Part Two: Annual Report and Accounts 2008/09

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Part Two: Annual Report and Accounts 2008/09 The BBC Executive’s review and assessment BBC EXECUTIVE’s REVIEw And AssEssmEnT 2008/09/ 001 002 / OVERVIEW BBC PURPOSES / financial performance / the year AT A GLANCE / DIRECTOR-GENERAL foreword / delivering creative futures / PARTNERSHIPS / ew / e rvi Ov 020 / Performance Objectives / television / RADIO / FUTURE MEDIA & Technology / journalism / commercial / 084 / GOVERNANCE Executive board / summary Governance report / 094 / Responsibility Operations /

104 / Financial statements Overview / Risk outlook / highlights / auditors’ STATEMENT / summary financial statement / ifrs / contact us / other information / OVERVIE W/ 003 / ew e rvi Ov

004 / BBC PURPOSES/ 005 / financial performance/ 006 / THE YEAR AT A GLANCE/ 008 / DIRECTOR-GENERAL foreword/ 012 / delivering creative futures/ 014 / PARTNERSHIPS/ OVERVIE W/ 004 Overview/ with new recordings of some of his works. 250th anniversary of the birth of Robert Burns from programming: highlights included Radio 3’s of H death the W Elbow on Radio 2 to hip hop on BBC 1Xtra. L content that entertains and engages audiences. The BBC offer includes unique and innovative Creativity to new audiences. content existing taking is that partnerships creative Bacon last year is, in fact, just one of a range of F on Tate with Britain tie-up Our BBC. the engaging, entertaining and challenging content at find –will date abig on impress can he so Bacon young man wanting to brush up on his with help revision online needing with a passion to learn – the school student adults across television, radio and the web. People informal education for children, teenagers and The BBC promotes and supports formal and Learning planned. are Others there. individuals to crunch M the and recession, and crisis banking the on agenda for a diverse range of users. This year we led the and services cover a wide range of stories tailored U reportage and analysis of the world we live in. Our The BBC has a worldwide reputation for its Citizenship h a t h e our Th BBC purpo Overvie will be doing more poetry in the year ahead. ive music is key to our music offer – from –from offer music our key to is music ive K anchester to explain the impact of the credit n e commemorated the 250th anniversary of h -wide, international, national and local channels nd s e ig W l tertai e e hl p estminster Abbey. And we marked the Money Matters Matters Money BBC’s s U s

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007 Overview/ 008 Overview/ rely on the relative security of the BBC’s licence fee and back sit than Rather lives. their for fighting are companies many aresult, As recession. near-term followed in its wake – and the impact of an acute digital revolution and the competition that has challenges of structural change – driven by the funded media have been wrestling with the twin U the In world. wider that to responsibilities our on before the past 12 months, we have focused as never Over environment. media of awider part one only world, but the BBC should never forget that it is formidable and respected broadcasters in the island. In its own right, the BBC is one of the an most –is Corporation Broadcasting British the not to the belief that no broadcaster – and certainly This year we have committed ourselves irrevocably N –notably prose religious poems, the programme touched on D of a television documentary, to the poet S poetry across television, radio and the web, weeks ago, as part of a brilliant season celebrating But I want to begin with a different theme. A few o BBC f eve y d o s i Th Fore D OVERVIEw/ n chama presented a kind of love letter, in the form onne. As well as D as well As onne. IRECTOR-GE ucce ear igita a it wn f d t i w s h n f K h , as around the world, commercially- world, the around , as or eci wh orget e d/ a ss l BBC’s h or s s bee N broa ive acro ERA onne’s sonnets and other other and sonnets onne’s ic

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009 Overview/ Overview/ DIRECTOR-GENERAL Foreword/

010 ew / e rvi Ov “The partnership agenda points to a new more open, more porous BBC. But that must never be at the price of any diminution of the quality of the programmes and services we offer to our audiences.” “Audiences want to be surprised, inspired, moved, sometimes even shocked by what they see and listen to, but they want it all to be underpinned by strong values of dignity, honesty and trust.” 011 outstanding coverage of sport itself to reveal to difficult and disputed decisions. And controversy, some of the myriad faces of modern China – to above all, about an edition of The Russell Brand outstanding television dramas like Criminal Justice Show which went far beyond all acceptable and Little Dorrit – to some of the best themed boundaries, not just of taste, but of behaviour seasons of programmes we’ve ever broadcast. and respect to others. The way the BBC marked the Darwin anniversary, We took immediate steps to minimise the chances for instance, showed what we can achieve in of anything like that happening on the BBC again. inspirational knowledge-building when we use ew / e rvi Ov But extensive consultation with the public in the our services and the great reservoirs of creative wake of the Brand affair has also made it clear to talent of our own programme-makers and our us that the public do not want the BBC to lose its independent partners in concert. nerve or its willingness to back the best writers and For our journalists, serving hundreds of millions of performers and producers when they want to take people in the UK and around the world every day, creative risks. it was an extraordinarily busy and successful year. This is the central challenge the BBC faces – As I write this, the wisdom of the decision to launch a challenge which is just as relevant and important a new Persian television news service towards the in the digital world of 2009 as it was when the end of the year is plain for all to see. BBC first started commissioning ground-breaking Our digital services had a year of startling growth. comedy and drama before World War II: to The iPlayer, launched just three months before recognise that there are absolute boundaries and the year began, became a regular, essential part to ensure that we always stay within them, but also of the viewing and listening lives of millions of to accept that audiences don’t want the BBC to licence payers. Video became much more widely play safe either. They want to be surprised, inspired, available across our website and users responded moved, sometimes even shocked by what they see immediately – so much so that we had served and listen to, but they want it all to be underpinned more video by the end of the opening ceremony by strong values of dignity, honesty and trust. of the Beijing Olympic Games than we did during It’s a difficult line to walk, but at its best the BBC the whole of Athens just four years earlier. Our can rise to the challenge with confidence and mobile services broke numerous records. Digital panache. That’s what we did in so much of what television switchover, one of the biggest engineering we broadcast in 2008/09. And it’s what we intend and public information challenges the BBC has ever to go on doing in the years to come. faced, got off to a solid start. But it was also a year of intense controversy about the BBC. Controversy about our place in the future of public service broadcasting – where both BBC Trust and Executive made, and continue to make, Mark Thompson the case that unique receipt of the licence-fee is critical to maintain the BBC’s political and editorial Director-General independence. Controversy about my decision, 18 June 2009 as the BBC’s Editor-in-Chief, not to broadcast the proposed DEC emergency appeal for Gaza – a reminder that strict adherence to the principle of impartiality, which we know is what the British public expect and demand of us, sometimes leads 012 Overview/ following the National Audit Office’s independentassessmentin2010. morefully inthe continue tomonitorperformance,Annual andwillreport Report to sayisrobust orifthechangesareestablished. whetherperformance W in November 2007. impactwhatweadversely offer audiences. The BBC Trust approved thisframework CreativeDelivering Futuresobjectives andtoensurethatefficiencysavings donot A framework of measures was developed to support the deliverycontent andservices. of the six primary aimed atcuttingcoststoenable sustainable investment innewandinnovative Creative Futuresstrategy, restructure ofourrootandbranch afundamentalpart ofoursix-year Delivering likely touseBBCservices. Suchinitiatives representpart technology toreach, inparticular, younger less audienceswhoaretraditionally theon-demandworld,linear broadcastingandembracing andwe areusingmobile expectations. Forexample, BBCiPlayer thegapfor many helpstobridge between ischanging,As theirworld –we have sotooisours toadaptchangingaudience a t t Th f De d Overvie each metric across the BBC remaining measures.steady orThe BBCExecutive feels thatalthoughthesignsare encouraging, improving with slightly, key performance againsttheseparticular performance year ofreporting first it is too early our public purposes, andasoutlinedinthe Trust’s reviewofouryear. This isthe e h h e have a broad range of commitments designed to support usaswe deliver e have ofcommitmentsdesignedtosupport abroadrange nd eve nd l uture iveri experie eir e e s BBC w/ ng torie l

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In Part One of the Annual Report, the Trust provides a more comprehensive review of the BBC’s performance against the six Delivering Creative Futures objectives. These are the main highlights. inCrease DistinCtiveness maintain reaCh anD quaLity The BBC reached an average of 93% of the One third of respondents (34%) agreed strongly UK population each week last year, the same that the BBC is High Quality, up slightly from last as the previous year. The reach figure by service year. This is a stretching target and going beyond is given in the following pages. the requirement only to agree that the BBC is High Quality which attracted support from a total of Weekly pan-BBC reach % 013 66%. The BBC’s average score out of ten 07/08 93 for high quality also rose slightly to 6.4. 08/09 93 Scoring 8+/10 for High Quality % Maintain value among high 07/08 32 approvers and improve value 08/09 34 among low approvers

There was a slight improvement in perception ew / e rvi Ov Average score /10 for High Quality among both groups year-on-year. 07/08 6.3 Scoring 8+/10 for Overall Approval % 08/09 6.4 07/08 36 The proportion of people who agreed strongly 08/09 37 that BBC television is ‘original and different’ has shown the biggest performance increase, up 4% Scoring 1-4/10 for Overall Approval % from last year to 36%. 07/08 13 BBC television is original and different % 08/09 12 07/08 32 Efficiency savings 08/09 36 We started our new efficiency programme in April 2008 – and have already saved £237million Restore Trust in output (£192million net of costs). We have a target to The average score out of 10 for ‘I Trust the BBC’ achieve 3% cumulative savings of £1.9billion, which has risen to 6.0 for the 29% who strongly agree will be re-invested in better content and services. with the statement (also up slightly year-on-year). Gross efficiency savings £m Scoring 8+/10 for ‘I Trust the BBC’ % 2,000 Projected 07/08 28 1.9bn530

08/09 29 1,500 470 Average score /10 for ‘I Trust the BBC’ 07/08 5.9 1,000 390 08/09 6.0 500 300 This target stretches beyond the requirement only to agree with the statement ‘I Trust the BBC’, 237 0 which attracted support from a total of 57% (up 08/09 09/10 10/11 11/12 12/13 Total from 55%). The proportion of those who trust BBC News is higher still at 78%. OVERVIEW/ PARTNERSHIPS/

Adding value through partnerships/ For at least the last 50 years, the UK has enjoyed a dynamic and diverse media industry where the BBC, funded

014 by the licence fee, has survived and thrived alongside an energetic and competitive commercial sector. ew / e rvi Ov

Together, they have been a flagship for British Life on Earth – where the return on investment in creativity, encouraged social and political debate, audience terms does not in itself justify the high and earned a reputation for outstanding and investment of time and money – would not have objective journalism. And been the envy of delighted audiences. the world. The licence fee allowed the BBC to set a The new media landscape benchmark that others had to match. British We were the first country to have a national audiences expected – and still expect – the best. broadcaster, and more recently one of the first But now new challenges are forcing unprecedented to develop many of the new technologies and change, and testing some long-held assumptions platforms that are now revolutionising the range about the way UK broadcasting should operate. of media available to our audiences, from the As in so many other areas of public life there are launch of multichannel satellite television and two key factors at work here: the impact of new Robot character ‘Digit Al’ DAB radio in the 1990s, and BBC iPlayer more technology and economic reality. promotes digital switchover and recently. The UK has also spent more on original, the Switchover Help Scheme. free-to-air programming than any other European In little more than a decade digital has shifted from country, becoming the leading European exporter a ‘nice to have’, to being the primary technology of TV programmes in the process. All of this driving the broadcasting agenda. From the BBC’s has helped this country evolve an extraordinarily perspective, digital now underpins everything rich broadcasting environment, both for the we do at each stage of the programme-making viewer and listener, and for programme makers, process, as well as the way that content is advertisers, media companies and other broadcast, re-packaged and sold. And it opens commercial stakeholders. up opportunities in everything from education and training, to business and commerce, to public The licence fee has always played a major role in engagement in the democratic process. this, both by enhancing and broadening consumer choice, and by funding types of content that might At the same time, digital has already transformed not be readily financed by commercial operators the wider broadcasting sector, blurring the or might be at best limited. Comedy is expensive boundaries between traditional forms of media, to develop – and is high risk: without the licence and making it harder to segment audiences, either fee we may never have had TW3, Monty Python, in national, behavioural or demographic terms. Not the Nine O’Clock News or Little Britain pushing As a result, the whole UK broadcasting sector boundaries. We may not have had the scale of needs to become more agile, more efficient and some of our best costume dramas like Pride & more responsive, and that includes the BBC. We Prejudice, Cranford or Little Dorrit. And landmark are all having to work much harder to compete cultural and educational series like Civilization or with all the different forms of entertainment and communication now available, which is having a Our own position is very different: we know the profound effect on what we make, how we make licence fee gives us unique privileges, and that we it, who we make it for, and who we sell it to. enjoy steadier and more predictable revenues than the rest of the industry as a result. We have Yet the context for these exciting developments always taken our responsibilities seriously – we could not be worse. Recessionary pressures have have been the major industry trainer, for example drastically reduced advertising revenues, making life and last year provided training to over 20,000 from less certain for the commercial sector. Although net the commercial sector free of charge – but we advertising revenue should pick up again when the need to do more to sustain a stable and successful economy starts to recover, it is realistic to assume broadcasting industry across the whole of the UK. that advertising spend will never reach its historic And we can only do this if we play a more active levels again, which may threaten the continuing and collaborative role than ever before. profitability of some of the major players, and make others unsustainable in the long term. If we are going to support the creation of high- quality content, and deliver even better value for licence fee payers, we will need to evolve new approaches to co-operation that may well challenge many of our established ways of working. But we are confident we can do this. After all, we 015 can bring a great deal to both creative and technical partnerships, from access to unrivalled resources and services across the country, to proven R&D expertise. ew / e rvi Ov

Sharing our expertise with others Freesat – the new free-to-air satellite service for the UK – was launched in May after several years of planning and extensive collaboration between the BBC and partners Freesat UK Ltd, Digital TV Group (DTG) Testing Ltd and a small initial group of receiver manufacturers Panasonic, Humax, and Harvard (previously Alba plc). We brokered our own technical knowledge and a range of competing expectations of the platform from all Freesat stakeholders to create the technical specification which all Freesat stakeholders must now follow. This specification is now freely available to any manufacturer that wants to enter the Freesat market – provided its final product is approved by independent test house DTG Testing Ltd. We worked closely with all parties – in particular the More information on our initial manufacturers to understand the potential capabilities of their Freesat partners can be found on their websites: products, and with Freesat to understand their requirements www.freesat.co.uk for new features to enhance the user experience. We refined these often conflicting inputs, helping to debug problems, to www.harvardplc.com get the products to prototype stage. We then involved Siemens www.panasonic.co.uk and Arqiva to get the first transmissions on air. www.humaxdigital.com/uk www.arqiva.com This was 6 May 2008 – since when approximately 400,000 Freesat receivers have been sold. More manufacturers are getting www.it-solutions.siemens.com on board, and from an initial three partners, there are now six Freesat receiver manufacturers with products in the shops, and more to come. The BBC has more or less taken a back seat now, and our role has reduced. However, we still offer technical advice and are occasionally required to update the specification with new features. BBC Writers Academy Our BBC Writers Academy is the only course in the world that guarantees writers the opportunity to work on prime time television. Established in 2005 and run annually, each Academy aims to create a pool of writing talent to work on some of BBC One’s best-loved and most popular shows: EastEnders, Casualty, Holby City and Doctors (shown here). Students learn the tricks of the trade that work, and experience all aspects of drama production from editing to scheduling. But more importantly for them, they get to enjoy masterclasses from the best in the business, including writers such as: Tony Jordan (EastEnders), Jimmy McGovern (The Street), Dominic Minghella (Robin Hood), Jed Mercurio (Bodies), Tony McHale (Holby City), Ashley Pharoah (Life on Mars, Ashes to Ashes); as well as leading directors such as: Bharat Nalluri (Spooks, Tsunami) and Dearbhla Walsh (Little Dorrit). Since its inauguration five years ago, 25 out of 32 graduates have gone on to gain full-time work in writing for TV, including 14 who are now established as core writers on continuing BBC drama shows. The next Academy course starts in September. Places for 2010 will be advertised in April that year on the BBC writersroom 016 and BBC Jobs websites.

The BBC is always on the lookout for fresh, new, talented writers and we do everything we can to get their voice heard and their work produced for BBC film, TV and radio – for drama, comedy, and children’s programmes. If you have

ew / e rvi Ov a script you want to send in, then you can do this via http://www.bbc.co.uk/writersroom/writing/submissions.shtml

table 1/ proportion of ‘WOCC’ hours produced by independent producers for BBC television TOTAl shARE EnTERTAInmEnT COmEdy ChIldREn’s dRAmA knOwlEdGE Of wOCC

2007/08 2007/08 2007/08 2007/08 2007/08 2007/08 64% 62% 1 00 % 45% 66% 74 % 2008/09 2008/09 2008/09 2008/09 2008/09 2008/09 59% 76 % 70 % 59% 75% 73% % ChAnGE % ChAnGE % ChAnGE % ChAnGE % ChAnGE % ChAnGE -5% +14 % -30% +14 % +9% -1%

Note: The WOCC (Window of Creative Competition) is a creative space open to both in-house and independent producers, and is in addition to the 25% independent quota. Table 2/ Top indies Putting it into practice At the end of 2008, Deloitte assessed all these based on spend We believe that partnership will be crucial to the proposals, as well as a number of other smaller TV development of the UK media sector over the initiatives, and they estimated that by 2014 these ideas could generate over £120million of additional kudos film & Television next few years. The BBC Trust shares this belief, benefits each year for the UK’s other public service limited and has asked us to look at how we might do this in a way that would benefit both licence fee payers, broadcasters. Some of this would come from Endemol Uk PlC and UK public service broadcasting as a whole. new revenues, and some from reduced costs, shine limited They are particularly keen that we should look at or avoiding the loss of existing revenue streams. Talkback Thames collaborations with smaller firms and institutions, Alongside these proposals we are also exploring hat Trick Productions as well as our larger peers, and that more of partnerships with the wider media industry, as part these should be with organisations based outside radio of our response to the government’s interim Digital London, as we are currently doing with Bradford’s Britain report. somethin’ Else National Media Museum and Glasgow’s Science smooth Operations Park, workplace to CBeebies’ eponymous For example, we are investigating whether there might be more we can do to support Britain’s Unique fictional character Nina from Nina and the Neurons and one of several locations for CBBC’s newspaper industry, which is one of the most Above The Title Do Something Different. competitive in the word. From this summer this Productions ltd will include training for local newspaper journalists, 017 Pier Productions So we have identified and researched a series of including free access to our College of Journalism specific partnership proposals, and have developed online editorial training resource, and might be In 2008, BBC television more important possibilities for the future: extended to include more online links, and more commissioned content from 289 independent production • using our know-how to create a common syndication of online content. Radio journalists too companies – ten more than digital production standard for the whole UK will have access to this training. And in addition to in the previous year. This broadcasting sector that includes both archive our existing good working partnerships on digital includes both qualifying and and production tools. Sharing such technology radio and DAB that date back several years, we non-qualifying independent producers, who together were should generate significant cost savings for are now proposing a series of new projects with ew / e rvi Ov responsible for making 39% of everyone involved, and would open up many commercial radio including the development of all eligible hours during the year. new creative opportunities. a standard interface for all digital radios which could handle both live and on-demand listening, • at the same time, we have already announced and the creation of an online digital radio player that we want to share not just the technology, which would offer high-quality live streamed radio but also the brand and look and feel of iPlayer, services from the BBC and other commercial which has been such a success for the BBC. and community radio operators. These plans have This could deliver real and sustainable been broadly welcomed across the commercial benefits to other broadcasters and content radio sector. owners, offering them substantial savings on development costs of their own stand-alone By bringing the UK’s media providers together sites, to increased audience access and higher we can deliver increased public value by offering advertising revenues. If successful, we could audiences open, simple-to-use, common digital potentially end up with a ‘federation’ of on- standards and platforms. demand public service broadcasting services on iPlayer, with each broadcaster exploiting Looking ahead its own rights as appropriate. The UK broadcasting industry started this century with huge advantages over its main foreign • we are also looking at ways in which the global competitors. Even in the face of a recession the scale and reach of BBC Worldwide could be used UK still enjoys a unique public service broadcasting to generate revenue for other UK public service ecology, and can draw on a strong track record broadcasters, while its ability to deliver sustainable of digital innovation. The BBC is at the heart value to licence fee payers is protected. of both, and is opening up its resources and These are in addition to our proposed expertise to third party partners in a way it collaboration with ITV on regional news, and has never done before. our work with other broadcasters on internet- This is good for us, and good for them. But most connected and High Definition TV. important of all, it is good for our audiences. table 3/ Spend in the creative economy Chart 1/ Spend in creative economy £bn Total 2008/09 2007/08 2006/07 06/07 1.1 £m £m £m 07/08 1.1 Independent TV, radio and online productions 435 479 414 08/09 1.1 External programme facilities and resources 265 248 271 Acquired programmes transmitted 101 90 88 Artists, contributors We spent £435million with the external and copyright 305 299 299 independent sector in television and radio BBC Performing groups 23 22 28 production and new media last year, just part of the total £1.1billion that we invested in the 1,129 1,138 1,100 wider creative economies.

Creating productive Our audiences tell us that these genres are still partnerships: advantages important to them, and so we have a responsibility and challenges to do what we can to protect and promote them. Many licence fee payers are unaware how much Hence our recent memorandum of understanding of their money is already invested by the BBC in with ITV, which explores how we can pool our the wider creative economy. More than a third of regional news resources and infrastructure to help all licence fee income is spent on contracts with sustain regional news on ITV. This might include independent producers and other suppliers, and sharing our eight main news centres in England and 018 most of what remains pays directly for creative Wales, and accommodating most of ITV’s small and talent and creative content. This has been the medium-sized bureaux at our own regional and case for many years; what we are contemplating local offices. We are exploring how this could be now is a far more comprehensive and extensive used to support other providers of regional news commitment to partnerships, which could make were current obligations to change. a real difference to broadcasting in the UK. This is just one good example of the value to be While retaining the strong direct link between the gained from partnerships. But our approach also carries challenges and risks, even if they are less ew / e rvi Ov licence fee and the BBC, the advantages of such an approach are obvious: it spreads the benefit immediately apparent. If we are going to increase of the licence fee investment even more widely, it our partnership work substantially we need offers a stable source of investment for the creative to do it in a way that does not result – even if economy even in a recession, and it supports the unintentionally – in negative or adverse conditions creation of first-rate content that the market alone for other stakeholders, especially other media might not otherwise deliver. players and programme makers. Even in good times there are some areas We already have a history of profitable where the commercial broadcasting sector will partnerships with independent writers, producers never want to participate – the numbers do and programme makers, which has given us classics not stack up and so the potential return does from comedy Birds of a Feather to entertainment not justify the investment – but these are often with University Challenge and debate with Question areas that the BBC sees as central to its own Time; there have also been a number of successful output: if children’s programming, live music, and technological joint ventures, like PAL, NICAM orchestral performance still flourish in the UK, it stereo, Freeview and Freesat. Indeed, we have is largely because of the BBC. And whether as a always taken a lead role in the development and consequence of the downturn or not, there are promotion of collective standards, technologies signs that local and regional news, international and platforms for the UK’s public service newsgathering, indigenous television drama, broadcasters, and we have always shared our comedy, and serious documentary may all be own technological advances and advantages facing similar pressures. with other industry players. As we expand our work in this area through new partnerships we hope to help develop future technologies and services which can be used not Supplying the BBC just by the BBC, but by other broadcasters and We aim to choose all our strategic suppliers carefully, to ensure that they have a specific expertise and deliver media players, and in turn benefit our audiences value for money. and licence fee payers. For example, our R&D ongoing relationships have existed for many years with, for laboratories are working with ITV and BT to example, service providers that are directly critical to our develop a simple, open standard for internet TV. broadcasting activities, such as arqiva, siemens and ses If approved, this will allow people to use services astra who provide and maintain our distribution networks. like iPlayer, ITV player, and YouTube in their all our supply arrangements are managed through our living-rooms, as well as on their PCs. We are also specialised procurement teams, to ensure we comply involved in developing the new standard for High with the relevant regulations, and use industry-standard terms of trade. information on all our procurement Definition on digital terrestrial TV, and collaborating needs – including new tenders – can be found on in other cutting-edge broadcast and internet www.bbc.co.uk/supplying protocol technologies. 019 ew / e rvi Ov

“The digital age offers remarkable Opening up the archives opportunities to widen access to objects through online resources. The UK’s many cultural and artistic archives are a priceless national The planned History of the World resource, but many of them have not always been easily accessible website will be a unique and innovative to the public. We are working with some of the country’s partnership between the British foremost museums and art collections to put their treasures Museum and the BBC, utilising the story-telling power of objects online, and so make their broadcast material available to a much to engage both a UK and a global wider audience across the whole UK, both for learning and audience with world history. I am education, and for entertainment. delighted to be working with the BBC For example, from September to January this year we linked up across the UK to deliver this hugely exciting and ambitious project.” with Tate Britain on a Francis Bacon retrospective to mark the Neil MacGregor, Director, centenary of his birth – archive footage from the BBC which had The British Museum never been broadcast before is still viewable on the Tate’s website. In the coming year the British Museum is partnering with Radio 4 to create a multimedia package around a History of the World in 100 Objects, we have plans to make the Arts Council’s collection of films available onBB C Online, and we have a new partnership with the British Film Institute which will explore new ways of making archive material available on the widest possible range of platforms, and develop new industry standards for managing, storing and distributing content. 022 / our objectives/ 028 / television/ 046 / RADIO/ 064 / FUTURE MEDIA & Technology/ 070 / journalism/ 080 / commercial/

Perfor mance/ 021 Performance/

Perfor mance/ Performance/ Our objectives/

A PORTFOLIO OF DISTINCTIVE SERVICES DESIGNED TO MEET THE NEEDS OF OUR DIVERSE AUDIENCES. From the hugely popular BBC One – watched by four out of five people in the UK every week last year – and Radio 2 (the most popular national radio station in the UK with over 13 million listeners) to those with smaller audiences such as BBC Parliament, CBBC and Radio 3, each drawing in its own discerning and loyal audience to its distinctive offer – the BBC seeks to connect with as many UK viewers and listeners as it can at some point each week. We are funded by a licence fee – so it is only right that each household gets value back from us for their investment, and we are pleased to report that, last year, we were welcomed by 93% of the UK population into their homes in an average week…

022 / Performance 023 Performance/ MEMORABLE AND ORIGINAL PROGRAMMES THAT STAND OUT. …that 93% of British people who come to our content each week have a wide range of interests and passions, and our ambition is to offer them a range of programmes and content that they cannot find anywhere else. So whether it’s programmes that capture the mood of the nation – from the millions of viewers who secretly watch the Eurovision Song Contest (not to mention those who listened on Radio 2 or via BBC iPlayer) – or unique and original drama with Little Dorrit or programmes that unite communities of interest like Antiques Roadshow, shown here, or Songs of Praise or live sport – 42 million watched our coverage of the Olympics and a million more people visited our sports websites than in a normal week – we want audiences to know that the BBC has something distinctive that they want to experience, and that we are worth visiting. Performance/ Our objectives/

024 / Performance Quality AND QUANTITY: AUDIENCES EXPECT BOTH. Both on television and on radio, the BBC offers a range of programmes and titles that the market, left to its own devices, would not provide. Standout programmes this year included Baroque, shown here, and The Art of Italy, both from BBC Four, and the widest range of live performance found anywhere: The Proms, Electric Proms, Glastonbury, T in the Park. Elbow in concert with the BBC Concert Orchestra was the most successful digital music project in BBC history with nearly one million requests to see the concert via Red Button. And over half of all music output on BBC Radio 3 is either live or specially recorded. Radio 4 comedy is peerless – except perhaps on BBC television, which adapted two original Radio 4 series from this year – I’ve Never Seen Star Wars and Genius. BBC One’s perennially popular My Family is on its ninth series and still draws in around eight million viewers each week. During 2009 it will mark its 100th episode, only the third British sitcom in recent years to reach this milestone. 025 The others were also from the BBC: Birds of a Feather and Last of the Summer Wine. Performance/ Performance/ Our objectives/

026 /

Value=REACH+QUALITY+IMPACT Performance DELIVERING VALUE IS NOT JUST ABOUT SPENDING LESS. But while we aim to spend carefully – we have improved our performance and our efficiency every year since 2000 – cost cutting does not in itself deliver value. Last year we invested £1.1billion in the UK’s creative economy – more than ITV and Channel 4 combined over the same period. Just one of our great successes is In The Night Garden, made by Ragdoll for CBeebies. It became our most popular pre-school programme ever as soon as we started showing it two years ago. And through BBC Worldwide, we have been able to license and sell a range of toys and DVDs that help us make money on the brand and deliver a return to licence fee payers for their investment through us in programmes and content. BBC Worldwide also sells programmes and formats, and last year sold all 100 episodes of In The Night Garden to China, where Igglepiggle and friends will be seen by an estimated 300 million children later this year. 027 Performance/ Performance/ Television/

028 / Performance

“Great programmes and sympathetic scheduling aren’t enough any more. Digital and 360 degree commissioning extend our options and help us to better meet the modern viewer’s needs.” Jana Bennett, Director of Vision How we did last year

MeTRIC How ouR wHaT THIs Means seRVICes1 dId

ReaCH 48 million people in the uK (85% of the population) watch bbc television each week, more than watch any other television broadcaster, including one in five 85% who watch bbc three, and the nine million who watch cbeebies and cbbc.

QualITY nearly two thirds of programmes (64%) across bbc one, two, three and four scored a high appreciation score of 80 and above – up by over a quarter on 64% the previous year, signalling a recognition by audiences of increasing quality.

029 IMPaCT bbc television won over 110 awards last year, from an international emmy for David suchet’s lead performance in Maxwell and bafta’s for Cranford and andrew marr’s History of Modern Britain, to festival rose d’or for bbc two’s 01 1 01 Kombat Opera Presents… and a Grierson award for science documentary Parallel Worlds, Parallel Lives. Performance/

Value the average cost per viewer hour (the total cost of programmes divided by number of viewer hours) across our portfolio of ten uK-wide television services is in line with the bbc one and bbc two figures, and highlights the overall value 7.1p delivered to licence fee payers by our distinctive mixed portfolio offering.

the schedule in scotland, Wales and northern ireland for bbc one and bbc two will sometimes differ from the uK network schedule.

1 figures are based on services, in line with the service licence regime monitored by the bbc trust. Performance/ Television/

Television/ it Was a stronG year eDitoriaLLy for bbc teLevision, WitH a WiDe ranGe of Distinctive, HiGH QuaLity ProGrammes across our cHanneLs anD services, from tHe aWarD- WinninG CRIMINAL JuSTICE to JOuRNEyS INSIDE THE MEDIEvAL MIND; from tHe insPirationaL COMIC RELIEF to BuGBEARS, a neW Website ProviDinG a uniQue service to cHiLDren.

