BBC Charter Review Public Consultation 16 July – 8 October 2015 #Yourbbc Contents
£
BBC Charter Review Public consultation 16 July – 8 October 2015 #yourBBC Contents
Department for Culture, Media and Sport BBC Charter Review: public consultation Foreword
Last year, as Chair of the Culture, Media now spending more time using media and to play its part within the wider and Sport Select Committee, I heard and communicating than sleeping,1 and Public Service Broadcasting and media evidence from a range of experts about are using mobile tablets and smartphones landscape. the BBC on the challenges it has faced and to stream live and ‘on demand’ video and the issues for its future. This has helped to audio content at the touch of a button. The BBC remains much-loved by establish what this Charter Review needs Yet this has not meant the ‘death’ of audiences, a valuable engine of growth to consider. As Secretary of State, I want television or radio – instead we have seen and an international benchmark for to hear from people all over the UK, so I the range of options increasing – with television, radio, online and journalism. can understand what this country wants new services complementing rather than It has showed this countless times over John Whittingdale from and for the BBC. usurping the old. Just because lots of the last Charter period: coverage of events Secretary of State for Culture, people are using the internet to access that bring us together like the Olympics; Media and Sport Ten years ago, the last time the video on demand, to stream music and television that entertains millions like Government ran a Charter Review, the to find out the latest news, does not Miranda, Sherlock and Bake Off or that media landscape looked very different. change the fact that today most people educates and informs like the BBC’s The BBC is at the very heart of Millions of households still received a still want to watch television when it is many world-leading nature and history Britain. It is one of this nation’s choice of just five television channels. broadcast, still rely on radio and still documentaries; award-winning radio, most treasured institutions – Facebook was yet to reach the UK, want to read newspapers. with half of adults in the UK listening to playing a role in almost all of our YouTube was only just being launched one or more of the BBC’s music stations and the iPhone was unheard of. When the 3 lives. The current Royal Charter, The BBC has adapted to this changing each week; the UK’s most popular Royal Charter came into force in January landscape. It was asked to lead the way website; and trusted news coverage that is the constitutional basis of the 2007 nobody could have predicted quite in the move to digital television, and relied upon at home and abroad, with the BBC, is due to expire at the end how the emerging technologies of the day has pioneered new services such as World Service reaching a global audience of 2016. This paper launches would end up shaping the way we use the iPlayer, which saw 3.5 billion programme of 210 million and continuing to play an the Government’s process of media and live our lives, nor the extent to requests in 2014.2 It has done this while important role in the way that the UK is consultation that will inform which some things would stay the same. continuing to provide programmes and perceived internationally.4 It has done this our decisions about the future services that we have come to rely on to while targeting £700 million of annual The explosion in the use of the internet inform, educate and entertain. We want savings through Delivering Quality First.5 of the BBC. and mobile devices mean that people are the BBC to continue to adapt and thrive,
Department for Culture, Media and Sport BBC Charter Review: public consultation 1 Foreword
But we also need to ask some hard these mainly involved historical events, at a time when budgets are tight both the way that we use technology, we also questions in Charter Review if we are to there have been editorial failings related in our homes and in public spending. On need to make sure the BBC is representing ensure the future success of the BBC, and to these revelations and in other areas. 6 July I announced that the Government the diverse communities across the indeed UK broadcasting. What should The BBC has also been criticised in this has agreed with the BBC that by 2020 UK given the changing face of Britain. the BBC be trying to achieve in an age period for its financial management it will no longer receive funding from the The BBC has responded to the need to where consumer choice is now far more and transparency. Pay-offs for senior taxpayer for free TV licences for over-75 produce more in, and better represent, extensive than it has been before? What executives and the growth in the number year-olds. We also need to modernise our nations and regions, but some suggest should its scale and scope be in the light of senior managers and size of their the licence fee to cover public service that it is too London-centric. And while of those aims and how far it affects others salaries have drawn criticism that the broadcast catch-up TV and will reduce the BBC has made positive steps in terms in television, radio and online? And what BBC has only recently begun to address. the contribution the BBC makes to fund of diversity and representation, we should are the right structures of governance The Digital Media Initiative (a major broadband roll-out. But I also made clear still be asking what more can be done. and regulation? The BBC is, after all, paid technology project) failed to deliver its that while the Government anticipates for by the public. So it is right that the objectives, or any product at the end, that the licence fee will rise with inflation, I believe the BBC can continue to thrive. public have the opportunity to say how despite costing licence fee payers £100 any decisions on the level of the licence But to do that it will need to evolve. This well they think it has spent the more than million.6 Governance systems have proved fee for the next Charter period will need to paper sets out the issues and some of £30 billion of public money it will have opaque and cumbersome. Lessons must be made in the context of the conclusions the options for how that might happen, received over this Charter period, and be learned in all of these areas if the of Charter Review relating to the purposes beginning the democratic process of how it should be paid for and governed BBC is to address the challenges of the and scope of the BBC, and the BBC consultation with the country. I want this in the future. future. Questions also persist around the delivering efficiency savings in line with to stimulate dialogue and debate over the distinctiveness of the programmes the other public sector bodies. And of course coming months as we map out the future It is important to recognise that there BBC delivers, and whether it uses its broad there are questions around what the for the BBC. have been a range of challenges over the purposes to act in too commercial a way, overall system of funding the BBC should course of the current Charter where the chasing ratings rather than delivering be in the medium and long term that we BBC has fallen short of the high standards distinctive, quality programming that need to address in this Charter Review. we should expect. The revelations about other providers would not. Jimmy Savile and other former BBC There are other challenges for the BBC in John Whittingdale celebrities brought to light appalling The way in which the BBC is funded is meeting the changing needs of audiences. Secretary of State for Culture, behaviour that went unchecked. While another hotly debated issue, particularly Our requirements aren’t just changing in Media and Sport
Department for Culture, Media and Sport BBC Charter Review: public consultation 2 Executive summary
The constitutional basis of the BBC The BBC is one of the great institutions of Why the BBC? This changed and changing media is the Royal Charter. This is due Britain. But to continue to thrive it must Mission, purpose and values landscape does, however, raise some to expire at the end of 2016. This continue to evolve. Charter Review will questions about how best to define the explore four areas of possible change: The BBC has changed considerably unique role of the BBC. One question that consultation paper therefore seeks over the nearly 100 years since it was is particularly important is how we can to engage the UK in a dialogue −−Mission, Purpose and Values – what established. So too has the world in best understand the idea of ‘universality’. about the future of the BBC. the BBC is for, examining the overall which it operates. In the decade since the As more and more options become rationale for the BBC and the case for current Charter was introduced we have available for how audiences watch, read reform of its public purposes; arguably seen more change in the media and listen to content, the question of the −−Scale and scope – what the BBC sector than in any previous decade – with extent to which the BBC should focus therefore should do, examining the an explosion in choice for audiences on providing programmes and services services it should deliver and the both in terms of the ways of accessing for all audiences, and on an equal basis, audiences it should be seeking to serve; content and the variety of providers. As across every platform, or whether it these changes have occurred, some of should instead focus more on particular −−Funding – how the BBC should be paid the original arguments for the BBC have for, examining not just future potential or underserved audiences with its output, become less relevant. But the rationale becomes relevant. A second question funding models but related issues such for a publicly-funded BBC that “informs, as how best to enforce payment; and relates to whether the BBC should instead educates and entertains” as part of a have a more targeted or prioritised set of −−Governance – how the BBC should be wider public service broadcasting ecology purposes to reflect its increasingly varied overseen, examining options for reform remains strong even in the current and competitive environment. of the current Trust model alongside media age. The Government is therefore other governance issues. committed both to the future of the BBC and to its underlying Reithian mission. The BBC has changed considerably over the nearly 100 years since it was established. So too has the world in which it operates.
