The BBC Executive's Review and Assessment 2009-10
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THE BBC EXECUTIVE’S REVIEW AND ASSESSMENT In addition to the information given in the following pages, you can find out how we performed last year against a whole range of other commitments – including our Statements of Programme Policy, the WOCC, Ofcom quotas and access services targets – in the Performance Against Public Commitments pdf available in the download section at www.bbc.co.uk/annualreport. Executive cover image: Photo shows Doctor Who’s TARDIS: let the BBC take you on a journey to where you want to go – sharing new places and new possibilities. PART 2 GOVERNANCE 2-76 EXECUTIVE BOARD BBC EXECUTIVE 2-78 SUMMARY GOVERNANCE OVERVIEW REPORT 2-2 UN DERSTANDING FINANCIAL STATEMENTS THE BBC’S FINANCES 2-86 FINANCIAL OVERVIEW 2-4 DIRECTOR-GENERAL’S 2-94 BEYOND BROADCASTING FOREWORD 2-95 SUMMARY FINANCIAL 2-10 PUTTING QUALITY FIRST STATEMENT PERFORMANCE 2-95 INDEPENDENT AUDITOR’S 2-14 THE BBC’S PURPOSES STATEMENT 2-16 RADIO 2-96 SUMMARY CONSOLIDATED 2-24 JOURNALISM INCOME STATEMENT 2-32 TELEVISION 2-97 SUMMARY CONSOLIDATED 2-40 FUTURE MEDIA & TECHNOLOGY BALANCE SHEET 2-46 ENSURING FUTURE QUALITY 2-97 SUMMARY CONSOLIDATED MANAGING THE BUSINESS CASH FLOW STATEMENT 2-60 OPERATIONS 2-98 NOTES TO THE SUMMARY 2-66 BBC’S ROLE IN A WIDER FINANCIAL STATEMENTS MEDIA LANDSCAPE 2-104 GLOSSARY 2-72 RISKS AND OPPORTUNITIES CONTACT US CREDITS 2 This year the individual licence fee was £142.50. Gross efficiency savings £m The monthly charge per licence fee was: 2,000 Projected 2bn548 £1.35 (11%) 1,500 £0.67 480 (6%) 1,000 £2.01 404 (17%) Television 500 £7.85 Radio 316 (66%) Online 237 0 Other 08/09 09/10 10/11 11/12 12/13 Total Through the efficient and effective collection of the licence fee, by reducing the cost of running how we manage our business year-on-year, and by selling and licensing programmes and content assets to companies in the UK and abroad, we strive to increase the amount of money available to invest in delivering the right portfolio of programmes and services for UK audiences. Reach % Costs per user hour p Spend by service £m UK population who use service each week How much to deliver service to users Total content spend BBC ONE 77.3 (77.6) 6.7 (6.8) 1,113(1,142) BBC TWO 55.7 (57.4) 7.7 (7.5) 450 (451) BBC THREE 20.7 (18.7) 8.6 (10.6) 88 (87) BBC FOUR 8.9 (7.8) 14.0 (16.8) 55 (55) CBBC 5.6 (5.2) 8.8 (9.5) 40 (36) CBEEBIES 8.3 (8.0) 1.8 (1.8) 18 (16) BBC HD 1.6 (0.6) 1.6 (7.0) 2 (2) BBC ALBA* 4.3 (n/a) 20.6 (29.4) 4 (3) BBC RADIO 1 21.9 (21.3) 0.6 (0.6) 32 (33) BBC RADIO 2 26.9(26.1) 0.5 (0.5) 40 (40) BBC RADIO 3 3.9 (3.9) 6.3 (6.3) 41 (40) BBC RADIO 4 19.5(19.1) 1.3 (1.3) 87 (86) BBC RADIO 5 LIVE 12.3 (11.9) 2.3 (2.3) 55 (57) BBC RADIO 5 LIVE 1.4 (1.4) 2.2 (2.6) 3 (3) SPORTS EXTRA BBC 1XTRA 1.2(1.1) 3.6 (4.5) 7 (7) BBC 6 MUSIC 1.4 (1.2) 2.7 (3.4) 7 (7) BBC 7 1.8 (1.7) 1.7 (2.0) 5 (5) BBC ASIAN 0.7 (0.8) 8.5 (6.9) 9 (9) NETWORK (COST PER USER REACHED) BBC ONLINE** 37 (–) 8.9 (9.7) 127 (112) BBC RED BUTTON 29 (27) 2.2 (2.7) 14 (14) BBC NEWS† 8.7 (8.4) 7.6 (8.1) 48 (48) BBC PARLIAMENT† 0.3 (0.3) 14.1 (18.5) 2 (3) BBC ENGLISH 16.9 (17.1) 3.2 (2.9) 110 (109) LOCAL RADIO BBC RADIO 21.2 (21.6 includes RnG) 7.8 (7.1) 25 (25) SCOTLAND BBC RADIO 16.7 (18.2) 4 (4) NAN GÀIDHEAL BBC RADIO WALES 16.7 (17.8) 5.9 (5.0) 13 (13) BBC RADIO CYMRU 5.8 (6.4) 13.7 (11.5) 12 (12) BBC RADIO 35.4 (35.6) 4.3 (4.4) 14 (15) ULSTER\FOYLE * BBC ALBA available on satellite only. ** BBC Online: CMI is a new measure. No comparable figure is available for 2008/09. † Reach based on 15 minutes for all channels and services except BBC Online (3+ minutes). Three minute reach for BBC News channel and BBC Parliament – in line with industry standard for news services – would be 13.9% and 0.9% respectively, both up again year-on-year. ( ) Figures in brackets from 2008/09. 