030 BBC One remains Britain’s most popular channel and, across peak It has been a year of innovation and invention for us as we are

/ hours, BBC Two continues to expand its reach to younger adults. creating new ways for audiences to experience our output beyond BBC Three has enjoyed a 10% growth amongst younger audiences, the traditional linear broadcast, making our content more accessible while reach on BBC Four continues to grow steadily. Our award- and delivering a richer experience to them. As a result, we have winning children’s channels, CBBC and CBeebies, have held their won a host of major awards: the quality of sites such as Survivors lead in a very competitive marketplace and BBC HD has witnessed Interactive, our climate change product Bloom and CBBC’s MI High a highly successful first year. has been recognised worldwide. From Britain from Above, a Digital

Performance Emmy Award winner, to The Darwin Season, we have delivered Freshness, invention and originality are found across our schedules. complementary learning journeys on television and online. And for Highlights in drama include Kenneth Branagh’s portrayal of Kurt some of our biggest events, this year really has felt like a coming of Wallander; memorable performances from Andrea Riseborough age: from the Beijing Olympics to the first truly digitalR ed Nose and Lindsay Duncan, revealing two key periods in Margaret Day, audiences are engaging with our content in fresh ways. Thatcher’s political life; the chilling House of Saddam; and Being Major contributions to the UK-wide networks also came from Human, created for BBC Three’s audiences on television and online, colleagues and suppliers across the UK. Sesame Tree was a and one of our most popular shows on iPlayer. new series for young children about diversity and personal Across factual programmes, it is the big, bold ideas that are engaging development themes from Northern Ireland, which got a later our viewers. Stephen Fry and Simon Schama each delivered his broadcast on network television. From Wales, the Doctor Who own unique perspective on events in America in the run up to drama team worked with independent Shine and BBC One to 2008’s historic elections, while natural history spectaculars, like launch a new series for Saturday nights, Merlin. And Scotland’s Lost Land of the Jaguar and Yellowstone, impressed. Feature-length A History of Scotland, co-produced with the Open University, documentaries, The Fallen, Arena’s The Agony and Ecstasy of Phil had a successful run on BBC One in its home nation before Spector, and Oscar-winning Man on Wire, produced in partnership an outing on BBC Two network. with the UK Film Council and Discovery Films, proved just how Our plan is for 50% of production spend to be outside London impactful documentary can be. Arts remain a priority. by 2016, from outside London by 2016, including 17% from Scotland, We are the UK’s largest investor in original comedy. This year, we’ve Wales and Northern Ireland in line with the proportion of UK supported new and fresh approaches, such as the critically acclaimed population who live there. Outnumbered on BBC One, using children’s improvisation to develop situation comedy for the first time.R ight across the portfolio of channels we’re able to give room for comedy entertainment to grow: QI and Gavin and Stacey, two successes on BBC One this year, were concepts that originated and flourished onBBC Two and BBC Three respectively. 031 Table 4/ BBC network television hours of output by genre BBC networks have the broadest range of programme genres of all UK broadcasters. bbc one bbc two bbc three bbc four 2008/09 2007/08 2008/09 2007/08 2008/09 2007/08 2008/09 2007/08 factual 1,993 2,021 1,854 1,757 1,427 1,333 991 969

education (formal) – 6 440 785 – – 4 2 Performance/ news and weather 2,330 2,400 850 559 32 32 12 6 current affairs 237 206 287 260 167 126 160 194 entertainment 638 481 594 681 1,160 1,170 168 274 sport 755 603 915 951 27 25 – – children’s 475 496 1,673 1,619 – – – – Drama 937 1,114 507 322 364 329 441 340 film 638 690 635 819 206 184 190 204 music and arts 91 109 315 315 72 71 1,255 1,251 religion 104 105 34 30 – 5 25 15 continuity 230 236 292 295 114 110 71 78 Total network hours (excl. opt-outs) 8,428 8,467 8,396 8,393 3,569 3,385 3,317 3,333 Performance/ Television/

BBC One aims to be the UK’s most valued television channel, with the broadest range of quality programmes of any UK mainstream network. We offer a wide range of programmes, and are the BBC’s primary outlet for major UK and international events. 032 / Performance

reacH • Over the course of the year BBC One’s average We worked with other BBC channels to bring the weekly all hours reach was 77.6%/44.0 million best in comedy to a wider audience, migrating BBC (2008: 78.2%/44.1 million). In peak hours Three’s multiple award-winning Gavin and Stacey and (6pm–10.30pm), BBC One repeats were at 8.2% QI from BBC Two into our schedules. The Gavin and 77.6 % (2008: 8.3%). We were also the only terrestrial Stacey Christmas Special had 7.2 million viewers and channel to improve performance in peak time a 39% share of 16–34s. QI also did well at attracting cost Per over this period. younger viewers averaging 20% share of 16–34s, vieWer Hour • Around 60% of programmes on BBC One three share points above channel average. had an appreciation score 80+ and above. Last Choir Standing was a different entertainment event • Our average cost per viewer hour was constant that truly reflected diverse communities across the 6.8p at 6.8p (2008: 6.8p). UK. Fifteen amateur choirs, ranging from the Welsh outfitY sgol Glanaethwy to gospel singers Revelation Some highlights from last year included: showcased their talents on peaktime BBC One. Fresh ideas High quality and ambitious New and distinctive ideas are the lifeblood of BBC One. We continue to invest heavily in British comedy. drama Wallace and Gromit’s A Matter of Loaf and Death was Our drama included distinctive and ambitious pieces an outstanding success with a record 16.2 million such as The Diary of Anne Frank, Wallander, A Short top left: Criminal Justice, an people watching on Christmas Day (overall viewing Stay in Switzerland, Criminal Justice and Fiona’s Story. We insightful drama from writer successfully reached out to a younger audience with Peter moffatt. levels on the day were the highest since 1999). Fresh comedy included Sunshine, written by Craig Cash, series such as Saturday evening’s Merlin (6.3 million, top right: Popular saturday 27% share) – and are keen to offer this audience evening drama Merlin. and Life of Riley and the Old Guys from BBC Scotland. The unique and award-winning Outnumbered more from across the genres. No 1 Ladies’ Detective returned for a second series. Agency was particularly popular with diverse audiences, getting a 29% viewing share amongst African and Caribbean communities, almost double Accessible factual programmes It’s been a strong year for science with titles like Super Doctors with Lord Winston and Michael Mosley’s Make Me… through to Charles Darwin and The Tree of Life (watched by over six million). Building on these successes, we will introduce a new peaktime science show from late 2009. Alongside series such as Nature’s Great Events, we introduced innovative formats that attracted younger audiences to natural history – both Tiger Spy in the Jungle and Lost Land of the Jaguar performed particularly well for this genre with 25–44 year olds (20% and 21% share respectively of this group, in line with general peaktime average). Popular arts, culture and history are key to our schedule, and this year included Jeremy Paxman’s take on The Victorians, The Story of the Guitar and the return of acclaimed arts strand Imagine. Major year of sport Sport is perennially popular with our viewers and this was a big summer for BBC Sport. Last year our audience to the Wimbledon men’s final peaked at 12.7 million viewers. Although none of the home nations featured in Euro 2008, our coverage attracted an average of over five million viewers and a particularly high 28% share of 16–34s. The Table 5/ BBC One the average share of non-soap drama amongst Olympics achieved an average 35% share, and our peaktime repeats these audiences. biggest daytime audience in over eight years. And 2004/05 9.7% In Daytime, we were the only UK channel to we marked the moment the Olympics were handed 2005/06 8.9% commission original drama, with Doctors and over from Beijing with the London 2012 Party with 2006/07 8.4% the five-part series Missing, both produced one in three of all TV viewers at the time tuning 2007/08 8.3% in Birmingham. in to BBC One (32.9% share). 2008/09 8.2% This year we relaunched both Watchdog and Distinctive and popular The ONE Show as true multiplatform propositions journalism with their websites at the heart of the editorial 033 We provided high-quality news on weekdays at content of the television shows. We will continue to 1pm, 6pm, 8pm and 10pm to meet a range of incorporate different applications – from message different audience needs – plus further analysis and boards to masterclasses – into our websites to investigative journalism elsewhere in the schedule. enhance the audience experience, and draw in We set the agenda and brought difficult topics new viewers. to a broad audience, but also created change. Following Pedigree Dogs Exposed the BBC suspended In the year ahead, we are also aiming to deliver programmes that extend our appeal and broaden the televising of the dog show Crufts. And after Performance/ Panorama’s expose, Primark: On the Rack, the our range of viewers. The new peaktime Countryfile right top: The Andrew Marr company reacted swiftly by dropping suppliers found will address the issues and concerns of under-served Show shines a light on what to use child labour. A news-reactive Panorama special rural communities; new drama Small Island will reach is happening in the world. examining the Shannon Matthews case drew an out to ethnically diverse audiences; and our new right bottom: as well as audience of 5.8 million. science show will appeal to younger 25–44 year classic repeats from the old viewers – all key groups that we would like archive, viewers understand The ONE Show reports each weekday from around to serve better. that repeating original the UK and continues to grow in popularity. The programmes later in audience across the year averaged 4.5 million/22.5%, the same week, or from our other channels gives up nearly two share points on the average for the further opportunities to slot prior to launch. see something they liked We introduced a new documentary slot at 10.35pm or missed, and often brings in bigger audiences than on Tuesdays to report on contemporary Britain, and are available on the digital our weekly regional opt-out current affairs gives our channels. much of our content audience an insight into stories of real significance can be also be found on bbc to their home area. iPlayer for seven days. Picture shows innovative comedy Current affairs in our daytime schedule included Outnumbered. a week of NHS-themed programmes and the return of Missing. Augmented by five new dramas, Missing Live attracted sizeable daytime audiences of 1.1 million, (24.3% share) and was directly responsible for seven missing people being found. We consolidated our consumer journalism slate with a refreshed Watchdog, a new series of Rogue Traders and new series Rogue Restaurants. Performance/ Television/

BBC Two brings programmes of depth and substance to a broad audience. It originates the greatest amount and range of factual programming of all our channels, combined with distinctive arts, comedy and drama.

top: Maestro, where comic Arts, comedy and drama and writer sue Perkins won the right to wield the baton Our line-up of contemporary live musical in Proms in the Park. performance – including Later… with Jools Holland middle: feature-length and the Electric Proms – featured a diverse range of documentary The Fallen performers like The Stereophonics, The Killers and focused on the stories of the Al Green. Classical music series Maestro attracted 300 british service personnel audiences of over 1.7 million in peak time, and was who died while serving in afghanistan and iraq. one of our most talked about series of the year. bottom: Natural World brought We maintained our commitment to arts journalism us the story of titus the • Over the year, BBC Two’s average 15-minute in The Culture Show – which also found a new, Gorilla King from rwanda. weekly reach to viewers remained strong extended home in our peaktime schedule, we 57.4%/32.6 million (2008: 57.6%/32.5 million). celebrated British originality in British Style Genius, Despite increasing competition from digital and we went behind the scenes during the making channels, we maintained our all hours share of Wayne McGregor’s new ballet Infra. among 25–44 year olds (6.4% versus 6.5% in 2008). In comedy, we complemented established favourites like Mock the Week and Never Mind the Buzzcocks • Over two-thirds of programmes on BBC Two with Jonathan Harvey’s touching and highly original 034 had an appreciation score 80+ and above during sitcom Beautiful People. With an average of 1.2 million reacH the year.

/ viewers, it will return for a second series. • Cost per viewer hour last year was up year-on- Our dramas – notably the critically acclaimed year to 7.5p (2008: 7.0p). House of Saddam – tackled some of the most 57.4 % Building knowledge important stories of our times. Einstein and Eddington presented viewers with a new interpretation of the cost Per From John Prescott: The Class System and Me to An Island Parish, we celebrated the rich diversity of life development of one of the most important Performance vieWer Hour in the UK. Wonderland presented glimpses of the ideas in science: the Theory of Relativity; and Moses extraordinary lives of ‘ordinary’ Britons while the Jones probed the lives of Ugandan migrants in debilitating impact of dementia was documented modern London. 7.5 p in Terry Pratchett: My Life with Alzheimer’s. In the year ahead, we will chronicle the effects of the Bruce Parry’s award-winning series Amazon continuing economic downturn with a documentary documented his epic journey from the Peruvian series Recession Britain and a drama inspired by the Andes to the Atlantic coast, while new series Explore collapse of Lehman Brothers. We’ll also offer Andrew combined distinctive travel journalism with intelligent Marr’s Age of Churchill and a complementary feature- analysis of international current affairs. Peter Owen length drama inspired by Churchill’s life in politics. Jones witnessed religious devotion in action for Our science landmarks How The Earth Made Us and Around the World in 80 Faiths and Across the Andes: Solar System will give viewers a fresh insight into the Table 6/ BBC Two Beyond Boundaries followed the progress of disabled origins of human life and our planet, while Pyschoville, peaktime repeats mountaineers tackling some of the world’s most a new series by the creators of The League of 2004/05 32.5% challenging peaks. Gentlemen, and the medieval misadventures of 2005/06 27.4% accident-prone action hero Krod Mandoon promise History landmarks included World War II: Behind 2006/07 30.1% to strengthen the comedy line-up on BBC Two. Closed Doors and A History of Scotland, which averaged 2007/08 29.3% 1.5 million and 2.2 million viewers respectively. 2008/09 32.6% One-off specials such as Timewatch: Stonehenge and Hadrian’s Wall represented a highly distinctive offer, particularly on Saturday evenings, where we have seen a year-on-year share increase of 5% in this highly competitive part of the schedule. BBC Three is dedicated to innovative British content and talent. The channel aims to provide a broad mix of programmes aimed primarily at younger audiences.

top: an innovative storyline News, current affairs and and characters made Being Human popular with viewers. topical issues middle: sketch show The hourly 60Seconds Bulletins brought neatly The Wrong Door. packaged news content to 5.3 million viewers each bottom 1: factual output week. Current affairs strand Mischief covered issues included a range of from housing to gang culture; the Born Survivors personal stories in the season looked at teenage pregnancy, child carers Born Survivors season. and self-harm. BAFTA-nominated documentary bottom 2: current affairs series Blood Sweat and T-shirts allowed us to explore strand Mischief. • BBC Three’s average 15-minute reach in all globalisation and its impact on the developing world. homes was up to 18.7%/10.6 million (2008: 17.3%/ 9.7 million). Among our target audience of Interactive innovation 16–34’s reach was also up, to 26.0% (from 23%). Our development as a multiplatform network has led to a range of innovative projects. Born Survivors’ • Nearly one third of BBC Three’s programmes mix of minisodes and online content has been used during the year (31%) had an appreciation score as a model across the BBC. And we syndicated 80+ and above. BAFTA-nominated Bryony Makes A Zombie Movie • Cost per viewer hour for the year was 10.6p to other websites – it had over half a million viewers (down from 12.9p in 2007/08). 035 reacH on YouTube. New UK talent BBC Three’s priority is to continue delivering We have a key role in nurturing new talent, as distinctive, high quality programming that will be demonstrated by the successful migration of the valued by our young target audience. Where Our 1 8 . 7 % multi award-winning Gavin and Stacey to BBC One. Food Comes From will look at food provenance and We employ a diverse range of UK talent from the developing world. We will also be focusing on cost Per personalities such as Jamelia and Alesha Dixon to young people and vocational skills with a new factual vieWer Hour the youthful cast of Scallywagga. In comedy, The format – Young Butcher of the Year. More new and Performance/ Wrong Door combined new British writing talent original comedy is on the way with The Gemma with innovative use of cutting-edge CGI technology. Factor, and We Are Klang. Coming of Age was a new sitcom written by 19 year 10.6 p old Tim Dawson and featured six new, young comic actors. Taking creative risks In drama, our mould-breaking Being Human garnered large young audiences (average audience of 930,000 and 6.3% share of 16–34s – high for a digital channel) and critical acclaim. Originally a one-off pilot, a series was commissioned on the strength of innovative scripts and strong viewer response to exclusive online video ‘prequels’ ahead of launch. Listening to our audiences is key to our success with our target age range. Not all risks bring in big audiences, though. Our Belief Season, which included the documentary Deborah 13: Servant of God, was creatively vibrant but did not pull in viewers to the channel. Even so, it is important that we commission such bold content others would not attempt. Performance/ Television/

BBC Four aims to be British television’s most intellectually and culturally enriching channel, offering a distinctive mix of documentaries, performance, music, film and topical features.

top: andrew Graham-Dixon Classical music featured prominently last year. presented The Art of Italy. There was extensive coverage of the annual BBC bottom: Science and Islam Young Musician of the Year competition, 17 concerts brought the story of scientific developments in the islamic from this year’s BBC Proms, two Mahler symphonies world from the 8th to conducted by Russian maestro Valery Gergiev and 14th centuries. the definitive film biography, The Passions of Vaughan Williams, on the life of a towering figure in twentieth century British music. Popular music fared well on the channel too. • BBC Four’s reach continues to grow steadily. Programmes here included the feature-length In the 2008/09 our weekly 15-minute reach documentary Prog Rock Britannia, a season devoted averaged 7.8%/4.4 million (2008: 7.0%/4.0 million). to American Folk, film profiles on Quincy Jones and • BBC Four has the highest appreciation scores Neil Young, and coverage of Jazz and World music of all BBC television networks – just under from Glastonbury. three quarters of its programmes (73%) had an appreciation score of 80+. A global perspective With films such as Roman Polanski: Wanted and • The average cost per viewer hour was stable Desired; Operation Iraqi Film-maker and Shot in Bombay, 036 at 16.8p (2008: 16.7p). reacH our international documentary strand Storyville told

/ Last year we broadcast over 3,300 hours of stories of ethical, cultural and political complexity. programming across the range of genres, excluding For our Traveller’s Century season, the explorer sport and children’s output, but including: Benedict Anderson followed in the footsteps of the 7.8 % Distinctive output and esteemed travel writers Eric Newby, Laurie Lee, cost Per diverse agenda and Patrick Leigh Fermor, while The Thirties in Colour Seasons of programmes exploring subjects as showcased rare, previously unseen and historically-

Performance vieWer Hour eclectic as the Medieval Period, Literacy, Motoring important footage shot all over the world. and Japan delivered rich content and deeper Over the year we gave UK television premieres to knowledge to BBC Four audiences last year. 26 international movies in many different languages. 1 6 . 8 p Our season of programmes on Britain’s first female In a single night dedicated to the German film Prime Minister included Margaret Thatcher: The Long director Werner Herzog, we screened some Walk to Finchley, which attracted just over a million of his greatest films, including Aguirre Wrath of viewers on its first outing alone.T he drama was God, Fitzcarraldo, The Enigma of Kaspar Hauser the centrepiece of the season, with other highlights and Nosferatu The Vampyre. Our major series of including The Thatcher Years, The Falklands Play, and programmes on Japan included many acclaimed a special edition of Dinner with Portillo. feature films, including the period drama Gohatto, the road movie Kikujiro, and the comedy Ping Pong. In science, programmes such as The Story of Maths, Big Bang Night and Science and Islam, provided some In the year ahead, programmes will include a month- of the channel’s most ambitious programmes of long Poetry Season (in partnership with BBC Two), the year. complete with studies of the Anglo-Saxon classic Beowulf, the Middle English masterpiece Sir Gawain A wide range of programmes on the visual arts and the Greene Knighte, and a six-part series on the included art critic Andrew Graham-Dixon’s inspiration that great poets have derived from the celebration of The Art of Italy, and Waldemar British landscape. New documentaries will cover Januszczak’s examination of the cultural legacy subject-matter as varied as ancient African history, of the Baroque. computer technologies and playground games. The CBBC channel offers a distinctive mixed schedule for 6–12 year olds. We aim to encourage each child to strengthen his or her existing interests and develop new ones.

top: Dustbin Baby was part of Popular entertainment shows have included the the 60 hours of original uK numerical quiz show Get 100 and Gastronuts drama we showed this year. encouraged children’s interest in the importance bottom: Serious Oceans took eight children on an epic of food and diet through wild culinary adventures. voyage of a lifetime. SMART taught about the techniques of famous artists; it averaged just under four million viewers. Me and My Movie was our unique film making experience for children – the winning entry was unveiled at the Children’s BAFTAs. • CBBC is still Britain’s most popular channel for Laughter is a central part of CBBC. Programmes young children, in a highly competitive multimedia such as Legend, Sorry I’ve Got No Head and TMi market, with 32.2% reach among kids aged 6–12 continue to inspire young audiences in creative (Disney: 26.7%). Our average 15-minute weekly and innovative ways. reach to all viewers aged 4+ was 5.2%/2.9 million (2008: 5.6%/3.1 million). Fresh and original approaches • CBBC was the BAFTA Children’s channel of the CBBC is the only significant investor inU K-produced year this year. programming for this audience. We commissioned • The average cost per viewer hour was stable at over 60 hours of new, originated drama last year, 037 reacH 9.5p (2008: 9.6p). including UK drama with distinct UK voices – series like The Sarah Jane Adventures, Roman Mysteries and Last year we launched the CBBC iPlayer and our Tracey Beaker, and the one-off drama based on the output included: Jacqueline Wilson novel Dustbin Baby. The Revenge 5.2% Helping children to Files of Alistair Fury won the Children’s BAFTA for cost Per understand themselves and drama, one of six we won last year. We offer a safe online experience for children vieWer Hour the world around them Performance/ Helping children to understand their place in through our personalised online space MyCBBC the world and be active citizens is a key priority. and pre-moderated web pages. Our multiplatform Highlights this year included Who Wants To Be A commissioning process means that many of our 9.5 p Superhero, Beat the Boss and My Wish, giving children television programmes extend their offering into the a voice and hearing their ambitions. online space. Escape from Scorpion Island and MI High both delivered online gaming. Newsround has now opened its Manchester bureau, ahead of our move to Salford. It provides 105 Next year, we will strengthen the delivery of our minutes of high-quality news live each week that citizenship purpose (identified in theBBC Trust’s encourages its viewers to assess the facts and Review of Children’s Services) through a new make up their own minds. Election, CBBC’s critically commission – Tronji – which will encourage children acclaimed leadership challenge, engaged 6–12 year to discover their own particular skills and use them in olds in the political process on television and on problem solving situations and with more Newsround the web. specials on subjects like bullying. Online, new commission Gamebuilder will provide a toolkit that Informal learning enables children to create, publish and share their Serious Oceans took a group of children around the own online games. South African Cape. Sam and Mark’s Guide to Dodging Disaster used unique footage from the BBC’s Natural History Unit, mixing live action, archive and blue screen to show the popular duo battle nature and perilous situations – they drew in 3.2 million viewers. Performance/ teLevision/

CBeebies offers a mix of high quality, mostly UK- produced programmes designed to encourage learning through play in a consistently safe environment for children under six years old.

top: Poetry Pie brings the Learning through play world of poetry to life with games, songs and lots to We work with pre-school specialists to create make and do. learning opportunities for our viewers. Content middle: Nina and the Neurons: is carefully crafted to stimulate a child’s interest in fun science, with more to a range of subjects including mathematics, literacy, make and do on the website. art and music appreciation. bottom: The Green Balloon We originated over 100 hours of new programming Club, part of a multiplatform initiative on the environment. last year. New shows included the beautifully animated musical animation 3rd & Bird from award-winning • CBeebies remains the UK’s most popular channel Little Airplane Productions. TellyTales brings to life for 0–6 year olds in digital homes, with 3-minute fables and fairytales featuring real children and using weekly reach to its target age range on average their own artwork for the backgrounds, and LazyTown 47.5% (Nick Jr: 19.8%). Our average 15-minute Extra builds on the talents of Magnus Scheving as weekly reach to all viewers aged 4+ was Sportacus in a new sports magazine format. 8.0%/4.5 million (2008: 7.7%/4.3 million). Mister Maker inspired creativity, Numberjacks • Our average cost per viewer hour last year introduced audiences to problem solving and Space was 1.8p (2008: 1.9p). Pirates brought musical styles and compositions to 038 Highlights for the year included: reacH screens. Kerwhizz, a ground-breaking, multimedia

/ entertainment show launched in October and the New and imaginative ideas comedy puppet show Big and Small encouraged pre- CBeebies is the key investor in original programming schoolers to become more aware of the different for under six-year olds in the UK – spending views around them and so learn to be more 47.5 % £12.4million last year on original UK content, more sensitive to the needs of others. than any other broadcaster. cost Per The CBeebies website remains one of the BBC’s Returning strands this year included the art, Performance vieWer Hour most visited online sites – with just over 780,000 drawing and discovery animation Louie and the UK visitors each week – and is an integral part of BAFTA award-winning In The Night Garden, one of our brand. We will continue to use and develop four BAFTAs won in 2008. New shows included interactive platforms to encourage the audience a familiar face in a new guise Postman Pat SDS, 1 . 8 p to engage in its offer more deeply, specifically the vibrant pre-school animation 3rd & Bird and commissioning a high quality fun literacy series. Chuggington, which opens children’s imaginations to new discoveries and the true meaning of friendship. A key priority for the coming year is to address the recommendations in the BBC Trust’s review We aim to explore new avenues for pre-school of our service and to consider options for the future television. June saw the launch of the multiplatform of CBeebies radio by exploring different models initiative EcoBeebies, introducing our youngest of audio content creation and distribution. audiences to nature and the environment. 186,000 viewers watched the special launch edition Easy Peasy EcoBeebies. The Green Balloon Club on television and the Green Stars Club online led the content. We commissioned our first ever comedy-drama for pre-schoolers Grandpa in My Pocket, starring James Bolan. Other new comedy included the sitcom Nuzzle and Scratch. We have built a strong record in educational entertainment, with programmes including Something Special. We also continue to engage our youngest audiences in storytelling. Derek Jacobi narrated Bedtime Story over the Christmas period and Rob Brydon read during Comic Relief Week. The BBC HD channel offers a mixed genre schedule of programming in High Definition (HD) format, most of which has been originated by the BBC’s other television channels – BBC One, BBC Two, BBC Three, BBC Four, CBeebies, CBBC and BBC Red Button – and which we either broadcast simultaneously with them, or as a repeat.

top: A History of Scotland, from • This is the first full year of channel operation; Nurturing UK talent bbc scotland, got a network we reached the target nine hour/day service in outing on both bbc two and We supported new commissions like BBC Three’s bbc HD. March 2009 by when we had built average weekly Being Human and comedies such as Freezing, Beautiful bottom 1: Kenneth branagh 15-minute weekly reach to 528,000. People, and Trexx and Flipside. We have showcased played the title role in swedish • The cost per user hour for the service was 7.0p programmes produced across the UK: Saxondale detective drama Wallander. (2008: n/a). and Massive (Manchester), Gardener’s World and bottom 2: Euro: 2008 was Our service licence was granted in April 2008. We Doctors (Birmingham) and A Question of Genius and presented by Gary Lineker had no service licence priorities for the year, but did A History of Scotland (Glasgow), one episode of and colleagues from austria which was among the most watched programmes and switzerland. have a role to play in ensuring that the relevance and 039 of the week. bottom 3: new bbc appeal of programmes from the BBC’s television comedy this year included channels were maintained as consumer expectations BBC HD will work to extend the range of content Beautiful People. for HD content grow. available in HD in the UK, focusing particularly on During the year, our focus was on: factual and factual entertainment areas. We aim to continue to grow reach for BBC HD, and we will Supporting high quality launch the channel on the Freeview platform as and original programming soon as technological upgrading is completed. Our output covered all television genres, from Performance/ drama to documentary, film to comedy, children’s DaiLy Hours to sport, entertainment to major national and international events. Programmes included Saturday night entertainment 9 shows such as Strictly Come Dancing, I’d Do Anything, and Last Choir Standing. We also captured many key cost Per milestones for the first time, including live coverage vieWer Hour of the US presidential inauguration. Over the last year, BBC HD has attracted more than 9% of all viewing in homes with access to HD p for programmes such as Hustle and Nature’s Great 7.0 Events. Other highlights included Tiger Spy in the Jungle and Yellowstone in natural history, and in drama Wallander, Tess, Diary of Anne Frank and, for children, Dustbin Baby. We offered full coverage of all BBC Two’s ten Proms, as well as a range of Electric Proms (seven in total), and November’s ceremonies of Remembrance. Sport dominated our summer schedule, with Wimbledon, European Football Championships, the Olympics and Paralympics. Our coverage of the Beijing Olympics won the 2008 HD programme of the year award. Performance/ Television/

BBC Alba offers a distinctive coverage of subjects as diverse as live contemporary and traditional music, football and children’s programming. Originated programming reflects and supports Gaelic culture, identity and heritage to Gaelic speakers and to those learning the language (or who might wish to learn). It also offers an outlet for some archive material.

reacH • BBC ALBA launched in September 2008, In building towards a weekly reach of 250,000 – and has had a weekly reach in Scotland of from fluent speakers to beginners – we will look 4%, with an average audience of 220,000. to reflect a wide range of aspects of Gaelic life and Full annualised audience figures will be available culture in our programming and content across 4% for the 2009/10 Annual Report. 2009/10. Factual series and style documentaries, cost Per • BBC ALBA’s average cost per viewer hour such as Trusadh, will feature personal stories from for the period it was broadcasting was 29.4p. communities across the country; and music, live vieWer Hour and recorded, from key music festivals featuring We had no specific service licence priorities for established new bands and musicians, will feature 040 2008/09. Our business priority this year was prominently in the schedules, seeking to link with to establish the service among our core target / our audiences’ interest in home-grown musical p audience, with our distinctive offer of daily news 29.4 output and talent. and content for younger viewers. Our 30-minute news bulletin, An Là, is broadcast each weekday evening and offers viewers inclusive coverage of Scottish, UK and world events.

Performance Our children’s programming – which also doubles as learning content for younger viewers – and top: A Rèir na h-Aimsir bi-lingual programmes, such as Cuide ri Cathy, explored scotland’s offered a valuable access point for new speakers relationship with the weather. and those interested in learning the language. Our middle: ‘Eilbhis’, an original use of links between Gaelic radio, television and drama set in 1970’s Lewis, part of our opening night schedule. online resources offered audiences a uniquely rich bottom left: We featured programme and content offer. live coverage of the aLba challenge cup, including the semi-final between airdrie united and Partick thistle (players pictured here with presenter evelyn coull). airdrie went on to win the cup. bottom right: Rapal showcased the best of scottish musical talent, including up and coming band frightened rabbit. ofcom/ As well as being answerable to licence payers via the BBC Trust, BBC television is also subject to a number of programme production quotas from Ofcom, which can require a delicate balancing act as we try to deliver best value to licence fee payers while at the same time meeting a regulatory obligation.