Department for Culture, Media and Sport BBC Charter Review: public consultation 3 Executive summary
The BBC currently has six very broad the Charter a set of unique features of Review. This is particularly the case in the −−Impact on the market. The way these public purposes, which were set at the last the BBC including its independence and context of digital services – where there services affect other organisations in Charter Review. All of the BBC’s activity impartiality. has been most development in the past the media sector is an important factor should be working towards one or more decade. Charter Review will consider four when thinking about what services of these: What the BBC does. main aspects of scale and scope: the BBC is providing and how. The Scale and scope wider media sectors have grown over 1. Sustaining citizenship and civil society; −−Range of services. The range of recent decades and the UK boasts The public purposes set the framework services that the BBC provides has 2. Promoting education and learning; one of the most vibrant media and for what the BBC should be seeking to increased dramatically over the last two creative economies in the world. The 3. Stimulating creativity and cultural achieve. Moreover, the Charter states Charter periods. Twenty years ago the BBC can have both a positive and a excellence; that the main activities of the BBC should BBC had just two television channels negative impact on the activities of be providing information, education and and five national radio stations. Now its competitors. It has arguably helped 4. Representing the UK, its nations, regions entertainment output through TV, radio it is the world’s largest Public Service the development of the sector by and communities; and online services. But the Charter Broadcaster, providing nine television encouraging high standards and through does not specify how much information, channels, ten national radio stations investment in independent production 5. Bringing the UK to the world and the education and entertainment output with a huge online presence reaching world to the UK; and the infrastructure of media to provide, the numbers and types of millions of people every day. Charter distribution. However, others make the 6. Delivering to the public the benefit of channels and services in which to provide Review is an opportunity to decide case that the level of public funding emerging communications technologies this, the balance of provision between whether this is the right range of gives the BBC an unfair advantage and services. information, education and entertainment services for licence fee payers, or and distorts audience share in a way provision, or the level of provision to whether the public would be better that undermines commercial business In Charter Review the Government will different audiences – in effect, what served by a more focused range of BBC models. The BBC has 60 per cent of consider the case for reforming these should determine the scale and scope of services. Alongside this, views are sought the revenues of the radio sector in the purposes, to provide greater clarity around the BBC. Whether the present scale and on the nature and extent to which the UK, for example, while its provision what the BBC is there to achieve. It will scope is right for the current and future BBC should be migrating away from of extensive free online content risks also examine the case for whether the media environment, and delivers services traditional broadcast platforms towards impacting a wide range of players. BBC would benefit from having a clearly that audiences want and are willing to more of an online presence. defined set of values, establishing through pay for, are key questions for this Charter
Department for Culture, Media and Sport BBC Charter Review: public consultation 4 Executive summary
−−Audiences. The BBC remains highly −−Content mix, quality and be produced by the BBC itself and by BBC funding valued and well-used by the majority distinctiveness. Charter Review is also independent production companies, as The licence fee has proven to be a of people within the UK. But there an opportunity to look at the content well as setting other requirements such remarkably resilient source of revenue for are variations across different groups the BBC is providing. The BBC has made as ‘out of London’ production. These the BBC – providing £3.7 billion of public and there are particular challenges changes to its genre mix in recent elements need to be looked at in the funding last year. While it has a number in reaching black, Asian and minority years, and consideration needs to be round to make sure that the BBC is able of strengths as a funding model, it also ethnic audiences and in meeting the given to whether it is striking the right to continue to deliver great content to faces challenges: needs of younger age groups who balance in terms of its offer. In terms of audiences, efficiently and cost effectively, increasingly access content online, quality and distinctiveness, the BBC’s while minimising any negative impact on −−There are concerns about people being rather than via the traditional platforms own data suggests that perceptions the wider market and maximising any prosecuted for TV licence evasion, of television and radio. There is also have remained broadly consistent in benefits. The BBC is developing its own which is the subject of the recent variation across the nations and regions recent years. But in this review we will proposals for a ‘compete and compare’ independent review by David Perry QC; of the UK. Charter Review will consider ask questions about the quality and strategy that would remove quotas and −−It is a compulsory flat rate which means the extent to which the BBC is meeting distinctiveness of BBC content and how turn the BBC’s production operations into those on low incomes pay as much as the needs of these different segments success for the BBC is best measured. a commercial subsidiary. Charter Review those on high incomes; of the domestic audience. It will also will consider this proposal as well as other examine how international audiences The way that the BBC determines how it options for reform. −−It is struggling to keep up with can best be served, in the context of the spends £2.4 billion on content is another technology as more people – important role the BBC plays in the way important element of the scale and scope particularly the young – are accessing that the UK is perceived internationally of its operations for Charter Review to only catch-up television online, and are (BBC services now reach more than consider. The way content is produced exempt from needing a TV licence as 300 million people globally each week). is shaped by two main elements: the currently constituted. broader regulatory framework including the Terms of Trade, which set out how the BBC and other broadcasters work with independent producers, and the BBC’s quota systems. The quotas set minimum amounts of content that must
Department for Culture, Media and Sport BBC Charter Review: public consultation 5 Executive summary
While there are issues with the licence The Government has committed to remain about whether funding should Finally, there is also an important fee, there is no easy solution in terms bringing forward legislation in the next be protected in other areas, such as for question for the Charter Review about of reform. One option that could be year to modernise the licence fee in order digital radio switchover, regional news and how the BBC generates its own income considered for the longer term is a to cover Public Service Broadcast catch‑up content. There is also an important issue through commercial activity. Commercial subscription model. While this has some TV. This is important both to make sure relating to whether other broadcasters income currently represents about a advantages, the technology that would that the television watching public gets should be able to access some licence fee quarter of the BBC’s total income. This is be required to introduce it – specifically a fair deal and that the funding of the funding to enable them to produce more important in maximising the return on access controls – is not yet widely BBC remains robust for future decades. public service content than they would the investment in content which can then available in homes. As such, if this option Through Charter Review the question otherwise be able to afford. be reinvested. The majority of the BBC’s is considered desirable it would need to be of how this can be done needs to be commercial activity is conducted by BBC introduced over a longer period. The three answered so that the Government can Third, when looking at funding it is Worldwide which, last year, returned over options for changing the funding model legislate to close this loophole. important also to assess the value for £200 million to the Corporation. The that are viable in the shorter term are: money and efficiencythat the BBC balance to be struck is how this return can A second funding issue relates to achieves. There are times over the current be maximised while ensuring BBC output −−a reformed licence fee; what areas and activities should have Charter period when this has been called is driven by its public value rather than −−a media levy; protected funding. Currently there are a into question – for example in terms its retail value in international markets. range of projects and areas of work where of big redundancy pay-offs for senior −−a hybrid licence fee and subscription All options will be considered for how it has been agreed with Government that executives and the failed Digital Media this can be delivered best. model. a level of funding should be protected, Initiative which cost £100 million before All of these bring benefits and costs and rather than being left entirely to the it was written off. The BBC is still cheaper through Charter Review we want to look discretion of the BBC. This applies to areas than most pay TV bundles and delivers at which provides the best model for the like broadband roll-out, digital switchover, a wide range of services, but there are future. local TV, the World Service and S4C. The legitimate questions about whether, and BBC and Government have already agreed how, it could do more to deliver the most some aspects of this, but questions value from the licence fee.
Department for Culture, Media and Sport BBC Charter Review: public consultation 6 Executive summary
BBC governance and regulation There is a high level decision about the There are also other important aspects structures and organisations that make up of governance and regulation that Charter The last issue, and one that ultimately the model of governance and regulation. Review will consider: £4.8bn underpins all the others, is governance Revenue of the BBC Group There are three broad options: and regulation. The last Charter −−Public engagement. How the BBC is introduced a new model, creating the −−keeping the current Trust but transparent with, listens to, and engages BBC Trust. This established a body whose 100,000 reforming it; effectively with the public. Number of network television and primary responsibilities are to represent −−creating a new standalone regulator and −−Government and Parliament. The radio hours in 2014 the licence fee payer’s interests and giving the BBC a unitary board; independence of the BBC is absolutely to hold the BBC to account on their central to its mission. Any governance behalf. While this made positive changes −−moving regulation wholly to the existing and regulatory framework will need to 18 hrs 17 mins including the introduction of new media and telecoms regulator Ofcom Average time the audience spends consider the appropriate relationship elements such as Public Value Tests and and giving the BBC a unitary board. with the BBC in a week between the BBC and the UK’s Service Licences, this structure has come These all have advantages and difficulties democratic structures. under sustained criticism throughout the and the success of any model will Charter period. −−Royal Charter. There is also the 343m lie in exactly where specific roles, question of whether a ten year Charter iPlayer programme requests in responsibilities and powers sit. This detail continues to strike the right balance January 2015 will need to be developed through Charter between the benefits of stability and Review. It is important that in any change, flexibility in the face of rapid changes. the progress made under the Trust is not 18,974 lost. As such Charter Review will also BBC’s total average public service consider whether Public Value Tests and broadcasting headcount 2014-15 Service Licences should be retained or further improved upon.
Department for Culture, Media and Sport BBC Charter Review: public consultation 7 Charter Review process
Reviewing the BBC’s Royal Charter The consultation will be open The Government has also established an Have your say is not just a case of publishing a for 12 weeks from 16 July 2015 Advisory Group to support the Charter consultation. We want to engage to 8 October 2015. Review process, providing the Secretary of State with expert insight into the range with the public and with industry One of the creations of the last Charter of issues being considered. to make sure that all views are given was the BBC Trust – set up to represent proper consideration. This is why we We have created a simple way the licence fee payer. The Trust will, in this More information about the Group and for the public to respond to this role, also be consulting on proposals for its membership is available are engaging with people across the consultation online: let us know UK in a number of ways to make it the future of the BBC. We will take full at www.gov.uk/bbccharterreview your thoughts on www.gov.uk/ account of the Trust’s work and work with easy for everyone to respond. government/consultations/bbc- them on a range of public and industry charter-review-public-consultation events to explore in detail the important issues in the coming months. There are also some areas where studies, reviews and research are needed – to add You can also email your responses technical expertise or independence from to the consultation questions to Government. We will be commissioning BBCCharterReviewConsultation these in the coming months. This @culture.gov.uk process will run through the autumn and will inform the proposals that the Or you can write to us at: Government intends to put forward for BBC Charter Review Consultation further consultation in spring 2016. DCMS We want to engage 100 Parliament Street with the public and with London SW1A 2BQ industry to make sure that all views are given proper consideration.
Department for Culture, Media and Sport BBC Charter Review: public consultation 8 What is the BBC Charter Review?
The BBC is established by a It sets out the public purposes of The current Charter, the eighth, The Charter Review is the Royal Charter, rather than an act the BBC and outlines the respective came into full effect on 1 January opportunity to consider all of parliament, to underline BBC’s duties of the BBC Trust and the 2007 and expires on 31 December aspects of the BBC. independence from the government Executive Board. 2016 (ten year period is the of the day. historical standard). How you can contribute to this stage of Charter Review www.gov.uk/government/consultations/ Consultation bbc-charter-review-public-consultation Consultation begins 16 July 2015 ends 8 October 2015
Online Email Write
July August September October
Engagement with the public and industry across the UK.
Advisory Group to support the Charter Review process.
Studies, reviews and research into a range of issues.
Department for Culture, Media and Sport BBC Charter Review: public consultation 9 The Charter Review themes
1. Why the BBC? 2. The scale and scope of the BBC – Why does the BBC exist? – What the BBC does and how it does it. – What do we want the BBC to – The audiences it serves. ? be for in the years ahead? – The role played by the BBC within the wider – Its mission, its purposes and its values. media and creative sector.
3. Funding: How we pay for it 4. Governing the BBC – The funding model. – How the current model works. £ – Areas of protected funding. – Options for reform. – Value for money, efficiency and commercial. – Wider governance issues.
Department for Culture, Media and Sport BBC Charter Review: public consultation 10 Questions
Why the BBC? Mission, purpose What the BBC does: scale and scope BBC Funding BBC governance and regulation and values Q4 Is the expansion of the BBC’s Q11 How should we pay for the BBC Q15 How should the current model of Q1 How can the BBC’s public purposes services justified in the context of and how should the licence fee governance and regulation for the be improved so there is more increased choice for audiences? Is be modernised? BBC be reformed? clarity about what the BBC should the BBC crowding out commercial Should the level of funding for How should Public Value Tests and achieve? competition and, if so, is this Q12 Q16 certain services or programmes Service Licences be reformed and justified? Q2 Which elements of universality be protected? Should some who should have the responsibility are most important for the BBC? Q5 Where does the evidence suggest funding be made available to for making these decisions? the BBC has a positive or negative other providers to deliver public Should Charter Review formally How could the BBC improve Q3 wider impact on the market? service content? Q17 establish a set of values for engagement with licence fee the BBC? Q6 What role should the BBC have in Q13 Has the BBC been doing enough payers and the industry, including influencing future technological to deliver value for money? How through research, transparency landscape including in future radio could it go further? and complaints handling? switchover? Q14 How should the BBC’s commercial Q18 How should the relationship Q7 How well is the BBC serving operations, including BBC between Parliament, Government, its national and international Worldwide, be reformed? Ofcom, the National Audit audiences? Office and the BBC work? What accountability structures and Q8 Does the BBC have the right genre mix across its services? expectations, including financial transparency and spending Q9 Is the BBC’s content sufficiently controls, should apply? high quality and distinctive from that of other broadcasters? What Q19 Should the existing approach of reforms could improve it? a 10-year Royal Charter and Framework Agreement continue? Q10 How should the system of content production be improved through reform of quotas or more radical options? Department for Culture, Media and Sport BBC Charter Review: public consultation 11 1. Why the BBC? Mission, purpose and values
Department for Culture, Media and Sport BBC Charter Review: public consultation 12 Why the BBC? Mission, purpose and values
The BBC has evolved and expanded This chapter asks the question, what is the Multichannel home from its beginnings in the 1920s BBC there to do? as the UK’s sole broadcaster, Following digital TV switchover every To do this it addresses: home is a ‘multichannel home’: to one of many, providing a multitude of channels and services. −−the rationale for the BBC – what it was originally, and whether and how channels Beyond the UK’s borders, the BBC this applies in a dramatically changing 70 is an internationally recognised Freeview offers over broadcasting and media landscape. 70 channels and satellite broadcaster and brand, reaching −−the BBC’s public purposes – whether and cable provides access a weekly global audience of these need to be changed, or reframed to hundreds more 308 million people.7 But the context to reflect the audience’s changing needs, in which the BBC is operating has expectations and priorities. changed dramatically in recent −−the BBC’s values – whether through 95% availability By the end of 2017 superfast years. this process of Charter Review they broadband will be available should be codified, identifying the ways to 95 per cent of UK homes in which the BBC might be expected and businesses to operate, and informing how the BBC might assess its performance.
