ON SCREEN AND ON AIR TALENT

AN ASSESSMENT OF THE BBC’S APPROACH AND IMPACT

A REPORT FOR THE BBC TRUST

APPENDIX XII – CHARTS FOR REPORT

Redacted Version

BY OLIVER & OHLBAUM ASSOCIATES

APRIL 22nd 2008 ON SCREEN AND ON AIR TALENT

™ SECTION A – INTRODUCTION AND SCENE SETTING

™ SECTION B - THE ECONOMICS OF ON SCREEN AND ON AIR TALENT

™ SECTION C - THE UK MARKET FOR ON SCREEN AND ON AIR TALENT

™ SECTION D - THE ROLE, POSITIONING AND PERFORMANCE OF THE BBC

™ SECTION E - ASSESSMENT OF MARKET IMPACT AND VALUE FOR MONEY FIGURE A.1. – O&O METHODOLOGIES EMPLOYED

PROCESS DETAILS

ƒ 20 INTERVIEWS BBC INTERVIEWS ƒ 50 PEOPLE

ƒ 27 INTERVIEWS EXTERNAL INTERVIEWS ƒ 35 PEOPLE

ƒ INCOME POLARISATION TRENDS MACRO ECONOMIC TRENDS ƒ TOP TALENT IN OTHER ENTERTAINMENT INDUSTRIES ƒ IMPACT OF GLOBALISATION AND DIGITISATION

ƒ 2,000 ADULTS VALUE SURVEY ƒ 136 STAR NAMES, 14 GENRES TESTED

ƒ TRACKING TV CAREER PATHS OF CURRENT ROSTER OVER 20 YEARS TALENT TRACKING ƒ 170 INDIVIDUALS ACROSS 6 SUB-GENRES

ƒ SPENDING BY MEDIA AND GENRE SINCE 2004/2005 BBC SPENDING TRENDS ƒ TALENT SPENDING FOR 400 STRANDS ƒ TALENT INFLATION RATES SINCE 2000/2001

ƒ ANALYSIS OF PAYMENTS APPROVAL DOCUMENTATION BBC PROCESSES AND STRATEGY DOCUMENTS ƒ REVIEW OF PROPOSAL, REVIEW AND APPROVAL PROCEDURES

ƒ RADIO BENCHMARKING EXERCISE MARKET PRICE AND INFLATION BENCHMARKING ƒ INTERVIEWS ON COMMERCIAL TV VALUATION METHODS

ƒ DEVELOPMENT OF COMMERCIAL VALUATION MODEL FOR TOP TALENT COMMERCIAL VALUATION MODELLING ƒ BASED ON INCREMENTAL ADVERTISING REVENUE

ƒ ASSESSMENT OF GENRE, SLOT AND SUB-GENRE COST PER VIEWER AND SPEND VERSUS AUDIENCE ANALYSIS LISTNER HOUR BENCHMARKS

ƒ ATTEMPT TO ISOLATE THE LINK BETWEEN TYPE AND LEVEL OF TALENT WITH REGRESSION ANALYSIS AUDIENCES BASED ON RATINGS DATA ON SCREEN AND ON AIR TALENT

™ SECTION A – INTRODUCTION AND SCENE SETTING

™ SECTION B - THE ECONOMICS OF ON SCREEN AND ON AIR TALENT

™ SECTION C - THE UK MARKET FOR ON SCREEN AND ON AIR TALENT

™ SECTION D - THE ROLE, POSITIONING AND PERFORMANCE OF THE BBC

™ SECTION E - ASSESSMENT OF MARKET IMPACT AND VALUE FOR MONEY FIGURE B.1. – EXAMPLE PROGRAMME CHARACTERISTICS BY GENRE

DESIGN/ ACCESS TO KEY LEAD TALENT/ RELEVANCE RELATIONSHIPS/ EXECUTION PARTICIPATION NARRATIVE CHARACTERISATION EVENT/ MATERIAL SUPPORT TALENT

• PACE • LEAD ACTORS • LOCATION • SYMPATHETIC • SET DESIGN DRAMA • SCRIPT • SUPPORT • SITUATION • BELIEVABLE • EDITING ACTORS • LIGHTING

• TEAMS • NUMBER OF SPORTS INCLUDED CAMERAS • HOST • KEY LIVE EVENT EVENT • CONTESTANTS • ANALYSIS • PUNDIT INVOLVED • DIRECTION

• HUMOUR CHAT • ISSUES DEALT • GUEST • QUALITY OF • SUPPORT MUSIC • LEVEL OF • HOST SHOW INSIGHT/ WITH INTERPLAY ACCESS • SET DESIGN REVELATION • SUBJECT • LEVEL OF • FORMAT • SET DESIGN MATTER • EMPATHY WITH DIFFICULTY QUIZ SHOW • UNCERTAINTY • PRIZE MONEY • ACCURACY • HOST • LEVEL OF CONTESTANTS • VOTING AND OF OUTCOME DIFFICULTY • TEMPO POLLING

• ACTORS TV • EMPATHY • DIRECTION • SCRIPT • SITUATION • SUPPORT COMEDY • INTERPLAY • PACE AND TIMING ACTORS

RADIO CHART • MUSIC POLICY • DJ SHOW

• SCRIPT • FAMILIARITY • UNIQUE LANDMARK FOOTAGE • NARRATIVE • CONTEMPORARY • PRESENTER FACTUAL POSITION/ AREA OF • UNIQUE POLEMIC INTEREST INFORMATION FIGURE B.2. – TALENT AS AN AUDIENCE AND VALUE DRIVER

PROGRAMME CHARACTERISTICS POSITIONING “ASSET” IMPACT ON VIEWERS/CONSUMERS

GENRE TALENT

DESIGN/NARRATIVE/ FORMAT

RELEVANCE PROGRAMME CHARACTERISTICS VIEWER VALUE RELATIONSHIPS/ CHARACTERISATION

ACCESS

AUDIENCE SIZE EXECUTION

PARTICIPATION TIMESLOT

AUDIENCE DEMOGRAPHICS CHANNEL BRAND AND DEMOGRAPHICS

INHERITANCE/ PROMOTION FIGURE B.3. – IMPORTANCE OF TALENT BY PROGRAMME TYPE

IMPORTANCE OF PRESENTER & SUPPORTING TALENT OR GUESTS: MEAN AND STANDARD DEVIATIONS- SELECTED PROGRAMME TYPES IMPORTANCE SCORE 100

