Medialink Worldwide

Video news releases have been on the political hot seat here, with the BBC backing out of a deal with a U.S. company to use the broadcaster's news operations. The BBC suspended a deal set in October with Medialink that would have allowed the VNR company to use BBC crews to tape the releases...

The BBC and Medialink, meanwhile, appeared to accept that the current political and media climate had made it impossible to proceed with the deal. The BBC's director-general, John Birt, responding to inquiries on the deal from Labour MP and shadow broadcasting minister Jack Cunningham, wrote: We share your concern about the integrity of our news cov-erag....After initial discussions, colleagues in both BBC Resources and News and Current Affairs did not feel that such an arrangement would be in keeping with those guidelines. I understand that it was therefore de-cided not to proceed with the contract.

BBC Resources said in a statement: It is vital that no one should impute that any business agreement-albeit only for technical resources-between BBC Resources and an external customer could affect the BBC's editorial independence....Therefore, the parties have decided it is in their best interests not to proceed with an agreement this side of the next general election.

A spokesman for BBC Resources said this arrangement was not at odds with Mr. Birt's stance.

Medialink, however, appeared to leave the door open to another video news release deal. David Davis, vice chairman of Medialink's U.K. operation, said the deal was 'on ice' rather than scrapped.

"Hopefully, our action will help to bring some balance of better understanding of the informative value of the VNR so that at a future date we can resume the cooperation agreement with BBC Resources in a more enlightened environment," Mr. Davis said. Until the current controversy erupted, the domestic marketplace for VNRs was small, but well established and perceived as growing.