The BBC is an internationally recognised broadcaster and brand, reaching a weekly global audience of 308 million people.
Department for Culture, Media and Sport BBC Charter Review: public consultation 13 The rationale for the BBC
As with Government intervention in The original case for the BBC centred on The proliferation of mobile devices has be under-provided in a free market. areas such as health and education, limited competition. For the first half of also opened up a multitude of options This is not to argue that private markets the core rationale for the BBC, and the twentieth century, spectrum use (and for watching and listening alongside, or cannot deliver high quality broadcasting. 8 competition) was extremely limited, with instead of, the traditional TV or radio set. There are multiple examples of where public service broadcasting (PSB) only one TV broadcaster until the 1950s. For example, new services such as commercial broadcasters have in recent policy more widely, is centred A Public Service Broadcaster was preferred Netflix, Amazon Prime, Spotify and years delivered content of a quality around the need for the state to to a private monopoly. Advancing Deezer have already begun transforming traditionally seen as the preserve of the intervene in the market to deliver technology has changed this. There has peoples’ media habits and expectations, Public Service Broadcasters (PSBs). The social outcomes. been a steady growth in spectrum used and we would expect this to continue in award winning drama series produced by for broadcasting throughout the latter the years ahead. HBO are one notable case in point. But half of the twentieth century and the PSBs such as the BBC still deliver positive ten years of the current BBC Charter This increasingly challenges one of the effects for society such as extending have arguably seen the most dramatic original rationales for PSB – that the democratic knowledge through news period of change in broadcasting and high barriers to entry require public and current affairs, helping extend the telecommunications since the BBC came intervention. The current generation UK’s influence and reputation abroad, 12 into existence. of smart televisions, and the growing addressing needs of audiences such number of catch-up and on demand as minority language groups, and Following digital TV switchover every services on offer, provide yet more serving audiences (such as children) home is a ‘multichannel home’, with choice; the consumer has never been where excessive advertising would be 9 Freeview offering over 70 channels so well served. inappropriate. These goods would not and satellite and cable providing access These trends raise questions around the be provided in sufficient volume by the to hundreds more. 84 per cent of UK market alone. homes have internet access (compared continued relevance of public service with 57 per cent in 2006),10 and by the broadcasting in a modern media age. But Despite technological change, there is still end of 2017 superfast broadband will be high quality PSB content has generally a strong rationale for the BBC continuing available to 95 per cent of UK homes been seen as a ‘merit good’, which would to exist in the twenty-first century. and businesses.11
Department for Culture, Media and Sport BBC Charter Review: public consultation 14 The rationale for the BBC
The BBC’s current mission, There is much to support a continuation Another long-standing part of the BBC’s There are clearly questions over which ‘To enrich people’s lives with of the BBC’s current mission. It has the approach has been its universality. This of these definitions remains most relevant programmes and services that weight of history behind it, is widely means different things to different people: in the current media age, and whether 13 recognised and understood, and licence it remains important for the BBC to inform, educate and entertain’ fee payers may well expect all three −−to some, this has meant the BBC should continue to deliver everything that it has remained essentially unchanged elements to be provided by the BBC. But provide all types of content, and meet currently does, or traditionally has done, since the Corporation’s beginnings, it is not without its critics. In particular, the needs of all audiences, regardless or whether audience needs are better centred on the values coined by it is a very broad mission, and one that of the extent of provision by others; served by a more narrowly-focused BBC. the BBC’s first Director General, risks the BBC competing for ratings not −−to others, this has been interpreted Lord Reith. quality, or distinctiveness, under the as providing due emphasis on covering ‘entertainment’ banner. On balance the single unifying events such as the Government believes that the arguments Proms, Royal weddings, and election in favour of maintaining this historic coverage; and mission are sound, although changes to −−to others, it has meant the requirement the purposes, scale and scope may be to be available and accessible on all required to ensure this does not result in platforms and devices, free at the point an overly extended BBC. of use. In recent years, this has meant a focus by the BBC on expanding its digital and online services.
Department for Culture, Media and Sport BBC Charter Review: public consultation 15 The BBC’s public purposes
In the current Charter which came Six public purposes have underpinned There is a case for maintaining these for being too large or too diffuse in what into effect in January 2007, the the BBC’s activity over the last Charter purposes. They define broadly what it does could be seen as a consequence Government set out a high-level period, and have been part of the people expect of the BBC’s output and of these very broad purposes set by framework against which the BBC have by giving only high-level direction allow Government. Conversely, some have set of public purposes for the BBC assessed both the appropriateness and the BBC to take decisions about how argued for extending the purposes. For (see Table 1 page 17/18), and the success of their content and services. This these are best delivered. For example, example, the BBC could have more Trust subsequently set out purpose paper seeks views on the BBC’s public ‘representing the UK’ has enabled the specific responsibilities for partnership remits for each, to set priorities purposes: whether they provide the BBC to broadcast events of national working, or supporting the wider sector and criteria against which delivery right framework, whether the purposes significance, such as the Royal wedding, through training and skills. would be assessed. themselves are right, and whether they while ‘bringing the UK to the world’ could or should be redrawn or prioritised. helps support significant investment in Question 1 the BBC World Service. The purposes are also still a relatively new set of high-level How can the BBC’s public purposes descriptors, so there might be a case for be improved so there is more giving them time to ‘bed in’. clarity about what the BBC should achieve? But there is a case for reform of the purposes. They are very broad, and arguably it would be difficult for any programme or activity not to fall within Question 2 one of them. By being cast so broadly, Which elements of universality The BBC’s public purposes: they do not reference directly key genres are most important for the BBC? whether they provide the such as drama, natural history and news, right framework, whether widely considered to be at the core of the purposes themselves what the BBC delivers. And they also do are right, and whether not set clear boundaries for what is or they could or should be isn’t appropriate output from the BBC. redrawn or prioritised. So arguably, criticisms levelled at the BBC
Department for Culture, Media and Sport BBC Charter Review: public consultation 16 The BBC’s public purposes
Table 1: The BBC’s public purposes and purpose remits14 Purpose Purpose remit Purpose Purpose remit ‘What the BBC will do to deliver this purpose’ ‘What the BBC will do to deliver this purpose’ 1. Sustaining Citizenship −−Provide independent journalism of the highest quality. 3. Stimulating Creativity −−Provide output that is distinctive and creative on all its platforms. and Civil Society −−Engage a wide audience in news, current affairs and other and Cultural Excellence −−Ensure enrichment for all audiences by covering a wide range topical issues. of creative and cultural activities. −−Encourage and enable conversation and debate about news, −−Encourage active participation in cultural activities. current affairs and topical issues. −−Provide a wide range of enjoyable and entertaining content. −−Build greater understanding of the parliamentary process and −−Foster creativity and nurture and support UK talent across political institutions governing the UK. a wide range of genres. −−Enable audiences to access, understand and interact with 4. Representing the UK, −−Represent the different nations, regions and communities different types of media. its Nations, Regions and to the rest of the UK. 2. Promoting Education −−Stimulate informal learning across a full range of subjects Communities −−Cater for the different nations, regions and communities and Learning and issues for all audiences. of the UK. −−Engage audiences in activities targeted to achieve specific −−Bring people together for shared experiences. outcomes that benefit society. −−Encourage interest in, and conversation about local communities. −−Promote and support formal educational goals for children and teenagers and support adult education, especially related −−Reflect the different religious and other beliefs in the UK. to essential skills development. −−Provide output in minority languages.
Department for Culture, Media and Sport BBC Charter Review: public consultation 17 The BBC’s public purposes
Purpose Purpose remit ‘What the BBC will do to deliver this purpose’ 5. Bringing the UK to −−Build a global understanding of international issues. the World and the World −−Provide international news broadcasting of the highest quality. to the UK −−Enable audiences and individuals to participate in the global debate on significant international issues. −−Enhance UK audiences’ awareness and understanding of international issues. −−Broaden UK audiences’ experience of and exposure to different cultures from around the world. 6. Delivering to the −−Make engaging digital content and services available on a Public the Benefit wide range of digital platforms and devices. of Emerging −−Work with the industry to continue to deliver improvements Communications to the UK-wide distribution of public service content. Technologies and Services −−Increase coverage of Digital Audio Broadcasting (DAB). −−Support Digital UK’s communications activity to build awareness of, and readiness for, digital switchover. −−Work in partnership with other organisations to help all audiences understand and adopt emerging communications technologies and services. −−Support the Government’s targeted help scheme to help the most vulnerable during digital switchover.
Department for Culture, Media and Sport BBC Charter Review: public consultation 18 The BBC’s values
The ways in which any public Many organisations make public the The last Charter period has proved to Table 2: Potential values for the BBC organisation delivers its mission, ways in which they will operate through be one of the most tumultuous in the Independent and the ways in which its people a statement of values. There are public Corporation’s history, and numerous documents which refer to BBC values; for issues have arisen which placed the Impartial and structures operate, are arguably example, the Trust is required to maintain BBC’s people and working practices just as important as the mission the independence of the BBC and ensure under a great deal of scrutiny. High quality itself. This is possibly even more it observes high standards of openness Efficient/value for money the case for the BBC, in light of the and transparency. The BBC also has a set The BBC is a public broadcasting unique place the organisation holds of corporate values, setting out for its organisation, and it is right that its Transparent values should reflect the views of the employees the ways in which the BBC is Distinctive in the UK’s media industry, its social public. This Charter Review presents and cultural life, and our collective expected to operate. But nowhere is there set out a formal codified set of values. the opportunity to consult on what a Diverse/representative sense of identity and British values. potential set of values might be, against which its performance can be judged and measured. Some potential values to consider are set out in Table 2 opposite. This includes a potential value around Question 3 diversity, which may be merited in the light of the need to ensure continued Should Charter Review formally progress by the BBC in this area (see Box 1 establish a set of values for the BBC? on page 20).
