The U.K. news media gave good coverage to Mark Thompson’s speech yesterday. Click here for a copy. It is a remarkable speech, not only for the candid line-drawing he makes with respect to what might happen in light of what the BBC considers a low license fee settlement, but also for Thompson’s wide ranging views on the media landscape. I highly recommend that you read it.

Everyone is caught in a bind. Despite willingness-to-pay surveys the government is understandably concerned about the projected amount of the license fee. Yet the government surely cannot load the BBC with public-facing priorities that sound great in a ministerial speech, then not be prepared to see the primary funding mechanism (the license fee) increase.

The question then becomes - which are the important priorities? The important priority that the BBC needs to push much harder in my opinion - one that would perhaps justify an increased licensee fee more than a personnel move to greater Manchester - is high definition television. High definition television should be more closely linked with the BBC’s public duties and the concept of public value. It’s hard to sell the benefits of a personnel move. It’s relatively easy to sell the benefits of HDTV.

Wired Magazine has called it ‘the tropical fish moment’ - that first time when a person sees a high def TV signal. Direct-TV in the United States, Verizon’s FiOS network, Comcast - most of the big operators are pouring money into HD capability. So, observe where the smart money goes (toward the customer) and ask yourself:

Is there any smart money in the U.K. government when it comes to Freeview?

The U.K. government, acting mostly through Ofcom, is still considering the issue. It’s called the ‘digital dividend review’ - the notion that digital switchover will make available additional frequency assignments that could be used to add a high def element to Freeview. Of course, the spectrum could go elsewhere, such as mobile telephony applications. Or Ofcom could simply auction the spectrum without much limitation. The decision should come very soon.

The BBC’s positioning must be clear: If it is to deliver its high-quality PSB product to as many license fee payers as possible, it needs the same or similar HD product on Freeview as it delivers on cable or satellite. Otherwise, a subset of the license fee payers will be subsiding the high def lifestyles of others. If universality and quality are two of the main justifications for the BBC’s position as a public service broadcaster, then surely the government cannot turn its back on Freeview. Mark Thompson needs to make that case in the context of the license fee settlement.

That’s my opinion. What do you think?