Table 7/ TV Table 8/ ofcom tier 2 quotas 2008 Chart 2/ Network television reach versus programming spend Quota actual main competitor groups % by Region as a % of independent production quota The UK has a dynamic television broadcast sector, eligible spend Hours of qualifying programmes across all channels 25% 37% with no one player dominating the market to the 2008 2007 Hours of qualifying programmes on bbc one 25% 31% detriment of others. UK audiences expect – and London 65.1% 67.4% Hours of qualifying programmes on bbc two 25% 45% value – choice and quality, and exercise that choice. scotland 3.7% 3.3% Wales 3.6% 2.7% regional programme making All BBC Television northern spend on qualifying programmes 30% 35% ireland 0.6% 0.4% Hours of qualifying programmes 25% 33% 07/08 85.0 041 total nations 7.9% 6.4% network news and current affairs programmes 08/09 84.6 midlands 3.9% 4.1% Hours of news on bbc one 1,380 1,557 n. england 8.9% 10.2% Hours of news on bbc one in peak 275 276 Total other channels s. england 14.2% 11.9 % Hours of current affairs on bbc one 07/08 70.6 total regions 27.0% 26.2% and bbc two 365 520 Hours of current affairs on bbc one 08/09 75.0 total nations and bbc two in peak 105 111 and regions 34.9% 32.6% All ITV Performance/ levels of original Production total regional bbc one 70% 86% 07/08 75.4 base 100.0% 100.0% bbc one in peak 90% 99% 08/09 75.1 bbc two 70% 82% Based on Ofcom definitions, bbc two in peak 80% 95% by calendar year. All Channel 4 bbc three 70% 86% 07/08 66.6 bbc three in peak 70% 78% bbc four 70% approx 84% 08/09 66.7 bbc four in peak 50% 81% All ve cbeebies 80% approx 81% cbbc channel 70% 79% 07/08 42.8 bbc news 24 90% 97% 08/09 44.4 bbc Parliament 90% 97% regional Programming All Sky Hours of regional programming 6,580 7,212 07/08 32.5 Hours of programmes made in the relevant area 95% 99.9% 08/09 35.2 Hours of bbc one news 3,920 4,799 Hours of bbc one news in peak 2,010 2,355 Hours of non-news programming in peak 1,030 1,060 all non-news programmes adjacent to peak 355 375

We exceeded all our Ofcom quotas once more last year. Note, however, that these figures are theBBC ’s own assessment. Ofcom will formally report on our performance in its Communications Market 2009 Review, due to be published later in the year.

Note: Performance against Statements of Programmes Policy 2008/09 can be found on the website bbc.co.uk/annualreport Performance/ Television/

NON-NETWORK BBC TELEVISION/

Wales: promoting learning to broad audiences In 2007, Coal House captured the imagination of our viewers. Last year we extended this and Coal House at War brought 1944 in a south Wales mining community to life and made modern history accessible to audiences of all ages. Stripped four times a week over three weeks, the series was particularly successful in attracting young families. In the week-long series Hospital 24/7, BBC Wales BBC one opened the doors of the largest teaching hospital in The BBC in Scotland, Wales and Northern Ireland Wales, revealing the personalities and specialists that also offers more bespoke national services to deliver core health services in Wales. viewers. Each week, programmes are made by each Looking to 2009/10, our priorities include new of the three nations to complement the networked pre-watershed drama to attract a broader audience BBC One schedule in terms of distinctiveness, profile and to continue to act as a powerhouse for breadth and quality – but which are designed to new talent. reflect and support national culture within the 042 nation. These programmes displace or replace Northern Ireland: coverage of the Northern content otherwise available on BBC One network. Ireland Assembly and political issues / Each of the three nations is expected to fulfil the We reflected a changing and sometimes complex expectations of a national service licence. These are news agenda, including the work of the Northern written to ensure that our Nations’ offers remain Ireland Assembly. Our investigative current affairs consistent each year, and reflect the key issues and strand Spotlight looked at the impact of the economic developments affecting the lives of audiences there. downturn and the continuing extent of community Last year, the specific priorities noted forBBC One divisions, including a special report on the fatal Performance in the Nations were: shootings in Antrim and Craigavon. BBC Newsline Scotland: history project improved its audience share and undertook a Table 9/ All BBC television number of theme-based reports on social issues and spend outside London A third of people living in Scotland (1.6 million) – Network and Nations watched the landmark television series A History of concerns – some of them suggested by members and Regions Scotland. Produced in partnership with the Open of its e-panel. Audience appreciation scores for BBC The table shows our spend University, it had an average audience of 526,000 Newsline remained consistently higher than those on BBC television programmes and a further 210,000 tuned in to the Sunday achieved by comparator news programmes. We made in the Nations evening repeat. The series was also broadcast on delivered 491 hours of television news and current and Regions. affairs in 2008/09. 08/09 07/08 BBC Two network in early 2009 and each of the five £m £m episodes averaged more than two million viewers, england 329 339 making it one of the channel’s most popular Saturday northern ireland 36 36 night network shows since the turn of the year. scotland 98 97 The series was complemented by schools’ television, Wales 53 60 concerts by the BBC Scottish Symphony Orchestra, 516 532 radio programmes and an accompanying website, incorporating audio guides around sites of historical interest and video clips from BBC Scotland’s rich programme archive. Next year our priorities include increased coverage of business news, and coverage of the UK and European elections, as well as a focus on developing and showcasing new comedy and drama. “Making programmes with the best existing and emerging local talent for our viewers is a privilege. We actively support local creativity and skills training in order to extend our national talent base.” Menna Richards, director, BBC Cymru wales Northern Ireland: reflect changes and diversity Programmes not available of Northern Ireland anywhere else We explored events from the recent past in Each of the nations also supplied a broad range documentaries about the Maze escape and the of programmes – from arts to drama, from live establishment of the civil rights movement in performance to history, from comedy to politics – 1968. These programmes were broadcast as part that engaged with and delighted their viewers across of a new television schedule which included all our channels and services. landmark local programming in peak time. Other In Scotland, the three part World According to Robert commissions sought to reflect the diversity of Burns drew an average audience of 180,000, with community life and included an affectionate portrait plaudits from viewers, many of whom told us they of a group of children and their enthusiasm for found the series to be original and different. It disco dancing in Disco Babes, a Season Ticket Special formed part of BBC Scotland’s celebration of the on local Olympians and Dying for a Drink which 250th anniversary of the birth of the bard which looked at issues around alcohol misuse and its included a comedy ‘mockumentary’ and a Burns cost to individuals and society. Our non-news Celtic Connections concert on BBC One Scotland, local programming for BBC television audiences special programming on Radio Scotland and the first in Northern Ireland achieved an average share audio recordings made to an online archive of the of 28.1% – a modest increase on the 2007/08. 600 plus poetic works of Burns, with contributions 043 In the year ahead we will examine a broad range of from HRH Prince of Wales, the First Minister and political and non-political issues and developments other well-known figures. across our news and current affairs programming, including the continuing effects of the Troubles, local education, teenage parents and suicide. BBC Two BBC Two in Scotland, Wales and Northern Ireland Performance/ also provide opportunities for targeted programming that meets the needs and interests of local audiences across the range of genres. Last year only BBC Scotland had a specific priority for BBC Two: Scotland: well-being programmes for the over-50s In an innovative programme initiative, we partnered with The Big Lottery Fund to produce PrimeTime, a six part series to celebrate and promote health and well-being for the over-50s in Scotland. With £3million available to the most deserving projects, 150 groups, from across Scotland applied: 18 made it through to the finals with six eventually chosen by public vote. Supported by a dedicated media literacy campaign, the series attracted an average weekly audience of 75,000. Performance/ Television/

“The BBC provides comprehensive services in each nation which view the world from a shared perspective with their audiences. We reflect our part of the UK back to itself.” Ken MacQuarrie, Director, BBC Scotland

In Wales, our childhood season What Are We Doing The work of the Northern Ireland Assembly and to Our Kids? explored a range of contemporary local political developments were covered as part social issues, and included the series Changing Lives of Stormont Live and within Hearts and Minds. Its which saw teenage siblings swap homes for a week, combination of reports, extended interviews and exposing contrasting approaches to discipline, diet contributor comments remains popular with local and housework. Peaktime documentary, One Family audiences and reaches a secondary audience with in Wales highlighted the often corrosive impact a later repeat screening on BBC One. of poverty on childhood and levels of personal New talent, programme ideas and production aspiration. A quarter of a million viewers in Wales techniques have been showcased in the 10pm slot saw this challenging programme. The South Wales on Friday evenings, as part of our commitment to Valleys-based sitcom High Hopes, written by Boyd reaching younger audiences with programming that Clack, returned and the final series of long-running reflects their lives and interests and which provides drama Belonging once more proved popular. opportunities for new talent and innovation. Slot The landscape and history of Wales is important to share among 16–24s went up from 4.1% to 4.6%. our heartland audience, and last year we explored The BBC has different priorities for audiences in Secret Wales while Big Country reflected life in the Scotland, Wales and Northern Ireland. Some of three national parks of Wales. Monty Python’s these are given below. For more information about 044 Terry Jones followed John Ogilby’s trail through our services in each Nation, or for up-to-the- Wales – he was the man who in 1675 produced the minutes news, weather and sport information, / world’s first road atlas.U sing new technology and check out their websites. an array of experts, layers of the Welsh countryside In the year ahead: were peeled back to expose some surprising Hidden Histories. BBC Scotland will look to address this year’s slight share underperformance on BBC Two BBC Northern Ireland developed a new series with programming that connects closely with our for young children about diversity and personal Performance audiences in Scotland, including documentaries The development themes. The Sesame Tree project Scots Who Made the Modern World, The Lighthouse was brought to our screens in association with Stevensons and Walking Wounded, which will follow Sesame Street Workshop and produced by local the personal stories of the rehabilitation into society independent company Sixteen South. Other of recent Scottish war veterans. New comedy and learning-related output included Na Doai, an drama will also be a feature of the schedules and Irish language series for 3–5 year olds. we will broaden our range of sports coverage with Irish language output became a more consistent programmes such as Sport Monthly. feature of our weekday evening schedule and See www.bbc.co.uk/scotland included a mix of drama and magazine-style programmes. Ulster-Scots output included a BBC Cymru Wales’ series Telly Tales, co- further series of A Dander with Drennan. All of our commissioned with CBeebies, was created by programming in this area reflects the additional children for children. It uses innovative animation commitments arising out of a review exercise and live action techniques to bring popular folk initiated by the BBC Trust. stories from around the world to life for the children of today. We will continue to seek out further opportunities for innovation. See www.bbc.co.uk/wales BBC Northern Ireland will seek to consolidate Daily drama Pobol y Cwm remains S4C’s most recent scheduling developments and to maintain watched programme – weekday audiences were the diversity and appeal of our indigenous minority at their highest levels for six years (50,000). language programming. Stormont Live will remain In America 08: Dewi Llwyd ar Daith, the Newyddion an important feature of our output and will be presenter, travelled the breadth of the USA to complemented by developments associated with discuss the Presidential Election with Welsh the BBC’s Digital Democracy project. Local comedy speaking Americans. talent will be showcased in a new television series New children’s programming included magazine and we will continue to explore how BBC Two can Mosgito and a children’s version of Mastermind called facilitate new and innovative programming aimed Mastermind Plant Cymru, with the familiar black chair at more specialist audiences. and format. See www.bbc.co.uk/northernireland The Welsh language interface to the BBC iPlayer was launched, offering most of our Welsh language BBC Cymru Wales on S4C television programmes after S4C’s exclusive seven We contribute more than ten hours of day window. programming to S4C each week. Highlights this year included: In the year ahead, the news provision will be extended to provide a regular news service 045 Daily news service Newyddion and Ffeil (news for throughout the day with additional daily and children), both saw increased audiences. evening bulletins. Pawb a’i Farn (Question Time) averaged 36,000 viewers: we adapted the format for Radio Cymru. 131 hours of the National Eisteddfod, including some Red Button content. The week’s Top 20 most watched programmes on S4C were all from

the BBC. Performance/

Table 10/ bbc network and local television hours of output from the nations and regions the table shows where 2008/09 originated programmes were made and broadcast. england northern london (er only) (excl. london) ireland scotland Wales total 2008/09 2007/08 2008/09 2007/08 2008/09 2007/08 2008/09 2007/08 2008/09 2007/08 2008/09 2007/08 first transmission: originated programmes network bbc – – 844 963 9 10 193 139 74 92 1,120 1,204 independents – – 848 948 5 21 50 93 27 15 930 1,077 bbc aLba in-house – – – – – – 194 – – – 194 – bbc aLba independents – – – – – – 394 – – – 394 – sub-total – – 1,692 1,911 14 31 831 232 101 107 2,638 2,281 first transmission: originated programmes nations and regions bbc 316 314 3,797 3,760 564 556 657 723 580 642 5,914 5,995 independents 13 13 54 61 98 101 152 134 140 124 457 433 sub-total 329 327 3,851 3,821 662 657 809 857 720 766 6,371 6,428 total 329 327 5,543 5,732 676 688 1,640 1,089 821 873 9,009 8,709 note: based on ofcom definitions and therefore excludes news and foreign productions. Performance/ Radio/

046 / Performance

“Even in a world of growing choice, our focus on outstanding quality means that BBC radio remains at the heart of millions of people’s lives and central to our culture.” Tim Davie, Director of audio & Music How we did last year

metRic how ouR what this means seRVices1 did

Reach two thirds of all radio listeners (66%) tune in to BBc radio each week – around one in four listeners go to radio 4, our most distinctive speech radio service and the biggest commissioner of original drama by hours in the world: 661 hours last 66% year. radio 3’s audience grew slightly to two million last year.

Quality nearly half (48%) of all programmes on BBc radio (including output on nations and local radio services) had a high appreciation score of 80+, up from 48% 42% the previous year.

047 impact BBc radio services, orchestras and presenters won a host of awards last year – over 115 in total – including a walpole award for radio 3’s Proms coverage and the midem opera award for the BBc symphony orchestra’s recording 51 1 51 of Janáček’s The Excursion of Mr Broucek. simon mayo was the Broadcasting Press guild award’s radio Broadcaster of the year, while sony’s uK station of the year went to radio 4. Performance/

Value the average cost per listener hour (number of hours of programmes divided by number of listener hours) across our portfolio of radio channels is 1.6p. our most expensive services, by this metric, are the important and unique national language 1 . 6 p services radio nan gàidheal and radio cymru; the cheapest – notwithstanding the amount of live music they each offer – are the popular radio 2 and radio 1.

1 figures are based on services, in line with the service licence regime monitored by the BBc trust. Performance/ Radio/

RADIO/ 2008/09 was a strong year for BBC network radio, with nearly 60% of all adults in the UK (29.8 million) tuning in for at least 15 minutes each week.

048 The consistency of this performance with previous years reflects We will, for example, work to establish an online radio player that

/ the distinctive and high-quality content the BBC offered to enables listeners to access all UK-originated radio from a single audiences across our portfolio during the year. location on the web, and we shall seek opportunities to increase The highlights of our 2008/09 output have included a sell-out access to the player through syndication to other websites (such Proms season, a succession of landmark factual programmes on as social networking sites). At the same time, the BBC will set up BBC Radio 4 – including Big Bang Day, broadcasting live from the a new industry forum with the leadership of the UK’s commercial control room at CERN as the Large Hadron Collider was switched radio sector. We will use BBC expertise and technology to benefit Performance on – high-impact social action campaigns on BBC Radio 1 and the sector as a whole and, together, we will continue to give our BBC 1Xtra, and exceptionally detailed, in-depth reporting on the audiences a high-quality and diverse choice of listening. UK and global economic situation across our stations. BBC Radio 3 Overall, during 2008/09 BBC network radio has continued to had a year of outstanding programming with 600 full concerts and inform, educate and entertain listeners with an exceptional breadth operas, and 40 new dramas. and quality of output, and we shall continue to extend our creative Realising the enormous benefits digital listening can offer to ambition across all our services over the coming year. audiences remains a key priority for BBC Network Radio. Our digital stations have continued to develop and ten million people now listen to our services via digital platforms each week. We have The Russell Brand Show on Radio 2 continued to develop our online and interactive offering, integrating Two editions of The Russell Brand Show from October elicited nearly 43,000 complaints. the BBc trust’s editorial standards committee found that there our radio services into iPlayer and building a varied portfolio of had been a number of serious breaches of the BBc’s editorial Guidelines. podcast services including popular shows such as Radio 4’s Friday a subsequent investigation by ofcom resulted in fines of £80,000 (for Night Comedy as well as offerings such as the Arts and Ideas unwarranted infringements of privacy) and £70,000 (harm and offence). podcast from Radio 3’s Night Waves. Last year we had 7.6 million since then action has been taken across the group to strengthen editorial podcast downloads on average each month in the UK – and a controls. the areas we have been looking at include: further ten million or so globally as listeners everywhere gained • s trengthening compliance processes access to the best of UK speech and music audio content. • a dditional production support in some production areas In the next 12 months and beyond, subject to Trust approval • c learer accountability and referral in some instances, we will be collaborating with providers of • n ew guidance for talent-owned Independent production companies commercial radio companies on a range of projects aimed at • b espoke training growing the market and ensuring that radio as a whole has This review is ongoing and we will be re-visiting all our processes on a voice in the new media environment. a regular basis. 049 Chart 3/ BBC radio reach versus main Table 11/ BBC Network Radio hours of output competitor groups % by genre All BBC Radio The table shows the number of hours of each genre broadcast in total from all our radio stations. 07/08 66.3 08/09 65.6 2008/09 2007/08 Music 40,626 40,540 All Commercial Radio Performance/ News and weather 12,138 12,127 07/08 62.1 Sport 4,408 4,517 08/09 61.6 Factual 2,103 2,059 Current affairs 2,542 2 , 511 Virgin AM/FM* Drama 4,529 4,660 07/08 4.9 Arts 904 927 08/09 4.3 Entertainment 6,435 6,620 Religion 1,118 1,114 Classic FM Schools 128 168 07/08 11.3 Children’s 1,484 1,373 08/09 11.0 Presentation 2,000 2,084 National Opts 286 258 TalkSPORT Total hours 78,701 78,958 07/08 4.8 As a result of changes in the classification of some entertainment 08/09 4.8 programmes the comparatives have been restated.

* Now broadcasting under the Absolute brand. We welcomed the National Audit Office’s review of radio production efficiency last year, which recognised that some savings have already been achieved. However, we are determined to increase efficiency further, without compromising the quality of our programmes. We will be reporting progress to the Trust on this next year. Performance/ Radio/

BBC Radio 1 aims to offer a high-quality service for young audiences combining the best new music, a comprehensive range of live studio sessions, concerts and festivals, and tailored speech output.

reach • Last year, average weekly reach to the station Social action was 21.3%/10.8 million (2008: 21.5%/10.8 million). For three weeks across August and September, We play a particularly important role in engaging Radio 1’s Alcohol Experiment looked at the risks younger audiences with BBC Radio, and reach of excessive drinking. Surgery presenter Aled Jones 21.3 % among our target 15–29s was 42.4%. drank twice the recommended daily amount of • Last year around one quarter (23%) of alcohol for the course of the experiment, reporting cost Per Radio 1 programmes had high appreciation the short-term ill-effects of excessive alcohol listener hour scores of 80+. consumption on air and in an online video diary. • The average cost per listener hour was constant A careers campaign in November featured a range at 0.6p (2008: 0.6p). of celebrities, including Sir Alan Sugar and Louis Walsh, talking about their careers and answering 0.6p Highlights from the year included: listeners’ questions. We also ran a high-profile Innovation and creativity money and finance campaign in January. Key projects included Radio 1 Presents Metallica, More content across the web visualised radio experiments including ScottCam Alongside our own website, we continue to seek and The Chris Moyles Show during January, a Bank opportunities to exploit the web as a whole. We Holiday ‘takeover’ of our daytime output by some offered free ‘Christmas Presents’ – exclusive BBC 050 specialist presenters, and the International Radio 1 session and live lounge performances, each available documentaries focused on the music and culture of

/ to download for 24 hours – and had around 600,000 a series of foreign city and countries. We developed UK downloads over the 12 days. We have an active more in-depth coverage of UK and international presence on several third-party sites, including films inE dith Bowman’s weekday show, a more Facebook and Bebo, and we explore opportunities comprehensive ‘blog’ online and several movie- to syndicate audio and video where it is appropriate themed days. to do so.

Performance Younger audiences In the coming year we shall ensure that BBC Radio 1 Our collaborations with BBC Switch included the first continues to engage with the next generation of Switch Live music event which saw 4,000 under-18s young listeners, with initiatives including an under- enjoy a varied live line-up of UK and international 18s club tour in the summer and a second Switch acts – we broadcast performances and backstage Live event in the autumn, alongside social action interviews on the night. We also re-vamped the campaigns that we will run in conjunction with Switch website, linking all elements of the Switch Switch and BBC 1Xtra. family including the radio and TV editions of The Surgery.

Top: Country Acid House from Alabama3 formed part of our coverage from Glastonbury. Middle and bottom: Radio 1’s Big Weekend 2008, from Maidstone in Kent. One of the many live events we were involved with this year. BBC Radio 2 brings listeners a broad range of popular and specialist music with a particular focus on British talent and live performances, complemented by speech output that covers current affairs, documentaries, religion and the arts.

Top: Elaine Paige with one of Commitment to UK comedy her Sunday afternoon guests, singer Johnny Mathis. We have extended our commitment to UK comedy talent, seeking out a new generation of performers Bottom: Performances this year included Neil Diamond whilst developing new formats with established in concert for Radio 2 Live. artists. We featured emerging talents including Jason Byrne and Miranda Hart, and one-off pilots with Rhod Gilbert and Ivan Brackenbury, whilst returning strands included Clive Anderson’s Chat Room, Out To Lunch, On The Blog and The Blagger’s Guide. • Radio 2 remains the UK’s most popular radio station with average weekly reach to the station Speech programmes last year of 26.1%/13.3 million (2008: 26.2%/ Alongside our music and comedy programmes, 13.2 million). our listeners have enjoyed a wide range of speech content this year. Our presenters interviewed • Nearly two thirds (63%) of Radio 2 programmes personalities including the Prime Minister and the had a high appreciation score of 80+. leaders of the other major political parties, ABC’s • The average cost per listener hour in 2008/09 Martin Fry and Scottish folk star Dick Gaughan. was constant at 0.5p (2007: 0.5p). Meanwhile, our music documentaries covered the Last year our priorities included: full range of popular genres and their social context, 051 with highlights this year including actress Sue British songwriting Johnston’s exploration of the history and impact We explored and celebrated British songwriting of the song You’ll Never Walk Alone during our throughout the year. The Great British Songbook Liverpool Season; Paul Gambaccini’s six-part series was launched at a live event in November, with Jac Holzman’s Elektra Story charting the history of the the performers – The Feeling, Duffy, Adele, James influential US label; and comedian Lee Mack’s Soup Morrison and Keane – all including a cover track in

in a Basket that looked back to the 1960s heyday Performance/ their sets that was featured in daytime programming of Northern clubs. the following week. We took the initiative online reach with video interviews with new and emerging artists Programming for special (such as Gary Go and Daniel Merriweather), and in audiences March we offered the Great British Songbook Player, Once again, we broadcast programmes linking showcasing all the online content in a single easy-to- British servicemen overseas with their families in the 26.1% access module. UK. As in previous years, Jeremy Vine’s final show before Christmas featured Jeremy and Canon Roger cost Per Live performance Royle reading special messages from families to their listener hour Our live events covered a wide range of loved ones and service personnel sharing their own performances, from the large scale events of Proms In Christmas plans. We also broadcast a special edition The Park and the Blackpool Lights to intimate sessions of Chris Evans’ show live from the army base at at the Maida Vale Studios. There were outstanding Dhekelia in Cyprus, hosted by the Princess of Wales’s 0.5p concerts from the likes of Neil Diamond, and Elbow Royal Regiment, Second Battalion. in concert with the BBC Concert Orchestra (the most successful digital music project in BBC history, Next year we plan to extend our focus on jazz, with with nearly one million requests to see the concert documentaries celebrating the 70th anniversary of via Red Button). Other live music was featured in the founding of Blue Note Records and the life of programmes such as Big Band Special, Friday Night Billie Holiday, as well as programmes exploring the Is Music Night and in programmes from Bob Harris, work of artists including Miles Davis, Benny Goodman Dermot O’Leary and Paul Jones, contributing to 260 and Nat King Cole. hours of live music per year. Performance/ radio/

BBC Radio 3 centres on classical music, around which we provide a broad offering of jazz, world music, arts programmes and drama; we also place a strong emphasis on musical performance from across the UK.

Top: There are five BBC Speech and Ideas orchestras, plus the BBC Singers – the UK’s only Our speech programmes regularly offered full-time professional choir. international perspectives, particularly through the Middle top: Bands Tuung broad agenda of Night Waves and contributions to and Tinariwen recording the pan-BBC China Season, including reports from a session for Late Junction. remote areas on threatened musical cultures. Rites Middle bottom: World Roots of Spring considered aspects of the season in music in China included music from and speech, ranging from a new nature-inspired these Uyghur musicians. commission to consideration of global warming. Bottom: Presenter, writer and The third edition of Free Thinking, a festival of ideas producer Suzy Klein, pictured outside the Royal Albert Hall, examining contemporary issues, provided a forum home of the BBC Proms. for public engagement with our ideas output. Staged in the 2008 European Capital of Culture, Liverpool, audiences were able to debate with public figures, such as Trevor Phillips and Tony Benn. In preparation for the event, Radio 3 broadcast provocative daily reflections from leading thinkers, Free Thoughts. 052 reach • Last year, reach to Radio 3 was 3.9%/2.0 million Original drama / (2008: 3.7%/1.9 million). In another wide-ranging year for drama, we broadcast over 40 new productions, including works • Radio 3 has the highest appreciation scores of all by Racine, Marlowe, Lorca and Lampedusa, as well as BBC radio networks – 82% of its programmes contemporary drama about Piper Alpha, the Good 3.9% had an appreciation score of 80+. Friday Agreement and the 7/7 bombings. • The network’s cost per listener hour was stable During 2009/10 Radio 3 will focus particularly on cost Per at 6.3p (2008: 6.4p). Performance listener hour four leading composers who had close associations Our highlights during 2008/09 included: with the UK: Purcell (b.1659), Handel (d.1759), Haydn Musical performance, British (d.1809) and Mendelssohn (b.1809). p culture and creativity 6.3 We broadcast over 600 complete concerts and operas from venues and festivals across the UK and beyond, and used major anniversaries as a means of deepening engagement with British culture. The 50th anniversary of Vaughan Williams’ death was reflected through new insights and Proms concerts, while – 400 years after his birth – John Milton was celebrated in an extended season, including a complete reading of Paradise Lost. The Proms provided deeper context for music performances through Proms Plus, a daily series of related talks and discussions. We sought to develop public creativity by extending the New Generation Artist Scheme and by providing spaces for audience participation, for instance through ‘Pianothons’ in various UK centres. BBC Radio 4 uses the power of the spoken word to offer programming of depth which seeks to engage and inspire, with a unique mix of factual programmes, drama, readings and comedy.

reach • Last year, average weekly reach to Radio 4 was Landmark factual 19.1%/9.7 million (2008: 18.7%/9.4 million). programming • 59% of Radio 4 programmes had a high World on the Move, the most ambitious radio natural % appreciation score last year. history project ever, was a 34-part series of live 1 9 . 1 • The average cost per listener hour last year was reports on animal migrations across five continents. stable at 1.3p (2008: 1.3p). September’s Big Bang Day saw our schedule focus cost Per on the switch-on of the world’s largest particle listener hour Our priorities during the year included: accelerator, with unique access to the control room Reporting the economy at CERN and extended coverage of the event As the global economic downturn deepened, daily alongside related comedy and drama programmes. p news and weekly current affairs programmes offered The website had 252,000 unique users. An extensive 1 . 3 continuing coverage and analysis, while challenging season of programmes about 1968 remembered prominent figures on their record.E van Davis’s arrival and debated a turbulent year, and included 1968 at Today was welcomed, both for his distinctive tone Day by Day, a four-minute archive-based programme and for his expertise in the biggest story of the year. presented by John Tusa and broadcast daily for six Listener numbers increased by about a quarter of a months. The weekly omnibus achieved a 18.4% share, million year-on-year to 6.7 million in Quarter 1 2009, a record in the slot. the programme’s highest weekly reach figure in over High impact drama 053 seven years. Our drama continued to attract big names including Innovative comedy Jim Broadbent, Johnny Vegas and John Prescott in New formats included Act Your Age, with different The Ragged Trousered Philanthropists, Juliet Stevenson, generations of comics pitting their wits against each Jeremy Irons and Bill Nighy. The Hunchback of Notre other, and I’ve Never Seen Star Wars – a twist on the Dame was a unique collaboration with Graeae, the chat show, hosted by Marcus Brigstocke in which disabled-led theatre company. We experimented with

guests such as Phil Jupitus, Barry Cryer and Dame visualisation (via Red Button) in The City Speaks. Over Performance/ Joan Bakewell undertook a set of activities for the the year we extended our range of podcasts, achieving first time.T he format has already been adapted 72,000 downloads for the sci-fi drama Torchwood, for TV, as has another original radio format, Dave a record for a one-off BBC radio programme. Gorman’s Genius. In 2009/10, Americana, a new weekly series, will offer fresh perspectives on the culture and politics of the US. We will also launch a large scale drama project: a dramatisation of the complete series of George Smiley novels by John le Carré, with Simon Russell Beale as the master spy.

Top: H.H. The Dalai Lama interviewed by Evan Davis of the Today programme. Middle: Marcus Brigstocke, host of Radio 4’s I’ve Never Seen Star Wars (now also on BBC Two – shown here). Bottom left: John Tusa, who presented 1968 Day by Day daily for six months. Bottom right: Cast members of The Ragged Trousered Philanthropists, Andrew Lynch’s adaptation of Robert Tressell’s celebrated masterpiece. Performance/ Radio/

BBC Radio 5 live broadcasts live news and sport 24 hours a day, covering events as they happen in an accessible style that embraces contributions from our listeners.