The BBC is a public broadcasting organisation, and it is right that its values should reflect the views of the public.
Department for Culture, Media and Sport BBC Charter Review: public consultation 19 The BBC’s values
Box 1. Diversity The BBC and the wider broadcasting In addition, 31 graduate trainee interns workforce, with the number of female sector have faced challenges in regards from BAME backgrounds have been staff at 48.5 per cent last February, to how representative their workforces recruited from the Creative Access marginally lower than in March 2014. are, both on screen and in roles behind Programme and a further six potential The number of female senior managers the camera. The BBC announced a ‘Commissioners of the Future’ have rose to 38.4 per cent and women in diversity strategy in June 2014, including: started training in a number of genres. leadership to 41.1 per cent.20 a £2.1 million fund to help Black, Asian and minority ethnic (BAME) talent on and In terms of disabled staff numbers, As part of its commitment to deliver off screen to develop new programmes; the BBC still has some way to go. The high quality programming that reflects more training internships; an Independent proportion of disabled staff overall modern Britain, the BBC took an 18 Diversity Action Group chaired by Lord remained at 3.8 per cent. However, there in-depth look at the portrayal and Hall;15 and setting new targets to increase has been some progress, for example inclusion of lesbian, gay and bisexual senior BAME staff in priority areas from setting up a work placement scheme for people, including audience research 8.3 per cent to 10 per cent by 2017 and disabled people, ‘Extend’, which offers and a public consultation. The resulting then to 15 per cent by 2020.16 short-term paid work placements, and the recommendations are currently being introduction of ManageAble scheme this implemented, and as part of their The BBC has already made some progress year, targeting placements in senior and Diversity Strategy, the BBC has also in the last 12 months: the proportion of decision making roles.19 committed to a consultation on the BAME staff was 13.2 per cent in February portrayal of age across broadcasters 201517 (compared to 12.6 per cent in The BBC has received significant to inform output and employment March 2014). criticism in recent years regarding its practice across the industry.21 representation of women on screen, and has suggested that improving this remains a priority. However, there is a better picture when looking at its
Department for Culture, Media and Sport BBC Charter Review: public consultation 20 2. What the BBC does. Scale and scope
Department for Culture, Media and Sport BBC Charter Review: public consultation 21 What the BBC does. Scale and scope
This chapter examines the question The current Charter sets out the activities Box 2: How does the BBC rank internationally? of the appropriate scale and scope the BBC should undertake to deliver Revenue of public broadcasters23 of the BBC, for the forthcoming its public purposes in broad terms. It states that the main activities should be Charter period, through the providing information, education and Top Ten European public broadcasters 2013 operating revenues, EUR billion following lenses: entertainment, through TV, radio and online services. The Charter also leaves BBC (excluding commercial UK −−Services: whether the BBC is the BBC free to carry out other activities subsidiaries) 22 offering the right range of services, where they support the public purposes. France Televisions France taking into account market impact; This framework, with the broad public RAI Italy −−Audiences: how well the BBC is purposes considered in the previous serving different audiences; chapter, has given the BBC the motivation ZDF Germany −−Content: whether the BBC is and freedom to develop its services over SRG-SSR idee suisse Switzerland the Charter period and builds on the providing the right content mix, WDR Germany quality and distinctiveness; and BBC’s growth, over recent decades, to become the world’s largest Public Service SWR Germany −−Production: how the content should Broadcaster (see Box 2 opposite for be produced. European comparisons). As part of Charter Channel 4 UK Review, we need to decide whether this NDR Germany scale and scope is right for the current and future media environment given the BR Germany proliferation of choice. 0 1 2 3 4 5
Source: European Audiovisual Observatory, 2014 Yearbook, p.90
Department for Culture, Media and Sport BBC Charter Review: public consultation 22 Services
The range of services provided by BBC services have expanded in recent There are arguments that this service A recent example is the BBC Trust’s the BBC has grown over recent years (see Box 3 on page 24). Twenty provision is broadly right in that the report which found a sizeable crossover 26 decades as digital technology years ago the BBC had two television balance of traditional and online in audiences for Radio 1 and Radio 2 channels, since then the number services meets the needs of audiences – something the BBC has subsequently created opportunities not available has increased to nine (including BBC in an increasingly fragmented media worked to address. Given the vast choice in the analogue age. This was Parliament) with the Red Button making environment and that the range of that audiences now have there is an allowed within the framework of large amounts of additional broadcast services helps the BBC to meet its current argument that the BBC might become the current Charter, enabled by the content available. The number of national remit. There is also an argument that such more focused on a narrower, core set of broad freedom it has given the BBC radio stations has doubled from five to provision played a role in the switch to services that can continue to meet its in determining how best to meet its ten with the launch of BBC1xtra, BBC digital technologies introduced in the late mission and objectives. A smaller BBC public purposes. Asian, BBC 5 Live Sports Extra and BBC 6 1990s by broadening the number and type could see the public pay less for their Music on digital in 2002 and Radio 4 Extra of free-to-all services available to viewers TV licence and would also be likely to (formerly Radio 7) which was relaunched and listeners. have a reduced market impact (see Box 4 in 2011. Combined with local services, on page 25). the BBC now has 57 radio services. However, now digital television switchover The BBC also has a huge online presence has been completed and as the number with the success of its iPlayer and with of television and radio channels grow and the weekly reach of its website in the the internet as a platform for television UK increasing from 3.9 million in and radio content matures, there are September 200224 to 24.7 million by counter arguments that the BBC does September 2014. 25 not need to be providing such a broad range of services in order to meet its public service objectives. There is also an argument that some of the services might be serving significantly overlapping audiences – failing to be sufficiently distinct not only from commercial output, but from other BBC services.
Department for Culture, Media and Sport BBC Charter Review: public consultation 23 Box 3: Expansion of BBC services
1994‑95 2014‑15
TV 2 channels TV 9 channels
5 national 39 local 5 national 40 local
nations digital nations Radio 6 Radio 5 6
None BBC iPlayer BBC Online BBC Red Button
Online Online
Department for Culture, Media and Sport BBC Charter Review: public consultation 24 Services
Box 4: Market impacts It is important that we understand both −−The BBC’s ability to spend large 55 per cent audience share during the a level as local providers but could, the positive and negative effects the BBC amounts on both the people in current Charter. in providing a wide range of content can have on the wider market. its organisation and in UK content −−The BBC has a variety of impacts online as well as on radio and TV, can result in positive effects for on online markets. For example, the have an impact on efforts by local In terms of positive impacts, the creative industries, including news groups to develop compelling some say that: popularity of BBC News in the UK independent producers, and in (BBC News website had an average online local and hyper-local services. −−The BBC has an impact in raising training skills and talent that benefit 27 million UK weekly browsers in −−the BBC’s ability to cross-promote broadcasting standards. The licence commercial parties, too. early 2015, and more than 65 million its own services has an impact on 27 fee offers the BBC a stable, long-term On the other hand, it is argued that: worldwide) has led to suggestions the wider market. There is a case for source of funding, which allows it to that the scale of BBC’s online offer the BBC marketing its own services invest in content, for example high- −−The commercial television sector is impeding the ability of other UK and programmes, particularly where value flagship drama, and technology, can struggle to compete with freely news outlets to develop profitable it is directing people towards content such as the iPlayer. If commercial distributed BBC content. BBC News 24, business models, such as paywalls such as documentaries and current broadcasters want to keep up and for example, introduced in 1997, was and subscriptions, in existing and affairs that they might not otherwise deliver audiences to advertisers they aimed at broadly the same market as new markets. consume. But given other services are need to match the BBC’s quality and Sky News, and Channel 4 and ITV in −−Some sectors are impacted by more not able to advertise their content on delivery. This could deliver more choice particular are impacted by the BBC’s than one of the BBC’s services. Local the BBC there is a case for arguing that and quality to audiences. provision for prime-time audiences. newspapers have found their business the nature and extent of this cross- −−There is a longer term risk the BBC’s model eroded over recent years as new promotion needs to be considered. radio market share could grow further technologies, changes to consumer unless commercial advertising revenues behaviour, loss of advertising and remain robust. The BBC accounts for other market pressures have created around 60 per cent of total radio significant challenges. The BBC does revenues and has held around a not provide services at as granular
Department for Culture, Media and Sport BBC Charter Review: public consultation 25 Services
The BBC also has the potential to act begun to explore alternative delivery operated with commercial broadcasters old) and which led to the launch of a as an effective partner in a number of platforms to deliver content, such as the as joint ventures; dedicated Radio 1 iPlayer video channel. markets as it has, for example, within the tie-in between YouTube and Radio 1. −−£150 million per year from 2013 to This has been supported by research and arts and cultural sectors. In the instance However, partnerships raise complex 2017 in broadband roll-out to enable development into audience behaviours. of local newspapers and other local media issues including, for example, the way in 95 per cent of households to benefit Radio 1’s YouTube channel has providers, the BBC can help support the which the BBC chooses its partners. from superfast broadband;30 industry by giving exposure to regionally- produced content and clear attribution −−Making up to £25 million available from Digital services subscribers when it uses news stories originally 2012 to 2017 to develop infrastructure 1.3m Of the BBC’s services it is the digital generated by or developed by the for Local TV as well as up to £15 million services that have arguably seen the local press. to fund content produced by local TV of which are 13‑17 years old greatest rate of change, particularly with services31; and the development of the iPlayer. Commercial partnerships are an approach −−Extending national Digital Audio The current Charter contains a sixth Looking forward, there is an important that BBC Worldwide has used in other Broadcasting (DAB) services to purpose: to deliver to the public the question about the balance between areas, for example the BBC is part of a 97 per cent of households by 2017 benefit of emerging communications traditional broadcasting, online and digital joint venture which saw UKTV (which and supporting commercial radio’s technologies and services. The BBC distribution. On the one hand, there is the has six paid-for channels and four free- investment in local DAB coverage has played a key role, as requested view that by developing at the cutting to-air) set up in 1997 and which has to improve digital coverage of BBC 28 edge the BBC is able to adapt to changing seen revenues grow in recent years. by Government, in developing digital 32 nations and local radio services . consumer demand and continue to The section on digital services below infrastructure for the UK. This includes: serve diverse and fragmented audiences, references the way in which the BBC has Alongside the development of the −−Investing to extend digital terrestrial particularly young people. However, there hugely successful iPlayer the BBC is now coverage of all BBC services to facilitate is the counter argument that the rapid exploring emerging online platforms for Digital TV Switchover (one of the UK’s growth in digital and online services more delivering content through providers largest engineering projects)29 and broadly means that the market is already such as Facebook and Netflix. It has also During the current Charter period, the playing a leading role in introducing well served and that the BBC, as a major used new types of digital services to BBC has played a key role, as requested Freeview, the UK’s largest television player, potentially squeezes out others who enhance traditional ones, such as Radio 1’s by Government, in developing digital platform and FreeSat – the subscription want to develop new ways of managing YouTube channel which has 1.3 million infrastructure for the UK. free satellite service – both of which are and distributing content. subscribers (a third of them 13‑17 years
Department for Culture, Media and Sport BBC Charter Review: public consultation 26 Services
These debates are currently being played out in relation to the decision to move Box 5: Digital radio BBC Three online. There is also a question Digital radio listening has reached The BBC has played a crucial role The precise role of the BBC in the of the BBC’s role in digital radio (see Box 5 40 per cent of all radio listening and in the development of digital radio transition will depend on how a radio opposite) given the need for the BBC to nearly 55 per cent of adults listen to including taking leading role in the switchover is planned and delivered make significant investment in upgrading digital radio services at least weekly.34 technical development of Digital Audio which will need to be considered after FM and AM networks in the next ten years. Supported by the growth of new Broadcasting (DAB) and DAB+ services. the 50 per cent listening threshold is commercial digital services, the radio Phase 4 of the roll-out of BBC national reached. But it could include: Of course, any decision to provide content industry expects digital listening to DAB coverage (covering more than on a variety of platforms needs to take overtake analogue listening at some 97 per cent of homes) will be completed −−supporting the long-term into account the financial implications point in 2017. At that point, Government by the end of 2015. The BBC is also communications with audiences of this approach. And it remains the will need to consider the timetable for funding a significant expansion of local and industry that will be needed case that, despite the increase in online a future switch-off of analogue radio DAB coverage as the result of a unique to support a switchover; viewing, traditional broadcast television services at a date likely to start partnership with DCMS and Commercial −−working with commercial radio and remains robust with the latest Ofcom after 2020. Radio. This programme is due to be industry on technical developments Communications Market 2014 report completed in September 2016. that will improve digital radio; and setting out that live viewing still accounts for 89 per cent of total viewing.33 There is a case for the BBC to play −−making support available to older 40% reach and more vulnerable listeners, Digital radio listening has a central role in any future radio switchover, as it did with the successful though the evidence from a successful reached 40 per cent of all switchover trial study in Bath found radio listening television switchover programme. This will require the build-out of BBC that the process to be much more national services to match the coverage straightforward than for television. 55% weekly of its national FM network. The BBC’s Nearly 55 per cent of adults analogue radio networks will require listen to digital radio services significant investment from the early at least weekly 2020s onwards if no timetable for switchover is set.