2009/10 at A GlancE WE DEliVERED thE followinG SERVicES to our auDIEncES laST YEar. You can finD linkS to thE SERVicE licEncES for Each BBC SERVicE – AS WEll AS anY SERVicE REVIEWS carriED out BY thE BBC TruST – at www.bbc.co.uk/bbctruST. SERVICES NETWORK TELEVISIon 2-1 W E VI R VE O NETWORK RADIO FUTURE MEDIA AND TECHNOLOGY JOURNALISM OVERVIEW UNDERStanDinG thE BBC’S financES THE BBC crEatES, commiSSionS anD broaDcaSTS morE hourS OF oriGinal TELEVISion anD raDio proGramminG than anY othER broaDcaStinG orGaniSation in thE worlD – thE VAST maJoritY OF it proDucED in thE UK. 2-2 BBC GroUP Across all its activities, the BBC’s single vision is to be the most creative organisation in the world and VIEW R enrich people’s lives with programmes that inform, educate and entertain. OVE BBC WORLD COMMERCIAL LICENCE FEE SERVICE OPERATIONS FUNDED SERVICES £293M £119M £3,447M GRANT-IN-AID PRofIT BEfoRE IntEREst LICENCE FEE INCOME AND TAX BBC World Service first broadcast BBC Worldwide is the BBC’s main The BBC is established by Royal news and information to the world via wholly-owned commercial subsidiary, Charter and our UK public service radio in 1932. Today, the original radio which works to maximise income from broadcasting activities are funded by service has been enhanced with TV BBC programme rights and properties, a licence fee paid by UK households. and online. to offset the licence fee. Last year, we provided the following Last year over 240 million people BBC Studios and Post Production to home audiences: across the world turned to the BBC works with the BBC, other • 10 UK-wide TV services for impartial and independent news, broadcasters – ITV, Channel 4, five, • Nations and regions TV services analysis and information. and Sky – as well as other media and across England, Scotland, Wales and independent production companies Northern Ireland to create great content. • 10 UK-wide radio networks BBC World News offers 24-hour news, information and analysis in • Two national radio services English to more than 200 countries each in Scotland, Wales and and territories across the globe. Northern Ireland It is funded by subscription and • 40 local radio stations in England advertising revenues. • plus online BBC World Service publishes its own The BBC is required to ensure that its commercial This Annual Report and Accounts is primarily Annual Report, which can be found at activities meet four conditions: concerned with this aspect of our business. For www.bbc.co.uk/worldservice/specialreports/ 1. fit with the BBC’s public purpose activities more information about the BBC, or to catch up annual_review2009.shtml. 2. show commercial efficiency on programmes you have missed, visit our website 3. do not jeopardise the BBC’s good reputation, www.bbc.co.uk and follow the links. nor the value of the BBC brand 4. comply with its own Fair Trading Guidelines All commercial services met the above criteria for the period 1 April 2009 to 31 March 2010. For more information see www.bbc.co.uk/info/policies/fairtrading. For more information on these services, visit: www.bbcworldwide.com. www.bbcstudiosandpostproduction.com. www.bbcworldnews.com. An independent Deloitte report, The Economic Impact of In addition, their assessment of our spend in the creative the BBC: 2008/09, published in March, demonstrated that economy in 2008/09 concluded that our investment of licence the licence fee – and how the BBC actively chooses to invest fee money in the independent production sector, one of the it – is a cornerstone of the UK’s creative economy. crown jewels of the UK creative economy, directly generated This is particularly so at a time when commercial £867million of economic value that year, double the spend considerations are squeezing programme budgets elsewhere. figure of £435million. Including wider benefits this value could be up to £1.4billion, with smaller companies receiving Deloitte concluded that overall, the BBC makes an economic increasingly more investment. contribution of at least £7.6billion to the UK economy – meaning over £2 of economic value is generated by every An assessment of the 2009/10 figures will be published later £1 of the licence fee. in the year. 2-3 THIS YEAR THE LICENCE FEE WAS £142.50, A MontHLY INCREASE of 25P on LAst YEAR. THIS IS How IT WAS spEnt: VIEW R Table 2-1 Table 2-2 OVE Monthly charge per licence fee Breakdown of BBC spend £ % £ % £m % £m % 09/10 09/10 08/09 08/09 09/10 09/10 08/09 08/09 Television 7.85 66 7.91 68 Television 2,351 66 2,346 68 Radio 2.01 17 1.99 17 Radio 604 17 590 17 Online 0.67 6 0.60 5 Online 199 6 178 5 Other 1.35 11 1.13 10 Other 406 11 335 10 Total 11.88 100 11.