MAIN REASON

90

80 VERY IMPORTANT

70 PLUS ONE STANDARD DEVIATION 60

QUITE IMPORTANT 50

MEAN 40

NOT IMPORTANT 30

MINUS ONE 20 STANDARD DEVIATION

10 GUEST ACTOR RADIO DJ PRESENTER PRESENTER PRESENTER SHOW HOST SHOW GUEST RADIO GUEST NEWSREADER QUIZ PRESENTER QUIZ MUSIC & SPEECH MUSIC & SPEECH SATURDAY NIGHT SATURDAY NIGHT CHART RADIO DJCHART SERIOUS FACTUAL SPORTS TV PUNDIT CHAT SHOW HOST CHAT SHOWCHAT GUEST PANEL GAME GUEST DRAMA SUPPORTING SPORTS TV PRESENTER DRAMA LEAD ACTOR LEAD DRAMA NEWS & SPORT RADIO NEWS & SPORT RADIO CHART RADIO GUESTSCHART COOKERY SHOW COOKERY SHOW CHEF LIFESTYLE & MAKEOVER & LIFESTYLE PANEL GAME PRESENTER SOURCE: O&O VALUE SURVEY, JANUARY 2008 FIGURE B.4. – IMPORTANCE OF LEAD TALENT WITHIN ENTERTAINMENT GENRE

IMPORTANCE OF PRESENTER/HOST (SATURDAY NIGHT ENTERTAINMENT, CHAT SHOWS, QUIZ SHOWS, PANEL GAMES)

NUMBER OF RESPONDENTS 140 NOT IMPORTANT QUITE IMPORTANT VERY IMPORTANT MAIN REASON

120

100

80

60 CHAT SHOWS

40 SATURDAY NIGHT ENTERTAINMENT

PANEL GAMES 20 QUIZ SHOWS

0 1-5 6-10 11-15 16-20 21-25 26-30 31-35 36-40 41-45 46-50 51-55 56-60 61-65 66-70 71-75 76-80 81-85 86-90 91-95 96-100

INTERVALS OF IMPORTANCE SCORES

SOURCE: O&O VALUE SURVEY, JANUARY 2008 FIGURE B.5. – PROPORTION OF RESPONDENTS GIVING HIGH POPULARITY/LIKEABILITY SCORINGS TO NAMED TALENT

PROPORTION OF SCORES OVER 75 - INDEXED TO TOP PROPORTION (SATURDAY NIGHT ENTERTAINMENT, CHAT SHOWS, QUIZ SHOWS, PANEL GAMES) POPULARITY SCORE INDEX (100=TOP SCORE ACROSS ALL 136 NAMES) 100 5TH RANKED 8TH RANKED PRESENTER PRESENTER

90

80

70

60

50

40

SATURDAY NIGHT ENTERTAINMENT 30 QUIZ SHOWS

PANEL GAMES 20 CHAT SHOWS

10

1ST 2ND 3RD 4TH 5TH 6TH 7TH 8TH 9TH 10TH 11TH RANKING OF NAMED PRESENTERS/HOSTS BY SUB-GENRE

SOURCE: O&O VALUE SURVEY, JANUARY 2008 FIGURE B.6. – TIERS OF TALENT WITHIN GENRE AND SUB-GENRE

EXAMPLE TIERS WITHIN SUB-GENRE GENRE SUB-GENRE TIER 1 TIER 2 TIER 3 DRAMA SERIES ƒ SUPPORTING ACTORS IN SERIES AND ƒ LEAD ACTORS IN DRAMA SERIES AND ƒ WALK ON PARTS SOAPS SERIALS SERIALS ƒ MINOR PARTS DRAMA/COMEDY ƒ LEAD ACTORS IN “SOAPS” SITCOMS ƒ LEAD COMIC PERFORMERS ƒ NEW COMIC PERFORMERS OTHER COMEDY ƒ SUPPORT COMIC PERFORMERS

QUIZ ƒ LEAD PANELISTS PANEL ƒ HOSTS/PRESENTERS ON MAJOR ƒ ƒ OTHER PANELISTS ENTERTAINMENT CELEBRITY PARTICIPANT CHAT NETWORKS ƒ LEAD MUSIC GUESTS ƒ MINOR CONTRIBUTORS ƒ HOSTS/PRESENTERS ON MINOR CHANNELS ENT SHOWS LANDMARK FACTUAL ƒ SUPPORT PRESENTERS FACTUAL/ FACTUAL ENT ƒ SERIES “AUTHORS” ƒ LEAD PRESENTERS ON MINOR ƒ EXPERT CONTRIBUTORS KNOWLEDGE LIFESTYLE/ MAKEOVER ƒ HOUSEHOLD NAME PRESENTERS SERIES/DIGITAL CHANNELS ƒ INTERVIEWEES TV COOKERY ƒ NARRATORS/ VOICE OVERS DRAMA ƒ LEAD PRESENTERS IN MAIN MAGAZINE ƒ SUPPORT PRESENTERS ON MAIN CHILDREN’S ƒ OTHER CONTRIBUTORS FACTUAL/ STRANDS STRANDS MAGAZINE

MAGAZINE ƒ HOSTS/PRESENTERS FOR MAJOR ƒ OCCASIONAL PUNDITS, MAJOR HIGHLIGHTS SPORTS SPORTS ƒ MINOR PRESENTERS/PUNDITS ON SPORT MAJOR LIVE EVENT ƒ LEAD REGULAR PUNDITS FOR MAJOR ƒ PRESENTERS AND PUNDITS, MINOR MINOR SPORTS MINOR LIVE EVENT SPORTS SPORTS MAIN BULLETIN ƒ LEAD NEWS PRESENTERS ƒ CORRESPONDENTS NEWS CONTINUOUS NEWS ƒ JUNIOR CORRESPONDENTS ƒ LEAD ON-SCREEN EDITORS ƒ MINOR EDITORS CURRENT AFFAIRS RADIO 1 ƒ BREAKFAST DJs ƒ OTHER DAYTIME DJs ON MAIN ƒ NIGHTIME DJs ON MAIN NETWORKS MUSIC LED RADIO 2 ƒ DRIVE TIME DJs ON MAIN NETWORKS NETWORKS ƒ MUSIC LED DJs ON LOCAL RADIO RADIO 3 RADIO 1 ƒ LEAD NAMES IN REGULAR WEEKLY ƒ LOCAL RADIO DJs MUSIC/SPEECH RADIO 2 ƒ SUPPORT PRESENTER STRANDS ƒ NETWORK CONTRIBUTORS RADIO 3