Department for Culture, Media and Sport BBC Charter Review: public consultation 27 Services
There are also access and control technical standards bodies. The BBC has Question 4 implications for BBC content being also worked with Innovate UK (formerly available on a variety of other platforms, the Technology Strategy Board) on a Is the expansion of the BBC’s whether subscription or not. The BBC is number of projects including Thira35 and services justified in the context of among a number of organisations to trial the RadioPlayer. increased choice for audiences? Is a system where articles are hosted on the BBC crowding out commercial Facebook, rather than the user following There are legitimate questions, however, a link to the BBC, raising wider concerns about whether the BBC should continue competition and, if so, is this about user data and the context in which to try to lead the way development of justified? content is viewed, which the BBC has new technology ahead of the market. acknowledged. The cost of BBC development last year was £83 million.36 The BBC’s role in Question 5 Research and development the development and deployment of Where does the evidence suggest new technologies – particularly online the BBC has a positive or negative It is argued that the media sector and distribution – has the potential to impact the UK economy has benefited from the negatively on the ability of commercial wider impact on the market? BBC’s role in innovation with the BBC competitors to monetise emerging undertaking research and development technologies, and could crowd out new which would not have been picked start-ups. There may be savings to the Question 6 up by the wider market. This includes licence fee payer from provision of some What role should the BBC have in improvements in compression technology, of these developments by the market. the development of ultra HD standards influencing the future technological and collaboration with groups such as the landscape including in future radio Digital Television Group and international switchover?
Department for Culture, Media and Sport BBC Charter Review: public consultation 28 Audiences
This section gives an overview of The BBC is reaching a wide audience Data also shows that BBC audiences the BBC’s audience and how the within the UK. According to BBC audience are broadly equal across both genders, different segments are being served. research almost all adults in the UK use (with women watching only slightly BBC services each week,37 giving the BBC more TV content than men), and by This is important as it informs the a central place in people’s lives. socio-economic groups.40 question of what services the BBC However, the BBC’s reach and people’s should be delivering. satisfaction with the BBC vary across Use of the BBC by different age groups different groups in society. Some groups is also important: 16-24 year-olds are appear to be served particularly well: engaging less with traditional television 41 broadly speaking, older age groups and radio than any other age group, a and people from a white British ethnic trend that has remained stable over the background are the most likely to use period of the current Charter and which BBC services, with especially high figures covers all broadcast TV channels. At the for watching television and listening to the same time, this age group is more likely radio. Some groups appear to be served to say that the BBC has something to less well by current BBC programming: offer them than some groups which are the BBC Trust’s Purpose Remit Survey more likely to engage with traditional 42 shows that audiences from black ethnic broadcasters. Ofcom’s PSB Review also groups in particular are least likely to say raises a number of pertinent points on that the BBC is effective at representing audience behaviour and how audiences 43 their ethnicity.38 This is not only an issue feel about PSB provision. Understanding for the BBC. Ofcom’s third PSB Review the BBC’s audiences and their different found that more than half of viewers needs and willingness to fund BBC Almost all adults in the from black ethnic groups felt they were services will be important in thinking UK use BBC services each both under-represented and negatively about the scale and scope of the BBC’s week, giving the BBC a portrayed by all of the PSBs.39 activities for the next decade. central place in people’s lives.
Department for Culture, Media and Sport BBC Charter Review: public consultation 29 Audiences
The degree to which the BBC has Local, regional and national Nearly two thirds of minority language succeeded in meeting these obligations Box 6: Supporting the different The BBC has clear obligations to provide speakers in the UK say that the BBC is mixed. According to the BBC Trust, native languages within the services for all of its audiences, particularly supports their language.45 But while last year about six in ten UK adults British Isles as set out under the fourth public purpose the BBC and licence fee funded services agreed that the BBC performed well (‘Representing the UK, its Nations, In serving specific communities, the are clearly an important pillar for in representing their nation or region.44 Regions and Communities’). As well as BBC’s role in supporting the different indigenous language communities there However, performance scores in drawing audiences together for events of native languages within the British are also challenges: audience reach has ‘Representing my nation/region in news/ national significance the BBC also needs Isles is particularly important. This is a been falling across some indigenous drama’ in Scotland have remained to represent and reflect licence fee payers, small market with limited potential to language services over the last few consistently lower than in Wales and including to the wider world. be served effectively by commercial years, particularly in Wales.46 And these Northern Ireland throughout the Charter broadcasters, and therefore a key area services come at a cost; cost per hour period. Information on minority languages where public funding can support of indigenous language radio content is set out in Box 6 opposite. underserved audiences. For example, in Scotland and Wales is considerably S4C, the Welsh language broadcaster, higher than cost per hour for English currently receives public funding speaking content which raises concerns both via direct Government grant about value for money.47 (£6.8 million per year) and also via the licence fee (£74.5 million per year). And Gaelic language broadcasting in Scotland is provided through BBC Alba, a partnership channel between the BBC and the Gaelic authority, MG Alba.
Department for Culture, Media and Sport BBC Charter Review: public consultation 30 Box 6: BBC nations and regions services
England Scotland Twelve regions in England have daily Four TV channels: BBC Alba, BBC One television news output. 39 local radio Scotland, BBC Two Scotland and STV. Two services and 42 local websites. radio stations, Radio Scotland and Radio Nan Gàidheal. Northern Ireland Gaelic speakers (2013) Two radio services: Radio Ulster and Radio Foyle. TG4 – the Irish Gaelic 87,000 language service is transmitted under a (1.64% of Scottish population) Memorandum of Understanding with the Republic of Ireland Government. Wales Irish speakers (2013) Four TV channels: BBC One Wales, BBC 201,000 Two Wales, S4C & ITV Cymru Wales. (1.6% of NI population) Two radio channels: Radio Wales and Radio Cymru. Ulster-Scots speakers (2013) 148,000 Welsh speakers (2013) (8.1% of NI population) 572,000 (19% of Welsh population)
Source: Ofcom 2014 Communication Market Reports for Scotland, Wales and Northern Ireland.
Department for Culture, Media and Sport BBC Charter Review: public consultation 31 Audiences
International audiences it more unbiased, objective and higher Serving this global audience has benefits In this context Tony Hall, Director General quality than other news channels.51 for the UK. The BBC plays a big part of the BBC, has set an ambitious target of The BBC also has a public purpose to bring In the UK, licence fee payers support in how the UK is perceived globally. reaching 500 million people by 2022, the the UK to the world and bring the world the BBC’s delivery of its internationally Audiences who consume BBC services BBC’s centenary.54 to the UK. This international audience focussed public purpose. Bringing the more frequently have more positive has increased as connectivity and uptake UK to the world and the world to the UK, views of the UK than those who have have improved – around 46 per cent of received the highest rating of all the less exposure to the BBC.53 There is also Question 7 households have internet access today purposes in 2013‑14.52 a financial return for the UK: while news compared to 18 per cent in 200548 – and provision is free in the countries provided, How well is the BBC serving new services and platforms give audiences BBC Worldwide sells BBC programmes for its national and international around the world a better ability to access The BBC’s weekly international news audience is now broadcast around the world bringing in audiences? BBC services (see Box 7 on page 33). To revenue which is reinvested in the BBC’s illustrate the reach of the BBC globally, programming. the 50th anniversary episode of Doctor 283m people47 Who set a record for the largest ever While the BBC has been very successful compared to simulcast of a TV drama: shown in 98 on the world stage, that stage is changing. countries across six continents, in 15 The internet is making a global reach languages. The BBC has a weekly global 233m in 2006‑07. cheaper. Convergence of different services audience of 308 million people and the is bringing the BBC into competition with BBC’s weekly international news audience new players such as Amazon, Google and is now 283 million people49, compared to Apple. And in world news, in addition to 233 million in 2006‑07.50 Additionally, the well established providers like CNN, it is BBC is consistently rated the most trusted facing growing competition from Al- and best-known international news Jazeera and state funded broadcasters in provider with global audiences rating Russia and China.