Top: Victoria Derbyshire, Developing investigative presenter of the weekday morning show. journalism Middle: Gabby Logan was We launched the new investigative programme part of our Wimbledon team, Donal MacIntrye, which has built the profile of bringing daily live coverage our investigative journalism and engaged a wider of the tournament. audience. Topics investigated included social housing Bottom: Simon Mayo fraud with reports from Reading, Northampton, interviews Prime Minister Exeter and Northern Ireland; the sex industry, Gordon Brown. with an unusual report on women who pay for male escorts; the complex tax practice of ‘carousel fraud’ which costs European taxpayers an estimated £170billion each year; and an investigation into places which have become no-go areas for ambulance crews. Innovative sports coverage We provided live coverage of all 47 medal-winning performances by Team GB at the Beijing Olympics. 054 reach • Last year, average weekly reach to BBC Radio 5 During the event, reporters made a series of special / live was 11.9%/6.0 million (2008: 11.7%/5.9 million), short films and placed them on our website and on with 1.3 million listeners who listened to no YouTube. A special ‘Behind the Scenes’ programme other BBC Radio station. We have the and podcast explored how coverage of major 1 1 . 9 % highest proportion of digital listening (25.8%) sporting events is made. Elsewhere, the Football of all BBC stations that are also available Player, a customisable online service aggregating all cost Per via analogue broadcasts. the latest news on teams around the UK, launched

Performance in August and accumulated almost a million unique listener hour • The average cost per listener hour in 2008/09 users and 7.5 million page impressions by the end was 2.3p, constant on 2008 figures. of March. In 2008/09 highlights included: In 2009/10 5 live will offer innovative multiplatform 2.3p High-quality and distinctive sports content around the key events of the year, news output including Wimbledon and the Winter Olympics, and We have created a core news team to provide we will make even more sports content available bulletins and coverage of breaking news tailored to on the Red Button, mobile and online. We will also our audience. Our coverage of the US presidential develop new ways to foster audience participation, election provided a unique perspective to our with a particular focus on coverage of the next UK listeners by basing our coverage outside Washington General Election. D.C., and by capturing the stories and opinions of voters from across the US and of black listeners in the UK. Our programming on the economic downturn explained the issues underneath the technical language, including the two hour-long specials Fighting The Credit Crunch which provided immediate practical advice in response to listeners’ questions. BBC Radio 5 Live Sports Extra is a part-time network that provides additional sports coverage using rights already owned by the BBC, to deliver greater value to licence fee payers.

Top: Cricket commentator In 2009/10 we shall increase our focus on promoting Jonathan Agnew. digital listening by providing high-quality and distinctive Bottom: We are the home programmes that are unique to digital radio, including of cricket on BBC radio. coverage of every ball of the Ashes series and special coverage of the first-everA shes test in Wales, and an increased focus on Football League coverage. reach • Radio 5 live sports extra’s weekly broadcast and listening hours vary across the year in accordance with the sporting calendar. On average during 2008/09, the channel had a 15-minute weekly 1 . 4 % reach to adults aged 15+ of 1.4%, equal to 0.7 million (2008: 1.5% or 0.7 million). cost Per • The average cost per listener hour was stable listener hour year-on-year at 2.6p (2008: 2.4p). Our priorities last year included: 055 The home of cricket 2.6p We have continued to develop and promote the station as the home of cricket on BBC Radio. In particular, we developed a new style of ‘access all areas’ cricket commentary for the Twenty20 Finals Day at the Oval in July, called ‘3-D cricket’, with commentators placed on the boundary edge and in Performance/ the players’ dug-outs as well as in the commentary box. We also provided full commentary on the England team’s high-profile one-day andT est series in India and the West Indies. Promoting 5 Live Sports Extra We have identified new ways to build awareness of the station and increase its audience, broadcasting replays and highlights loops from major live sporting events – including boxing world title fights, theUS Open men’s tennis and Formula 1 Grands Prix – for listeners unable to listen at the time of the original broadcast. This new form of content has proven popular with audiences – over 270,000 listened to Formula 1 from Melbourne via iPlayer – and has given us further opportunities to promote the station from Radio 5 live. Performance/ Radio/

BBC 1Xtra plays the best in contemporary black music, with a strong emphasis on delivering high- quality live music and supporting new UK artists.

Top: Jay-Z headlining the Social action campaigns Saturday night at Glastonbury. We have worked with Radio 1 and BBC Switch to Bottom: MistaJam on weekday increase the impact of our social action campaigns. evenings – featuring the top 10s. As with Radio 1, BBC 1Xtra’s Alcohol Experiment examined the dangers of excessive alcohol consumption for three weeks during August and September, and a campaign focusing on personal finance in January featured breakfast presenter Gemma Carney attempting to survive on a strict • Last year, average weekly reach to BBC 1Xtra and limited budget. was 1.1%/0.6 million (2008: 0.9%/0.5 million). Building the station’s profile • The average cost per listener hour was stable We have increased awareness of the station over the at 4.5p (2008: 4.8p). year by sharing content and expertise. In particular, Highlights have included: Trevor Nelson’s Saturday evening show is broadcast Breakfast and early-evening on both BBC 1Xtra and Radio 1 simultaneously, and we have shared programming from key events schedule including the coverage of Glastonbury and the 1Xtra Breakfast and MistaJam’s early evening 056 Notting Hill and Leeds carnivals. reach programme are now firmly established as key / showcases for the network and create focal points Next year we aim to increase the impact of our social for our audience. Trevor Nelson’s show is a high- action campaigns, and we are planning a special on-air profile entry point to the station for listeners at the ‘takeover’ project for the autumn in which a group of 1.1 % start of the day, whilst MistaJam provides a ‘key to young people will be invited to undergo training and the underground’ to deepen audiences’ engagement then participate in the station’s output and share their cost Per with contemporary black music. BBC 1Xtra’s perspectives on modern black and urban culture in Performance listener hour audience profile is thus distinct from many traditional the UK. radio stations, with two ‘peaks’: one in mid-morning and another in the evening. 4.5p Live music Our live music coverage included Jay-Z’s much talked- about headline performance at Glastonbury, as well as extensive highlights from the Notting Hill and Leeds carnivals. We supported up-and-coming talent through a series of sessions throughout the year; and a HomeGrown Introducing tour, featuring new and developing UK artists. BBC 6 Music aims to engage with lovers of popular music by offering the best of the BBC sound archive alongside current releases outside the mainstream, complemented by music news and documentaries. reach • BBC 6 Music’s reach has increased steadily over Social action the last few years and climbed to a record 681,000 We addressed listeners’ concerns relating to the in the final quarter of 2008/09.O verall last housing market with the Gimme Shelter campaign year’s average weekly reach to the station was during November, responding to our audience’s 1 . 2 % 1.2%/0.6 million compared to 1.0%/0.5 million priorities by focusing on first-time buying and renting. during 2007/08. Presenter Jon Richardson underwent an online cost Per • The average cost per listener hour in 2008/09 diagnosis of his potential as a first-time buyer, whilst listener hour was down year-on-year to 3.4p (2008: 3.9p). Steve Lamacq explored the issues raised by sharing Our priorities last year included: properties with friends, with Matthew Priest of Dodgy and The Bluetones’ Mark Morris. New British artists 3.4p We have continued to foster new British artists Music news and documentaries across our output, with 80% of artists recorded Our music news service provides a comprehensive by 6 Music being British and 90% of the new view of developments in music, including news of music on Tom Robinson’s Introducing originating in releases, concerts and wider industry developments. and recommended by UK listeners. In addition, In order to make our content available when and the Tom Robinson Unsigned show exclusively uses where listeners find it most useful, we recently introduced a daily podcast, and have ensured that content from artists’ websites, whilst the live 057 performances broadcast via The Hub are a our online content is distributed as widely as possible particularly distinctive feature of our offer. through more extensive links with BBC News online. We will work with BBC newsgathering colleagues Live music across the UK to develop our music news service Over the year we broadcast 330 new sessions, in 2009/10, tailoring bulletin services to match the nearly half of which were commissioned from changing needs of our audience at different times outside London (including regular performances of the day, potentially leading to changes in the style

from Manchester for the Marc Riley show), and we and format of delivery. Performance/ explored new ways of enhancing the traditional session format to create exciting multimedia experiences for our audience. In particular, the visualisation of Paul Weller and Adele’s Hub Combo performance was viewed on Red Button by over 530,000 people, 300,000 of whom stayed for an average viewing time of 29 minutes – almost the full session.

Top: Tom Robinson presents BBC Introducing, with internet finds, sessions, interviews and tips. Middle: Adam Buxton and Joe Cornish, presenters of Saturday morning show Adam and Joe. Bottom: Steve Lamacq plays new music and classic tracks. Performance/ Radio/

BBC 7 is a speech-based digital radio service offering comedy, drama and readings mainly from the BBC archive. We also broadcast programmes for children.

reach • BBC Radio 7 reach is consistently the highest Children’s programming performing of our digital-only stations, averaging In June, we amended our output aimed at younger 1.7% last year compared to 1.6% during 2007/08 listeners to offer an innovative three hour CBeebies (0.9 million listeners, up from 0.8 million listeners branded show every day, featuring songs, quizzes, 1 . 7 % year-on-year). games and simple picture-book/TV tie-in stories. • Radio 7’s average cost per listener hour in Additionally, the daily one hour Big Toe Books offers cost Per 2008/09 was down to 2.0p (2008: 2.4p). older children stories by popular children’s authors listener hour Last year our highlights included: such as Jacqueline Wilson, Roald Dahl and Michael Morpurgo. In order to serve the CBeebies audience High-impact seasons better, the programme was moved to an early We have worked on improving the impact of our morning slot in April 2009. 2.0p programming by increasing co-ordination with other BBC services. In early 2009 we ran a science fiction Co-ordination with key events season in collaboration with Radio 3 and Radio 4, around the UK including the new commission Planet B, which was We are continuing to improve our engagement well received and generated nearly 25,000 podcast with the UK’s nations, regions and communities downloads. A second series has been commissioned by scheduling programmes to coincide with major local events. Among a range of initiatives, we shared 058 for 2009/10. We also participated in pan-BBC Charles Darwin programming, with The Beagle Diary and programming with BBC Radio Scotland during two / Voyages of Descent. In addition, the winning play weeks of the Edinburgh Festival; partnered with BBC from the Peter Tinniswood Drama Awards Merseyside for our Liverpool Season, tying in with was included in our output commemorating the European Capital of Culture celebrations; and 90 years of Remembrance, as part of pan-BBC recorded a preview programme and interviews with Remembrance coverage. performers at the Leicester Comedy Festival. Over the coming year we will schedule seasons

Performance Comedy that deepen audiences’ appreciation of the work During the year we launched the new series I Did It of writers and artists who have made major Top: Kirsten O’Brien, My Way, a new format to explore the BBC’s archive. contributions to UK culture, including a John one of the presenters Established comedy performers and writers including Mortimer season introduced by his son, Jeremy, of Big Toe Books. Roy Hudd, Andy Hamilton and Graeme Garden and a celebration of the work of Alan Bennett Bottom: Archive content introduced and discussed five of their archive comedy to mark his 75th birthday. included Simpson and Galton’s programmes. We commissioned a further 20 hours classic Hancock’s Half Hour. of new comedy, mostly from artists new to radio, and we introduced Witty and Twisted, a comedy competition for new talent. BBC Asian Network offers challenging debate, informed journalism, music, sport, entertainment and drama to audiences of British Asians from different generations.

Music and entertainment We revised and re-launched the weekend schedule in May 2008, to incorporate broader coverage of the key music and entertainment genres. This included a new Breakfast show, followed by a shorter and more focused Love Bollywood on Saturdays and Sundays. And we launched a new music request show on Saturday afternoons. reach • Reach to BBC Asian Network has declined over Drama the past year, averaging 0.8%/0.4 million last year Our daily soap Silver Street is set in a Midlands Asian compared to 1.0%/0.5 million during 2007/08. urban community, enabling us to bring together different cultures and generations in stories that • Asian Network’s average cost per listener hour cover relationships, family, business, sport and religion. 0.8% over the year was constant at 6.9p (2008: 6.9p). Recent story lines have featured one character’s We have faced a number of challenges in fulfilling search for his estranged family in Pakistan, a band cost Per these aims over the past year, but have already listener hour recording rock versions of Bollywood hits, and a taken several major steps to enable us to serve our character performing the Hajj (Muslim pilgrimage audiences better, with a particular focus on improving to Mecca). We transmitted the 1,000th episode 059 two key areas of our schedule: last year. 6.9p News This year we shall continue to refresh the weekday Our comprehensive news service targets original schedule with a new early programme, a later start and distinctive stories at young British Asians. The to Breakfast and a time slot swap between the agenda is set during our breakfast news bulletins, debate and arts/entertainment shows. We shall also and expanded into The Wrap, two 30-minute news increase our coverage of key news stories relating to programmes at 12.30pm and 6pm on weekdays. and affecting the UK’s Asian communities, including Performance/ Many of the stories feed into wider BBC coverage, commissioning 15 new documentaries. Top: The Adil Ray Show at for example on British Asians turning to surrogacy in breakfast offers a mix of music, India and the impact of illegal downloads on the Asian chat and entertainment. music industry. Bottom: Music, star interviews and reviews with Raj and Pablo Breakfast programming in Love Bollywood. We re-launched the weekday breakfast programme in January 2009 to improve its reflection of the editorial breadth of the station and enable it to connect more fully with the audience. In line with the new overall approach for the station as a whole, it aims to make the station’s output inclusive, engaging and light, with humour and spontaneity, and broad and national in outlook. Since the re-launch, the programme’s reach has increased slightly to 0.3% from 0.2% (by about 20,000 listeners). Performance/ Radio/

Nations and Regions radio/

BBC Local Radio in England Embedding Local Radio in our radio in • BBC Local Radio in England had an average weekly multimedia proposition england reach of 18.6%/7.1 million (2008: 18.7%/7.5 million As well as a unique local radio content offer, we also reach in local transmission area). provide local multimedia and regional TV output with • We produce and broadcast around 250,000 daily news and our weekly current affairs programme original hours of live radio each year at an average Inside Out, both on BBC One peaktime. We have cost per hour of £0.4k and cost per listener recently begun a process of driving our audience 1 8 . 6 % hour of 2.9p – both steady on the previous year more efficiently between these three offerings, using (£0.4k and 2.7p). radio, TV and the web to support each other to cost Per offer the most dynamic and effective service to our listener hour BBC Local Radio is a primarily speech-based service audience. We will report on how successful this has of news, information and debate. There is a strong been in next year’s Annual Report. emphasis on interactivity, and audience involvement. Our aim is to inspire, inform and entertain, helping Our ambition for the year ahead is to work to p increase BBC Local Radio audiences in England 2.9 our audience to engage with the BBC and get the most out of being a part of their local community. back to eight million. Each of our stations is crafting its own service plan – under the umbrella of our Attracting underserved audiences master Service Licence – which covers, among other BBC Local Radio in England is aimed at audiences 060 things, sharing best practice behaviours and talent which the BBC does not always reach effectively with management strategies. We aim to build listener / its other services. Last year we had an average weekly numbers with improved editorial and presentational audience of 7.1 million over the year, over one third line-ups. of whom (2.8 million) heard no other BBC Radio and one in five (1.5 million) heard no other radio at all. We are working to improve our offer to current BBC Radio Scotland radio • Radio Scotland remains Scotland’s most popular and potential audiences, standardise and share best scotland speech based radio station, and increased its Performance practice and create a distinctive and attractive sound reach reach year-on-year to 21.6%/932,000 (2008: across our portfolio. We aim to build our audience 21.5%/918,000). size back to eight million in the next five years. Continuing to improve information services • The average listener spends nearly seven and a half hours with us each week. Cost per listener hour % Speech journalism sets us apart from local 21.6 was down to 7.1p from 8.5p the year before. commercial providers, and all our 39 stations are cost Per speech-only during the key breakfast period. Our Radio Scotland offers a speech-led service for adults, listener hour listeners tell us they value highly our information covering a wide range of genres and reflecting the services (giving an average AI of 7.9/10) – and this issues, events, culture and interests of the people year we further developed each of our news, of Scotland, and addresses matters of UK and sport, weather and travel services. For example, we international significance from aS cottish perspective. 7.1p created a new weather service with more staff to The channel’s service licence commits us to a range increase and improve output, and we established of priorities that are designed to ensure that our offer more informative travel bulletins at the heart of our remains consistent as we try to meet this challenge. breakfast and drivetime programmes, from Cornwall Chances to debate issues and ask questions to Newcastle. Our audiences increasingly expect greater opportunities to understand, interrogate and contribute to debate on the decisions that shape modern Scotland and impact their lives. In response, Radio Scotland extended the Morning Extra strand, offered live debate with politicians, commentators and opinion formers in Riddoch Questions and the flagship news programme, Good Morning Scotland saw its average weekly listenership increase. The Business, which offers a focus on local, national and international business news, First Minister’s Questions, now on MW and DAB on Thursdays, Table 12/ All BBC radio spend outside London – Network and Nations and Regions The table shows the cost of BBC radio programmes made in the Nations and Regions. 08/09 07/08 £m £m England 130 136 Scotland 31 35 “Local and nations radio is Wales 25 27 where listeners can hold Northern Ireland 16 15 202 213 their political representatives to account, or engage civic leaders in debate.” David Holdsworth, controller, BBC English regions

Impartial news and analysis We offer a unique daily news service. In current affairs issues, we lead a complementary week of special programming across all BBC platforms that focused on this key topic and the impact of spiralling prices on Scotland’s rural economies. Recorded on location, our programmes were complemented by, among others, items within BBC Two Scotland’s Eòrpa, the Gaelic radio and television children’s radio wales and political editor Brian Taylor’s daily blog have programmes Aileag and Dè a-nis? and Radio nan reach further strengthened our output, as has the monthly Gàidheal’s Thought for the Day. Investigations strand. Our coverage of the European elections in June will Produce new comedy and drama, and seek to consider, in particular, those issues that impact encourage new writing on the Highlands and Islands, as well as on Gaels 1 7 . 8 % Drama and comedy are particularly popular with wherever they may live. our radio audiences. Eleven new dramas were Learning opportunities, for young and old alike, will be cost Per broadcast in 2008, including works by Liz Lochhead listener hour threaded throughout our schedules across the year and Alexander McCall Smith. Innovative comedy and we will continue to find different ways of linking 061 was a feature across the year, with new sketch shows radio, television and online platforms further to enrich North by North North and Ellis & Clarke, the four part our audiences’ involvement in our output. p comedy drama No Hard Feelings, with John Gordon 5.0 Sinclair and Armando Ianucci’s reflections on his early Radio Wales career in The Radio Scotland Years. • BBC Radio Wales is the only national radio station In the year ahead, we intend to increase the impact for Wales in the English language, with more of our original journalism by increasing our local

listeners than any other Wales-based station. Performance/ investigatory documentaries to an average of two Last year we had an average weekly 15-minute per month, with phone-ins to follow each and online reach of 17.8%/444,000 (2008: 17.9%/437,000). blogs to offer more opportunities for audiences • The cost per listener hour to Radio Wales was to comment and contribute. Subjects will cover stable year-on-year at 5.0p (2008: 5.3p). public policy, crime, health, education, economics and politics. Radio Wales is a speech-led service for adults, covering a wide range of genres and reflecting the Our commitment to new comedy will be maintained issues, events, culture and interests of the people of and drama, from new and established writers, will Wales. Our programmes focus on local and national feature in our schedule across the year. concerns, but also address matters of UK and international significance. Radio nan Gàidheal radio nan • Last year Radio nan Gàidheal reached 69% of all High-quality, distinctive and topical debates The economic challenges facing Wales in the gàidheal Gaelic speakers in Scotland in an average week recession have been widely discussed from business, reach • The average cost per user was 18.2p (2008: 21.5p). political, and consumer viewpoints in Good Morning Radio nan Gàidheal aims to deliver a comprehensive Wales, Wales@work, the lunchtime phone-in and speech and music service for Gaelic speakers, Jamie and Louise. As part of our involvement in the reflecting the issues, events, cultures and interests of pan-BBC Wales multiplatform project ‘What are 6 9 % the people of Scotland from a Gaelic perspective and we doing to our kids?’ we invited young people from cost Per through the medium of the Gaelic language. We are across Wales to guest edit the phone-in and to listener hour Scotland’s only dedicated national radio service for lead debate. Gaelic listeners, offering a wide range of traditional Our community reporters have added to the and contemporary content that reaches out to geographical coverage of Wales with a range of audiences of all ages, from news and current affairs local accents and stories, bringing local and personal 1 8 . 2 p programming to comedy, music and documentary. texture to stories that are relevant to our listeners across Wales. Performance/ radio/

Multiplatform projects New for 2008 was a Radio Cymru and S4C Coal House at War saw a series of programmes from television simulcast of a debate about climate change. Blaenavon, Brecon, Pwllheli and Swansea – as well Current affairs programme Manylu ran a series of as coverage across daily output. The BBC Wales well attended public debate programmes during Childhood season featured across daily programmes the year, recorded on location all over Wales. The and long form features. The content is now published continuing debate in Westminster and the Welsh permanently online. Iolo Williams has been a regular Assembly regarding Legislative Competence Orders voice on Radio Wales with a companion series to has been a regular feature within news and current the multiplatform project Not in my Nature; as the affairs programmes during the year. presenter of short form features on the station. Reflect the diverse communities The Rhod Gilbert Show, Celtic Heartbeat and drama and cultures of Wales Aberystwyth Mon Amour are among our most Religious affairs programme Bwrw Golwg reflects requested podcast content, and The All Things the diversity of faith groups in Wales, with features Considered and Scrum V podcasts continue to on Ramadan and a discussion on the faith festivals perform well. The Evening Show published online a of December. Live coverage of key events included series of exclusive performances from Welsh artists. the National Eisteddfod, the Urdd Eisteddfod, the Next year, we will concentrate on maintaining the National Young Farmers Eisteddfod and Gwyl Gerdd 062 growth of the 45–64 target audience for listeners Dant Cymru. Events coverage was enhanced by living and working in Wales, consolidating our new more multiplatform content than ever before, which radio cymru / daytime schedule. We will use presentation talent to did particularly well at the National Eisteddfod in reach grow new audiences and embrace new technology Cardiff where our results service attracted around to support this. 11,000 unique users each to our Welsh language and English language services. Radio Cymru Support established talent and introduce 6.4% new talent Performance • BBC Radio Cymru is the BBC’s national Welsh cost Per language radio station for Wales. Last year, the We have reflected the growing popularity of choirs in listener hour station reached 6.4%/158,000 of all listeners Wales with our own competition for the Radio Cymru in Wales in an average week (in line with Male Voice Choir of 2008. We broadcast 12 new 6.2%/151,000 the previous year). 32.7% of fluent plays, a six part drama series and 12 classical music Welsh speakers. programmes featuring the BBC National Orchestra 1 1 . 5 p • The cost per listener hour for Radio Cymru was of Wales, including two concerts to note the opening down from 13.2p in 2008 to 11.5p last year. of the BBC Hoddinott Hall at the Wales Millennium Centre in Cardiff. New bands and musicians were BBC Radio Cymru is a comprehensive speech and also supported through session recordings, a Battle music radio service for Welsh speakers, covering a of the Bands competition and Gwobrau RAP Radio wide range of genres and reflecting the issues, Cymru (Rock and Pop Awards judged by the music events, culture and interests of the people of Wales. industry in Wales). Our programmes focus on local and national concerns, but also address matters of UK and We will continue to prioritise new ways of working international significance. by using digital and interactive technologies creatively to offer enhanced radio programmes which will also Independent news, current affairs and be used to attract new listeners. political programming In 2008 we extended our access and public debate programme Taro’r Post, and moved it to an earlier time in our new afternoon schedule. Listener numbers have increased. Our breakfast and drivetime news programme Post Cyntaf and Post Prynhawn continued to perform well, retaining audience appeal despite a highly competitive environment. Post Cyntaf remains our best performing show, with an average of 45,000 listeners each morning. radio ulster/ BBC Radio Ulster/Foyle community-based events. Religious life and themes foyle • Over 2008/09 BBC Radio Ulster/Foyle were reflected in different ways, including reach maintained an average weekly 15-minute reach of William Crawley’s series on the Book of Genesis 35.6%/501,000 (38.6%/533,000). Our popularity In the beginning... helps to drive higher levels of local radio Support formal and informal learning consumption in Northern Ireland relative to the and social action 35.6% UK average. Our listener profile is broader than Rhythm and Rhyme was a specially commissioned other BBC radio and commercial comparators week of programmes and features to coincide with cost Per and we attract a large and diverse cross-section National Poetry Day. Learning Tea Break explored listener hour of the Northern Ireland audience. media literacy issues for an older audience whilst • The average cost of BBC Radio Ulster/Foyle per More Musical Mysteries and Hurley Burley Radio listener hour was stable year-on-year at 4.4p addressed the curriculum needs of younger listeners. (2008: 4.5p). A record number of local schools took part in 4.4p BBC School Report and we undertook a number BBC Radio Ulster/Foyle is a speech-led service of projects and events as part of other BBC-wide that covers a wide range of genres and reflects all initiatives, including Breathing Places and Raw. BBCNI’s aspects of contemporary life in Northern Ireland. We Community Bus was additionally involved in work combine extensive coverage of local issues, interests to record and celebrate the work of volunteers 063 and events – live music to topical debate – with and community organisations. coverage of national and international developments. Our distinctive service engages, and reflects the Showcase local arts activities and needs of, the whole community. encourage new talent New and established musical talent was showcased Explain the Northern Ireland Assembly in programmes including ATL and Strike up the Band. A range of programming, including Talk Back, Ulster Orchestra programming included the annual Inside Politics and Today at the Assembly reflected Proms in the Park event and a series of summer the work of the Northern Ireland Assembly and concerts – all of them aimed at engaging the broadest Performance/ local political developments and issues including: possible audience with classical music. We also the long interruption to meetings of the Executive; celebrated the work of local writers Seamus Heaney, continuing debate about post-primary education; and John Hewitt and David Hammond and launched a developments relating to the devolution of policing new 50-part series on the story of Irish literature. and justice. Folks on the Hill returned with its parody of issues and More general programming reflected the impact personalities at Stormont and new comedy included of economic difficulties on local communities and Colin Murphy’s Great Unanswered Questions. reaction to the recommendations within the Develop and promote digital and Eames-Bradley report on Troubles’ legacies. online content Our discussion and other programmes about A key objective for us is to develop and extend Table 13/ BBC radio political issues retain their popularity with listeners hours from the nations listener engagement across our schedule using new and regions (network and audience peaks in our daytime programming technologies. We plan to do more of this in 2009/10, and local) generally coincide with news sequences and as well as continuing our variety of ‘old technology’ 08/09 07/08 listener-led discussion strands, including the community-based and face-to-face events. perennially influentialStephen Nolan Show. London 8,760 8,784 Over the coming year we will seek to refresh our England 246,172 255,081 Reflect the interests and concerns weekend schedule, taking account of audience needs Scotland 14,860 13,588 of listeners across the region and availability while maintaining the diversity of our Wales 16,073 16,572 We undertook an extensive programme of 55 output, with greater emphasis on live programming Northern outside broadcasts from locations throughout Ireland 9,357 9,329 and more opportunities for audience interactivity as Northern Ireland in the summer. Sports coverage part of our Saturday morning output. 295,222 303,354 included rugby, soccer, GAA and motorcycling from the North-West 200, as well as the achievements of local athletes competing in the Beijing Olympics. Editorial priorities and commissioning arrangements for our Ulster-Scots output were reviewed and Irish language programmes featured a number of Performance/ Future media & Technology/

064 / Performance

“It’s about creating an environment where ideas can flourish, and then taking the best of them and making them work for audiences.” Erik Huggers, Director, Future Media & Technology How we did last year

metRic how ouR what this means seRVices1 did

Reach over 22 million people visit BBc online each week – just over two out of every five people online in the uK, and up by over one third year-on-year. many now come to us to experience the benefits of BBc iPlayer. almost ten million use BBc 43% red Button to enhance their television experience every week, one in four of those with digital television.

Quality BBc red Button offers complementary and supplementary content not available elsewhere – from live coverage of wimbledon’s outer courts to up-to-the-minute local weather and travel information, including the ever-popular flight information. 70% with a 70% appreciation score, BBc red Button is consistently higher scoring than competitor services sky text and digital teletext. BBc iPlayer won a Prix italia during the year for Best cross media Public service.

065 impact BBc iPlayer launched on BBc online in 2007 and now averages over 400,000 visitors every day, transforming the way people watch and listen to BBc programmes. it is still growing. BBc red Button is home to our access services – 400k ensuring that those viewers who rely on subtitles, audio description or signing can opt-in to these services and get more from their television. Performance/

Value combined, BBc online and BBc red Button cost 7.6p per user reached. most costs are driven by BBc online, where individual user costs were 7.6p down to 9.7p from 13.2p in 2008.

1 Figures are based on services, in line with the service licence regime monitored by the BBC Trust. Performance/ Future media & Technology/

Future media & Technology/ Audiences are central to our thinking. Working integrally with the BBC content divisions, We deliver the BBC’s range of distinctive content to them in innovative and cost-effective ways that suit their evolving needs in today’s interactive, on-demand world.

066 The media industry is experiencing fundamental changes driven by Our Digital Media Initiative will enable the BBC to move to digital

/ technology. The importance of digital media services is growing at a production. This long-term project will simplify multiplatform rapid pace, playing a key role in audiences’ lives and their relationship delivery, ease access to archive material, and ultimately lead to with the BBC. Our digital future will be IP enabled, social and lower production costs. The technology will also be opened rooted in an always-on broadband connected world. The BBC to the wider industry. is leading the industry in developing new innovative services. Partnership, developing technology and standards collaboratively, We have a proud history of technical innovation – since foundation, allows us to share our innovation more widely. As a result, in a Performance we have pioneered a whole range of services and products such challenging economic climate, and a fragmenting, multiplatform as colour TV, NICAM Stereo, DAB, Ceefax, High DefinitionTV , media landscape, our partners can focus their investment; and our and Red Button. We launched bbc.co.uk when the Internet was audiences benefit from increased choice of content and services. in its infancy and have since built a series of digital services for web, We have a range of plans to extend our partnership work this year, mobile and red button. and we remain aware of our impact on the wider market. We have Today, 43% of the UK’s online population access our sites every adopted stronger management controls to help us deliver more week, making us the UK’s biggest online content destination. Since positive benefits to our markets and licence fee payers. BBC iPlayer launched on Christmas Day 2007, on-demand media consumption has become mainstream. By March 2009 total views had passed 390 million and iPlayer was available on a wide range of devices including computers, television and mobile phones. During the year, we continued to refresh BBC Online, redesigning Table 14/ All BBC online spend outside London our homepage, adding customisation, more video streams The table shows the spend on BBC online content made in the and improvements in search and navigation. BBC Mobile grew nations and regions outside London. significantly to 4.1 million users each month on the back of 2008/09 2007/08 personalised services like News, Sport, Weather and iPlayer. £m £m BBC Red Button continued to bring interactivity to the TV sets England 11 9 in Sky, Virgin Media, Freeview and, since 2008, Freesat homes. Scotland 5 6 Just under ten million adults use the Red Button every week to Wales 5 5 access BBC text information such as news and weather, and record Northern Ireland 3 6 numbers watched Olympics coverage on the service. 24 26 BBC innovation over the years 067 1920s 1930s 1940s 1950s

1922 British Broadcasting 1932 Empire Service 1932 First regular service 1940 Winston Churchill 1951 First national Company – a private launches, to become of high definition television, makes his famous speech broadcast of The Archers, limited company – is the World Service, launches from Alexandra “This was their finest the world’s longest formed by group of leading broadcasting impartial news Palace – the BBC’s digital hour…” on the BBC running soap. wireless manufacturers. around the globe – with HD service launched airwaves.