RADIO DRAMA ƒ LEAD ACTORS IN DRAMA OR COMEDY DRAMA/COMEDY COMEDY ƒ LEAD COMEDIANS IN PANEL GAMES RADIO ƒ SUPPORT ACTORS PANEL GAME ƒ SUPPORT COMEDIANS IN PANEL GAMES REGULAR DAILY/ ƒ PRESENTERS ON SPECIALIST WEEKEND WEEKLY ƒ LEAD PRESENTERS ON NETWORK OR EVENING SHOWS SPEECH/MAGAZINE ƒ OTHER CONTRIBUTORS SPECIALIST/ DAILY/WEEKLY STRANDS ƒ LEAD PRESENTERS ON REGIONAL EVENING LOCAL RADIO FIGURE B.7. – TALENT LIFECYCLE PERFORMANCE AND FEES

FEE RATE/ VIEWER VALUE CAREER PEAK

REINVIGORATION

VALUE TO VIEWERS

CAREER LAUNCH

FEE RATE CAREER SLUMP/”REST” PAID

TIME

SOURCE: O&O INTERVIEWS FIGURE B.8. - BBC VALUE AND PRICE SETTING – 3 examples

EXAMPLE A EXAMPLE B EXAMPLE C

VALUE INDEX 140 BBC PRICE = 105 BBC PRICE = 115 BBC PRICE = 95 (FOR REPLACEMENT PRESENTER)

120 120 120 120 120

110 110

100 100

90 90

80 80 80

60 60

40

20

OPPORTUNITY VALUE TO BBC VALUE TO VALUE OF OPPORTUNITY VALUE TO BBC VALUE TO VALUE OF OPPORTUNITY VALUE TO BBC VALUE TO VALUE OF COST TO RIVAL BBC REPLACMENT COST TO RIVAL BBC REPLACMENT COST TO RIVAL BBC REPLACMENT TALENT BROADCASTER PRESENTER TO BBC TALENT BROADCASTER PRESENTER TO BBC TALENT BROADCASTER PRESENTER TO BBC (WITH OPPORTUNITY COST OF 90) ON SCREEN AND ON AIR TALENT

™ SECTION A – INTRODUCTION AND SCENE SETTING

™ SECTION B - THE ECONOMICS OF ON SCREEN AND ON AIR TALENT

™ SECTION C - THE UK MARKET FOR ON SCREEN AND ON AIR TALENT

™ SECTION D - THE ROLE, POSITIONING AND PERFORMANCE OF THE BBC

™ SECTION E - ASSESSMENT OF MARKET IMPACT AND VALUE FOR MONEY FIGURE C.1. – THE UK ON SCREEN AND ON AIR TALENT MARKET – estimated value 2006/2007

ESTIMATED UK ON-SCREEN AND ON-AIR TALENT SPENDING-2006/2007 £M 4000

3500 £3,385M

RADIO PRODUCTION 345

3000 REGIONAL OUTPUT 340 PRODUCTION NEWS 310 2500 PRODUCTION

INDEPENDENT 2000 PRODUCERS 1050

1500 £2,390M NETWORK TV OTHER (FREMANTLE, IN- PRODUCTION 220 HOUSE SATELLITE TV (INC SPORT & ETC) 1000 MUSIC) £172M £757M 450 ITV £584M 500 RADIO 100 50 REGIONAL 46 NEWS 620 BBC TV IN- HOUSE 388 TV

TOTAL PROGRAMME PRODUCTION PRIMARY PAYMENTS TO ON- REPEAT, SECONDARY AND TOTAL INCOME TO ON-SCREEN AND SCREEN AND ON-AIR TALENT ANCILLARY PAYMENTS TO ON- ON-AIR TALENT FROM UK TV AND RADIO SCREEN AND ON-AIR TALENT

SOURCE: BBC, COMPANY ACCOUNTS, O&O ANALYSIS FIGURE C.2. – COMPETITION FOR AUDIENCES OVER TIME – audience share by main channel

UK CHANNEL AUDIENCE SHARES, 1998-2006 AUDIENCE SHARE (%) % SHARE CHANGE 100

12.9 13.9 16.5 90 19.0 19.7 20.6 22.3 23.6 24.7 25.3 OTHER THEMATICS 12.4% 4.3 5.4 80 5.7 10.3 5.8 6.3 10.3 6.5 6.6 0.8 FIVE SPINOFFS 0.8 6.4 10.5 0.7 5.7 1.7% 0.8 5.2 FIVE 70 10.0 1.3 9.8 2.4 9.4 3.2 C4 SPINOFFS 9.6 9.6 0.6 0.9 1.5% 9.6 8.6 C4 60 1.2 2.3 31.7 31.2 3.2 3.9 ITV SPIN-OFFS 29.3 26.8 50 24.1 23.7 22.8 21.5 19.7 -8.6% 19.2 ITV1 40 1.2 1.7 11.3 2.1 10.8 2.5 10.8 11.1 2.9 3.4 11.4 11.0 BBC SPIN-OFFS 30 10.0 9.4 8.8 8.5 BBC 2

20 -6.9% 29.5 28.4 27.2 26.9 26.2 25.6 24.7 23.3 22.8 BBC 1 10 22.0

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 SOURCE: OBS, BARB FIGURE C.3. – COMPETITION FOR AUDIENCES – demographic differentiation

DEMOGRAPHIC POSITIONING OF MAIN NETWORKS AND THEMATIC CHANNELS, 2006 % ABC1 65 YOUNGER - UPMARKET OLDER - UPMARKET

BBC4 60 FEMALE MALE

55

MORE4

50 BBC3

FILM4 E4 SKY 45 ONE BBC2 BBC1

SKY LIVING ITV3 CHANNEL 4 ITV4 40

FIVE ITV2 ITV1

35 FIVE LIFE FIVE US

YOUNGER - DOWNMARKET OLDER - DOWNMARKET 30 30 35 40 45 50 55 60 AVERAGE AGE

SOURCE: BARB, O&O ANALYSIS FIGURE C.4. – COMPETITION FOR AUDIENCES – demographic positioning by genre

DEMOGRAPHIC POSITIONING OF MAIN GENRES – ITV1, C4 AND BBC1

% ABC1 YOUNGER - UPMARKET OLDER - UPMARKET C4 RELIGIOUS ARTS ITV1 53 BBC1 CURRENT ARTS AFFAIRS FEMALE MALE C4 ZONE BBC1 ZONE NEWS WEATHER

HOBBIES DRAMA: & LEISURE SINGLE PLAYS 48 MUSIC DOCUMENTARIES ARTS NEWS/ DRAMA: SPORT WEATHER SINGLE PLAYS MUSIC DRAMA: ENTERTAINMENT SERIES & SERIALS DOCUMENTARIES FILMS: SPORT CINEMA DRAMA: CURRENT 43 SERIES & SERIALS AFFAIRS RELIGIOUS DRAMA: DRAMA: SOAPS FILMS: DOCUMENTARIES SINGLE PLAYS CINEMA