Department for Culture, Media and Sport BBC Charter Review: public consultation 32 Box 7: BBC global reach
Key facts BBC weekly global audience for TV, radio and online (2014‑15): 308m Adults worldwide using BBC News services: 1 in 16 World Service – single biggest audience for any country is the USA: 30m A third of the total World Service audience is on the African continent: 100m BBC ambition to reach a global audience of 500m people by 2022. The BBC runs over 100 offices in over 70 countries: BBC Worldwide BBC Global News Source: BBC Announcement, 21 May 2015 Source: BBC Report on The economic return to the UK of the BBC’s global footprint Nov 2013, p.8
Department for Culture, Media and Sport BBC Charter Review: public consultation 33 Content
At the heart of the BBC’s delivery of The Framework Agreement Content spend by service its public purposes lies the content accompanying the current Charter sets it brings to its audiences. The type out that BBC content needs to display at £m least one of the following criteria: high 3,000 and the quality of its content allows quality, challenging, original, innovative the BBC to inform, educate and and engaging. 2,500 entertain. A high standard of BBC 2,000 content is crucial to the successful The BBC’s unique funding structure, delivery of its mission and value to receiving a substantial level of public 1,500 funding, gives the BBC the ability to take the licence fee payer. risks with the content it provides and 1,000 bring new and untested formats to its 500 audiences. 0 In this context, Charter Review will 07 08 09 10 11 12 13 14 consider in particular: Television BBC online −−Genre mix – does the BBC have the Radio balance right between genres; −−Quality and distinctiveness – the Source: BBC Annual Report extent to which the BBC is meeting and Accounts, 2006‑07 to 2014‑15. The BBC’s unique funding the Framework criteria, and audiences’ structure, receiving a expectations, for quality and innovation. substantial level of public funding, gives the BBC the ability to take risks with the content it provides and bring new and untested formats to its audiences.
Department for Culture, Media and Sport BBC Charter Review: public consultation 34 Box 8: What the BBC spends (cost per user hour in brackets)
Television Radio
£1,434m £533m £114m £63m £100m £41m £54m £60m £55m £116m £66m £6m (6.5p) (9.0p) (8.1p) (6.6p) (18.8p) (2.7p) (1.1p) (0.5p) (6.4p) (1.4p) (2.5p) (1.3p)
Total bbc.co.uk/asiannetwork £9m £63m £10m £11m £13m £8m £11m £154m £31m (8.3p) (5.8p) (6.3p) £2,367m (2.3p) (0.9p) (0.7p) (3.1p) (3.8p) (6.5p)
Selection of other spends Total Orchestras and Development BBC World Licence fee S4C direct Local TV performing spend Service operating collection costs funding £6m £20m £18m £24m groups licence (18.9p) (7.0p) (19.2p) (6.3p) £653m £33m £83m £254m £101m £76m £23m Online Broadband rollout Total BBC Online and Red Button Total £150m £720m £201m Source: BBC Annual Report and Accounts 2014‑15, p.139
Department for Culture, Media and Sport BBC Charter Review: public consultation 35 Content
Genre mix the numbers of hours in the different Radio 2014‑15 also highlight the introduction genres (see Box 9 on page 37). But the Radio accounted for around 20 per cent of of the myBBC programme, allowing The BBC’s decisions about genre mix BBC also, like other broadcasters, had to content spend amounting to £474 million greater personalisation of BBC services are a critical component for the value it deal with increases in costs, for example, in 2014 (see Box 8 on page 35). The BBC which started this year with the facility provides to the public. These are set out in drama. The Charter period has also spends around 55 per cent of its content to personalise content on the BBC at a high-level by the BBC Trust through seen the value of sports rights continue spend on the five national stations news app.57 Service Licences and delivered by the BBC to increase in an international market (Radio 1, Radio 2, Radio 3, Radio 4 and through each of its services. There are two which puts pressure on the BBC’s ability Radio 5 Live), 6 per cent on the digital Quality and distinctiveness main ways of measuring genre mix within to retain live coverage of high-value only stations and 39 per cent on BBC The BBC can only meet its objectives if services and across the BBC: on television sporting events, such as the Open Golf nations and local stations. The BBC’s radio audiences see its content as a desirable and radio through hours broadcast and Championships. audiences have remained broadly stable and quality proposition, particularly in an across television, radio and online through over the current Charter period. increasingly competitive and global media funding (see Box 8 on page 35). landscape with ever more options for Content spend (a subcategory Online audiences’ time and spending. Television 55 of service spend) BBC Online accounts for about 5 per cent Television accounted for three quarters of the BBC’s overall content budget, The BBC Trust’s audience research (£1.89 billion) of BBC content spend in amounting to £125 million56 on a suggests that the BBC has been 2014. Childrens’ and factual together television £1.8bn variety of online services. This includes reasonably successful in meeting account for over 50 per cent of television expenditure on the BBC’s desktop, TV, audiences expectations of quality, hours. However, since different genres tablet and mobile online services covering showing that public views of BBC content have very different costs some of the radio £474m the range of content provided by the and quality have been relatively stable BBC’s largest amounts of spend are on BBC’s websites. It also covers the digital across the Charter period and that sports, drama and factual programming interactive services delivered through audiences are largely satisfied with BBC which together account for nearly half of £125m online the BBC’s Red Button and the services content (See Box 10 on page 38). BBC television content spend. Spend by available through the BBC’s iPlayer. The genre has changed significantly over the BBC Annual Report and Accounts for Charter period, as the BBC has made a number of strategic choices by changing
Department for Culture, Media and Sport BBC Charter Review: public consultation 36 Content
Box 9: Network TV hours by genre in 2014 Radio hours by genre in 2014 (2006 numbers in brackets) (2006 numbers in brackets) Drama Schools/ Drama 1,344 (2,062) Educational 4,280 (4,719) 112 (169) Children’s Sport Entertainment 9,074 (10,989) 2,073 (1,652) Sport 7,490 (3,955) 5,166 (4,731) News and Weather 3,705 (3,059) News and Religion Weather Schools/ 592 (1,084) 11,391 Educational (12,642) 309 (1,389) Current Affairs Current 917 (821) Affairs 1,668 (3,470) Comedy 1,670 (-) Factual Music and Arts Factual Entertainment 7,625 (5,766) 42,024 (43,096) 3,318 (1,575) 1,118 (2,384) Film 1,458 (1,792) Religion Music and Arts 157 (181) 1,812 (1,613) Source: BBC Annual Report and Accounts. Note: Changes in genre classifications have occurred over the Charter period. Source: BBC Annual Report and Accounts, 2014‑15.
Department for Culture, Media and Sport BBC Charter Review: public consultation 37 Content
A critical aspect of quality, as it relates However, it also provides a range of 63 to the BBC’s news and current affairs programming which is arguably less Box 10: What audiences think about BBC content provision, is that it is duly impartial and distinctive from the content that its avoids bias towards particular views or commercial competitors provide. In “The BBC makes high quality “The BBC provides quality content voices.58 This has been the subject of providing audiences with popular content programmes or online content” that I find enjoyable and useful on numerous independent and internal the BBC is able to reach a wide base of reviews, from the Lord Wilson Report licence fee payers, and an element of the internet (2005)59, to the more recent Stuart popular programming is essential to the 76% Prebble Review of ‘Breadth of Opinion BBC continuing to deliver services that 66% Reflected in the BBC’s Output’, in 2013.60 audiences want to access. However, “The BBC has lots of fresh and new ideas” concerns have been raised that the interactive TV The second question on content relates to BBC behaves in an overly commercial whether, across the various formats, the way, encroaching on TV genres and 61% 58% BBC is providing sufficiently distinctive formats that could be served well by its content. The BBC provides a wide range DAB digital radio commercial competitors, particularly “The BBC offers ‘quite a bit’, of content across platforms which would during the peak hours that are crucial for ‘a lot’, or ‘everything I need’” either not be provided or under-provided their ability to raise revenue. This can play 46% by the wider market. For example, out at the level of services: the content 58% distinctive natural history series such as budget for Radio 6 is £8 million compared Planet Earth, in-depth classical music and to the combined almost £87 million for arts programming on Radio 3, innovative “The BBC has a wide range of “The BBC makes programmes the arguably less distinctive Radio 1 and enjoyable and entertaining and online content that no other documentary series such as a History of 61 2, while the BBC Trust has found that programmes and online content” broadcaster would make” the World in 100 Objects for Radio 4, and its highest spending service BBC 1 has quality science programming such as the lowest score for ‘fresh and new’ of 74% 49% Horizon. its main channels.62
Source: BBC Trust Purpose Remit Survey, 2013.
Department for Culture, Media and Sport BBC Charter Review: public consultation 38 Content
This does not mean that the BBC should relatively little impact among audiences: ratings can be given undue prominence not be entertaining; it is about the BBC the current scheduling slot of Tuesday by senior management. The question is, providing distinctive programming across evenings at 9pm outside peak hours therefore, how to measure the success of all genre types. For example, the BBC means that few tune in and audience programming when much depends on the acquired the format for The Voice. This awareness of this is low.65 BBC’s ability to deliver its public purposes was a singing talent show developed through its content, and how to make overseas, bought by the BBC at a reported Similarly, questions have been raised sure the culture of the BBC is focused on cost of around £20 million64 and similar about whether content carried on the quality and distinctiveness rather than to ITV’s X-Factor. This is in contrast BBC’s website is sufficiently distinctive driven by ratings. to Strictly Come Dancing which was from content that can and is being developed by the BBC in-house and then developed and delivered by others. sold abroad. The growth of the internet as a medium Question 8 for consuming information is one of the The BBC has faced similar questions most notable developments over the Does the BBC have the right genre about distinctiveness of its radio content, current Charter period; in this context the mix across its services? particularly in relation to its music challenge for the BBC will be in setting stations in peak hours. In its recent report itself apart from others in the online space on BBC Radio 1, perhaps the BBC’s most and potentially seeking to avoid providing Question 9 ‘mainstream’ radio service, the BBC Trust services such as, for example, recipes Is the BBC’s content sufficiently found that the overlap of music played on where a range of other websites already high quality and distinctive from Radio 1 with five comparator commercial do so. that of other broadcasters? stations was low, at around one third of its output. The BBC, as a public institution, should What reforms could improve it? not have the same imperatives as On the other hand, the Trust also found commercial companies such as trying that BBC Radio 1’s requirement to to maximise audience share. However, broadcast 40 new documentaries a year, given the difficulty in measuring quality while met by the station, currently has in an objective way, figures such as
Department for Culture, Media and Sport BBC Charter Review: public consultation 39 Content production
This section considers the PSBs continue to play a vital role in the Current system success of the independent production regulatory framework around The current regulatory framework sector, investing (including sport) content production and the of content production has two main £2.5 billion in UK first-run content in elements: quotas and Terms of Trade. options for reform. 201466, and accounting for the bulk of investment in the UK’s independent BBC quotas production sector. The BBC commissions, produces and acquires vast amounts of TV and radio The BBC accounted for more than half programming and online content. This (almost £1.3 billion) of PSB investment output is shaped by the quotas the in 2014, making the BBC the largest BBC is required to meet in respect of commissioner of television content commissions and productions. These in the UK market.67 The regulatory cover independent productions for framework surrounding the way the TV, radio and online as well as original BBC commissions and produces content and regional productions for TV (see therefore has a significant impact on the Box 11 on page 41). Over the course independent production sector and the of the current Charter period, the BBC wider media and creative economy. It has delivered against these quotas, as also affects the efficiency with which the reflected in the BBC Trust’s report on the licence fee is spent. It should be noted supply arrangements for the production that Ofcom’s Review has found that of BBC content and services published investment in new UK-originated content in June 2015.68 has fallen in recent years. The BBC accounted for more than half (almost £1.3 billion) of PSB investment in 2014, making the BBC the largest commissioner of television content in the UK market.
