In a review of the UK children's television market, Ofcom found that investment in original children's programming by the commercial public service broadcasters - ITV, GMTV, Channel 4 and Five - has halved since 1998, and that the BBC had not planned to continue its current levels of output.
Ofcom said a key factor in the decline was the rise in the number of children's television channels, which has increased from six in 1998 to 25 today, resulting in smaller audience shares and less advertising revenue, putting programme-makers under financial pressure.
While parents were satisfied with pre-school programming, which has grown since 1998 with slots such as CBeebies and Five's 'Milkshake', they wanted more drama and factual programming for older children and young teenagers.
Julie Symes, communications manager of Ofcom, said, 'Programmes for older children are often considered to be uneconomic because they are expensive to produce, and are not so easy to sell abroad. With pre-school programmes there is often extra money to be made from merchandising.'
Parents also said they were unhappy about the lack of UK-made programmes. Ms Symes said, 'Parents told us that they want television which reflects their child's own culture.'
John McVay, chief executive of PACT, the Producers Alliance for Cinema and Television, said, 'We are coming to the point where there will be no quality, home-grown kids' TV outside the BBC to any significant level. The market is failing British parents and British children.'
Ofcom invites responses to the report, available at www.ofcom.org.uk, and will publish them next spring, with policy recommendations to follow.