MUSIC RELIGIOUS FILMS: HOBBIES DRAMA: CINEMA DRAMA: 38 & LEISURE SOAPS SERIES & SERIALS CHILDRENS HOBBIES & LEISURE ENTERTAINMENT NEWS/ WEATHER ENTERTAINMENT MAIN BATTLEGROUND CHILDRENS DRAMA: 33 SOAPS FIVE ZONE CURRENT AFFAIRS ITV ZONE

SPORT

YOUNGER - DOWNMARKET OLDER - DOWNMARKET 28 58 48 38 28 18 8 %OF AUDIENCE <35 SOURCE: BARB, O&O ANALYSIS FIGURE C.5. – OVERALL LEVEL AND SCALE OF COMPETITION TO THE BBC FOR TALENT

LEVEL AND SCALE OF DIRECT COMPETITION TO BBC OVERALL ITV C4 FIVE OTHER

TV DRAMA

ENTERTAINMENT

COMEDY

LANDMARK FACTUAL

SPECIALIST FACTUAL

LIFESTYLE/MAKEOVER

CURRENT AFFAIRS

CHILDREN

SPORTS JOURNALISM

DAYTIME/TEATIME TV FIGURE C.6. – COMPETITION FOR AUDIENCES – channel 4 changing programme mix

CHANNEL 4 OUTPUT BY GENRE - 5PM TO 11PM, 2001-2006 %

100 21 CHILDRENS 31 SPORT 15

178 196 194 194 172 244 FILMS 90 33 35 27 31 22 32 38 54 35 55 36 ARTS & RELIGION 52 CURRENT AFFAIRS

80 202 168 275 193 DOCUMENTARIES 526 29.1% 531 29.8% 33.6% 28.6% FACTUAL 70 41.2% 46.1% 251 257 250 NEWS 243 60 88 93 IMPORTED 247 109 266 DRAMA 36 13.0% 33 13.1% 13.1% 30 DRAMA SERIES 152 & ONE-OFFS DRAMA 50 106 105 83 105 SOAPS 17.9% 13 99 10.1% 33 26 150 126 153 89 172 HOBBIES & LEISURE 40 16.7% 217 135 129 245 FACTUAL ENT 30 289 88 261 232 169 94 46.5% 45.8% 45.2% 124 OTHER ENT. ENTERTAINMENT 39.2% 38 36 20 130 28 37.1% 148 112 85 COMEDY 30.7% 135 136 161 10 88 280 258 CHAT/QUIZ 193 192 124 150 32.45 FAMILY SHOWS

2001 2002 2003 2004 2005 2006

SOURCE: BARB, O&O ANALYSIS FIGURE C.7. – COMPETITION FOR AUDIENCES – key demographic battlegrounds - entertainment

DEMOGRAPHIC POSITIONING OF MAIN GENRES – ITV1, C4 AND BBC1 – ENTERTAINMENT AND SUB-GENRES

% ABC1

YOUNGER - UPMARKET OLDER - UPMARKET C4 SITCOM ITV1 UK 55 CHAT SHOWS BBC1 FAMILY INTERVIEWS FEMALE MALE SHOWS

FAMILY QUIZ SHOWS SHOWS PANEL GAMES SPECIAL 50 EVENTS OTHER OTHER COMEDY COMEDY CHAT SHOWS SPECIAL INTERVIEW EVENTS VARIETY

VARIETY 45 ITV1 IN C4 ANIMATION ZONE SPECIAL CARTOONS EVENTS

OTHER SITCOM COMEDY UK ANIMATION CHAT SHOWS 40 PUPPET AUDIENCE PART LOTTERY SHOWS ANIMATION UPDATES ANIMATION CARTOONS FAMILY PUPPET SITCOM SHOWS UK C4 IN ITV1

QUIZ SHOWS ZONE PANEL GAMES 35 CHAT SHOWS VARIETY GENERAL

CHAT SHOWS QUIZ SHOWS ANIMATION GENERAL PANEL GAMES 30 CARTOONS

CHAT SHOWS AUDIENCE PART

YOUNGER - DOWNMARKET OLDER - DOWNMARKET 25 55 45 35 25 15

%<35

SOURCE: BARB, O&O ANALYSIS FIGURE C.8. – UK TV REVENUE GROWTH RATES – all TV versus main network players

UK TELEVISION INDUSTRY REVENUE TRENDS, 1998-2006

£M 12,000 - PAY TV GROWTH -PAY TV GROWTH - PAY TV GROWTH CAGR CAGR 1998-2002 2002-2006 - COMMERCIAL TV GROWTH - COMMERCIAL RECESSION - COMMERCIAL TV STAGNATION

- LICENCE FEE UPLIFT - LICENCE FEE GROWTH

10,000 TOTAL GROSS TV REVENUE 8.0% 4.4% (INC PAY TV)

8,000

6,000

BBC/COMMERCIAL NETWORK REVENUES 4.3% 1.4% (INC SPIN OFF CHANNELS)

4,000

2,000

1998 1999 2000 2001 2002 2003 2004 2005 2006

SOURCE: OFCOM, BBC ANNUAL REPORT, O&O ANALYSIS FIGURE C.9. – UK TV REVENUE GROWTH RATES – BBC versus commercial networks

UK BROADCASTERS, REVENUES, 1998-2006

£M

3,500 - COMMERCIAL BOOM - COMMERCIAL RECESSION - COMMERCIAL NETWORK STAGNATION

- LICENCE FEE UPLIFT - LICENCE FEE GROWTH CAGR CAGR 1998-2006 2002-2006

3,000

ITV, C4 AND FIVE 0.2% 0.2% 2,500 BBC TV LICENCE FEE REVENUE* 4.6% 2.8% ITV PLUS C4 (INCL. SPIN OFFS) -0.5% -0.3%

2,000

1,500

1,000

500

1998 1999 2000 2001 2002 2003 2004 2005 2006 *TV PROPORTION OF LICENCE FEE INCOME AS CALCULATED BY OFCOM SOURCE: OFCOM, BBC ANNUAL REPORT, O&O ANALYSIS FIGURE C.10. – YEAR ON YEAR REVENUE GROWTH RATES – BBC versus commercial TV

UK BROADCASTER REVENUE GROWTH RATES, 1999-2006 ANNUAL GROWTH RATE % 20 - COMMERCIAL BOOM - COMMERCIAL RECESSION - COMMERCIAL NETWORK STAGNATION