Department for Culture, Media and Sport BBC Charter Review: public consultation 40 Content production
Terms of Trade Box 11: Current BBC content supply quotas The way the BBC commissions and produces content fits within a broader regulatory regime. The Terms of Trade, Television Radio established in 2003 to address the −−25 per cent of BBC television −−At least 10 per cent of eligible radio imbalanced negotiating position between commissioning hours are guaranteed hours are independently produced broadcasters and smaller companies to independent producers, 50 per cent with a further 10 per cent available in the independent production sector, are guaranteed to BBC in-house through the radio WOCC, which was require negotiations to comply with a producers and 25 per cent are open introduced in 2012.69 code of practice approved by Ofcom (see to competition from in-house and Box 12 below). Under the current system external production companies the intellectual property rights associated under the Window of Creative with programmes typically accrue Online Competition (WOCC). 85 per cent to the production company −−The target is for 25 per cent of and only 15 per cent to the commissioner. −−There are also quotas for original eligible online spend to go to productions, for out-of-London independent suppliers. productions (50 per cent of network Box 12: Terms of Trade television spend from outside London by 2016) including production in Broadcasters have the right to use a Scotland, Wales and Northern Ireland programme a set number of times in (at least 17 per cent of network the primary licence window (typically television spend). two years). On expiration of the window independent producers retain copyright and intellectual property rights, video and DVD royalties and merchandising. Net profits are shared on a negotiated basis but a typical position is an 85 per cent producer – 15 per cent broadcaster share.
Department for Culture, Media and Sport BBC Charter Review: public consultation 41 Content production
Ofcom’s recent PSB Review considered While successful, there are a number 19 June, the intention to phase out radio Studios proposal, set out below, and the whether a re-balancing of the Terms of of reasons for considering the content quotas and to give radio independents outcome of Ofcom’s Third PSB Review in Trade is required and its conclusions are production picture through Charter greater opportunities to compete for respect of the overall position on Terms referenced below. Review. In particular: commissions. of Trade were required before coming to a full decision. Ofcom’s report was −−The impact of the current system. −−The range of quotas. For online Rationale for reform content, the impact that the BBC’s published on 2 July and found that the In respect of television programming, consolidation and vertical integration There are strengths to the current quota online presence can have on others the BBC has suggested the current (production companies being acquired system. It has helped the independent should be considered – not least on structure sees innovation and creativity by broadcasters) which has taken place production market grow on average local news outlets, some of which have stifled, arguing its in-house production in the UK’s production market has led to 3.4 per cent each year between 2009 raised concerns that the BBC’s local unit is restricted to only producing benefits as well as risks for broadcasters.73 and 2013, generating nearly £3 billion presence is having an adverse impact content for the BBC. Moreover, there is Ofcom concluded that while it did not in revenues in 2013.70 It has also helped on consumption of their content. a question about whether the operation believe there was a strong case for reform drive up production in the nations and This includes concerns that in some of the quota system is administratively of programming quotas for independent regions with the total number of network instances the BBC draws on content burdensome for the BBC and the BBC production it would continue to monitor hours originating in London decreasing that local news organisations source Trust. developments in light of the fact that from 65 per cent in 2009 to 41 per cent without giving appropriate credit, so −−The size of the quotas. For radio the sector will continue to change and in 2013.71 At the same time it has enabled prompting calls for a specific local news content, the BBC’s dominant position may consolidate further. These findings, BBC in-house productions to continue quota to be established. on speech radio, taken together along with any further outcomes from the to make high quality content. with the comparatively low quotas This changing environment prompted BBC Trust’s and Ofcom’s reviews will be for independent production, may the BBC Trust to launch a review into the considered during Charter Review. be constraining a small but vibrant BBC’s content supply arrangements earlier sector, which – as the recent New this year, which reported on 19 June.72 York Festival’s International Radio The report concluded that there are Programme Awards has shown – arguments for amending the quotas in delivers truly innovative content and place for TV, radio and online content formats. The BBC announced, on but noted that full details of the BBC’s
Department for Culture, Media and Sport BBC Charter Review: public consultation 42 Content production
There are three main options for Amending existing quotas reforming the current system (in addition Box 13: Regional Delivery There is a range of options for to the related question for the case for The BBC has successfully transitioned One such example is the BBC’s spend amending the quota system: amending the current Terms of Trade): parts of its organisation and spend in the Midlands. A recent campaign amending existing quotas; the BBC −−expanding the current quotas for outside of London, notably helping in the Midlands has highlighted a Studios proposal; and directly scaling back independent production across TV, drive the media hub in Salford. However, marked disparity between the level in-house production. radio or online; there is still a question about whether of licence fee collected in the region it has yet found the optimal geographic (citing £942 million), and the amount −−including a quota requirement spread. While there may be operational of the BBC’s investment there (citing for local news provision; cost associated with having numerous £80 million – or 8.5 per cent). The BBC −−expanding the TV or radio Window of regional hubs, some argue that the BBC have set out their plans to increase Creative Competition (WOCCs) and could and should be doing more where spending and jobs in the Midlands in the introducing a WOCC for online content; it is cost effective to do so. coming years, and to make Birmingham −−reviewing the arrangements a centre of excellence for skills, for regional production; training and development for the UK. However, such concerns are relevant to −−assessing quotas by value consideration of how successful the BBC rather than hours; or has been in meeting its obligations over −−any combination of the options above. the Charter period. Government would be particularly interested in views on whether to lower the in-house guarantee, allowing a greater proportion of hours to be provided by external producers. This could either be as a new set quota for independent producers, expanded competition through the WOCC, or a combination of the two.
Department for Culture, Media and Sport BBC Charter Review: public consultation 43 Content production
The BBC Studios proposal In the past year, Lord Hall has called The BBC argues that this proposal, the Concerns have also been raised publicly for a ‘compete and compare’ approach. detail of which has not yet been published that such a move could potentially give The BBC Executive has indicated that This would remove quotas from BBC but is expected later this year, would rise to State aid concerns and that greater it believes change is needed to the production, allow independent producers increase competition and drive quality detail about the delivery of BBC Studios way its content is produced, not least to bid for BBC commissions (with the and diversity in programme-making. It is required.74 Government is seeking because of wider changes over the exception of current affairs, sport and would also, the BBC argues, address the views on these proposals and welcomes current Charter period, both in respect of children’s content) and set up BBC Studios challenges in-house productions face from evidence setting out any potential supply of content and the way in which as a commercial subsidiary of the BBC, changes to the supply chain, with growing benefits or concerns BBC Studios may it is distributed. For example, digital able to bid on a commercial basis for consolidation in the production market. give rise to. switchover, improved connectivity and commissions and make programmes increasing use of the internet has led to for other broadcasters. These proposals have, however, attracted a diversification of distribution models, some criticism. Setting up the BBC’s with new competitors such as Netflix and production unit as a commercial YouTube making an entrance. subsidiary would see it become one of the UK’s largest content producers in direct competition with the approximately 400 production companies in the UK.
Department for Culture, Media and Sport BBC Charter Review: public consultation 44 Content production
Directly scaling back There is, however, a need to consider There are also questions about how Box 14: Window of in-house production the extent to which the BBC needs to well the BBC’s in-house production operate as the country’s largest single compares, both on price and quality. Creative Competition As noted above, the predominant way content provider employing some 2,000 In recent years, when the BBC has Share of total WOCC hours won in which content is produced for the people. While BBC productions has a competed for commissions on an equal by BBC and independent producers BBC, across television, radio and online, well-earned reputation for quality, many footing with independent producers over the Charter period is through in-house production units independent production companies through the WOCC, the BBC only won £bn (delivering 55 per cent, 78 per cent and can offer similar production values – 17 to 30 per cent of commissions (see 100 70 per cent respectively for television and indeed many of the BBC’s most Box 14 opposite). This could imply that and radio hours and online spend for recognised programmes such as Question independent production companies 80 2013‑14). This has a number of benefits Time and David Attenborough’s First Life deliver better value for money for the including retention of intellectual property are already produced by the independent licence fee payer. As a result, Government 60 rights allowing (under the current Terms sector. It is in this context that the former is keen to understand whether there are of Trade) commercial exploitation, the Director General, Lord Grade, said in arguments for scaling back the BBC’s 40 development of a skilled production evidence to the Culture, Media and Sport production capabilities and what the workforce, and delivery of high quality, Select Committee and quoted in the impact of this might be on audiences, 20 well-received content. Committee’s final report, that the BBC other broadcasters and the production
should look to outsource production sector as a whole. 0 processes and facilities to “a private sector 07-08 08-09 09-10 10-11 11-12 12-13 14-15 more capable of absorbing the work”.75 Independent producers Question 10 BBC Source: How should the system of content 07‑08 – 11‑12 Total data included in ‘WOCC production be improved through for Television BBC Trust Review’ March 2013 reform of quotas or more radical 12‑13 – 13-14 Total data included in ‘BBC Trust review of the BBC’s arrangements for options? the supply of television and radio content and online services, January 2015
Department for Culture, Media and Sport BBC Charter Review: public consultation 45 3. BBC funding
Department for Culture, Media and Sport BBC Charter Review: public consultation 46 BBC funding
We have looked at the scale and Included in an agreement with the BBC This chapter looks at four funding issues: Box 15: BBC income over the scope of the BBC and its purposes, to take on responsibility for funding free −−The funding model: options for future Charter period, in 2014 prices which are clearly related to the TV licences for the over 75s, Summer Budget 2015 signalled a number of funding models for the BBC including amount of public money the reforms which will be developed through a modernised licence fee, an alternative £bn BBC receives, who pays for it and Charter Review. These include the BBC’s household levy and elements of 6 how it is funded. funding settlement and in particular the subscription. This section will also level of the licence fee (or alternative consider the issue of decriminalisation 5 funding model), on which no decision has of TV licence evasion; yet been taken. −−Protected uses of licence fee funds: 4 what the licence fee can and must The BBC currently receives over be used for, including the option of 3 £3.7 billion of public investment each contestable funding; year from the TV licence fee. Public 2 money is supplemented by commercial −−Value for money and efficiency: how the BBC spends its money and the revenues generated by the BBC, giving the 1 BBC Group an overall income of almost mechanisms for making sure it makes savings where possible; £5 billion a year. Commercial revenues are 0 2007 2008 2009 2010 2011 2012 2013 2014 largely generated through BBC Worldwide −−The BBC’s commercial activities: and are reinvested in the BBC to pursue its how the BBC generates its own income. Commercial and other income public purposes through a dividend. The Licence fee income licence fee is a significant intervention in Source: BBC Annual Report and Accounts the broadcasting market and therefore it is right that Government look at this issue A licence is required by through Charter Review. anyone in the UK viewing live (or nearly-live) TV from any source.
