, amid fierce opposition from newspaper publishers, the BBC Trust ruled that the proposals were not appropriate and managers should instead focus on improving existing services..

"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," said Michael Lyons, the Trust's chairman.

"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."

Media watchdog Ofcom also on Friday said the proposals would have had a significant negative impact on commercial providers.

Local newspapers were concerned that the BBC plans would have threatened publications that are already facing hard times.

"This is a proposal which the BBC should never have made and would have severely reduced consumers' media choice and the rich tapestry of local news and information provision in the UK," said Newspaper Society director David Newell.

"We must be on our guard to ensure that the BBC is not allowed to expand its local services by alternative means."