- LICENCE FEE UPLIFT - LICENCE FEE GROWTH

15 15%

10

7% 6% 7% 6% 6% 6% 5 5% 5% 4% 4% 4% 3% 3% 2% 1% 1% BBC LICENCE FEE REVENUE

-1% -2% COMMERCIAL NETWORK -3% (INC SPIN-OFFS) ITV, C4 (INC SPIN-OFFS) -5 ADVERTISING REVENUE

-7% -8% -10

-11% -12%

-15 1999 2000 2001 2002 2003 2004 2005 2006 FIGURE C.11. – UK NEW PROGRAMMING SPEND TRENDS – by commissioning outlet

UK SPENDING ON UK TV ORIGINATIONS, 2001-2006 £M

CAGR CAGR 2001-2003 2003-2006

2882 2.3% 0.9% 2826 2803 2798 2795 182 2681 70 OTHER THEMATIC CHANNELS 20.1% 22.9% 98 117 161 68

1397 COMMERCIAL NETWORKS 1337 1394 1322 1419 (INCL. SPIN OFFS AND -1.1% 0.6% 1424 REGIONAL OUTPUT)

BBC NETWORK ORIGINATIONS 1359 1311 1044 1312 1281 (INCL. SPIN OFFS AND 1189 5.0% -0.8% REGIONAL OUTPUT)

2001 2002 2003 2004 2005 2006

SOURCE: OFCOM, O&O ANALYSIS FIGURE C.12. – ITV ENTERTAINMENT TALENT TRACKING – current talent roster

ENTERTAINMENT TALENT VINTAGE: ITV1, 2007 “WHERE WERE THEY BACK THEN?” NUMBER OF MAIN PRESENTERS 25

22 22 22 22 22 1 ON RADIO 2 20 2 THEMATICS 1 VARIOUS 1 CHANNELS 2 FIVE 8 1 (minor roles) 11 2 NOT ON TV 3 15

1 CHANNEL 4

6 22 6 1 10 7

7 BBC

5 9 8 6

3 ITV1

2007 PREVIOUS SHOW 5 YEARS AGO 10 YEARS AGO 20 YEARS AGO

TODAY TIME/CAREER

SOURCE: IMDB, SPOTLIGHT, O&O ANALYSIS FIGURE C.13. – CHANNEL 4 ENTERTAINMENT TALENT TRACKING – current talent roster

ENTERTAINMENT TALENT VINTAGE: CHANNEL 4, 2007 “WHERE WERE THEY BACK THEN?” NUMBER OF MAIN PRESENTERS 9

8 8 8 8 8 8

1

7 2

1 C4 SPIN OFFS

6

5 1 THEMATICS 5 NOT ON TV

5 2

1

4 8

3

1 3

2 4 2 ITV1

1 2

1 CHANNEL 4 1 BBC

2007 PREVIOUS SHOW 5 YEARS AGO 10 YEARS AGO 20 YEARS AGO

TODAY TIME/CAREER

SOURCE: IMDB, SPOTLIGHT, O&O ANALYSIS FIGURE C.14. – CHANNEL 4 COMEDY TALENT TRACKING – Current talent roster

COMEDY TALENT VINTAGE: CHANNEL 4, 2007 “WHERE WERE THEY BACK THEN?”

NUMBER OF ACTORS/ PERFORMERS 16 16 16 16 16 16 1 VARIOUS

14 2 4

12 2 9

3 THEMATICS 10 3 14 NOT ON TV 1 ITV1 8 16 1 1

1 ON RADIO 6 2

3 BBC2 4 7

5 CHANNEL 4 2 3 1

1 BBC1

2007 PREVIOUS SHOW 5 YEARS AGO 10 YEARS AGO 20 YEARS AGO TODAY TIME/CAREER

SOURCE: IMDB, SPOTLIGHT, O&O ANALYSIS FIGURE C.15. – TV BATTLES AND TALENT POACHING – 2004 to 2008

TALENT/CONTENT TIME LINE 2004-2008 RED NODE - MOVEMENT OF TALENT AMBER NODE - CHANNEL LAUNCH GREEN NODE - MOVEMENT OF CONTENT Sky buys series 3 and 4 of 24 Daisy McAndrew Trinny and Susannah move to ITV from BBC joins ITV from BBC Steve Rider leaves BBC for ITV Simon Amstell moves to BBC from C4 Launch of Sky One win rights for UKTV People Eamonn Holmes joins series 3 and 4 of Lost Sky News from GMTV Nicholas Owen switches ITN for BBC News Trisha Goddard leaves ITV for Five Launch of More 4 Gabby Logan quits ITV for BBC MOTD returns to BBC C4 acquires John Suchet joins Five rights to The Simpsons Paul O'Grady Zoe Ball moves to ITV leaves ITV for C4 Launch of Living 2 Ruth Watson moves Tess Daly moves to BBC Des O'Connor joins C4 to C4 from Five Natasha Kaplinsky Graham Norton Launch of CITV channel Five wins rights moves to Five from BBC moves to BBC to Neighbours Launch of Bravo 2 Five to air Neighbours BBC buy terrestrial rights to Heroes Fiona Bruce to host Antiques Roadshow

Nigella Lawson Dermot Murnaghan joins joins BBC Sky News from BBC

David Dickinson joins Richard & Judy to leave C4 Des Lynam joins C4 In June 2008 ITV from BBC Launch of Virgin 1 Nick Robinson Launch of Five US leaves ITV for BBC Launch of Launch of Five Life Alan Titchmarsh starts ITV show UKTV Gardens Five acquires rights to Fireman Sam Launch of ITV3 & ITV4 Graham Norton signs new 3 year contract at BBC ITV extend Who Wants to be Michael Parkinson Jonathan Ross signs a Millionaire? deal to 2009 leaves BBC for ITV 3 year extension with BBC Dermot O'Leary presents X Factor Launch of Launch of BBC HD Kirsty Young to host Crimewatch from 2008 UKTV Documentary

Launch of FX channel BBC talent salaries leak Tim Lovejoy joins BBC OCT-03 JAN-04 APR-04 AUG-04 NOV-04 FEB-05 MAY-05 SEP-05 DEC-05 MAR-06 JUL-06 OCT-06 JAN-07 APR-07 AUG-07 NOV-07 FEB-08 JUN-08 FIGURE C.16. – RADIO MARKET DIFFERENTIATION – market positioning in London – 2006/07

LONDON RADIO STATION COMPETITIVE POSITIONING- (LEADING SERVICES ONLY - LISTENING AMONG 10 TO 65 YEAR OLDS ONLY)