1953 First total televisation Performance/ 1927 First Royal Charter, 238 million regular listeners in 2008. 1948 First televisation of of a coronation ceremony, and first BBC Prom from last year. the Olympic Games from Elizabeth II: 22 million Queen’s Hall, opening up 1932 Broadcasting House Wembley – in 2008, the people watch on newly classical music to all – over opens, the UK’s first BBC’s coverage of the acquired TV sets. 280,000 tickets were sold, purpose-built broadcast Beijing Olympics reached from only £5, last year; 12 centre – a refurbished 42 million people in the UK. million viewers watched Broadcasting House is live on BBC television scheduled to re-open and via BBC iPlayer. in 2012, re-fitted for the digital age. 1960s 1970s 1980s 1990s 2000s

1960 television centre 1973 Morecambe and Wise 1985 BBc alerts the 1990 Radio 5 launches 2002 freeview launches opens, the world’s first ever break records with their world to ethiopian famine, covering sport and news, in partnership with purpose-built television Christmas special: triggering the live aid the first new network for crown castle international building – the first purpose 28 million viewers. The concert which raises 25 years. and BskyB, saving the built digital broadcast peak audience in 2008 £60million. over the last 1991 bbc.co.uk domain is dtt platform. centre was opened at was 16.2 million, for year the Children in Need registered – BBC’s online 2002 original BBc digital Pacific quay in glasgow Wallace and Gromit. telethon and sport relief transformation begins. television and radio stations in 2007. raised £20million and With 22 million weekly launches. 1967 colour tv launched £59million on the night visitors, it’s the UK’s most of broadcast. 2007 BBc iPlayer launches on BBc two, the first visited content site. – and has over 360 million service in the world – over visitors between then and 32 years after the BBc first march 2009. trialled it.

for more information on the technological and other developments that the BBc has been part of over the years, visit our history website at www.bbc.co.uk/historyofthebbc Performance/ Future media & Technology/

BBC Online aims to promote the BBC’s public purposes through the provision of innovative and distinctive online content, and through distinctive propositions that reflect and extend the range of the BBC’s broadcast services.

average weeKly • BBC Online’s average weekly unique users last A place for communities to unique users year was 22.2 million (2008: 16.5 million). The US meet and share Presidential Election comfortably broke audience Disability issues were covered on Ouch!, re-launched records with 9.2 million individual users viewing to be even more accessible to its wide audience 73 million election pages on 5 November, around and to provide more opportunities for users to 22.2m ten times more than on the day of the 2000 contribute their own stories and opinions. The site US election (7.1 million) and nearly double 2004 receives an average of 20,000 weekly unique users. cost Per user (40 million). reached The year also saw the iPlayer on PC extended to • User costs were down this year to 9.7p (from users of Macs or Linux PCs, and an increasing range 13.2p in 2008). of mobile, hand-held and gaming devices also now Just some highlights from our year included: feature the service. 9.7p The BBC Trust reviewed our service last year, and Citizenship Newsround’s Election site took youngsters through we are working to meet user expectations that they the process of an election, with one user getting the highlighted. New technical architecture will go live opportunity to interview the Prime Minister. The during 2009/10, improving interactivity and enabling Today and Panorama sites both re-launched, and now users to shape their experience of BBC Online to top: andrew marr’s Britain a greater degree than before including helping us to 068 reach out to new, younger audiences via Twitter, from Above showed a striking Facebook and Stumbleupon. By March, an average of deliver on our earlier promise to give our users the new perspective of this land. / 1.0 million users were visiting News blogs from our ability to build their own playlists. We will also seek Bottom: the Ouch! website to become more integrated with the wider internet, relaunched this year. editors and correspondents like Nick Robinson, Mark Mardell and Robert Peston. making it easier for users to find our content, and improve click though to external sites. Our Remembrance site guided people to the many local events marking the 1918 Armistice. Users We believe that we have some of the most contributed memories and photographs of soldiers distinctive content and services available online – and Performance to an archive of recollection of the First World War. in the months ahead we will launch refreshed services in science, natural history and comedy, and our Formal and informal learning Democracy Live site will seek to engage users with GCSE Bitesize continues to perform very strongly the political processes which affect their lives. across the curriculum, with 0.4 million weekly users. Our French and Spanish sites for beginners and intermediates were refreshed. For older users as well, Britain from Above gives the opportunity to discover or re-experience Andrew Marr’s series, and film sequences presented by theme or location can be downloaded and consumed at the user’s own pace. High impact events Our Autumnwatch and Springwatch sites celebrate nature across the UK, encouraging users to share video, photographs and observations They were fully integrated to our Breathing Places campaign, aimed at getting people involved in caring for their local environment. Over the season, around 23,000 users visited the Springwatch and Autumnwatch sites. BBC Sport achieved its highest ever reach during the Beijing Olympics, with 8.5 million weekly unique users. ‘Tips and Tactics’ encouraged sports participation. A range of external links encouraged users to take their interest further, an important learning point for us in advance of London 2012. BBC Red Button is the new name for BBCi, which has been delivering interactive services to BBC television viewers for ten years. We offer all day, up-to-the-minute content and information, including news, weather, learning, entertainment and interactive programming to digital television audiences.

average weeKly Meeting audiences where they unique users want us to be The switchover from analogue to digital television is underway, and we ensured that the first areas making change had our full service available to them. As 9.7m part of the process, we have added new pages from cost Per user Ceefax including Community News with Read, Hear, reached* additional Business data including farm prices, and the very popular Flight Arrival information, ensuring 069 • BBC Red Button is used by an average of 9.7 viewers continue to get this content as they switch million UK adults weekly, 25% of those with digital over to digital TV. p TV. Around one third of users do not access BBC BBC Red Button service was available on Freesat 2.7 Online, making BBC Red Button an important * the audience measurement from its launch in May, and has always been available metric changed in January 2008; access point to digital platforms for these viewers. on digital satellite, cable and terrestrial. the 2008/09 figure is more robust than historically reported • Cost per user hour was 2.7p in 2008/09. In 2009/10 we will continue to work to improve comparators. Highlights from last year included: the overall performance of our service across all Performance/ Wide range of Sport platforms whilst continuing to offer a wide range of An improved Sports portal was launched in time for interactive programming from Formula 1 to Electric Wimbledon, offering an aggregated service. Sports Proms. With internet-connected TVs and devices viewing figures were strong forW imbledon and now arriving in the UK, plans are underway to other perennial favourites football (Euro 2008), Darts, take the very best of BBC Red Button content Six Nations Rugby and Masters Snooker. Viewers and features onto these platforms. could also watch minority sports like MotoGP, Women’s Open Golf and the Burghley Horse Trials, not available anywhere else. Record numbers (11.8 million viewers) tuned in for our Beijing Olympic Top: Olympics coverage coverage offering full on-demand Sports News and included alternative events 2,500 hours sporting event coverage across digital to those being shown on the main BBC One and satellite, cable and terrestrial platforms. BBC Two channels. Middle: Electric Proms returned for a second year, with concerts from Liverpool and London. Bottom: Formula 1 returned to the BBC for the first time in 12 years – every on-track session from the 17 2009 Grands Prix can be watched on the red button. Performance/ Journalism/

070 / Performance

“The quality and depth of news and information available from the BBC – from politics and economics to Afghanistan to football – offers everyone something of value. ” Mark Byford, deputy director-general How we did last year

metRic how ouR what this means seRVices1 did

Reach three quarters of the uK population use our news services each week, including 34 million adults who watch our weekday television news, 25 million individuals 34m who listen on the radio, and ten million who go online.

Quality globally, our news services reach 238 million adults – more than any other 238m international broadcaster.

071 impact 74% of uK respondents, when asked, said that their understanding of the economy had been improved by BBc news coverage. the economy was the biggest news story of the year. robert Peston and other colleague’s coverage of 74 % the global economy and its impact in the uK continues to win awards. we won nine out of the 15 rts awards open to us last year. Performance/

Value foR this is the combined cost per viewer hour for BBc news channel and BBc Parliament. the overall journalism figure would drop further if we factored in the money viewing figures from BBc one’s peaktime weekday bulletins: the 6.30pm nations 8.4p and regional programmes are the most popular news bulletins in the uK with 5.4 million viewers, and the 10 O’Clock News is the most popular uK-wide news programme with 4.9 million viewers every night.

1 Figures are based on services, in line with the service licence regime monitored by the BBC Trust. The 75% reach figure given here excludes additional sports audiences. Performance/ Journalism/

JOURNALISM/ BBC journalism covers a wide range of news, current affairs and sports output and services, and operates at local, UK-wide and global levels, in video, audio and interactive.

072 We provide the most watched, listened to and used news and The UK and International news agenda was dominated by the

/ sports journalism service in the UK – around four in five of the implications of the credit crunch, banking bail-outs and the UK population used us in a typical week last year – a year in which recession. Our UK-wide, global and local outlets provided a the BBC won nine awards at the RTS Journalism awards, including complete picture of the impact of the economic events and Scoop of the Year for coverage on the HBOS/Lloyds TSB merger highlighted the strength and depth of our economic and business on the BBC News Channel – which was also named news channel specialist team. Research showed that around two-thirds of those of the year. in the UK who expressed a preference thought that we had the Performance It was an extraordinary year for sport on the BBC, with outstanding best coverage of the economy on television and on radio. major event coverage and sports journalism. The quality and The US presidential election was a major global story throughout originality of our Olympic and Paralympic programming drew the year. Our election-bus crossed the US over two months with praise from many quarters: 75% of the UK – around 42 million radio, web and television journalists onboard seeking out and people – watched at least 15 minutes of our television coverage representing the views of a wider America to the world. Research and 11.8 million used the Red Button during the Games. 13.5 million showed that 35% rated BBC as best for television coverage of the watched the Paralympics on BBC Television. US elections, compared to Sky’s 13% and ITV’s 10%. A new BBC Persian television channel launched in January, In the last year, we have made significant progress on strengthening offering accurate and impartial news and information as well as UK-wide news coverage of the devolved nations, following a review programming and interactive debates on key political, social and by the BBC Trust, and we are taking more opportunities to reflect cultural issues for Farsi-speakers in Iran, Afghanistan, Tajikistan and devolution and key political developments in the nations, to a diaspora groups around the globe. The BBC Arabic television UK-wide audience. We responded to the recommendations of channel, now a year old, has broadcast 24 hours a day from January. the BBC Trust’s report on our reporting of the UK’s nations and Early indications of an independent audience survey indicates regions in network television news, and are working hard to get an that BBC Arabic television audiences have doubled the previous appropriate balance on screen. The Scottish political story of the combined radio and online total across the region. summer broke on The Politics Show when the leader of the Labour We have led the field on many of the big stories, combining party in the Scottish Parliament made her infamous ‘bring it on’ call strong reporting, commentary and analysis with breaking stories for a referendum on independence. And the importance of our and original journalism across all media to explain and analyse all coverage across the nations and regions was highlighted most vividly dimensions of the stories. in early February when nine million viewers tuned in to the 6.30pm BBC One bulletins following the heavy snowfalls. In the year ahead, we will build on our political coverage, launching our Democracy Live website, bringing together for the first time live and on demand video content from the UK’s key political institutions, as well as the European Parliament. 073 / Performance/Performance

Audiences still turn to traditional At the same time, they are also programmes and platforms in increasingly choosing BBC News enormous numbers: via digital services: • BBC news services and programmes are the most watched, • BBC News Online reaches around ten million UK unique listened to and used news services in the UK. users each week – up by 40% on the previous year. • the most watched UK-wide news bulletin is the BBC’s • on average 7.5 million people visit our sports pages each Ten O’Clock News with 4.9 million viewers each night. week, going up to 8.5 million during the Olympics. • our 6.30pm weekday nations and regional news bulletin • 11.7 million used the BBC weather site during February’s on BBC One attracts 5.4 million viewers daily. ‘snow week’. • from Newsbeat on Radio 1 to PM on Radio 4, half of the UK • our journalism content on mobile phones is now used by (52%, or 25 million individuals) listen to our news on the an average of 3.8 million, up from 2.9 million a year ago. radio each week.

Adults watching People listening Unique UK users Global reach BBC television news to BBC radio of BBC news of BBC news each week news each week online services 34m 25m 1 0 m 238m Performance/ Journalism/

The channel is the BBC’s 24 hour television news service, providing comprehensive coverage and analysis of the biggest and most significant stories in the UK and internationally. It aims to provide fast and accurate breaking news, headlines every 15 minutes and regular sports, business and entertainment news.

Top: US President Barack • the unfolding global economic crisis, including a Obama at April’s G20 summit World Economy on the Brink one-hour special, in London. simulcast on BBC World News, World Service Bottom: Award-winning business editor Robert Peston. Radio, and streamed on the BBC News website. Reporting from Westminster and the devolved parliament and assemblies Straight Talk with Andrew Neil is the only long form, 074 • Audiences continue to grow. Average weekly one-to-one political interview programme available

/ 3-minute reach over the year was 7.5 million on UK channels. It runs three times each week. (2008: 6.6 million). Viewing figures for live We covered the resignation of the Labour leader streaming of the channel have also improved. in Scotland and the election of a replacement. The • This year we regained the Royal Television Society Scottish Government’s new legislative programme News Channel of the Year award, and won the was analysed in depth, and we ran the BBC Scotland RTS Scoop of the Year for the Lloyds/HBOS story. special on the Glenrothes by-election, and carried Performance the result live overnight. • The average cost per user hour was down year- on-year to 8.1p (2008: 9.1p). Correspondents across England and Wales covered reach local council elections. Huw Edwards anchored There were two priorities for 2008/09: coverage of the London Mayoral and Assembly International news elections from City Hall. m We offered extensive coverage of the 2008 US In Northern Ireland, we ran coverage as the 7.5 Presidential campaign, election and inauguration, deal was brokered for the power-sharing cost Per and events surrounding the 2008 Beijing Olympics Executive and Northern Ireland Assembly to user hour (sporting achievements and impact of the Games on meet again at Stormont. rural and urban China). We responded quickly to the We offered live coverage and analysis from all three Israel/Gaza conflict as it unfolded, with live location main party conferences, as well as some coverage presentation from Lyse Doucet, live reporting and from smaller parties’ conferences: Plaid Cymru, UKIP, 8.1p features from Jerusalem and at the Israel/Gaza Green Party. border, and – eventually – inside Gaza. Other major stories of the year included: Our ambition is to continue to build our audience, provide a wider range of international stories than • the unrest in Zimbabwe, the elections and our main competitors, and to present live from the Table 15/ Weekly reach power-sharing agreement (including John Simpson scene of major news stories and events around The quality and variety of reporting undercover inside the country). the world. We will continue to cover the devolved our news offer draws in over • Mumbai terrorist attacks: Ben Brown presenting two-thirds more viewers each politics and institutions of the UK, reflecting the week than to our closest 24 from the city. diversity of opinion and experience from around hour news competitor Sky. • Russia/Georgia conflict, including live broadcasting the country. 000s from Sevastopol. BBC News channel 7,587 • the ongoing situation in Afghanistan, including three Sky News 4,429 days of special broadcasting from around the country anchored by George Alagiah. BBC Parliament’s aim is to make accessible the work of the UK’s parliamentary and legislative bodies, and the European Parliament. We are a unique service, committed to providing direct unmediated access to parliamentary debates, as well as analysing and setting in context the issues and politics behind those debates.

Top: The European Parliament Coverage of devolved building in Strasbourg. institutions Middle: Main chamber at the House of Commons. We have introduced a weekday 11.30pm strand for Questions in each devolved parliament and assembly, Bottom: Newly elected Prime Minister Margaret Thatcher in addition to our extended coverage on Saturdays. arrives at 10 Downing Street We showed the debate which led to the rejection in 1979, part of our ’30 years of Scotland’s Budget and through Dragon’s Eye have on’ retrospective. reported the work of the Labour-Plaid coalition in Wales. Live coverage included the Statements 075 in the Northern Ireland Assembly on the killing of two soldiers in Antrim. Extensive coverage of the US election campaign In partnership with C-SPAN we offered extended coverage of the Conventions and of campaign trail

speeches. We showed all the presidential and vice- Performance/ presidential debates in full. Former Bush Deputy • BBC Parliament had an average weekly 3-minute Chief of Staff Karl Rove appeared in an Intelligence reach of 0.45 million last year (2008: 0.38 million). Squared debate on the motion: ‘George W Bush is We broadcast round the clock, with 96% of the the worst American president of the last 50 years’. total hours originated on BBC Parliament. In the year ahead, the focus for our planned editorial • BBC Parliament saw a slight rise in costs per user changes on Westminster coverage will see us hour last year to 18.5p (2008: 17.3p). continue to offer prominent and extensive coverage Our priorities for 2008/09, designed to help us meet of the Committees investigating turmoil in the our remit, were: financial markets and the wider economy. We will also improve our on-screen delivery of divisions reach Topical programmes and clear (votes). Looking to Europe, we will give a clear account signposting of the issues facing the electorate to the European This year, more than before, we have used our Parliament in the UK and continental Europe. weekend schedules to cover the work of the 0.45m parliamentary committees – for example, we cost Per highlighted the work of the Treasury Committee user hour and three other parliamentary committees focused on the banking crisis and recession. In graphics and captions, we now show the predicted timings for parliamentary events, including votes, 1 8 . 5 p and we also run an on-screen moving ‘ticker’ of information to alert viewers to upcoming urgent statements. The ticker is signposted on the front page of the channel’s website. Both changes enhance the viewer’s experience. Performance/ Journalism/

BBC Global News brings together BBC World Service, BBC World News television channel, the BBC’s international facing online news services in English, BBC Monitoring and BBC World Service Trust, the BBC’s international development charity.

Top: Wadeea Mansoor BBC World Service attracted a record weekly presenting on BBC Arabic audience of 185 million. This figure was boosted by television, distributed to North Africa, the Middle East and the the new BBC Arabic TV channel but masked an Gulf on the Arabsat, Eutelsat overall decline in radio listening which was down and Nilesat satellite systems. five million to 177 million in 2008/09. For more information see www.bbcarabic.com BBC World News can now be received in 287 million homes; attracting 74 million viewers a week. The Middle and bottom: BBC Persian television (with its channel has experienced a significant improvement 076 website and two radio strands) in its underlying commercial performance during the broadcasts in Farsi to Iran, year, although progress towards full year profitability / Tajikistan and Afghanistan. was constrained in the final quarter by the severe downturn of the global advertising market. Major development and enhancement of our international facing news sites and mobile phone offer was rewarded with a record 17 million unique online users – a 28% increase on last year; and a tenfold Performance increase in mobile page impressions. • The BBC’s international news services delivered BBC Monitoring systematically monitored more than a record weekly global audience in 2008/09 3,000 open-sourced radio, TV, press, internet and of 238 million people, despite both increasing news agency sources, translating up to 100 languages. competition and declining radio listening. The BBC World Service Trust used media and The BBC’s global reputation for trust and objectivity communications to reduce poverty and promote remains strong. According to independent surveys, human rights. It worked alongside local and national the combined BBC international news services media in more than 40 countries in Africa, Asia, the outperformed both CNNI and international radio Middle East and Europe during 2008/09. competitors in this area in almost all major markets. In the year to come, BBC Global News will continue reach BBC World Service is becoming increasingly to deliver impartial and trusted news to audiences multimedia. It launched the BBC Persian television and around 2,000 partners across the globe. channel in January for Farsi-speakers in Iran, Distinctive and innovative programming initiatives m Afghanistan, Tajikistan and around the globe. The include authoritative analysis of the global economy, 238 channel offers accurate and impartial news and the instability in Iraq, Afghanistan and Pakistan; information from a global perspective; as well as Obama’s first year; and the many geo-politically programming and interactive debates on key political, important elections. social and cultural issues. The BBC Arabic television channel – also from BBC World Service and launched in March 2008 – doubled its broadcast hours to 24 hours a day in January. Surveys of key Arabic-speaking markets indicated a audience of at least eight million weekly viewers across those specific markets. BBC Sport provides network coverage of UK sport, including big national sporting events and a wide range of specialist sports across television, radio and interactive media. We also provide comprehensive sports news. reach • 40% of UK used BBC Sport on average each week Our coverage of the European Football last year: 15-minute reach on television was Championships was also an audience highlight, 16.3 million/28.8% (2008: 16.3 million/28.9%); despite the failure of any home nations in qualifying on radio, reach on BBC Radio 5 live was for the final stages.O ur multiplatform offering drove . 1 6. 3 m 3.9 million/7.5%, stable year-on-year from an above average 6.7 million unique users to the 3.8 million/7.5%; and online, we reached website. The final ofE uro 2008 also marked John 6.8 million, up from 6.3 million in 2007/08. Motson’s last major TV showpiece, after nine World BBC Sport does not have a service licence, but is Cups and nine European Championships. fundamental to the delivery of the service licences The BBC constantly strives to deliver value, by for BBC One, BBC Two, BBC Radio 5 live and investing well in the challenging sports rights market. BBC 5 live sports extra. Last year we provided live Our biggest renewal in 2008/09 was Match of the and recorded highlights coverage of 25 sports, plus Day, ensuring Premier League highlights on the BBC an additional 19 minority sports like table tennis until 2013. The University Boat Race is to return to and archery during the Olympics and Paralympics. the BBC after five years and we renewed successfully It was an extraordinary year for sport from the our contracts for Wimbledon and the Six Nations. BBC, with outstanding major event coverage. The There was continued improvement in the BBC’s quality and originality of our Olympic and Paralympic sports journalism over the 12 months, with its programming drew praise from many quarters: 74% unprecedented sports news offering from Beijing. 077 of the UK – around 42 million people – watched at The website’s weekly reach expanded to 8.5 million. least 15 minutes of our coverage from Beijing. We BBC Sport aims to deliver real choice and variety had 32 million requests for online video streams to sports fans, whenever and wherever they want. in the UK and a total of 11.8 million used the Red We will build on this approach for 2012 – and the Button during the Games. 13.5 million watched the appointment of a director and project team will assist Paralympics on BBC TV. full integration across the BBC for London’s Olympics

Sport’s ability to draw together the nation around in three years’ time. Performance/ major events was also reflected in theW imbledon fortnight. This culminated in a peak television audience of 12.7 million – 48% of the total TV audience at the time – tuning in to watch Rafael Nadal’s stunning five-set victory in the final over the defending champion, Roger Federer.

Top: Olympic marketing campaign included animation and music especially produced by Gorillaz. Middle: Jack Charlton presents The Lifetime Achievement award to his brother Sir Bobby Charlton at 2008’s Sport’s Personality of the Year. Bottom: Dame Tanni Grey- Thompson, a key member of our Paralympics presentation team. Performance/ Journalism/

Nations and Regions journalism/

Around 60% of the BBC’s total staff who live and Investigative journalism in daily news included a BBC work outside London provide local and national news North West investigation that led to Justice Secretary on television, radio and online. The 6.30pm weekday Jack Straw intervening in the case of a Liverpool fan bulletins from Scotland, Wales, Northern Ireland and jailed for attempted murder in Bulgaria following 15 areas in England are viewed on average by 5.4 the Champions League Final three years ago. And million viewers each day, the biggest news audience in current affairs – via weekly strand Inside Out – the to any single television news programme in the UK. West Midlands team filmed inside aS haria Court (only the second time this has been allowed in the England UK). Inside Out had an average audience of 2.8 million Over the last year television bulletins across last year (2008: 2.7 million). 15 regions and sub-regions have responded to a wide range of stories ranging from the recession Our 39 local radio stations are speech-only during to February’s ‘snow day’ – where viewer numbers the key breakfast period and this sets us apart from nearly doubled the usual – as well as covering a all other local commercial services. Key stories have wide range of original journalism like BBC London’s included BBC Guernsey’s extensive coverage of the series of exclusives on the mayoral election island’s elections, a four-yearly event. Our news teams including secret transport fare increase plans have a particular aptitude for finding their way into and the resignations of Ken Livingstone’s director communities who are often unrepresented or hard 078 of equalities and policing and Boris Johnson’s to reach, as seen in BBC Radio Leicester’s coverage deputy mayor. of a forced marriage conference in the city. / In England the impact of the recession on market The BBC England news website reached 4.1 million towns was highlighted by the South West’s Politics in 2008/09. Some of the more memorable content Show and the North West, North East and West included BBC South’s video content around the Midlands, amongst others, followed the significant QE2’s final sailing, and BBC North West’s Grand developments in the motor industry with the National website which offered a jockey’s eye view of the race and 360 degree panoramic views of Performance West Midlands linking up with Newsnight for a live outside broadcast at a factory in Castle the racecourse. Bromwich, Birmingham. Scotland Reporting Scotland is Scotland’s most watched news programme with an average audience of 472,000 for the 6.30pm edition last year. Our news website is also the first choice for many, with 1.5 million average weekly unique users. The period was dominated by the stories of the banking crisis and the economy. Our investigations team produced several notable TV documentaries, including a 60-minute special report into the Glasgow “Over the years, the BBC’s Terror Attack and a documentary by MSP Margo independent news coverage Macdonald on assisted suicide. We also delivered has remained vital to audiences several programmes for the network Panorama, including a half hour on the Royal Bank of Scotland, across the UK and the world, and special investigations into criminals’ assets and and no more so than in the security industry. Other documentaries included Northern Ireland where it has Truth, Lies, Oil and Scotland and a programme analysing recorded and reported the Scotland’s relationship with Mrs Thatcher. transformation of political Radio Scotland is Scotland’s most popular speech- engagement in recent years.” based radio station, with flagship breakfast news Peter Johnston, director, BBC NI programme Good Morning Scotland attracting a weekly reach of 455,000 in 2008. Good Morning Scotland provided special coverage of the US elections and the Obama inauguration, including live presentation from Washington. Good Morning Wales on BBC Radio Wales had an average weekly reach of 220,000 over the year (2008: 228,000), while Radio Cymru’s Post Cyntaf had an average weekly reach of 81,000 in the same period (2007: 80,000). The BBC Wales and BBC Cymru news websites has 1.3 million and 27,000 unique users respectively. Our online team’s coverage of the controversial switch-off of street lights in parts of mid Wales was picked up by other outlets, including Radio 4’s Today programme and Network Television. Northern Ireland BBC Newsline improved its audience weekly reach to 443,000/27.5% last year (2008: 428,000/26.8%). Investigative and original journalism are defining features of its output. Several themed investigations involved the programme’s e-panel and included The Politics Show set the agenda on several occasions, extended reports on a range of subjects including including Wendy Alexander’s ‘bring it on’ call for a religion, ageing and the impact of new technologies. referendum on independence, which was made in BBC Newsline also examined issues around the a live interview on the programme. work of the Northern Ireland Events Company, the increased threat from dissident republican activity, Radio nan Gàidheal delivers a comprehensive news safety standards at local sports grounds and some and current affairs service to the Gaelic community. of the problems being faced by the Irish Football A week of special programming centred on energy Association. The range and depth of its news and the impact of spiralling prices on rural economies. coverage benefitted from the appointment of The weekly children’s programme Aileag offers a new specialist correspondents. 079 newsround slot. Good Morning Ulster increased its weekly audience During this period, a 30-minute nightly Gaelic TV reach to 99,250 listeners. It featured breaking news news programme An Là was launched on BBC stories from across Northern Ireland, making use of ALBA, the first televised news service in Gaelic. outside broadcast capabilities and our network of Wales area-based reporters. The programme investigated Our BBC One 6.30pm weekday bulletin BBC concerns about the treatment of migrant workers in Wales Today averaged 274,000 viewers each week the local fishing industry and featured a special report Performance/ (2008: 267,000). The Newyddion bulletin we on one family’s experience of cancer. This prompted provide to S4C averaged 14,000 viewers, down a commitment from the Health Minister to provide year-on-year from 17,000. additional funding for research. Our BBC One current affairs series Week In Week Our news website had 920,094 unique users in April Out performed well both in terms of viewing figures 2009 – a year-on-year increase of 50%. Its remit (average viewers up to 71,000 from 66,000) and is to provide depth of coverage for breaking news editorial impact. The series included programmes stories and links to related material. The website was about hospital hygiene and C.diff; a Bafta-nominated developed across the year to include additional news undercover investigation that found contamination in from Foyle and West. It also features embedded film abattoirs; and a hard-hitting programme on poverty and audio reports about stories affecting local people. in the South Wales valleys which revisited a family The BBC Newsline website provides extended a decade on. reports and footage to support its weekday television BBC Wales Today’s Your Stories strand revealed programme and to support its interactive relationship the widespread problems facing communities and with the audience. businesses without broadband access. As a result, the Assembly Government and BT got together and announced they were going to fix several of the worst ‘not-spots’ we had identified. Performance/ Commercial/

080 / Performance

“BBC Worldwide adds significant new value to every licence fee every year By making the best possible return on selling BBC programmes and products across the world. To grow turnover by nearly 10% in difficult trading conditions demonstrates that our diversification strategy is paying off.” John Smith, chief executive officer, BBC worldwide BBC Worldwide After recognising non-cash losses on foreign BBC Worldwide is the main commercial arm of the exchange financial instruments, BBC Worldwide’s BBC. It exists to ensure that opportunities to drive profit before interest and tax in the group accounts commercial income from BBC rights and properties is adjusted to £66.2million. are appropriately managed, from a business, BBC BBC Worldwide operates in a global landscape. brand-protection and social responsibility point Tasked by the BBC in 2007 with driving up profits, of view. it developed a growth strategy with five key targets: Successive governments have urged the BBC to • increase overseas revenues to two thirds of the maximise income from commercial sources to total: in 2008/09 these increased from 49% to 51%. offset the licence fee. Direct investment in BBC- • grow online revenues to more than 10% of the commissioned programmes and dividend payments total: online sales were up to 4.6% compared to increased by 23% to £153million (2008: £125million). 2.7% last year. Trading conditions last year were affected by the • build a channels business: it now has 44 wholly worsening global economic climate and a number of owned and joint-venture channels operating UK media industry challenges. BBC Worldwide found around the world, providing an excellent platform itself at the centre of a number of domestic debates for UK TV talent. about its remit, growth strategy, and the part it might play in supporting public service broadcasting beyond • develop a global TV production business in key the BBC. Despite these difficulties, it nonetheless markets to ensure better returns from TV format managed to increase turnover by 9.5% and, thanks to sales: further production bases were set up in strict cost control, underlying profitability held steady Canada and Paris. year-on-year. The channels business and a number • acquire businesses and develop partnerships to of major brands such as Dancing with the Stars (the help achieve the overall plan: minority investments international TV format based on Strictly Come in independent production companies including Dancing) delivered particularly good returns. Sprout and Baby Cow were undertaken this year Overall sales including its share of joint venture bringing our equity stakes in UK indies to seven, income passed the £1billion mark for the first time, and we bought out our joint venture partners 081 up by 9.5% to £1,003.6million, including intra-group FOXTEL and Freemantle in UK.TV, our drama income of £7.5million. Within this, advertising and entertainment channel in Australia. revenues came under pressure but as a consequence During the year major strides were taken towards of the company’s broad diversification, growth in its goal of becoming an exploiter of a range of global other areas offset this. media brands. Major brands (Top Gear, Earth, Doctor The insolvency of its DVD publishing partner, Who, Lonely Planet) accounted for £171.1million (17%)

