After section 18 insert—

“18ASection 18: supplementary provision

(1)

For the purposes of section 18(3B) or (3C), the qualifying revenue for an accounting period of a holder of a Channel 3 licence is the aggregate of—

(a)

the qualifying revenue for that accounting period of the licence holder which derives from that licensed service, and

(b)

the qualifying revenue for that accounting period of the licence holder which derives from any on-demand programme service, non-UK on-demand programme service or television programme service that is—

(i)

provided by the licence holder or a person associated with the licence holder, and

(ii)

included in an internet programme service that is designated under section 362AA(2) of the Communications Act 2003 as a service provided by the licence holder or as a service provided by a person associated with the licence holder.

(2)

Section 19(2) to (6) applies for determining the qualifying revenue referred to in subsection (1)(a).

(3)

Section 368J(4), (5) and (7) of the Communications Act 2003 applies for determining the qualifying revenue referred to in subsection (1)(b) which derives from an on-demand programme service or a non-UK on-demand programme service.

(4)

Section 19(2) and (4) to (6) applies for determining the qualifying revenue referred to in subsection (1)(b) which derives from a television programme service as if—

(a)

in section 19(2) and (6), references to a Channel 3 service were references to the television programme service,

(b)

in section 19(2), (4) and (6), references to the holder of a Channel 3 licence were references to the provider of the television programme service, and

(c)

in section 19(2) and (6), the words “of the licence holder” were omitted.

(5)

Section 362AZ12(6) of the Communications Act 2003 (meaning of references to a person associated with a public service broadcaster) applies for the purposes of this section as it applies for the purposes of Part 3A of that Act.

(6)

For the purposes of this section—

(a)

the person who provides an internet programme service is the person treated for the purposes of Part 3A of the Communications Act 2003 as providing that service (see section 362AZ12 of that Act), and

(b)

the person who provides an on-demand programme service or a non-UK on-demand programme service is the person treated for the purposes of Part 4A of that Act as providing that service (see section 368R of that Act).

(7)

In this section—

“designated internet programme service” has the same meaning as in Part 3A of the Communications Act 2003 (see section 362AZ12(1));

“on-demand programme service” and “non-UK on-demand programme service” have the same meaning as in Part 4A of that Act (see section 368A).”

In section 41 (power to impose financial penalty or shorten licence period of a Channel 3 service, Channel 4 and Channel 5), for subsection (1C) substitute—

“(1C)

Section 18A applies for determining or estimating qualifying revenue for the purposes of subsection (1A) or (1B), with any necessary modifications in relation to the holder of the Channel 5 licence.”

In Schedule 7 (qualifying revenue: supplementary provisions), in Part 1 (qualifying revenue for the purposes of Part 1 or 2 of this Act), in paragraph 1, after sub-paragraph (4) insert—

“(5)

This paragraph does not apply in relation to such part of a person’s qualifying revenue as falls to be ascertained in accordance with section 368J of the Communications Act 2003 (see section 18A(1)(b) and (3) of this Act).”

In Schedule 9 to the Communications Act 2003 (arrangements about the carrying on of C4C’s activities), in paragraph 8 (penalty for contravention of the arrangements), for sub-paragraph (7) substitute—

“(7)

Section 18A of the 1990 Act, with any necessary modifications, has effect in relation to C4C for the purposes of this paragraph as it has effect in relation to the holder of a Channel 3 licence for the purposes of Part 1 of the 1990 Act; and Part 1 of Schedule 7 to the 1990 Act has effect as if C4C’s qualifying revenue for an accounting period were being ascertained for the purposes of a provision of Part 1 of the 1990 Act.”