YOUNGER UPMARKET % ABC1 LISTENING OLDER UPMARKET 100% BBC HEARTLAND

BBC RADIO 3 90% KEY BATTLE GROUND CURRENT FEMALE MALE CLASSIC FM COMMERCIAL HEARTLAND BBC RADIO 4 80% BBC RADIO FIVE LIVE YOUNG CAPITAL FM BBC RADIO 1 BBC LONDON 94.9 LBC 97.3 AVERAGE AGE 70% OF LISTENING SMOOTH FM

10 15 20 25 30 40 45 50 55 60 talk SPORT 60%

KISS FM XFM VIRGIN CHOICE FM CAPITAL GOLD 50% HEART MAGIC BBC RADIO 2

40%

SIZE OF CIRCLE = AUDIENCE SHARE 30%

YOUNGER OLDER DOWNMARKET DOWNMARKET 20% LONDON POPULATION AVERAGE

SOURCE: RAJAR, O&O ANALYSIS FIGURE C.17. – COMMERCIAL RADIO REVENUE GROWTH VERSUS BBC RADIO SPENDING GROWTH – 2001 to 2006

UK RADIO REVENUE GROWTH RATES, 2001-2006 ANNUAL GROWTH RATE (%) 20

15 14% 13%

10 9%

COMMERCIAL RADIO 7% 5% 5 4% 4% 3% BBC LOCAL/NATIONAL SPEND 2% 0%

-1% -1% -2% -1% -3% -5

-7% -7% -10

-15 BBC NETWORK SPEND

-16%

-20 2001 2002 2003 2004 2005 2006

SOURCE: BBC ANNUAL REPORTS, OFCOM, O&O ANALYSIS FIGURE C.18. – TV BATTLES AND TALENT POACHING – 2000 to 2008

RADIO TALENT (BREAKFAST AND DRIVETIME) TIME LINE 2000-2008

Virgin Drivetime - Nick Jackson replaces Nick Abbot Virgin Drivetime – Pete & Geoff replace Nick Jackson XFM Drivetime - Richard Bacon Virgin Drivetime - Daryl Denham replaces Lucio replaces Pete & Geoff Smooth Drivetime - Martin Collins Virgin Drivetime – Kelly-Anne Smith joins Smooth replaces Daryl Denham Smooth Bfast - Russell Pockett joins Capital Bfast - Johnny Vaughan replaces Chris Tarrant XFM Bfast - Alex Zane replaces Lauren Laverne Heart Bfast - Jamie Theakston XFM Drivetime - Ian Camfield replaces Jono Coleman replaces Paul Tonkinson Virgin Drivetime - Neil Francis XFM Drivetime - Lucio replaces Ben Jones joins XFM from Kerrang XFM Drivetime - Rick Shaw Capital Drivetime - Richard from Kerrang replaces Ian Camfield Bacon replaces Dr Fox Virgin Drivetime - Nick Jackson Magic Bfast - Dr Fox replaces Neil Francis replaces Graham Dene Smooth Bfast - Graham Dene to join Smooth (replacing Russell Pockett)

XFM Drivetime - Paul Tonkinson replaces Richard Bacon

Virgin Drivetime - Ben Jones replaces Martin Collins

Capital Drivetime - Lucio replaces Richard Bacon R2 Drivetime - Chris Evans replaces Johnny Walker

Virgin Drivetime - Martin Collins replaces Kelly-Anne Smith

Virgin Bfast - Christian O'Connell replaces Pete & Geoff R1 Drivetime - Scott Mills replaces Sara Cox XFM Bfast - Lauren Laverne R1 Drivetime - Sara Cox replaces Christian O'Connell replaces Chris Moyles R1 Bfast - Sara Cox replaces Zoe Ball Magic Drivetime - Graham Dene R1 Bfast - Chris Moyles moves to Drivetime replaces Sara Cox

12/99 03/00 06/00 10/00 01/01 04/01 07/01 11/01 02/02 05/02 09/02 12/02 03/03 06/03 10/03 01/04 04/04 08/04 11/04 02/05 05/05 09/05 12/05 03/06 07/06 10/06 01/07 04/07 08/07 11/07 02/08 06/08 FIGURE C.19. – HOW COMMERCIAL TV SETS TALENT FEES – by exception

PROGRAMME COMMISSION COMMISSION ASSESMENT SPECIFIC TALENT VALUE ASSESMENT

WITHIN RANGE ABOVE RANGE SUB-GENRE “TARIFF” RANGE

MORE DETAILED COST PER VIEWER HOUR ANALYSIS PROGRAMME IN EXPECTED RANGE COST PER VIEWER ABOVE EXPECTED LEVEL HOUR BENCHMARKS TALENT COSTS DEMOGRAPHICS NO SPECIFIC BECOMES AND CHANNEL ACTION AN ISSUE BRAND BENEFITS EDITORIAL SPECIFICATION INCREMENTAL VERSUS COST AUDIENCE RIGHT BALANCE (format, location, TOO RELIANT ON TALENT key artists etc) TALENT COST - BENEFIT i.e. REVENUE IMPACT COMMERCIAL VALUATION

WITHIN EXPECTED LEVEL RETURNING SERIES HIGHER THAN AVERAGE “PROFIT” IMPACT INFLATION

DIRECT TALENT CONTRACT STRATEGIC TARGET KEY BENEFITS TALENT IDENTIFIED

PRODUCTION PARTNER IDENTIFIED ON SCREEN AND ON AIR TALENT

™ SECTION A – INTRODUCTION AND SCENE SETTING

™ SECTION B - THE ECONOMICS OF ON SCREEN AND ON AIR TALENT

™ SECTION C - THE UK MARKET FOR ON SCREEN AND ON AIR TALENT

™ SECTION D - THE ROLE, POSITIONING AND PERFORMANCE OF THE BBC

™ SECTION E - ASSESSMENT OF MARKET IMPACT AND VALUE FOR MONEY FIGURE D.1. – BBC’S RECENT TALENT SPENDING TRENDS – total spending (in-house production)

BBC ON-SCREEN AND ON-AIR TALENT SPEND, 2004/05 TO 2006/07 BBC PROGRAMME AND TALENT SPEND BY ACTIVITY 2006/07 (CAGR = 3.6%)

