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The BBC Trust has provisionally recommended that proposals to launch a BBC One +1 channel be rejected.
Under the proposal, the catch-up service would have replaced BBC Three as a broadcast channel.
Though the Trust has approved plans to move BBC Three online - contingent on a further 28 days' consultation - it has suggested that the BBC One +1 proposal "fails the public value test and should be rejected".
The channel would have "limited impact on reach to 16 to 34-year-olds, which means it would be unlikely to mitigate the impact of changes to BBC Three", according to the Trust.
It further concluded that the proposal would have limited public value given the need for 24% of UK television households to upgrade their equipment in order to receive +1, the inability to offer 'opt-out' programmes for the nations and regions, and what it calls "the lack of distinctiveness" of the proposal.
Ofcom has also stated that the launch of a +1 channel would have the greatest adverse market impact of any of the proposals, capturing viewing share for the BBC at the expense of commercial channels and reducing their profitability - in particular of ITV and Channel 5.
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