Woolworths Group plc, impacted on profits, of all revenues. Performance/ and Kangaroo, a commercial online video player In 2007 it bought a majority stake in the well- developed in conjunction with Channel 4 and ITV, respected travel information business Lonely Planet was prohibited by the Competition Commission in order to maximise the BBC’s extensive archive of with a write off cost of £9.1million. travel-related programming through Lonely Planet’s Strategic investments in current and future growth online site and to introduce BBC-produced content areas such as channels, online and production, to new audiences. During the year it completely combined with the world recession, meant that overhauled and relaunched lonelyplanet.com and statutory profit was down by 27% to £85.7million but BBC clips became available on the site just after year underlying performance was stable despite market end. In addition, it launched a Lonely Planet challenges. However, these investments will ensure Top and bottom: Doctor Who growth in the mid to long term and also ensure a and Dancing with the Stars (the international format strong flow of commercial rights to exploit in the based on Strictly Come years ahead – 35% of total turnover is now coming Dancing) are just two of the from businesses created over the last five years. brands we exploited this year on behalf of the BBC and its licence holders. Bottom picture show rapper Lil’ Kim and partner Derek Hough. Performance/ Chart 4/ BBC Worldwide sales £m Chart 5/ BBC Worldwide statutory Commercial/ pro t before interest and tax £m 06/07 810 111 07/08 916 118 08/09 1,004 86

magazine in the UK that offers a distinctive new BBC Worldwide and Channel 4 discussions regarding monthly publication for travellers and promotes BBC potential partnerships continue. BBC Worldwide is programming about travel and culture. Despite the looking at potential ventures based on activities that core travel guide book business being affected by the represent sound business opportunities and that will recession, Lonely Planet has gained market share in deliver new revenue to both the BBC and Channel 4. several territories and is the number one travel guide This has been a year of considerable external interest brand in the UK and Australia. in BBC Worldwide’s activities and what part the Top Gear has built its popularity outside the UK company should and could play in the UK media considerably over the past year with the launch of industry. The BBC Trust commissioned a review of the series on iTunes in the US where it went straight its remit last year and while the conclusions are not to number one in the television chart. A live show yet finalised at time of writing, pending the outcome toured the UK, Johannesburg, Sydney, Auckland and of the Digital Britain review, the Trust has stated Hong Kong and we launched local versions of the that it intends to make changes to BBC Worldwide’s television series in Australia and Russia. Top Gear detailed control framework to establish a more Australia magazine is now the most widely-read contained focus for its operations. BBC Worldwide men’s monthly magazine in Australia. In 2008 the also contributed, with the BBC and the BBC Trust, UK edition of the magazine increased circulation to various external inquiries during the year including to over 200,000. one by the Commons Select Committee for Culture, One of BBC Worldwide’s highest points of the year Media and Sport. was receiving, in April 2009, a Queen’s Award for Enterprise, which recognised its outstanding record in international trade and the contribution it makes to the UK’s creative industry sector. The award Below: Top Gear is a hugely successful international brand. highlighted the part played in providing a global Picture shows Sir Tom Jones showcase for the best UK content and bringing talking to Jeremy Clarkson. the benefits back to Britain. 082 / Performance BBC STUDIOS AND POST During 2007/08 the company was offered for PRODUCTION sale. The Outside Broadcasts business was sold (formerly BBC Resources) to SIS LIVE on 1 April 2008. The Studios and Last year was a challenging year throughout the Post Production businesses were retained and broadcast facilities market. The economic climate restructured, with the Bristol and Birmingham Post has declined and both Studios and Post Production Production operations closing on 1 April 2009. have seen reducing revenues and volumes of This year BBC Studios and Post Production Limited business as productions cut costs and look for made an operating loss before exceptionals of savings, and shows move out of London in line £0.4million on turnover of £76.3million (2007/08: with the wider BBC strategy to deliver 50% of profit £2.0million, turnover on continuing operations production spend out of London by 2016. £74.4million). Net assets total £39.9million including During 2008/9 the company: net pooled cash balances with group companies of £31.0million. • partnered BBC Sport to provide coverage for the 2008 Beijing Olympic Games and Paralympic Exceptional items incurred are significant Games, with the BBC’s coverage fully HD and restructuring intended to address historical capacity tapeless for the first time. issues and a charge for fixed asset impairment. • supported Comic Relief, over seven hours of live On 1 April 2009 the company was renamed BBC transmission from Studio One. Studios and Post Production Limited. This year we will be merging our Studios and Post Production • post produced the award winning HD drama divisions together to create a united business that is Criminal Justice. better able to respond to the changing needs of • supported the science series Oceans, made in our customers and the challenges of the evolving HD with 5.1 sound, the first major project to go market, and keep the business at the heart of the through Post Production’s new Dub 4 sound suite. creative process. • provided studio facilities for BBC One Saturday For more information see night entertainment programming – Strictly Come www.bbcstudiosandpostproduction.com Dancing, I’d Do Anything and Last Choir Standing. • upgraded a third studio to HD with nearly £2million investment in HD cameras, lenses, vision and monitoring equipment in Studio Four. • launched a second 5.1 sound suite in response to growing customer demand for 5.1 mixing and to support the BBC’s HD channel requirements.

083 Right and below: BBC Studios and Post Production helped the BBC to deliver a wide range of programmes this year including BBC One’s Saturday peaktime shows Strictly Come Dancing, I’d Do Anything and Last Choir Standing. Performance/ Govern ance/ 086 / Executive board/ 088 / summary Governance report/

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in thefollowing paragraphs: areprovided ofexecutiveremuneration directors Further details on each component of the in thecommercialsector. pay (including share-based awards) thatof the are substantial provided additional amounts of variable for talent; the affordability of theand the other organisations with whichthe it basecompetes pay of the I Base pay commercial sector. inthe of thelevel paidby ourcompetitors plus variable pay) ranged between 40%but and that66% total direct compensation (basewas broadlysalary aligned with the median offor the market consistent with the agreed strategy. in thelongerterm. 18 June2009 Remuneration Committee Chairman D Marcus executive talentthattheBBCrequires. has enabled us to recruit, retain and economiccircumstances,to thecurrent andwhich motivate the the interestsofourlicencefee payers, thatissensitive thatisin continued toapplystrategy aremuneration issues, my colleaguesandIbelieve thatwe have A face of the challenges facing the and ensure that the policy remains resilientprovide inan theeven stronger framework thanstrategy at present with the review and to agree any changes in remunerationfor the will conclude on the best approach tocommercial variable pay sector continues to be appropriateexamine whetherand the alignment of base strategy.review ofourremuneration pay with the in the future and we are undertaking a andrelevant the BBCcontinuesformal tobeappropriate recognised the need to ensure that remunerationto the at B 2010 at the earliest (except that in theno discretionary bonuses will be paid for allstaffandasaresult untilbonus arrangements addition the increases for any executive directorand in have decided that there will be majorityno base ofsalary executive directors to 2% increasesfor the Wein basesalary therefore restricted pay reduceinthemediaandtechnologysectors. competitors is likely to diminish as levelsgap in payof variable between the in economic circumstances, recognising that the n determining base pay the usinesses, contractual bonuses will be paid, including lthough we face some complex and challenging uring the year we have responded to the change

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I n erik Huggers erik Zarin Patel Patel Zarin

Jana bennett bennett Jana v agius Marcus 7 6 5 4 3 2 1 t r n total thomson caroline Smith John Highfield ashley byford Mark andthe ofthe Board members The remuneration Table 16/ total total total S robbie david Mi davie tim Mark thompson thompson Mark Stephen Kelly Stephen Jen e thefollowing: and comprises relates topensionarrangements other remuneration whojoinedthe on1June2008 for members Pension Schemebefore 1november arrangement 2006, sacrifice asindicated inthetable above the bbcintroducedasalary andthosedirectors John Smith’s basepay, bonus andbenefits have been fully funded by bbccommercialbusinessessince1September2006. inaddition totheannual bonus, anequalamounthasbeeninvested StephenKelly left28/02/09, basepay includes apaymentleave for contractual of£25,143. appointedasadirector01/08/08. Huggers erik ashley Highfield left30/06/08, basepay includesapayment leave for contractual of£16,515. Jenny retired30/09/08,abramsky basepay includesapaymentleave for contractual of£46,414. been adjusted to reflect the impact of salary sacrifice to enable like for like comparison with prior toenable likeyears. with sacrifice forlike comparison been adjustedtoreflect theimpactofsalary was£84,704. by sacrifice executive directors thetotalsalary have beentreatedasemployer arrangement sacrifice contributions, reductioninsalary. madeviathesalary withacorresponding pension contributions havefor executive basesalaries directors not inthearrangement. Fromthatdateon, andasaresultemployee participated andconditionsofemployment arrangement were theterms sacrifice changedfor thoseemployees optingfor thesalary b. acashsupplementfor Jenny benefitsunderthe assheno longeraccrued Pension Scheme. abramsky a. cashpensionssupplementswhich replacedFurbSarrangements. in theLong term incentive Planfor bbc Worldwide whichmay vest in March2012. a a o o x o mir Shah Shah mir k l Gooding l Gooding bert Webb Webb bert e n tal e n y abramsky c - Lynch u e executive trustees executive non-executive t x i v e e c 5

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executives; and the performance of the executive. bonuses willbepaidin2009. divisional transformational objectives.targets, and up to 4% is for the achievementfor the achievement of of divisional value-for-moneymaximum of10%basepay, ofwhichupto6%is eligible for a discretionary annual bonusE of up to a E toBBCperformance,contribution isprovided. the achievement of key objectives andA overall V onexecutivemarket pay inthemediasector. market ensuring that the B xecutive xecutive directors (with the exception of the ase pay is aligned at around the median of the ariable payariable limited element of variable pay, linked to O fficer (

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hief benefits taxable entitlement to a personal carorfuelallowance. entitlement toapersonal provided with a chauffeur-driven car,arrangements, but heone has of nowhich, the are entitled to a chauffeur-driveninsurance, car under earlierand life assurance. benefits are a car and fuel allowance,I private health B provided underBBCCommercialBusinessessection. are approved by the of the annual bonus and long term incentiveterm incentive plans plans of CEO commercially funded business, it isBBC’s recognisesthatasa strategy remuneration appropriate that its With regard to the n addition to pensions, the other main contractual enefits £000 122 122 15 15 14 14 14 16 11 5 – – – – 6 3 – – 9 – participates in the annual bonus and the long

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091 Governance/ 092 Governance/ Stephen K Stephen e LtiP 2008 to 2011 to LtiP 2008 2010 to LtiP 2007 caroline thomson thomson caroline Zar Mark thompson thompson Mark Smith John inc, Fuji television network, nippon television corp, network SKyPerfect communications. ProSiebenSat1, (r),axel Springer Havas advertising, Jc decaux, M6-Metropole television, Publicis Groupe, tF1,Group, vivendi universal,taylor Mondadori,arnoldo Mediaset, nelsonSofres, rcSMediagroup, Jetixeurope, dentsu WPP, groupisselectedforyell representationandcomprises theirmixofbusiness,the comparator andgeographical aegis Group, industry SkybroadcastingGroup, Group, british emap, cablevision Systemscorp, informa, comcast itv,a, disney (Walt) company, Pearson, reuters eastmanKodak, Group cos, interpublic newscorp a, SbSbroadcasting, time Warner,2. Potential LtiP androundedtonearest1,000 earnings vesting isbasedoncurrent 1. LtiP bonus 100% ofdeferred isforfeited. below 2007-2010for performance lower quartile notes: LtiP award Table 2010 in 2011 and vesting Worldwide 20/Ltip bbc of ceo for potential 2009 to LtiP 2006 LtiP award Table 19/Ltip vesting for ceo of bbc Worldwide 2. 50%oftheamountany annual deferred bonus isalsoforfeited isbelow ifperformance thelower quartile. 1. appliesbetween medianandupperquartile. linepro-ration Straight notes: median below Median Performance for bbc ranking Table 18/ the orcompensationforno paymentslossofofficeyear. during inrespectoftermination werepaidtoorreceivable by boardmembers 4 3 2 1 exe Details ofdefinedbenefitentitlementsareshown below: Table 17/ rePort/ Governance SuMMary Governance/

ashley Highfield ashley davie tim byford Mark Jana bennett bennett Jana up benefitsrepresentstheestimatedcostto todate. valueofaccrued the transfer PensionSchemeofproviding thebenefitsaccrued thevalueisaffected bymany factors, includingage, pensionable 2009.Stephen Kelly bothresignedasadirectorandleftthePension Schemeon28February pensiononleaving thePensionthe accrued Schemehasbeen valued asat31March2009. wasappointedasadirectoron1 Huggers august 2008,erik althoughhejoinedthePension Schemeon1 2008.april beforethe figuresshownhewasappointedasadirector. includetheperiod He ashley Highfield bothresignedasadirectorandleftthe Pension Schemeon30June2008. pensiononleaving the theaccrued Pension Schemehasbeenvaluedasat31March2009. meaningfully addedtoremuneration. salary, sectionofthePension pensionable service, Schemeandinvestmentconditions atthedateofcalculation. market itisnotasumpaidtoorduetheindividualandtherefore cannotbe is amemberwithlessthantwo years’ pensionat31March2009. andsoheisnotentitledtoadeferred service, However, pensionhasbeencalculatedandvalued. deferred for consistencyhisaccrued rik Huggers rik per quartile or above above or quartile per in Patel Patel in cutive

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cash equivalentvalueof£330,000(2008: £296,000). witha Last year we withservices provided charities £59million for ComicRelief. appeal itself, over whileinMarchRedNoseDayraised over thebroadcast in Needraised £20millionduring www.bbc.co.uk/outreach/reports Waste Water our airmiles. and promotingvideoconferencing tocutdown on 100% recycledofficepaper, automaticPCswitch-off, addition, we introducedanumber ofinitiatives including changebehaviour.awareness campaigntoencourage In ‘ reductions inenergy, waterandwaste. transport, environment action plan with tous.important In2008we launchedafive year ambitious targets for T Environment year (2008: £180,000). the during businesses donated£1,400tocharities I cr_index/index.html at www.bitc.org.uk/cr_strategy_and_integration/ Y management andsocialinclusion.like workplace together with continuing improvementsReport. Boththeseareaswere successfully addressed, in other areas Responsibility ourCorporate verify and toexternally improve how we manage our environmentalbusiness impact responsibly. Last yearhigh standardswe aimtoachieve inmanagingour we committed to responsibility benchmark, and our scoreT reflects the Index, fromGoldtoPlatinum. improving ourranking in the D Business in the Community at Responsibility eport against these targets this year,For see more our details on how well we performed T Energy area by 31 march 2013 Table 22/our environment targets – current economicclimate.current InNovember both managed to break fundraisingThe BBC’s two major records despite the C n addition to broadcast appeals, ransport ou can find out more about the he environmental impact of our business is particularly he uring the year, we once again took part in hoose to make a difference’ is the theme of our staff I ndex is the C ommunity’s ( 75% ofwaste. 2 0% reduction in waste per person and to recycle 25% reductioninwaterusedperperson. 20% reductioninco consumedperperson. 20% reductioninenergy target U K’s leading voluntary corporate

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097 Responsibility/ 098 Responsibility/ staff recruitment, seriously. retentionandtraining wholly dependent on monetary rewards. wholly dependenton monetary excellence, innovation and creativity,that supports but managers which in is recognising not performanceWe are developing a reward framework bonus awards tootherstaff.will benodiscretionary for 2010 annual pay review or discretionary bonus,that in and 2009 there Senior Managers should notthese challengingeconomictimeswe have decided receive an vouchers. as buying/selling annual leave and inbuying the childcare had grown to17%uptake. year,a 13%uptake initsfirst and by March2009this scheme for flexible benefits. 2% in 2008), and also saw the launchof atwo-year pay dealtotalling6%(4%in2007, of a new online Reward for performance: 2008 was the second year retain thebestskillsisbeingactively pursued. headcount targets, andtalentmanagementto to resource planning, ensuring progressto take against affect until 2010. opportunities, which exceeded targets,BBC: jobwill closures continue started in 2008 and redeploymentGetting the right skills and talent for a changingin 2009. Programme, andthiswilllaunchlater Leadership non- and production courses, reaching aroundstandards 20,000 were integrated into inductionprogramme programmes this year; and clear editorialmanagers values were and enrolled on our Leadershipwithin operational teams. and supporting creativity, opennessCollective leadership: focusand responsibility remains on encouraging business group. local and corporate business themespriorities are inused each to deliver andynamically effective across response the tobusiness, Our People isnow established, Strategy andisworking where the five strategic located asat31March2009. working in our broadcast and T support functions were (www.bbc.co.uk/recruitment), theBBCstilltakes of 30millionhitstoouremployment website 100,000 job applications lastaround year, 23,000 andpeople in thein 43region countries,years, as ourin excessbusiness of needsT have changed. STAFF op R headcount has been decreasing in recent otal BBCheadcounthasbeendecreasinginrecent K staff able 25gives asnapshotofwhereBBCUKstaff e sp eration BBC U ons K to actively manage their own benefits such staff. We successfully piloted our R eward is crucial to performance, but in l ibi s ity/ /

A T rigorous approach o this end, over 300 new he scheme allows staff The schemeallows staff T he scheme registered B E ut with ditorial E

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included inlastyear’s report. 2007/08 bandings have been restated to exclude three individuals incorrectly £70,000 to£99,999 Under £70,000 band Salary salary band Table 23/ orunpaidleaveon maternity atthatdate. service and the commercial businesses,given. excluding staff staff are part-time, the full-time equivalentheadcount salary isby base salary as atThe following table shows BBCseniormanagers’ 31 March 2009. Where the Joint Working Parties.approach to risk modelling, staff consultation, planning, ournewapproachtoscenario as bestpractice and a more inclusivestrategy is now starting to payChanging how we work: dividends, ouremployee relations as we establish continues.improve andstrengthenourHRservice O andspendlesstimeonadministration.information so that managers can get better managementprocesses, andrecruitment, includingcontracting transparent. make ourprocessesandsystemssimple, clearand Getting thebasicsright: we have to beenworking Note: T £370,000 to£399,999 £340,000 to£369,999 £310,000 to£339,999 £280,000 to£309,999 £250,000 to£279,999 £220,000 to£249,999 £190,000 to£219,999 £160,000 to£189,999 £130,000 to£159,999 £100,000 to£129,999 work spendoutsideLondon. work on our plans to increase our presence todeliver at this timeaswe arestarting important and our otal ur joint effort with outsourcing partner

T his figure is made up of staff in both the public senior managers’ headcount by T ER his year we changed several essential issues with our unions through T his has been particularly

2008/09 178 328 751 10 29 52 92 50 2 4 5 1 –

1 4 7 – – C apita to 2007/08

171 329 741 10 15 44 88 72 N Wales Scotland London (excluding London) E (equivalent full-time)% psb staff by nation Table 25/ staff uK Y Y Y Y psb headcount, Fte Table 24/ total average ngland 2009 end ear 2008 end ear 2007 end ear 2006 end ear orthern I orthern

reland 08/09

23 23 60 60 4 7 6 18,860 17,677 17,078 17,914

07/08 24 57 4 8 8

099 Responsibility/ 100 Responsibility/ that resonateswithallouraudiences. creativity and can lead to richer,licence fee more payers. relevant outputand services reflect the livesD and experiences of all our Diversity (2008: £43million). I in 2011. potential talent pool to support our moveuniversities to Salford in the Media and the further with D BBC Skillset’s governance structure, Peterwith Skillset. Having tothereshapingof contributed Salmon, and the community, including a externalrange of bodiesinitiatives in the audio-visual industry, with We have atgrowing alsoworked partnerships education launch ofthenewdigitalBBC Scotland who got dedicated training tocontent support the for multiple platforms, including– over 2,000staff staffin have had training skillsfor developingthe right contentinadigitalworld in developing I tothewiderindustry. BBC training training portal which will deliver greater ahead we willbedeveloping anenhancedexternal access to have been completed by external users.T media industry, including the key more than49,000peopleintheBBCandwider area Safeguarding Last year we delivered over 70,000Training days of training to op R * Basedon52weeks, notfullyear. BBC On Subtitling outputonBBCTelevision* Chart BBC News CBeebies CBBC BBC HD BBC Four BBC Three BBC n total we spent £44.5million on training last year nternally, a current focus is ensuring that our staff have rust where over 20,000 online learning modules e iversity is vital to ensuring that irectors. sp eration

Tw N ons 6/ orth, has joined the new Skillset

o e R elationships have also been developed B l ibi J TC 08/09 07/08 08/09 07/08 08/09 07/08 08/09 07/08 08/09 07/08 08/09 07/08 08/09 07/08 08/09 07/08 R esearch s ity/ N D , Media / ifference is a strong catalyst for orth of

n/a C T rust, entre, and a number of E ngland to enrich the Gaelicchannel. ALBA N BBC orthwest programmes B I oard of n the year 83.2 V ision & D % 91.8 91.1 91.9 92.7 92.7 irector 100.0 100.0 97.6 97.2 99.9 99.7 99.9 99.7 99.9 BBC News CBeebies CBBC BBC Four BBC Three BBC BBC On Signing onBBCTelevision Chart areaccessible. newservices to ensuring talent, fromconnectingwithhardtoreachaudiences and inspired output to attractingall and nurturing great D C ethnic(BME)anddisabled staff.and minority also set ourselves stretching,We thisyear andhave targets reviewed ourdiversity but realistic, goals forCurrently, arewomen. aroundhalfofourworkforce black BBC to themodern representative of contemporary R 2008 (datanotmeasuredpreviously) 2009 % oftotal Table 29/seniormanager disabled staff 2007 2008 2009 Table 28/disabled staff%oftotal 2007 2008 2009 ethnic staff%oftotal Table 27/ senior manager black and minority 2007 2008 2009 % oftotal Table 26/ ecruiting and developing a diverse workforce that is reating a diverse workforce is only one plank in our iversity Strategy. We also aim to embed diversity into BBC Tw activities and functions – from creating unique 7/ o e Blackandminorityethnicstaff

08/09 07/08 08/09 07/08 08/09 07/08 08/09 07/08 08/09 07/08 08/09 07/08 08/09 07/08 . ritish society is central society is central British % 4.6 4.7 12.1 4.9 10.5 11.0 5.0 5.0 5.1 5.1 3.4 4.4 5.6 5.1 5.2 n/a 2.8 4.6 5.0 5.0 5.5 5.7 t 5.8

6.3 T T target arget arget arget 12.5 12.5 12.5 4.5 5.5 7.0 7.1 n/a 4.0 4.0 7.0 7.0

and outreachinitiatives. audiences, through research,U audience engagement Audiences decision-making andbusiness planningwithintheBBC ofallstrategic arepart equalityanddiversity Ensuring andbusiness planning strategy Corporate key areas: for systematic action planningwe developedand reporting a acrossworkable four framework T and mechanisms led to the development of anpartnership apprenticeship with scheme for promoting the hasprovided amajor opportunity BBC North • • • • atalllevels:workforce of investment aimed at furtherT diversifying the Workforce andtechnology.development ofnewservices across the C Output customise theirhomepagesviawww.bbc.co.uk approaches andsolutions. Forexample, can users access to our services and encourage creative Guidelinesshow howOur Editorial we canimprove have of5%. atarget T Red ButtonandBBCHD output, and does not apply to N remains at10%. tobeaudio described for programming Our target to Ofcomtargets). for subtitlingis100%. Ourtarget andBBCHD(whicharenotsubject BBC Parliament year before, and including 3,222 hoursprogramming combined – onaround 7,000 hours more thanLast year we of subtitledover 53,000hours the as accessible aspossible toallaudiencegroups. We are committed to making our programmes he his was the second year of a three-year programme he same exemptions apply to signing where we reatively reflecting the diversity of our audiences nderstanding and responding to our diverse people provided upto50placesfor 2008/09. Extend – this work placement scheme and skillstomovefor intoseniorroles. disabled staffwiththeconfidence to createapoolofdiverse –thisaims andDevelopment Programme Mentoring a BMEbackground. Journalism Talent Pool –32%ofintake wasfrom a BMEbackground. Journalism Trainee Scheme – 60% intake were from ews channel due to the nature of its rolling news D iversity Strategy was reviewed during 2008 and U K, across all our platforms, and in the his target doesnotapply totheBBC This target C BBC onnexions and Job as a diverse employer. . BBC Parliament, C entre Plus has A BBC BBC

a singleequalityscheme. the people we work with andthosewhovisitus. the peoplewe work environmentand healthy for working ouremployees, example, under- withSkillsetthisyear toattract working nationally includingfor existingpartnerships support targeting hard to reach groups. We also continue to under their control. basis, local managers have responsibilitystrategy forand monitorsactivities performance. and complies with it. that the organisation has a health andT safety policy management risk Occupational O year: www.bbc.co.uk/info/policies/diversity.shtml whichhighlightprogresswe haveSummaries made this For more information have aactivities, look principally at our Performance disability and gender equalityWe dutiestopromoterace, alsohave statutory through some of our www.bbctraining.com including how andwhentoapply, pleasesee: schemes, onanyFor moreinformation ofourtraining represented groupstoBBC Wales. others working in high-risk situations. inhigh-risk working others and we provided specialist support to themin hostileenvironments, and includingIraq and outdoor events. Journalists and otherassociated withstudioandlocationfilming, andmajor staff often work noise, manual handling and driving asOn adaily basis, faced bywell staffincludestress, risks as those andlocalsafety regular teambriefings forums. safety representatives. Staff are Safetyconsulted and throughWelfare includes seniorT managers and BBC Three CBBC BBC HD BBC Four BBC BBC On Audio descriptiononBBCTelevision Chart 8/ CBeebies he he ver the coming year we will begin work to develop D C Tw orporate irector-General has responsibility for ensuring o e 08/09 07/08 08/09 08/09 07/08 08/09 n/a 08/09 07/08 07/08 08/09 07/08 08/09 07/08 C onsultative TV Licensinganddigitalswitchover. O T ur goal is to provide a safe he 10.6 11.9 E 12.4 12.1 12.3 xecutive 13.6 13.7 14.7 C ommittee for Health 17.4 18.1 B O oard approves 20.7 21.4 n a day-to-day Afghanistan,

29.3

101 Responsibility/ 102 Responsibility/ www.bbc.org.uk/ohss/main.asppage4531.htm website:on anexternal be made available during the course of 2009 found atwww.bbc.co.uk/info/policies/fairtrading/ are encapsulatedintheBBC’s Fair The BBCmust meetitsFair TradingFair Compliance and Policy overall for ourinvestments.best return –but we must alsoseethatwe getthe partners those with whom we do businessproperly – suppliers and not and to unfairly impactlicence fee payers. We haveor aresponsibilitytobehave disadvantage expectation that we will use ofthelicencefee comeswiththe that theprivilege it to deliver value to our relative to our competitors. of ourspendingabilityinthebroadcastmarketplace B Suppliers O to themediasector. passport scheme to deliver transferableother broadcasters safety trainingand Skillset of ourto implementproduction a safetysafety training,completed online. We have completely revisedmuch and work with 6,641 people. We given recordedface-to-facesafety to training Competence No enforcement actionhasbeentaken. Enforcement in Bangladesh. another programme maker died in a roadincidents accident in T • • And thisyear: • • accidentsby 60%. ofreportable • incidencerate and by 2010): The BBCiscommittedtoreducing(on2000levels op R ragically, were two killedinseparate ofourjournalists y virtue of the licence fee, we acknowledge the size e by 20%. incidence rate of suspected cases of work related incidence rate for reportable accidents down from incidence rate of cases of work-related ill health number of working days lost from work related disorders andothermusculoskeletal problems.disorders per 1,000lastyear, mainly duetostress, upperlimb ill healthwas23per1,000in2000down to3.55 277 to160per100,000staff(down 40%). andillhealthby 30%. injury ur safety policy, and most of our guidance will sp eration ons A l ibi fghanistan and Somalia in July, and housands of courses were also were also Thousands ofcourses and partners s ity/ /

B T ut we also recognise rading obligations.rading T rading Guidelines,rading

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www.bbc.co.uk/bbctrust/research/annual_report.html the audit and opinion can be found at the period 1 the period commercial services have met management,the theBBC Executive issatisfied thatallits above criteria for fromrelevantsenior Having received reports • • • exhibitcommercialefficiency • fitwiththeBBC’s activities Public Purpose commercial criteria: meetfour to ensurethatallitsCommercialServices The BBC Four commercial criteria effectively.operate confirmed that the procedures are continuingthe period to under assessment (in Standards testedby theBritish this standardisregularly 9001:2008 quality standard. Performancearrangements against has been accredited with theT accreditation ISO with the provide reasonable assurance that it andhas appliedcomplied a system of internal controls whetherBBCmanagementhasestablished determine which anannual Fair LLP toundertake T Trading Fair Annual audit and comeintoeffect from 1 approved by boththeBBCExecutive andthe Following the consultation, revised were contacteddirectly. stakeholders Key external guidelines were consultation documentonlineon24October2008. on itsproposalsfor change. one year later and to consult with keyapproval stakeholders the were introduced on 1 July 2007. and Following the introduction of the new Board (Executive Fair and V through sub-committees of the C alue Fair he management of the he ompliance with these guidelines was overseen particular avoid distorting themarket avoid distorting particular comply with the Fair Trading Guidelines and in not jeopardise the good reputation of the BBC or thevalueofBBCbrand A C BBC greement on 1 January 2007, new guidelines ompliance T

xecutive Agreement requirestheBBCExecutive T rust’s Fair T I rust commissioned auditors nstitute. ommittee in 2008 and Finance Committeein2008andFinance rading pril 2008to31March2009. April BBC C committed to review the guidelines T ommittee in 2009) and T he most recent assessment in rading policies. T rading Committee). rading BBC published a The BBCpublished a pril 2009. April ’s Fair BBC T A D rading audit to auditto rading t the time of their ecember 2008) T D rading