£M % OF ALL 250 PROGRAMME 15.5% 14.9% 15.1% SPEND

500 £490M 204.0 200 190.0 186.2 14.4

14.6 13.6 33.2 400

27.8 25.9 150

31.3 28.9 28.6 300

16.8 16.2 15.6 100 £205M 29.3 200 24.0 28.0 £194M

50 100 73.7 75.9 £76M £31M £29M

2004/5 2005/6 2006/7 TOTAL TALENT TOTAL TALENT TOTAL TALENT PROG SPEND PROG SPEND PROG SPEND SPEND SPEND SPEND

IN-HOUSE TV NEWS NETWORK RADIO (EXCL NEWS, SPORT AND MUSIC) (EXCL NEWS) SOURCE: BBC BUSINESS AFFAIRS AND RIGHTS, O&O ANALYSIS FIGURE D.2. – TALENT SPENDING – importance by genre

TALENT SPEND AS A PROPORTION OF TOTAL PROGRAMME COSTS BY GENRE, 2004/05 TO 2006/07 (BBC IN HOUSE SHOWS ONLY) TALENT COST AS PROPORTION OF PROGRAMME COST (%) 25

2004/05

2006/07 20 2005/06

2006/07 AVERAGE 15.5% 15

2004/05 AVERAGE 13.1%

10

5

SOAPS, SERIES QUIZ COMEDY SINGLE POLITICAL/ ARTS* NEWS FAMILY RELIGION* HOBBIES & CONSUMER CHAT DOCS CHILDREN'S SPORT & SERIALS SHOWS/ PLAYS SOCIAL SHOWS LEISURE SHOWS* PANEL GAMES

*SMALL SAMPLE

SOURCE: BBC FIGURE D.3. – BBC TV NUMBER OF CONTRACTS BY SIZE OF CONTRACT - 2007

BBC VOLUME OF TALENT CONTRACTS BY RANGE OF PAYMENTS, 2006/07 TOTAL = £171M* NUMBER OF TALENT CONTRACTS 200,000

180,000 VOLUME OF CONTRACTS

160,000

140,000

120,000

100,000

80,000

60,000

40,000

20,000

£0 - £1,000 £1,001 - £5,000 £5,001 - £10,000 £10,001 - £50,000 £50,001 - £100,000 £100,000+

LOW VALUE/STANDARD AGREEMENTS MIDRANGE TOP 150

* DOES NOT INCLUDE ALL TOP CONTRACTS (E.G. CENTRAL CONTRACTS) EXCLUDES TALENT ON STAFF CONTRACTS AND SHORT TALKS SOURCE: BBC CONTENT DATABASE FIGURE D.7. – BBC TV TALENT PAYMENTS – distribution of spending by range band

BBC TALENT: VALUE OF CONTRACTS, 2004/05 TO 2006/07 VALUE OF CONTRACTS (£M) 40 38 2006/07

35 2004/05 33

30

25

20

16 15 14

10 8 7 6 5 6 5 4 3 2

£10,000-50,000 £50,000-100,000 £100,000-150,000 £150,000-200,000 £200,000-250,000 £250,000-300,000 CONTRACT VALUE RANGE

SOURCE: BBC BUSINESS AFFAIRS AND FINANCE, O&O ANALYSIS FIGURE D.8. – BBC TV HISTORIC TOP TALENT FEES PER HOUR INFLATION

BBC TV TALENT INFLATION (KEY AND LEAD TALENT) - FEES PER HOUR – RETURNING STRANDS ONLY 2001/02 TO 2006/07 % YEAR ON YEAR INFLATION -COMMERCIAL - COMMERCIAL TV RECESSION - COMMERCIAL NETWORK STAGNATION BOOM - LICENCE FEE UPLIFT - LICENCE FEE GROWTH

2000/2001 2001/2002 2002/2003 2003/2004 2004/2005 2005/2006 2006/2007

SOURCE: BBC TALENT INFLATION SURVEY 2006/2007, O&O ANALYSIS FIGURE D.9. – BBC TV KEY VERSUS LEAD TALENT FEES PER HOUR INFLATION

BBC TV TALENT INFLATION (KEY AND LEAD TALENT) - FEES PER HOUR – RETURNING STRANDS ONLY

% YEAR ON YEAR INFLATION

- COMMERCIAL TV RECESSION KEY - COMMERCIAL NETWORK STAGNATION TALENT - LICENCE FEE UPLIFT - LICENCE FEE GROWTH

LEAD TALENT

2001/2002 2002/2003 2003/2004 2004/2005 2005/2006 2006/2007

SOURCE: BBC TALENT INFLATION SURVEY, O&O ANALYSIS FIGURE D.12. – BBC MAIN NETWORKS CURRENT ROSTER OF TALENT BY VENUE – channel with previous show

NUMBER OF PRESENTERS IN CURRENT BBC 1&2 ROSTER - PREVIOUS SHOW 2007

% 27 33 21 34 100 1 4 ON RADIO 5 4 3 15 NOT ON TV 90 3 CHANNEL 4 7 24 3

80 9 BBC SPIN OFFS 19 5 THEMATICS 70 12 5 ITV1

5 60

50

85 40

67 65 BBC1 & 2 30 62

20

10

ENTERTAINMENT FACTUAL COOKING/LIFESTYLE COMEDY

SOURCE: IMDB, SPOTLIGHT, O&O ANALYSIS FIGURE D.13. – BBC MAIN NETWORKS CURRENT ROSTER OF TALENT BY GENRE – where they were five years ago?

NUMBER OF CURRENT BBC 1&2 ROSTER: 5 YEARS AGO PRESENTERS IN 2007

% 27 33 21 34 100 1 ON RADIO 3 NOT ON TV 8 19 90 3 BBC SPIN OFFS 3 21 VARIOUS CHANNELS

80 4 43 4 6 THEMATICS 4 70 3 FIVE 3 CHANNEL 4 11 60 9 ITV1

11 5 50 5

5 65 40 5

30 56 BBC1 & 2 48 20 38

10

ENTERTAINMENT FACTUAL COOKING/LIFESTYLE COMEDY

SOURCE: IMDB, SPOTLIGHT, O&O ANALYSIS FIGURE D.14. – BBC MAIN NETWORK CURRENT ROSTER OF TALENT BY GENRE – where they were 10 years ago? NUMBER OF PRESENTERS IN 2007 CURRENT BBC ROSTER 1&2 : 10 YEARS AGO

