I really don't get what the government want from the BBC. The message seems to be don't produce anything that's good cause it'll impact ITV's ad revenue. Radical thought - maybe ITV should produce decent programmes instead of the bilge they currently churn out.
I like the BBC. It's not perfect by a long chalk but it's a bulwark against the mindless, lowest common denominator trash TV that fills up the satellite channels and ITV.
Pretty much it.
ITV used to create good content on a regular basis, and they used to be able to actually beat the BBC with Drama viewing figures by making good programs that people wanted to watch, in a variety of formats.
For a long time ITV seems to have given up on that idea.
IIRC this idea from the government goes back in part to ITV's news not doing well, with Whittingdale seamingly forgetting that it was ITV who decided to do away with it's main news programme at their traditional time, and playing around with it's time (so you never knew when it was on without looking at the paper) leading to people not bothering with it.
Then the BBC moved their program to that slot, having previously (for decades) having made the decision to keep it at a different time specifically so they didn't compete with ITV, something there was no point in doing when ITV were themselves moving their slot around so it was often up against BBC news.
When ITV realised that no one was going to watch their news when you couldn't rely on it being on at the same time from one day to the next and moved it back to a fixed slot the BBC didn't reorganise their schedule to accommodate.
In short ITV played silly beggers with their news for commercial reasons, BBC moved theirs to the new now free fixed slot that they'd not previously used as it had been in use by ITV (who were from memory showing the news at anything from about 9:30 to 10:45pm with their new policy), and it's now the BBC's fault that ITV news doesn't get the viewers.