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new publication scheme in January 2009 in accordance 2009inaccordance new publication schemein January million documents downloaded.1.5 millionWe hitslaunched during our the year, with a little over one www.bbc.co.uk/info/policies/fairtrading_complaints/ trading protocols trading process canalsobefound. public guidance on the complaints andbbctrust/appeals/fair_trading_complaints.html, appeals where be found intheBBC’s Fair an appeal to the during the year. The BBCdealtwithseven Fair by the and appeals(undertaken of complaints(investigated by BBCExecutive), appeals framework which separates the handlingT TradingFair Complaints BBC ontheseissuesandother More information heard by theHouseofLords. been appealedtotheHighCourt.Oneappealwas appealed to the the of BBCFOIAdecisions, and76caseswere to referred I or extendedlegitimately underthe timeframe, days statutory to withinthe20working (67%) ofrequests. 86%ofrequestswere responded wasreleasedin1,135 All orsomeoftheinformation Freedom ofInformation We received underthe 1,694requestsfor information by the C with thenewrequirementssetoutby theInformation The BBC’s onlinepublication schemehadjustover Information of Freedom www.bbcworldservice.com/annual_review2009 Further details can be found found thattheBBC’s behaviourat was compliant.report auditors on the E A Aid andlicencefee income. Grant-in- relationship in order to ensureT separation between as well asitsCommercialSubsidiaries. fromlicencefee fundedareasoftheBBC services BBC and purchasesprogrammes World Service Executive report on BBC World Service and onthe n addition, there were 51 requests for internal reviews rading Guidelines provide guidance on this trading xecutive commissioned a report from external he s required by the Fair ommissioner’s I nformation F BBC OIA Act. operates a Fair activity can be found T rust’s appealspage BBC O C I O nformation T ommissioner’s rust. ne complaint was the subject of ffice for all public bodies covered ’s compliance in this area. D T rading Guidelines, the Act (up63%from2007/08). etails of these issues can T rading complaints and T ulletin Bulletin rading T ribunal, four of which have

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23 were delivered within the 40-day statutory number ofdivisions. external data protection audit completedand overreporting a structure was implemented and an of staff had completed this training at31March2009.of staffhadcompletedthistraining designed tohighlightandcapturetheBBC’s compliance B totheExecutive whichispresentedquarterly report Counselpreparesacompliance The GroupGeneral Legal toOfcom. subscription T costs estimatedat£17.3million(2008: £15.3million). and public body, in 2008/09legislation we incurred that compliancethe I compliance of Cost Commissioner’s Office. timetable. Requests undertheDataProtection T in recognition of the different legal structure there. in recognitionofthedifferent legalstructure withBBCScotland, works legaldepartment A separate are opentothewiderBBCcommunity. other training. Most of legaland andarrange ourWe legallibrary acentral alsorun in-house talks and seminars manner asthesubjectrequires. compliance with laws and regulationsits mechanisms in as toserious ensure thatThe BBC management takes improve theBBC’s systemofcompliance andcontrols. tooltogaugeand,internal whereappropriate, but itisusedby managementasanactive or inpart T and regulationsspecifictobroadcastingthemedia. C range from compliance with generaland when laws they such arise. as the an action plan designed to correcton potential any issues issues as of non-compliance Counselprovides acommentary The GroupGeneral and establishes BBC group’s business. with all principal laws and regulations which affect the ommissioner referred onecomplainttotheBBC Commissioner referred Information complaints totheBBCandJersey four afurther Commissionerreferred Information to the T A protection training for all T protection Data n order to ensure that we complied with all relevant oard, and every six months to the his figure includes the he he hree he ompanies formal BBC BBC BBC BBC I nformation does not publish the document in whole received 26 formal Subject is implementing compulsory data T BBC O rust in turn uses the report as one of asoneof usesthereport inturn rust data security breaches were referred A ne was referred to the cts and competition law, as well as laws -wide data protection compliance BBC C A ommissioner’s reas covered by the report is subject to as a broadcaster BBC BBC ’s annual £3.6million staff. BBC O O I nformation Act, ofwhich A ver 83% ffice. ccess

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. 103 Responsibility/ Financi al statem ents/

106 / financial overview/ 112 / Risk outlook/ 114 / financial highlights/ 115 / Independent auditors’ statement/ 116 / consolidated statement of income and expenditure/ 117 / summary consolidated balance sheet/ 117 / SUMMARY Consolidated cash flow statement/ 118 / notes to the summary financial statement/ 123 / IFRS RECONCILIATION/ 124 / contact us/ 125 / other information/ Financi al statem ents/

105 Financial Financial / STATEMENTS Financial statements/ Financial overview/

“LICENCE FEE PAYERS RIGHTLY EXPECT TO RECEIVE EXCELLENT VALUE FOR MONEY ACROSS ALL OUR SERVICES. TO SUCCEED IN DELIVERING MORE FOR LESS WE CONTINUE TO SIMPLIFY AND INNOVATE

106 IN EVERY ASPECT OF OUR BUSINESS.” zarin patel, CHIEF FINANCIAL OFFICER

Financial statements/ Chart 9/Licencefeecollection/evasion% The BBC offers a uniquely diverse and distinctive our licence fee income. However,collection we expect and evasion to face remained stablemore at efficient8.7% of collection, the combinedcurrent cost economic of both conditions, but asEvasion this was rose offset slightly, by from 5.1% to 5.3%,again thisyear, reflecting to£119millionor3.4%ofincome. total collection costs (net of interest)investing went down in other flexible paymentthis methods. particular scheme,Our so we are nowas focusing expected, on reaching the maximum increased againthisyearpotential from66%to67%. We are, for The number ofpeoplepaying throughdirectdebit transactions, upfrom26%inthepreviousyear. in 2008/09. Self-serve now represents phoneline both thisway andthroughtheself-service 35% of total of our licence fee payers. More licencescheaper toprocess, andmoreconvenient for many were sold continued to promote online payments,people which can arepay at their convenience.period, We and have we’ve also provided morepeople outlets to pay where in smaller instalments payingover athrough longer the cash plans last year,We saw a which12% increase enables in the number of peopleas low aspossible. also meet our customers’ needs, andeffective keeping waysevasion to collect and pay theThere aretwo aspectsto this: developinglicence morecost- fee, which can as we efficiently as fee M into five key financialobjectives: be creatingfor ourstakeholders, andthistranslates clear understanding of the value we canRather and shouldthan a bottom line, what we do have supply strategy.Salford andournetwork is a very the digital build and Help Scheme, Charterthe move commitments to through to 2012/13,the includingearly years which will help to fundwe our have significant been funded. We have(£4.7million)), asaresultoftheway principally arising higher settlements in and taxthisyear of£178.1million(2008: deficit Our group accounts show a surplus before interesteach year. do,making organisations butordeficit show asurplus we donothave a ‘bottom line’ intheway thatprofit- Another consequenceofouruniquestatusisthat f Our b economic downturn. how we dothis, especially inthefaceofcurrent on ofthisfinancialreview focuses part The first we have aresponsibilitytospendthismoneywell. Our funding gives us exceptional privileges and the World Service. Foreign & Commonwealth Office to support the UK. We also receive fundingfrom fromthe licencethe fee, paid for by Worldwide,households across but most of our fundingWe comes have commercial operations, ofservices; itisalsofundedinadistinctiveincludingrange way. BBC 08/09 07/08 06/07 o aximising our income by collecting the licence licence the by collecting income our aximising r all o r all o tt ur stakehur o m line is value – o lders

8.7 8.7

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1,000 1,500 2,000 Chart 10/Grossef ciencysavings£m and introducing end-to-end digital tapeless production. in-house programmes, centralising newsincluding production changing the way we commissionThe savings comefromanumber ofinitiatives, and make even higher. costs, ofourvariable areactually a proportion that the savings in our latest programme,principally as targeted our fixed cost base;ran from this2005 meansto 2008. These efficiencythrough the programmes Value for Money annual savings, £347millionofrecurring programme, a further which efficiencies and other initiatives,2000-2005 and then we achieved delivered over £2billion ofsavings.This isnotaone-offprogramme From through (£192millionnetofcosts). started the programme over six years, and we have savedprogramme £237million will cost since about £160million Weto estimatethattheContinuous Improvement implement achieved between 2005and2008(1,900posts). headcount by 10%(1,800 posts), ontopofthe10% about £1.9billion. Over this15% ofourcostbaseto2012/13, whichequatesto time we also plan to reduceachieve 3%cumulative efficiencysavings each year or in 2008,April we have to beensetastretchingtarget Continuous Improvement programme, whichstarted important now than it has everThe been. success Under of our our efficiency new programme is more M measures moreeffectively. their licencefee, ourenforcement andways totarget with licence fee payers, simplifyingwill how particularly people bepay looking for at how we communicateshould change. We have taken theseonboard, and specific recommendationsonhow ourapproach with licence fee payers before makingreview ofourLicenceFeeCollection, a whichconsulted number of The BBC Trust recently carried out an independentnew households. levels of consumer confidence slow thefurther growth challenges in in the next 12 months as lower and providing good value for money providing value good and 500 aking the 0 08/09 237 BB Projected 09/10 300 C as efficient as possible, 10/11 390 11/12 470 12/13

Total 1

.9bn530 107 Financial STATEMENTS/ Financial statements/ Chart 11/ BBC Worldwide statutory Financial overview/ pro t before interest and tax £m 06/07 111 07/08 118 08/09 86

So far, as a result of the changes made to the way time that revenues have passed this milestone. This is we make our programmes, we have been able to partly down to new investment this year, in channels, invest more in technology, improving the capabilities online and production, and partly the result of growth of iPlayer and enhancing our on-demand capabilities, from our existing business. Particular highlights from to make our Sport, News and Radio content available our Global Brands business include Top Gear, and wherever and whenever our audience wants it. Doctor Who. We have also launched 18 new channels We have also invested in multiplatform programming worldwide this year, which brings our total to 44, and new services such as HD – this has already been contributing to growth in Channels revenue of 23%. a great success both for the 2008 Olympics, and for The magazines division has had a more difficult year, landmark programmes like Nature’s Great Events. with both advertising and circulation suffering from The final points to mention here are the Value for the general decline in marketing spend that is now Money reviews. The National Audit Office completed affecting the whole magazine market. Lonely Planet two reviews in 2008/09, one on radio production, and has delivered its first full year of revenues, but is also the other on our management of strategic contracts. being impacted by the current economic downturn, The first recognised that the aim of achieving nearly which is slowing the travel and holiday market; £70million of cumulative cash releasing savings in however we are encouraged that the business still radio by 2012/13 is a challenging one. The report managed to grow its market share in the USA. made a number of recommendations, which we were either already implementing, or will address now. Most of these relate to sharing good practice A more efficient BBC: multimedia news and insight, both inside and outside the BBC. The We now have a multimedia newsroom which second review analysed 17 different contracts with brings together journalists and production teams a combined annual value of around £715million. The from television, radio, and online. This saves report recognised that the BBC has an above-average money, speeds up decision-making, and allows us track record in managing major contracts and the to make the most of the content we create, by savings we have secured have exceeded original re-using and repackaging it for more channels and expectations. Again, we are addressing the report’s platforms. It has also given new skills to our own recommendations, and focusing in particular on news teams, as well as the freelancers who work how we manage our supply chain more effectively. for us, who can then take what they have learned out into the wider marketplace. A more efficient BBC: streamlining scripts Drama development and production is an We had been hoping to build on the huge success expensive business, and we are constantly looking of iPlayer with our proposal to develop a new for ways to achieve the same high-quality result video-on-demand service in partnership with ITV at a lower cost – to make Little Dorrit for as and Channel 4. Unfortunately the Competition little as Doctors. One way we are doing this is Commission has ruled that this would be too much by bringing together our financial and creative of a threat to other competitors in the emerging teams more often and in new ways, to improve video-on-demand market. As a result we have had their understanding of each others’ priorities and to write-down £9million of costs incurred, but we constraints. Giving better programme budgeting are still hopeful that we can find another way to training to script editors is a good example of generate the same returns for licence fee payers this working well in practice. In this case we over the long-term. have been able to avoid unnecessary costs and Our partner in the joint venture 2entertain, streamline decision-making in the crucial early Woolworths Group plc, entered administration at stages of a production schedule. We have seen the end of 2008, so we have had to write-off both knock-on benefits for the whole production costs and unrecoverable debt, although 2entertain team and process. itself continues to trade well. Since then we have been exploring how best to resolve this issue in a way that protects the interests of licence fee payers. maximising the returns we make on programmes paid for by the licence fee BBC Worldwide’s statutory profits fell from £118million in 2007/08 to £86million this year. This is This is, in essence, what the main commercial arm principally due to charges in relation to Woolworths of the BBC exists to do. BBC Worldwide sells the (estimated at £15million including our share of the programmes we make across the world, so that 108 pension liability of 2entertain), Kangaroo (£9million), licence fee payers get the highest possible return and our ongoing strategy of investment. on the money they pay. Our global news business, BBC World News, has

We are always looking for new opportunities to been impacted by the downturn in advertising sell our output, formats and other merchandise in activity in the year. Despite an increase in revenues the UK and overseas. In 2008/09 BBC Worldwide’s of 12%, it has incurred a statutory loss of £3million total revenues were just over £1billion, including this year. intra-group income and its share of joint venture Financial statements/ income, up 9.5% on the previous year and the first move to Salford is central to this strategy.production made outsideLondonby 2016. The We will also is by aiming to have 50% of our Networkright acrossTelevision the country. One bestcreative andproductiontalent,way thevery nurturing we are doing this Middlesbrough. We are all passionatelyto Truro, committed to Aberdeen to Brighton,The BBCisfor thewholeofUK, fromBelfast Swansea to uk the of whole across the spreading the benefit of the licenceenough tomove quickly toseize new opportunities. fee some under-performing areas, while now istomake realimprovements The priority in remaining agile have longer-term implicationsfor BBC Worldwide. the outcome of the Digital Britain review,shape at thewhich start mayof the new financial Inyear. general, ourWe commercialawait operations are in goodthese adjustmentswere notsignificantin2007/08. losses onforeign exchangefinancialinstruments; to £31million. This reflects thethe grouprecognition profit ofbefore non-cash interest and News,tax whenconsolidatedintothegroupaccounts, is reduced and Post Production and £3million inin BBCBBC WorldWorldwide, losses of £19million commercial businesses show aprofitof£86million in Studios Whilst the statutory results of the individual www.bbcstudiosandpostproduction.com For more information see its service review, to ourrestructure. or see loss before interest and tax of £18million,savings. mainly At year due end, the businessrevenues, made a statutoryas productions cut costsmarket, and looked with for widespread reductions ina challengingturnover and year throughout the broadcastBBC Studios facilities and Post Production Limited. themintoanewbusiness called and restructured It has been retained theStudiosandPost Productionoperations, commercial venture, at the start of 2008/09.division of BBCWe Resources Limited,We another announced the sale of the Outside Broadcasts an immediateimpactonourcostperhour. allowing us to plan more efficiently,more certainty which about has their cashflow,it gives theindependentproductioncompany while examples of this. The benefitstastes. are MasterchefandEggheads are two-fold both good – popular, or could adapt to differenton those audience formats that we feel are likelylonger-term to remain deals with independent ourproducers costs down. For example, we decisionscan negotiate we can still make that canchallenging, help to keep but there are some long-termachieving significant budget savingspreferences even more and priorities change. willThis always makes change year on year,In a asbusiness audience like ours commissions deals andproduction schedules A more efficient BBC: longer-term

our operations for the foreseeableour operations future. we face and are confident that we havea year ago. theWe resources believe we have respondedquickly anddecisively totheissues we need to continue This recessionislikely tobemorefar-reaching thanwe could have predicted valueofthebusiness. thecarrying use calculationssupport following the successful re-launch for thedigital business of significantgrowth particularly is expectedtogenerate the Lonely Planet website. Thesetravel value book inpublisher to a diversified Lonely Planetfroma totransform business plansconsistentwiththestrategy travel information provider. valuesofourassets.for Lonely Planet we used Inparticular the carrying This strategy business plans, using an appropriateincluding investments andgoodwill. discount We have assessedfuturecashflowsrate from and believe this supports practice,value ofourassets In linewithnormal we have reviewed thecarrying review. the in whilst looking for new ways to invest. There is markets.further detail Where onpossible this laterwe equity have the in volatility tried by the impacted to been diversify inevitably has which riskscheme, in the portfolio, to pre-empt them. This is particularly important in relationWe to areour also pension thinking ahead to identify risks and trends, and withstrongcreditratings. to businesses arewithaselectgroupofcounterparties take actions we are fully funded to 2012/13 for notice. both at relatively short theThe facilitieswe putinplace2007/08tomake sure public service and commercial annual cash outflow, we are ablecommercial businesses may appearrelatively toourtotal low incomparison to re-phase significant items of expenditureborrowing facilities of £200million forlonger-term public services funding and £350millionarrangements. andmanagingour for our cashintheshort-term, onconserving rigorously Notwithstanding the fact that the BBC’sto keep acarefuleye limits. onourborrowing We arefocusing even more inliquidityacrossthefinancialeconomy,With thecrisis we have alsohad aswell astothewidercreativeresponsibility towards industry. oursuppliers in the economy or the failurehave of aput supplier, contingency planswhile andinrecognising placewhere bothwe thatdepend to dealwe onhave withany isaffected,a anyWe wherethefinancialstabilityof singlekey suppliers risk have aparticular further supplier deterioration for a critical broadcastwhilst also service. keeping paceWe with the levelwe continue todeliver distinctive contentatthebestpossible valuefor money, of investment in the market as a we ofournewinvestmentwhole. willbeslowing therate thisyear. that Itiscrucial commitment tosourceatleast25%ofourqualifyingonlinespendexternally, In addition, although we continue to investand the in Trust’sareas reviewof talent in2008. such as online, with a carefully at what we pay our talent,2008/09, andnopay increasesfor seniormanagement.in lightWe arealsolooking of both the economic environmentthis year as a result, including nothat we live withinourmeans. discretionary We have putanumber ofmeasuresinplace public service bonuses over futureincome streams,forWhen thereismoreuncertainty itisimportant natureofits diversified business. business; thatsaid, BBC Worldwide hasshown resiliencesofar, duetothe retail and advertising activity and increasedgrowth competitiontakes effect. in our Our Studios commercial commercial andlicencefee asreducedhousehold revenues, businesses particularly have suffered with reducedand subsequent volatility in financial ofUKbusinesses asaresultoftheeconomicuncertainty to themajority markets. There is pressure revenues,onwe donotrely directly onadvertising both but we facesimilarchallenges our immune fromtheimpactofrecession. Unlike many ofourcompetitors, from the worst of the economic downturn;We recognisehowever wethat are the not certainty entirely of arecession in licence risk Managing fee income does shield the BBC

109 Financial STATEMENTS/ Financial statements/ Chart 12/ Licence fee spend in Financial overview/ nations/regions £m 06/07 884 07/08 984 08/09 948

allocate 12% of our Network Television investment Current and future Challenges to the Nations by 2012, rising to 17% by 2016. service licences We are reviewing what targets should be in place We are operating under the umbrella of a relatively for our radio output in the coming year. new regulatory regime. In the last year both BBC In 2008, total spend outside of London, expressed as ALBA and BBC HD have spent less than forecast, a percentage of eligible spend (as defined by Ofcom) due to timing differences against their original budgets, increased from 33% to 35%. In absolute terms, total and as a result both service licences were technically spend including online, decreased from £984million breached. Some other licences are operating close to in 2007/08, to £948million this year, reflecting the their thresholds, and these are under ongoing review. level of efficiencies made this year across all spend. The control framework that oversees all our service We expect this number to increase as production licences is operating effectively, and we have improved moves out of London in line with our long-term our early warning reporting so that we can take network supply strategy. action quickly if any are at risk of breaching their limits. ensuring the licence fee supports the wider A new service licence budget was approved creative economy during the year for BBC Online, and the new BBC Research has proved that the creative economy can ALBA service was licensed for the first time. From be a significant engine for growth for the UK as a 2009/10, we will be making changes to the terms of whole. According to the National Endowment for the Children’s service licence, which will see spend Science, Technology and the Arts (NESTA), industries transferring to CBBC and CBeebies from BBC like television, film, music and entertainment have One and BBC Two. The changes are being made to grown twice as fast as the economy as a whole in strengthen controls over editorial decision-making. recent years, and are a vital source of innovation and digital switchover new ideas. The sector also contributes £60billion One of our responsibilities under the BBC Charter is a year to UK plc. to help deliver digital switchover across the UK, and The BBC is – and should be – a vital part of this. ensure that those most in need of support are aware In calendar year 2008 we commissioned 37% of of what this means, and get the assistance they need. our television content from external production Funds are set aside in the licence fee to allow the companies. Our total investment in the creative BBC to fulfil these obligations. industries during the year was £1.1billion, or 33% By the end of 2008/09, the Whitehaven and Selkirk of our annual licence fee income, which includes transmitters in the ITV Border region had switched payments to artists and contributors. We are already over, which covered 73,000 households, and 25,000 exceeding the targets set for us by Ofcom on individuals eligible for the Switchover Help Scheme. spend in the independent sector, and we are actively The Help Scheme also supported a further half a redefining the relationship between the BBC and million people in the Border and West Country ITV the rest of UK media, and shifting the balance away regions last year, in preparation for their switchover in from competition towards improved collaboration, 2009. Four more of the 14 ITV regions are also due by developing new and sustainable partnerships. to switch this year, which represents 5.4 million more You can see evidence of this already, whether it’s in households, or 20% of the UK population. Around our new memorandum of understanding with ITV to two million older and disabled people in those regions share regional news infrastructure and resources to will be eligible for the Switchover Help Scheme. support provision beyond the BBC, or our proposal £603million of the current licence fee settlement to share digital production technology and expertise has been ring-fenced to cover the Switchover Help which could help small independent producers Scheme for the period to 2012/13, and spend last make the transition to a fully digital future. The latter year amounted to £24million. So far, only 1% of the is particularly important. As NESTA point out, the population has fully switched to digital; although take UK creative economy is characterised by many small up of the scheme has been lower than expected so firms, few of which ever reach a significant size, and far, there is a real increase in activity from now until none that could hope to rival the big global players. 2011. We will not be able to fully assess how much Working with the BBC can make all the difference it will take to convert everyone until we have rolled here, and we want to make our expertise and know- out the scheme across a larger, urban region. how go much further. This is especially important in Digital UK is responsible for raising public awareness the current downturn, when we can provide a more of digital switchover and has a total budget set aside 110 stable programme of investment than many of our from the licence fee of £201million to 2012/13. This commercial competitors. body is administered jointly by the BBC and other broadcasters, and in 2008/09 it spent £26million.

Pensions The BBC operates a defined benefit scheme for all staff, with a mix of final salary and career average benefits. The scheme is administered by a group of trustees who manage the pension scheme Financial statements/ Chart 13/Spendincreativeeconomy£bn investment strategy, supported by a number of affordable tothelicencefee inthelong-term. however we also recognise that it mustprovision toeffectively managebothcost andrisk; remain and constantly review our approach toWe pension remaincommittedtothedefinedbenefitscheme asat 2010. April undertaken valuationtobe actuarial expect thenextformal about thelevel offutureinvestment returns. We £470million, largely as the result indicatedof lower thatassumptions the scheme had moved £275million.into a deficit of An interim actuarial wasreport asin at AprilApril 2008 2007, and this reportedThe lasta surplus formal of actuarial valuation of the schemeonline atwww.bbc.co.uk/annualreport of the full financial statements, pensionwhich can costs be foundand liabilities are includedof recovery in Note in the8 medium-term. Full marketdetails turbulence, of our though we hope toThe see liability signs in this year’s accounts torecover. struggle astheequitymarkets uncertain reflects the year’s both short and long-term, where the outlookin value. We remains over lookatourschemeperformance corporate bonds and alternative assets managing pensionschemes,have asequities, realestate, all fallen of £528million. Ithasbeenadifficult year for those year of £139million compared to a surplusThe FRS last 17 yearvaluation shows a scheme deficit increaseto7.5%from this 2010.April will beafurther to increase their contributions to 6.75%,25.35%. and thereAs of April 2009, employees6.0% respectively, have been asked making a totalcontribution contribution rates rate for of 2008/09 were 19.35%disclosed. and The effective BBC increasingand employee the proportion of employer contributionsthe way we accountfor pensioncontributions, to the BBC; as you can see from Notescheme, 8, itwhich changes delivers savings to This year,both employees we have alsointroduceda sacrifice’ ‘salary and increasing employee contributions. such as introducing career average benefits affordability ofthescheme,to securethelong-term and During the past two years, we have looked forindependent advisors. ways on this. management. Note 23 includes more informationthe Group Treasurer, tosenior withmonthly reporting Committee, onaday-to-day andoverseen basisby and procedures approved by the BBC’s activitiesaregoverned by policies department’s Finance exchange and interest rate risk exposures.external loanAll covenants.the It also and thosesetoutinourCharter manageslimits, particularly our foreign fall due, and that we comply with oursufficient borrowing liquid funds to meet our risks,obligationsall ourfinancial makingsurethat we have as they Our treasury department manages and monitorstreasury policies standardsand key finanCial POliCies 08/09 07/08 06/07

1.1 1.1 1.1

18 June2009 • • • • judgement areasfollows: The areas which require the greatest policies accounting Critical degree of Chief FinancialOfficer Zarin P www.bbc.co.uk/annualreport notes are published online and can befinancial found at information. Full financialbalance statements sheet andand cash flow – and somefinancial statements–incomeandexpenditure, other key The pagesfollowing now containoursummary employee benefits. IFRS willbeinrelationtoleases, goodwilland The main impact on preparing our accounts under IFRS isprovided for information. Principles (UK GAAP), although a reconciliationprepared under to UK Generally AcceptedIn theAccounting meantime, the accounts continuedecision todothesamefrom2009/10onwards. to be 31 March 2010. This is in lineWe with willbeadoptingIFRSfromtheyear ending the HM Treasury standards reporting financial international • as we operate across a number of different on ourbalancesheet. finance or operating leases has a significant23 and 24, impact the decision to treat suchtechnology contracts leases. as As you can and see asignificant wenumber ofproperty operate from Notes and theirlevel ofremuneration. redundancy costs, for example numberliabilities of people and may involve assumptionsprovisions to calculate represent our best estimate of future ordeficit. the level ofsurplus different assumptions would result inan aacceptable change to range based on market practice,the scheme but actuaries to ensure that theysalary fall growth, within as stated in Note 8. expectancy,We consult with future investment includesassumptionsonlife returns,accounting purposes inflation, and our valuation of the pension scheme for FRS17 a number ofassumptionsaboutfutureperformance. whether it may be impaired, which theinvolves future makingcashflows of an operation reviews, conducting impairment to we needtoassess decide in economicperformance. Inmany caseswhen include reduced market value or a deteriorationwhether to impair or write-down an asset.a number of indicatorsThese are assessed in deciding allimpactonourfinancialstatements. operations exchange rates used and treatment of transactions, offoreignforeign currency The translation fluctuations.we areexposedtoexchange rate andanumber ofdifferentcountries currencies, atel

111 Financial STATEMENTS/ Financial statements/ Risk outlook/

Risk outlook/

risk aCtiOn future OutlOOk

A prolonged UK and global recession BBC Worldwide is relatively diversified, A continued global downturn could put could lead to a sharp decline in the which offers protection against the further pressure on revenues across all performance of our commercial business. downturn in the advertising market. our commercial businesses. We have recently restructured our We have made significant investments in Studios and Post Production business to a number of areas and will need to focus make sure it is agile enough to respond on growing these new businesses. to current market pressures.

Increased financial and liquidity risk We have taken early action to create As the recession continues, licence could increase the pressure on income, contingency in our financial plans, fee sales may continue to come reduce our financial flexibility and diversify the pension portfolio and under pressure. increase the pressure on our reduce our liquidity risk, as set out We will continue to actively manage borrowing facilities. in the Financial Review. financial risk over 2009/10 as the We monitor licence fee sales and key economic outlook remains uncertain. economic indicators constantly to understand how long-term trends will impact our income.

A reliance on key suppliers may We monitor all our strategic supply Our suppliers will continue to feel the increase the risks arising from both contracts and supplier interdependencies. impact of the economic downturn liquidity and counterparty failure We have tried to ensure we have both throughout 2009/10 and we will in our supply chain. contractual protection through clear exit work with them to reduce the risk strategies and contingency plans in place posed to either broadcast critical should a supplier fail. or support services.

Broadcast services may be disrupted We have detailed broadcast continuity This risk requires ongoing active as a result of technical failure, industrial plans in place, which are constantly management, given heightened security action or the actions of third parties, reviewed and tested. We monitor all threats across the UK and the ageing of for example a terrorist act, or threats to national security and maintain some of our technology assets which supplier failure. open relationships with the trade unions. may need to be replaced.

Any incident which affects the safety We take our safety and security We will continue to prioritise safety and of our staff, contributors or audiences. responsibilities very seriously and have security in all our activities, and review strong procedures in place for assessing and amend our practices in response 112 risks when filming, working overseas to incidents that occur. and working with audiences.

Financial statements/ not expressedin our thought conditions others action any T media industry. withthebroadcastingand partnerships benefits term available fromdeveloping We and long- may not deliver the short in BBCprogramming. reduce viewer and listener confidenceA breach of editorial standards might they choose. access content how, when and wheretechnologies, to make sure they canand that we continue to invest in newdistinctive, innovative and high qualitythat our content remains consistently For ouraudiences, itisimportant we havetargets beenset. be impacted by the stretching efficiencyThe quality of our programming could risk he E

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mitigating future OutlOOk ways toimprove qualityandperformance. programme-makers to find innovative to 2012/13, with increasing pressure continues Our efficiencyprogramme on economic valueacrosstheindustry. right frameworks are in place to create the BBCendeavourstoensure in2009/10as This willbeapriority and appropriately. and we will aim to deal with them quicklyand brand will continue to be a concern subsequent damage to our reputation controlorjudgementandthe editorial impartiality from the BBC. Any lapseshighest in standards of editorial integrity The public willcontinue toexpectthe and with theevolving digitalUK. in new content and services to keep paceof value to everyone and we are investingOur portfolio of services offers something in how we engagewithouraudiences. will continue to present a big challengeTechnology and its changing possibilities

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113 Financial STATEMENTS/ Financial statements/ Financial HIGHLIGHTS/

Financial highlights/ The BBC’s income continues to grow, driven by the licence fee. The level of the licence fee is set by the Government, but the growth in the BBC’s income is also affected by household growth and the BBC’s ability to effectively collect licence fee income.