% 27 33 21 34 100

90 21 NOT ON TV 26

36 80

70 7 THEMATICS

4 3 76 35 VARIOUS CHANNELS 60 3 15

50

3 FIVE 40 9 CHANNEL 4

30 58 6 ITV1

48 20 5

26 BBC1 AND BBC2 10 19

ENTERTAINMENT FACTUAL COOKING/LIFESTYLE COMEDY

SOURCE: IMDB, SPOTLIGHT, O&O ANALYSIS FIGURE D.15. – BBC TALENT FEE REFERRALS PROCESS

STAGE ONE STAGE TWO STAGE THREE

CONTRACT REJECTION OFFER/ REJECTION

ASSESSMENT OF TALENT’S CURRENT STATUS

TRG <3% ANNUAL FEE >3% VISION INVOLVEMENT <£3M INCREASE** BUSINESS NEGOTIATION MARKET INVESTMENT TALENT KNOWLEDGE GROUP COST >£500K BECOMES DECISION AN ISSUE MAKING CURRENT/ CONTRACT WITHIN ABOVE PREVIOUS FEE OFFER/ RANGE WITHIN RANGE HISTORY REJECTION PRODUCTION <£500K BUDGET

ENGAGEMENT CONTRACT TYPE, TERMS AND CONTRACT THROUGH OFFER/ VOLUME DG FINANCE FAST FEE REJECTION >£3M COMMITTEE <£1K ABSOLUTE >£1K VALUE OF FEE* STANDARD FEE RATES

PERSONNEL PERSONNEL PERSONNEL DESIGNATED PRODUCTION STAFF PRODUCTION TEAMS CHANNEL CONTROLLER RIGHTS TEAMS RIGHTS NEGOTIATOR GENRE COMMISSIONER PRODUCTION EVECUTIVES SENIOR BUSINESS AFFAIRS MANAGER SENIOR PRODUCTION STAFF TRG RIGHTS MANAGER HEAD OF RIGHTS & BUSINESS AFFAIRS DIRECTOR GENERAL PRODUCTION HEAD

* THESE ARE TYPICALLY STANDARDISED PAYMENTS TO PANELLISTS, MUSICIANS OR PRESENTERS. ANYTHING BELOW £1K IS DEALT WITH BY PRODUCTION TEAMS USING THE ‘FAST FEE SERVICE’ ** TYPICALLY THIS PROCESS FOLLOWED FOR RENEWING MID RANGE, HIGH LEVEL & LONG TERM CONTRACTS NOTE: FOR BBC SPORT THE THRESHOLD IS A 2% INCREASE AND PERSONNEL WILL VARY I.E. EARLIER DIRECTOR/CONTROLLER INVOLVEMENT ON SCREEN AND ON AIR TALENT

™ SECTION A – INTRODUCTION AND SCENE SETTING

™ SECTION B - THE ECONOMICS OF ON SCREEN AND ON AIR TALENT

™ SECTION C - THE UK MARKET FOR ON SCREEN AND ON AIR TALENT

™ SECTION D - THE ROLE, POSITIONING AND PERFORMANCE OF THE BBC

™ SECTION E - ASSESSMENT OF MARKET IMPACT AND VALUE FOR MONEY FIGURE E.4. – COMMERCIAL VALUATION METHODOLOGY

STEP BY STEP VALUATION PROCESS

NET % RESPONDENTS WHO WOULD WATCH VALUE SURVEY LESS IF NAMED TALENT NOT INVOLVED RELEVANT AUDIENCE AUDIENCE NETWORK CPT UPLIFT @ 50% X = REVENUE UPLIFT AND AD SLOTS X TOTAL = REVENUE +/- UPLIFT

PROGRAMME BY DEMOGRAPHIC RELEVANT STRAND DEMOGRAPHIC CPT PREMIUM PROGRAMME REVENUE AUDIENCE SKEW OR DISCOUNT = AUDIENCE DATABASE ADJUSTMENT LESS

TARGET PROFIT MARGIN c25% TO 30% X

=

COMMERCIAL VALUE PER HOUR FIGURE E.6. – NET IMPACT ON AUDIENCE – value survey/replacement scores

LIKELIHOOD TO CONTINUE WATCHING IF HOST/PRESENTER REPLACED

% 100

18.3 90 20.0 21.4 23.8 29.5 28.7 28.5 30.6 29.3 34.2 LIKELY TO WATCH MORE 80

70 23.1 21.5 21.6 25.3 19.8 60 23.8 24.2 22.7 25.9 21.9 ABOUT THE SAME

50

40

30 58.6 58.5 57.0 50.8 50.7 47.6 47.3 46.7 44.8 43.9 LIKELY TO WATCH LESS 20

10

NAME 1 NAME 2 NAME 3 NAME 4 NAME 5 NAME 6 NAME 7 NAME 8 NAME 9 NAME 10 C4 C4 C4 BBC BBC BBC FIVE C4 ITV FIVE

SOURCE: O&O VALUE SURVEY, 2,500 RESPONDENTS, JAN/FEB 2008 FIGURE E.7. – DEMOGRAPHIC APPEAL OF NAMED TALENT – value survey – entertainment sub-genres

GROUP A: DEMOGRAPHIC POSITIONING (SATURDAY NIGHT ENTERTAINMENT, CHAT SHOWS, QUIZ SHOWS AND PANEL GAMES) APPEAL TO ABC1 RESPONDENTS 1.2 SATURDAY NIGHT BBC CHAT SHOW ITV QUIZ SHOW C4 1.1 FIVE PANEL GAMES

1.1

1.0

1.0

0.9

0.9

0.8 1.2 1.2 1.1 1.1 1.0 1.0 0.9 0.9 0.8 APPEAL TO RESPONDENTS <35

SOURCE: O&O VALUE SURVEY AND ANALYSIS FIGURE E.8. – COST PER VIEWER HOUR VERSUS TALENTS COSTS PER HOUR INDEX – BBC1 entertainment

BBC 1 ENTERTAINMENT PROGRAMMES: TOTAL PROGRAMME COST PER VIEWER HOUR AND TALENT COST PER OUTPUT HOUR, 2006/07

TALENT COST PER OUTPUT HOUR INDEX FEE INCREASES JUSTIFIED? 100 SITCOM

OTHER COMEDY

ENTERTAINMENT

CHAT SHOW 80 PANEL/QUIZ

60

40

20

5 10 15 20 25 30

PROGRAMME COST PER VIEWER HOUR (PENCE) FIGURE E.9. – BBC TV STRANDS – index of talent cost hour and total cost per viewer hour

BBC TV STRANDS: INDEX TO GENRE AVERAGE OF TALENT COST PER VIEWER HOUR AND TALENT COST PER OUTPUT HOUR, 2006/07 (sample of 156 strands / 8 major TV programme genres)

600

20 STRANDS

500

400 39 STRANDS

300

200 INDEX TO GENREAVERAGE OF TALENT COST PER OUTPUT HOUR 100 GENRE AVERAGE = 100

19 STRANDS

100 200 300 400 500 600 700 800 900 1000 78 STRANDS INDEX TO GENRE AVERAGE OF TALENT COST PER VIEWER HOUR