The BBC Trust has rejected the BBC's £68 million plan to add video news to its network of 65 local UK Web sites, saying on Friday that it would hurt local newspaper publishers who are also trying to compete in their local online video markets, BBC News reported

Had the local video services been launched, yearly revenues at existing providers would likely decrease by up to 4 percent, and could cause local commercial media to fall behind in online innovation, a study by broadcast watchdog Ofcom had found.

Local newspapers across the UK had rallied against the BBC's plans, saying it would hurt their services, as the BBC Trust regulator investigated the plans for five months.

The 65 video sites would likely not offer the value to the public that the BBC aims for, and instead the BBC should improve on existing services, said Sir Michael Lyons, chairman of the BBC Trust.

“Our decision to refuse permission for local video means that local newspapers and other commercial media can invest in their online services in the knowledge that the BBC does not intend to make this new intervention in the market,” Lyons said, according to BBC News. “We also recognise the negative impact that the local video proposition could have on commercial media services which are valued by the public and are already under pressure.”

Although many at the BBC believe the ruling hurts the the outlet's ability to improve services, others found the ruling to be a relief.

“This is public money and we need to question quite severely the BBC. They are spending an enormous amount and I am particularly concerned about their monopoly in Wales,” North Wales AM Eleanor Burnham told the Evening Leader.