Income Chart 14/ Income £m The BBC’s income continues to grow, driven by the 06/07 4,177 licence fee. The level of the licence fee is set by the Government, but the growth in the BBC’s income 07/08 4,415 is also affected by household growth and the BBC’s 08/09 4,606 ability to effectively collect licence fee income. Licence fee World Service and BBC Monitoring grants Although growth in commercial income may appear Commercial income Other modest, this headline figure does not fully reflect the success of the BBC’s commercial strategy over recent years, in particular the expansion through BBC Chart 15/ Operating expenditure £m Worldwide’s involvement in ventures with other 06/07 4,353 parties; the BBC’s share of the income in these joint 07/08 4,477 ventures is not reflected above. The cash return from BBC Worldwide to the BBC increased by 23% 08/09 4,492 to £153million. Public Services Broadcasting Group World Service and BBC Monitoring Operating expenditure Commercial businesses Non-cash pension costs As the BBC must break even over a Charter period, total expenditure broadly follows the same trend as tax income. Note 2 gives more details of expenditure, The BBC’s public service activities are not generally particularly on the BBC’s public services. However, liable to corporation tax, but tax is payable on capital this year the BBC’s Continuous Improvement gains and other income. The BBC’s commercial Programme has started to deliver efficiency savings subsidiaries are liable to corporation tax on taxable that contribute to reduced expenditure on public profits for the year. As a result the effective tax rate, service broadcasting when compared to 2007/08; which this year is 8.6% (2008: 26.7%), is different expenditure reduced by 3.4%. from the standard rate of Corporation tax of 28%. Interest cost A significant factor in the variability of the effective Net interest payable has increased from £4.6million rate year-on-year is the extent to which licence fee to £17.2million reflecting changes in borrowings, income exceeds public service expenditure in the year. particularly in the Commercial Businesses, to finance fOreign CurrenCies investment. However, the Group has not been able During the course of any year the BBC enters into to take full advantage of the current low interest a number of transactions in currencies other than rates as a result of its cash management strategy to sterling, which must be recorded in the BBC’s financial use interest rate swaps, collars and caps to reduce its statements in sterling. If exchange rates change exposure to variable interest rates. The recognition significantly during the period between a transaction 114 of the swaps, caps and collars at fair value has being agreed and the cash payment or receipt increased the interest payable expense for the year occurring this can have an impact on the BBC’s results. by £5.1million, but as these swaps mature they will be The BBC, however, generally enters into forward

replaced by ones based on current market conditions, currency contracts to manage, or hedge, this currency which should reduce the cost of capital in future years. risk, which allows it to settle transactions at known exchange rates, reducing uncertainty relating to cash flow. However, there is still an accounting impact. Financial statements/ £43.8million. switchover. This year thereanticipated was a net outflows, cash inflow forof example significant cashinflows offset by future insomein years relation to digital to break even over a Charter period thisdepends can result on the in Charter cycle, with theto BBC which aiming cash flows and net debt move ceilings.and remainswithinitsborrowing in tandemThe extent The BBC manages cash and borrowings fl carefullyCash to enhanceourcontentandservices. well as investment in digital productiontransformational technology projects in London andspend Salford, and investment as for the future,has includingbeen an increase our in borrowing to financerelatively capital constant; however as Otherwisenoted above the thereunderlying net assets remainyear shows anetlossfor theyear of£666.6million. in more detail in the Financial Review),Pension Schemes(thepensionschemeisdiscussed which this influenced by theaccounting valuationoftheBBC The overall net assets of the BBC are theyear.which isadecreaseof£529.1millionduring significantly Group were £990.1million (2008: £1,519.2million), As at 31 March 2009 the net assets ofN the BBC subsidiaries. results andassetsofoverseas and a gain of £22.9million on the translation embeddedderivatives,forwards andforeign currency of the net loss of £18.4million on open foreigna netgainof£10.3milliononsettledtransactions, a currency on settledtransactions. This year theBBCrecognised they have been in the past, as haveBBC havegains beenand lossesmuch more significantopen this foreign year than currency forwards taken thanout byoften the seen. Therefore thesubject fair value to more changes volatility in and devaluation/appreciation theyear have foreignDuring exchangerates been director-general mark thompson by theExecutive Boardon18June2009andsigneditsbehalfby: andExecutive Report,wasapproved Remuneration financialstatement, governance report The summary includingtheSummary and obtained inthefull Accounts 2008/09,Annual Report whichisavailable atwww.bbc.co.uk/annualreport directors’ aswould remuneration beprovided by canbe thefullannual financialstatementsandreports.Moredetailedinformation of the results and state of affairs of Governance report. the toallowAs such, financial statementdoesnotcontainsufficientinformation afullunderstanding BBC thesummary Group, of its Governance Thisarrangements summary financial and of its statement policies represents and statement arrangementssummary finanCial only aconcerning summary of the information in the BBC’s full financial statements and et assets o ws

Chief FinancialOfficer Zarin P summary financialstatement. summary aware inconsistencieswiththe ofany apparentmisstatementsormaterial ifwe become and assessmentconsidertheimplicationsfor ourreport We containedintheBBCExecutive’s alsoreadtheotherinformation review the regulationsmadethereunderasiftheyappliedtoBBC. with the relevant requirements of section statements andtheExecutive Report,anditscompliance BoardRemuneration 251 of the Companies Act 1985 withinand the BBC Executive’s review andto youassessment our opinion with onthe the full consistency annual financialOur responsibility, of ofourengagementisto report the inaccordancewiththeterms summary financial statement applied totheBBC. Executive’s review and assessment as if Section 251 of theCompanies Act 1985 The Trustees and Executive auditors and directors of Board responsibilities respective are responsible for preparing the BBC we have formed. BBC’s Trustees asabody, for ourwork, for thisstatement, orfor theopinions do not accept or assume responsibilitystatement to anyone and otherfor no than other the purpose. BBC and theBBC’s To Trusteesthe fullest those extent matters permitted wehave have by agreed. law, agreed to Ourwe state work tohas them been in undertaken suchThis a statement so that weis mightmade solelystate toto thethe BBC’s to preparesuchastatementunderSection251oftheCompanies Act 1985. Trustees as a body on terms we statement which has been prepared as Theif theBBC’s BBC were Trusteesa company haveand entitled engaged us to Report. Remuneration examine the summary financial sheet, Summary consolidated cash flowConsolidated statement andincome Executive and expenditure Board account, We the financialstatementwhichcomprises have examinedthesummary Summary consolidated balance (bbC) COrPOratiOn trustees Of the british brOadCastingindePendent auditOrs’ statement tO the 18 June2009 Registered Chartered LLP KPMG made thereunderasiftheyapplied totheBBC. requirements of section 251 of the Companiesthe BBC forAct the 1985 year and ended the regulations31 March annual2009 and financial complies statementswith the applicable and the ExecutiveIn our opinion Board the Remuneration summary financial Report of statementOpinion is consistent with the full Report. Board Remuneration basis of our audit opinion on those financialBoard. statementsOur report on andthe theBBC’s Executive full statementannual financial on the summarystatements financial describes statementWe the conductedissued by our the work Auditing in accordance Practices basiswith Bulletinof opinion 1999/6 The auditor’s atel A Auditor, London

ccountants

115 Financial statements/ Financial statements/ SUMMARY FINANCIAL STATEMENT/ consolidated statement oF income and expenditure FOR THE YEAR ENDED 31 MARCH 2009

2009 2008 Note £m £m income (including share of joint ventures) 4,906.2 4,689.4 Less: share of joint ventures (300.5) (274.6) group income 1 4,605.7 4,414.8 Operating expenditure excluding exceptional costs (4,461.8) (4,359.3) Exceptional restructuring costs (29.9) (117.7 ) total operating expenditure 2 (4,491.7) (4,477.0) group operating surplus/(deficit) 114.0 (62.2) Share of operating surplus of associates and joint ventures before exceptional items 56.8 60.3 Share of joint ventures’ operating exceptional items (7.5) – share of operating surplus of associates and joint ventures 49.3 60.3 operating surplus/(deficit): group and share of associates and joint ventures 163.3 (1.9) Loss on sale and termination of operations (1.1) (4.8) Profit on disposal of fixed assets 15.9 2.0 surplus/(deficit) before interest and taxation 178.1 (4.7) Interest receivable and similar items 9.1 13.7 Interest payable and similar items (26.3) (18.3) Other net finance income (from defined benefit pension scheme) 117. 3 148.8 surplus before taxation and minority interest 3 278.2 139.5 Taxation (24.0) (37.3) surplus after taxation and before minority interest 254.2 102.2 Minority interest (0.5) (0.5) surplus for the financial year 253.7 101.7

All results arise from continuing operations. There is no significant difference between the results as disclosed above and the results on an historical cost basis. Note: The surplus/(deficit) for the financial year is the amount found by deducting all items of expenditure recognised in the year from all income receivable for the year. For the BBC Group, as a public benefit entity, any surplus arising does not represent a ‘profit’ that can be returned to an entity’s funders, but a timing difference relating to past or future expenditure.

116

Financial statements/ C C I N N N N N T N D N ye the For Su interest Minority reserves BBc by represented assets net net (liability)/asset pension (liability)/asset pension excluding assets net Provisions for liabilities year one than more after due falling –amounts creditors liabilities current less Total assets year one within due falling –amounts creditors assets current assets Fixed At 31 M Su

assets current net ncrease/(decrease) in cash in the year the in cash in ncrease/(decrease) paid axation year of the beginning the at hand in and bank at ash associates and ventures joint from received ividends ash at bank and in hand at the end of the year the of end the at hand in and bank at ash financing from inflow cash et resources liquid of management from inflow cash et financing and resources liquid of use before outflow cash et disposals and acquisitions from outflow cash et investments financial and expenditure capital from outflow cash et finance of servicing and investments on return from outflow cash et et cash inflow from operating activities operating from inflow cash et mm mm

ary ary C a

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1,568.8 1,003.4 1,133.4 1,619.8 (228.2) (952.4) (314.6) (143.3) (171.8) 984.2 Group Group 990.1 990.1 215.2 616.4 121.8 (22.7) (23.1) (14.8) 66.5 43.8 78.0 37.0 2009 2 (8.8) 0 5.9 £m £m 0 – 9

–

(1,064.7) 1,350.8 1,512.5 1,423.1 1,519.2 1,519.2 (231.8) (172.6) (182.3) (159.7) 523.3 992.4 995.9 358.4 (107.1) 144.7 158.7 Group (23.5) (66.7) 78.0 93.0 45.7 2008 2008 (1.7) 6.7 £m £m

117 Financial STATEMENTS/ Financial statements/ Notes to the summary financial statement/ Notes to the summary financial statement

1 Group income The main income for the BBC is derived from television licences. Licence fee income is recognised in full when a licence is issued, subject to deductions for actual and expected refunds and cancellations. UK Public BBc world Service Service and Broadcasting BBc commercial Group Monitoring businesses Total £m £m £m £m 2009 licence fee income 3,493.8 – – 3,493.8 Government grants 5.0 289.6 – 294.6 commercial – – 775.9 775.9 other 34.5 6.9 – 41.4 Total 3,533.3 296.5 775.9 4,605.7

uK Public BBc World service service and Broadcasting BBc commercial Group Monitoring businesses total £m £m £m £m 2008 licence fee income 3,368.8 – – 3,368.8 Government grants 4.0 279.6 – 283.6 commercial – – 719.6 719.6 other 37.5 5.3 – 42.8 total 3,410.3 284.9 719.6 4,414.8

2 Total operating expenditure, including UK Public Services Broadcasting Group expenditure by service UK Public Service Broadcasting Group’s activities are funded by the licence fee. The Charter and Agreement between the BBC and Department for Culture, Media and Sport (DCMS) describes the BBC’s UK public services (including television, radio and online services) and also sets certain obligations on the BBC in relation to digital switchover; both activities are funded by the licence fee. However, part of the licence fee income has been specified as being for the purpose of digital switchover and as a result the total UK Public Service Broadcasting Group expenditure is shown below allocated between these categories. 2009 2008 £m £m Expenditure on licence fee funded activities uK public services 3,345.6 3,487.1 digital switchover (Digital UK Limited) 26.0 21.2 digital switchover (DSHS Limited) 24.4 5.9 Total UK Public Service Broadcasting Group 3,396.0 3,514.2 BBC World Service and BBC Monitoring 296.9 285.3 Commercial Businesses 799.1 675.6 Non-cash pension scheme operating costs (0.3) 1.9 4,491.7 4,477.0

Service licences are used by the BBC Trust to regulate the BBC’s services and ensure that each service provides public value and contributes to the delivery of the BBC’s public purposes. The annual assessment of performance compares actual costs for content against an agreed and authorised baseline budget. These costs may vary by up to 10% of the baseline budget to permit management flexibility in its commissioning decisions. During the year there were 28 service licences in operation, including the BBC ALBA licence which launched in September 2008. 118 Service licences show the cost to the licence fee payer of providing the relevant service and therefore exclude any costs funded by a third party co-producer. A number of television programmes are broadcast on more than one channel and in general the full cost of the programme is recognised as a cost of the channel of first transmission. Where a programme is commissioned by two channels, the cost of the programme is recognised as a cost of the primary channel irrespective of which transmits the programme first. Accordingly, the costs of individual service licences are not necessarily equivalent to the costs which would be incurred by such services on a stand-alone basis. For BBC HD, BBC Online and BBC Red Button, the licence reflects only the incremental costs of getting content to air unless the teme n ts /

a content is specifically commissioned for one of these three services.T he cost of the original content is allocated to the service on Financial st which it is first transmitted. Group Group expenditure Total uK Public Services Broadcasting expenditure ring-fenced switchover digital limited uK digital Total uK public services expenditure services Total public uK costs restructuring exceptional other digital text text digital radio dAB digital development spend spend development jam BBc s4c orchestras and performing groups groups performing and orchestras costs collection fee licence Spend regulated by service by service regulated Spend online 6Music BBc 1Xtra BBc extra sports 5live radio BBc 5live radio BBc 4 radio BBc 3 radio BBc 2 radio BBc BBc online online BBc radio Foyle radio ulster/BBc radio BBc cymru radio BBc Wales radio BBc Gàidheal nan radio BBc scotland radio BBc radio local BBc network Asian BBc 7 BBc 1 radio BBc Television Notes: channel news BBc AlBA BBc hd BBc cBeebies cBBc Four BBc three BBc twoBBc one BBc U expendi 2 To months of theyear whereas thebaseline budget wasseton annual basis. BBC for six wasonly operational ALBA’s contentcostswere underbaselinebudget level by astheservice more thanthe10%tolerance BBC HD’s content costswere underthe baseline budget duetosignificant savings costs. by morethan the10%tolerance incontractual Button red BBc Parliament BBc K public services

al opera

t ure byure s t

in ervice g expendi

continued t ure, includin

1,856.1 2,431.2 1,142.0 2,511.2 2,511.2 content g 450.6 450.6 108.6 108.6 462.9 462.9 112.2 112.2 56.5 56.5 80.0 80.0 40.0 40.0 25.0 25.0 54.8 54.8 35.8 35.8 30.9 30.9 85.9 85.9 40.1 40.1 16.3 14.5 13.5 12.0 33.1 12.9 87.3 21.5 27.6 47.9

6.5 6.5 6.8 6.8 2.8 2.8 2.6 2.6 5.2 5.2 3.0 3.0 4.0 4.0 U 2.1 9.2 £m – – – – – – – K

P ublic Service distribution distribution 182.6 123.6 199.8 199.8 40.5 40.5 18.5 18.5 18.5 18.5 10.3 10.3 34.1 12.3 47.9 17.2 0.5 0.5 0.5 0.5 3.5 3.5 3.5 3.5 6.3 6.3 6.6 6.6 8.3 8.3 3.8 3.8 0.3 0.3 0.8 0.8 3.0 3.0 4.2 4.2 6.9 6.9 2.7 2.7 5.7 5.7 0.9 0.9 2.4 2.4 0.4 0.4 3.4 1.3 1.0 5.1 4.1 £m 1.1 – – – – – – – –

infrastructure/ infrastructure/ support support 500.8 500.8 500.8 500.8 202.9 202.9 356.1 487.1 46.5 46.5 46.5 46.5 84.5 84.5 85.0 85.0 10.8 10.8 10.0 10.0 23.1 13.6 18.1 13.7 14.4 6.5 6.5 6.8 6.8 2.8 2.8 2.3 2.3 0.8 0.8 0.8 0.8 2.3 2.3 5.2 5.2 3.6 3.6 0.6 0.6 4.3 4.3 6.4 6.4 5.7 5.7 2.4 2.4 4.9 4.9 2.1 2.1 1.3 1.7 1.9 7.0 £m s – – – – – – –

BROADCA 184.2 184.2 122.8 122.8 133.8 other 26.0 26.0 items 24.4 11.0 £m – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – ST IN 2,335.8 3,345.6 1,392.8 3,396.0 3,100.9 108.6 122.8 233.7 133.0 569.7 587.9 177.2 177.2 114.6 G G Total 32.3 32.5 72.2 25.5 24.4 50.0 26.0 43.0 10.3 50.7 18.4 25.1 16.2 30.1 36.1 15.4 12.1 61.0 2009 71.4 51.1 11.0 4.4 6.7 6.9 5.7 3.7 6.9 9.6 9.6 9.0 £m – ROUP

2,355.3 3,514.2 3,135.7 3,487.1 1,418.2 105.5 233.8 136.5 125.2 182.0 182.0 123.2 598.4 567.9 1.6 117. 38.5 64.8 72.3 23.3 20.2 58.0 48.7 36.7 32.7 16.8 13.0 2008 43.1 37.3 49.4 21.2 19.3 51.3 17.5 total 3.0 3.3 5.8 6.7 8.7 6.9 5.9 9.3 9.6 7.5 7.3 £m –

119 Financial STATEMENTS/ Financial statements/ Notes to the summary financial statement/

3 Surplus/(deficit) before taxation and minority interest 2009 2008 Note £m £m Operating surplus/(deficit) before interest, taxation and non-cash pension costs uK Public Service Broadcasting Group 147.3 (108.0) BBC World Service and BBC Monitoring (0.6) 0.5 commercial Businesses 31.1 104.7 177.8 (2.8) Net interest payable (17.2) (4.6) Defined benefit pension scheme 117.6 146.9 Surplus before taxation and minority interest 278.2 139.5

Further analysis of the Commercial Businesses contribution to operating surplus/(deficit) Individual statutory financial statements Group adjustments 2009 2008 Surplus/(deficit) Surplus/ Surplus/ before group recognition (deficit) (deficit) adjustments, of derivative ther before before interest and financial group interest and interest and taxation instruments adjustments taxation taxation £m £m £m £m £m BBC Worldwide Limited 85.7 (20.8) 1.3 66.2 116 .1 BBC World News Limited (3.2) (13.2) – (16.4) (7.8) BBC Studios and Post Production Limited (18.3) – – (18.3) (3.2) Holding companies (0.6) – 0.2 (0.4) (0.4) Total 63.6 (34.0) 1.5 31.1 104.7

The Group’s subsidiaries have not adopted FRS26 (IAS39) ‘Financial instruments: Recognition and Measurement’ in their own financial statements as they are not within its scope. As a result the recognition of derivative financial instruments in the Group financial statements impacts on the surplus/(deficit) before interest and taxation reported for the Commercial Businesses segment. The Financial Review includes further discussion of the performance of the commercial businesses and how the current economic conditions have impacted on their contribution to the Group operating position for the year.

4 UK Public Services ring-fenced expenditure DCMS has ring-fenced the following amounts within the new Charter and six-year licence fee settlement (2008 to 2013): Amount spent in Amount Amount six-year previous spent in spent in cumulative ring-fenced years 2008 2009 total funding £m £m £m £m £m digital switchover help for the elderly and disabled* – 5.9 23.6 29.5 603.0 digital uK limited** 10.1 17.5 20.4 48.0 201.0

* the secretary of state has agreed with the BBc that the £603million estimated cost of the digital switchover help scheme (operated by dshs limited) will be ring-fenced and set aside from the licence fee for the purpose of funding the scheme over the six-year life of the licence fee settlement. this agreement specifies that in the event that the costs of the project exceed this limit due to higher than anticipated demand, this will not be at the expense of the BBc’s programmes, services or other resources. ** the Framework Agreement states that the BBc is committed to leading certain aspects of the digital switchover programme, through digital uK, and the licence fee settlement includes a ring-fenced amount of up to £201million from the inception of digital uK until the end of the six-year life of the licence fee settlement for communication activities. the ring-fenced amount is only part of the BBc’s annual contribution to digital uK. As at 31 March 2009, the BBC is on target to remain within the ring-fenced amounts at the end of the six-year period. The BBC’s ring-fenced expenditure on Digital UK Limited covers a proportion of the costs of Digital UK Limited, other broadcasters 120 also contribute. The expenditure reported in Note 2 is the total expenditure of Digital UK Limited for the year.

teme n ts / a Financial st was incompliancewitheachofthesecovenants. defined whicharerequiredtobemetat31Marcheach year. Asat31March2009and2008BBCommercialHoldings Limited limitfor a£350millionborrowing BBCommercialHoldingsLimitedinJuly 2002,When theDCMSgranted three financial covenants were * £25million may only be used in respect of borrowing to fund current expenditure on meeting the responsibilities placed on the BBc by any scheme agreed under clause 39 2009 leases. Net funds/(debt)ismadeupoftheBBC’s cashathandandinbank, amountsoutstandingonfinance lessany includingprincipal borrowings ceilings. borrowing the BBCandDCMS. As at31March2009, 31March2008, andthroughoutbothfinancial years, theBBCwasincompliancewith T Spor 5 R Borrowing ceiling ceiling Borrowing funds/(debt) net 2008 ceiling Borrowing funds/(debt) net he Public of the Framework helpschemes),of theFramework Agreement (targeted by theBBcfor including costsincurred thescheme’s overheads andfinancingcosts. econcilia

D t ( erivatives associated with loans (interest rate swaps, caps and collars) are also included at fair value. DCM S ervice borrowing limit of £200million is set by the S) borrowin t ion of ne of ion t fund g ceilin s /(deb gs t ) t o t S ecretary of he D he epar S tate in accordance with the Framework Agreement between t men

(200.0) (200.0) 16.7 (200.0) 46.4 for C t for £m current expenditure c Public services ul t a ure, M ure, pital or d switchover

help scheme e edia and and edia switchover xpenditure on digital current (25.0) (25.0) (25.0) (25.0) i gital £m – –

commercial commercial Businesses (350.0) (208.8) (350.0) (149.9) £m

121 Financial STATEMENTS/ Financial statements/ Notes to the summary financial statement/

6 Pension Scheme (liability)/asset included in the balance sheet The BBC operates defined benefit pension schemes, as well as some defined contribution schemes.T he majority of staff are members of the defined benefit schemes, which provides benefits based on final, or career average, pensionable pay. In accordance with FRS 17, the BBC recognises the net pension (liability)/asset in its balance sheet as the difference between the fair (or market) value of the assets and the actuarial valuation of the scheme liabilities. FRS 17 specifies that the discount rate for valuing the liabilities should be based on a high-quality bond of equivalent term to the scheme liabilities; this is different from the method used to select the discount rate for a formal actuarial valuation and as a result the FRS 17 net pension (liability)/asset would not be expected to be the same as the actuarial surplus/(deficit) measured at the same date. BBc BBc Pension unfunded Pension unfunded scheme scheme Total scheme scheme total 2009 2009 2009 2008 2008 2008 £m £m £m £m £m £m Fair value of scheme assets 6,454.0 – 6,454.0 8,042.0 – 8,042.0 Actuarial value of scheme liabilities (6,592.6) (4.7) (6,597.3) (7,513.6) (5.1) (7,518.7) closing net pension (liability)/asset (138.6) (4.7) (143.3) 528.4 (5.1) 523.3

The calculation of the scheme assets and liabilities, for FRS 17 purposes, requires a number of assumptions, both financial and demographic, to be made. The principal assumptions made by the actuaries at the balance sheet date were: 2009 2008 2007 % % % Principal financial assumptions FrS 17 valuation rate of increase in salaries 4.4** 5.6* 5.0 rate of increase in pension payments: old Benefits 3.0 3.6 3.1 new Benefits 2.7 3.4 2.9 career Average Benefits 2.4 2.5 2.4 inflation assumption 2.9 3.6 3.1 discount rate 7.2 6.9 5.4

* this is the assumption from 1 April 2010. the assumption to 31 March 2010 is 4.6% per annum. ** this is the assumption from 1 April 2011. the assumption to 31 March 2011 is 3.9% per annum. The average life expectancy assumptions, for members after retirement at 60 years of age, are as follows: 2009 2008 2007 number number number of years of years of years Principal demographic assumptions retiring today Male 26.9 26.6 23.5 Female 29.6 29.1 25.7 retiring in 20 years Male 28.9 28.1 24.5 Female 31.7 30.7 26.8

The longevity assumptions have been selected to reflect the characteristics and experience of the membership of the scheme.T his has been done by adjusting standard mortality tables (PMAC07MC+0.5 and PFAC07MC+1) which reflect recent research into mortality experience in the UK. The demographic assumptions have been updated from those used for the actuarial valuations of the scheme as at 1 April 2007 to reflect the likely assumptions which will be used for the actuarial valuation of the scheme as at 1 April 2010. 122

teme n ts / a Financial st Employee benefits Goodwill adjustments Lease reclassification UK accountingstandards Net assets as reported under have reducedby £198millionto£1,322million). £183million to £807million (2008: nethad assetsadopted would IFRS its net assets wouldAs be at reduced 31 March by 2009 the BBC calculated that if statements. it adopting IFRS would have had on theand financial has presented a summary of the impactadoption that of IFRS would have on the theGroup BBC accounts has continued to review the and impactwith theBBC’sAgreement. Charter Nevertheless, that However, reporting under IFRS Standards(IFRS)from1 would 2005.April Reporting be inconsistent accordance with EU-adopted International prepared itsconsolidatedfinancialstatementsin Financial continued to report in this way, market.the BBC would Following have changes in companythose law, of UK companiesif it had quoted on an EUstatements regulated were prepared on a basis consistentAuthority Listing with Rules to ensure thatthe its Companies financial Act 1985 and the Financialto follow theaccountinganddisclosureprovisions of Services Although notmandatory, until2005theBBCchose (UKGAAP). Principles accordance withUKGenerally Accepted Accounting BBC to prepare its audited statement Theof accountsBBC’s Charterin and Agreement requires the rEconciliaTion inTErnaTional Financial rEporTing STandardS

reported underIFRS reported Net assetsastheywould be Other tax Deferred

(189.7) 990.1 807.3 (16.5) 21.7 2009 0.5 1.2 £m

1,519.2 1,321.7 (196.5) (16.5) 10.9 2008 4.3 0.3 £m at accounting policies) are available onpolicies the BBC’s (such website as the date of transitionsignificant to the IFRS assumptions made in implementingadjustments, those including the IFRS accountinghad been policiesadopted, and along with further standardsdetails of and the what would have been resultsreported if and IFRS financial position under A moredetailedreconciliationbetweenUK theBBC’s accounting Lease reclassification UK accountingstandards Surplus as reported under of £81million). would have been reduced by £21millionsurplus to aof surplus £268million (2008: the surplusfor the for year the wouldyear be increased by calculated£14million thatto a if it had adopted IFRSFor the the surplus year ended 31 March 2009 the BBC July 2006. is basedonUKaccountingstandardseffective in GAAP). The Agreement definitioncompared of borrowings with net funds of £17million underIFRSwouldborrowings have under been£761million, UK £46million under UK GAAP (2008: Publicbeen £798million,Service compared with netPublic funds Serviceof borrowings under IFRS would by referenceis determined toUKGAAPnotIFRS. have the Agreement between the BBC and DCMSis set and by the Secretary of State in accordanceThe Public with Service Borrowing ceiling of £200million ceiling.the DCMSborrowing Public Service Broadcasting borrowings leases,as defined wouldby have an effect leasesasfinance on operating reclassification ofcertain the calculation of Some of the IFRS accounting changes, principally the

reported underIFRS reported asitwould be Surplus Other Goodwill adjustments www.bbc .co.uk/annualreport

268.0 253.7 2009 2.8 4.6 6.9 £m

101.7 (20.7) 81.2 2008 (0.1)

0.3 £m 123 Financial STATEMENTS/ Contact us/

If you wish to find out more about the BBC’s year – including full financial statements and each service’s performance against its Statement of Programme Policy – then please visit www.bbc.co.uk/annualreport This report is also available in Welsh and in audio version. If you want to know more about how the BBC is run then please visit www.bbc.co.uk/info BBC Information is our audience’s virtual front door to the BBC. If you have a question, comment, complaint or suggestion about BBC programmes and services, then please write to us here: BBC Information PO Box 1922 Glasgow G2 3WT Telephone: 03700 100 222* (Lines are open 24 hours a day, seven days a week. Calls may be monitored or recorded for training purposes.) Textphone: 03700 100 212* Fax: 0141 307 5770 Website: www.bbc.co.uk/feedback Last year we had over 1.6 million contacts from the general public.

* 0370 numbers are called ‘UK wide’ and cost no more than calls to 01 or 02 geographic numbers.

124

Financial statements/ Journalist and broadcaster Martha Kearney Camera operator Matt Donald focuses on It takes patience, strong nerves and stronger fronting The World at One on Radio 4. getting the best shot, in Television Centre’s knots to make memorable natural history Studio 7. programmes like Human Planet. The BBC crew are shown here observing barnacle fisherman in Galicia, Spain.

Radio presenter Trevor Nelson during a lighter The Record Review’s Alicia McCarthy runs through moment on his 1Xtra Breakfast show. some last minute events before a live broadcast on BBC Parliament.

Director David Taviner and his colleagues Declan Curry catches up on the latest record an episode of Songs of Praise on information from colleague Zoe location from the OB van. Kleinman on the Working Lunch set.

Paper Printed on Cocoon Offset which OTher InFOrmaTIOn/ is made from 100% recycled fibres Photography The copyright for the image on page 19 of a mixtec-aztec turquoise sourced only from post consumer mosaic mask belongs to The British museum. waste. Cocoon Offset is certified according to the rules for the The following images have been licensed to the BBC under the PaCT agreement. Forest Stewardship Council. The independent production companies named as Copyright holders are: page 24-25 Baroque (ZCZ Films); page 26-27 In the Night Garden (ragdoll Productions); page P32 Outnumbered (hat Trick); page 34 Natural World (Tigress Productions); page 35 Being Human (Touchpaper Television); page 36 Science and Islam (Southern Star Factual); page 37 Dustbin Baby (Kindle entertainment); page 38 Poetry Pie (Triffic Films); page 39 Wallander (Left Bank Pictures); page 40 A Rèir na h-Aimsir (madmac Productions); page 40 aLBa Challenge Cup (mneTV) and Britain from Above (Lion TV). The copyright for all other photographs in this book lies with the BBC. mike abrahams took the pictures on the cover and the inside front cover and on

Cert no. TT-COC 002228 pages 9, 10, 15, 20-23, 28, 31, 46, 61, 64, 70, 78, 80, 84-96, 104-106; the picture on page 2-3 was taken by alistair rickman; the pictures on pages 42-45, 49, 61-63, 79, 98-103 (except for those of BBC Controllers and Directors, by mike abrahams) were taken by nick Dawe for red Bee media; the picture of Director, Cymru Wales on page 43 was taken by Betina Skovbro. Design luminous.co.uk Print royle Print. The printing inks are made with non-hazardous vegetable oil from renewable sources. Over 90% of solvents and developers are recycled for further use and recycling initiatives are in place for all other waste associated with this production. royle Print is FSC and ISO 14001 certified with strict procedures in place to safeguard the environment through all processes. British Broadcasting Corporation Broadcasting House London W1A 1AA bbc.co.uk © BBC 2009