Department for Culture, Media and Sport BBC Charter Review: public consultation 47 BBC funding
Box 16: The history of the licence fee The first wireless licence fee was A licence is now required by anyone in Key dates launched in 1923 and covered radio the UK viewing live (or nearly-live)77 TV services only. It was collected by the Post from any source. The vast majority of 1923 Office with both the Post Office and the income from this is used for the The first wireless licence the Treasury receiving a portion of the BBC’s provision of its services with a fee was launched. income.76 The combined television and small portion used for other projects radio licence fee was introduced in June that support the BBC’s purposes, such as 1946 to cover the costs of operation digital switchover and broadband roll-out. 1946 of the 405-line (monochrome analogue The combined television and television) service. In 1968, following the The current cost of a colour TV licence radio licence fee was introduced. commencement of colour transmissions, is £145.50 and the cost of a black and a colour television supplement was added white licence is £49.00. Concessions are available for blind people, those aged 75 1968 to the licence fee and in 1971 radio-only Colour television supplement and over, and those living in qualifying licences were abolished. was added to the licence fee. residential care accommodation. In 1991 the BBC assumed responsibility The level of the television licence fee, for the collection and enforcement of concessions and payment plans are set 1971 the television licence fee from the Home out in the Communication (Television Radio-only licences were abolished. Office. The BBC carries out this work Licensing) Regulations 2004 (as under the trademark of “TV Licensing”. amended). 1991 The BBC assumed responsibility for the collection and enforcement of the television licence fee from the Home Office.
Department for Culture, Media and Sport BBC Charter Review: public consultation 48 Funding model
The primary source of funding As a funding mechanism the licence fee However the licence fee has also Options for change has a number of strengths: attracted a number of criticisms: for the BBC is the licence fee There is a range of options for reforming which has existed in various forms −−it has provided a direct link between −−it is regressive and requires everyone funding of the BBC. No funding option is over time, as set out at Box 16 the licence fee payer and the service to pay the same flat rate regardless perfect and all involve trade-offs between on page 48. provided by the BBC; of income; separate and, at times, competing objectives (see Box 17 on page 50). The −−it has provided sustained, predictable −−it is not correlated to use – someone feasibility and desirability of any options levels of funding for the BBC that have who uses the BBC very little pays as will also change over time in reaction allowed the organisation to invest and much as someone who uses it a lot; to changes in audience behaviours and provide the services we enjoy today; −−it is compulsory for watching any TV the market, therefore any consideration −−it provides a degree of independence channel, not just the BBC, which means of funding models will need to take a from the Government; and there is also no choice for those who dynamic view. −−it helps enable the BBC to produce want to opt-out of BBC services; content that certain other forms of −−it is enforced by criminal sanctions; and funding (such as subscription) may −−there is an inequity in only requiring a not provide. licence to watch live television when it also funds radio, online and on demand content as well as other commitments such as broadband roll-out.
No funding option is perfect and all involve trade-offs between separate and, at times, competing objectives.
Department for Culture, Media and Sport BBC Charter Review: public consultation 49 Funding model
There are two options which are generally −−Funding through general taxation. Box 17: Funding model criteria considered not appropriate for the BBC This is not appropriate because it would In assessing the respective strengths −−simplicity and low administration and which we are not minded to pursue risk lessening the BBC’s independence and weaknesses of different models it is cost – keeping the funding model in detail through this Charter Review: from Government. It could also important to consider what criteria are simple and transparent and minimising potentially result in greater funding desirable in a funding model. administration costs; −−Funding solely from advertising uncertainty and would have an impact revenue. This is not deemed on the Government’s overall objective They might include: −−acceptability – the public’s view on appropriate because, as shown in of deficit reduction. the relative merits of funding models; evidence to the Culture, Media and −−ability to pay/progressivity – Sport Select Committee’s Future of the In the longer term, there may be the considering individuals’ income and −−sustainability – future-proofing to BBC review, there is little appetite for a potential to move the BBC towards ability to pay; prepare for technological change and move to an advertising model. Such a a subscription model. This would have a to ensure it is relevant in the future; range of benefits that derive from giving −−fairness – relating payment to the move is seen as undesirable because the market is not large enough to sustain an audiences greater choice and control over value of the benefits that a fee payer −−feasibility – technical, legal and the services they receive and bringing receives; financial implementation and delivery; organisation the size of the BBC in its entirety. Moving to such a model would to bear market pressures that would −− certainty – giving the BBC the −−extent – generating sufficient funds likely have significant negative impacts strengthen the BBC’s incentives to be stability to invest in long-term to pay for BBC services and any for others in the market, including responsive to audiences. However, others projects such as the Digital Switchover other commitments such as the other Public Service Broadcasters’ argue that this would undermine the and taxpayers certainty over their World Service and broadband roll- ability to finance public service content, ability of the BBC to deliver such a wide liabilities; out (covered in more detail in the and an overall diminishing in value of range of quality public service content. protected uses of licence fee funds advertising minutage. Audiences may Without some element of public subsidy −−efficiency – the BBC driving economic section below). also be negatively affected by such the BBC incentives would be more efficiency; a change, as advert-free content is a commercial and as such we would expect popular aspect of the BBC. output to prioritise commercial return rather than social benefit.
Department for Culture, Media and Sport BBC Charter Review: public consultation 50 Funding model
There is also a question of feasibility and Funding models Funding models for the BBC cost. As new technologies make it easier There are three options that are generally for content providers to control access Option Strengths and weaknesses thought to be most viable for introduction to broadcast content, the feasibility in the short to medium-term. Retain but reform the −−Retains the advantages of the current system. of a subscription model increases. But licence fee this could not be implemented quickly. These are explored in the table below: −−Removes the anomaly of the iPlayer loophole, ensuring A transition to full subscription would The licence fee would be the BBC’s income is protected given future trends in retained but reformed to close consumption (this is discussed in a separate section need to happen over a number of years −−a reformed licence fee; the ‘iPlayer loophole’. on page 53). and would need collaboration between −−a universal public funding model, Government and industry in order to similar to the German ‘media levy’; and −−Maintains an element of choice – currently only those who prepare, particularly concerning the roll- consume live TV need to purchase a licence. This option −−a combination of public funding and would continue to provide people with the choice to out of conditional access technology. subscription. opt‑out of buying a licence if they do not consume live TV. We are therefore minded to consider However, some of these individuals may consume radio this as an option for the longer term, and or online content funded through the licence fee which would welcome views on this through does not require a licence and are therefore receiving this Charter Review. service without contributing to its costs. −−Maintains a flat rate compulsory levy which is regressive. −−The TV Licence Fee Enforcement Review (see page 53) recommends no change to the current enforcement regime (while the licence fee collection mechanism remains in place) as it is broadly fair and proportionate. However, it concludes that enforcement remains difficult given the need to prove that live TV is being consumed. It also recommends consideration of changes to the iPlayer loophole.
Department for Culture, Media and Sport BBC Charter Review: public consultation 51 Funding model
Option Strengths and weaknesses Option Strengths and weaknesses Universal household levy −−Removes the anomaly of the iPlayer loophole, as the levy Mixed public funding and −−Provides greater choice over consumption for audiences. One option that has gained would be paid by all households (subject to concessions subscription −−The BBC may not be able to provide ‘something for much attention recently, and and exemptions) regardless of the method by which they There are several options for everyone’ as it is currently does. consume BBC content. which the Culture, Media and a mixed public funding and −−Subscription for premium services may be more expensive Sport Select Committee alighted −−Supports the concept of a universal service and better subscription model. The public than is the case under the current model and generate on as the most promising reflects the services funded, directly linking public funding funding element could retain only a small saving to the licence fee payer. option in their Future of the BBC to radio, online and other services, rather than just TV. the licence fee at some level, −−‘Core service’ vs. ‘premium’ packages may be difficult to report, is a universal household −−Could be used to address the regressive elements of the or move to a levy as described 78 determine with wide-ranging views on what should be levy. This is based on the licence fee. above. The subscription element German model under which could then be applied to included in the core package. all households pay a fee for −−Under this option all households contribute to BBC certain elements of the wider −−Consideration would need to be given to the availability provision of media, including TV, services regardless of whether they consume BBC content. BBC portfolio, for example by of conditional access and other technology to enable radio, online and on demand However, circa 97 per cent of individuals consume funding a ‘core service’ through 79 subscriptions to be collected from all viewers. For example, content. Concessions could BBC content. the licence fee with a premium this would be relatively simple to implement for online be put in place, for example, −−This would broaden the base of people paying for the subscription top-up or by services using existing pay-wall technology, however, for to provide those in single BBC and therefore potentially allow for a reduction in the making iPlayer a subscription- TV services, a major infrastructure roll-out would need to occupancy households with the licence fee or increased investment in content. only service. occur to allow subscription to be possible. This would take option to pay a lower fee. −−May be costly to implement. a number of years and have a significant costs associated with it. −−The TV Licence Fee Enforcement Review concluded that changing the method of collection could involve changing −−May be costly to implement. the method of enforcement, including reconsidering the −−The TV Licence Fee Enforcement Review concluded that case for decriminalisation of TV licence evasion. It also changing the method of collection could involve changing noted that a universal levy would meet many of the the method of enforcement, including reconsidering the concerns which stand in the way of reform of the current case for decriminalisation of TV licence evasion. enforcement regime.
Department for Culture, Media and Sport BBC Charter Review: public consultation 52 Funding model
iPlayer loophole This presents four problems: The Government has committed to There are a number of ways in which bringing forward legislation in the next this could operate. Charter Review will One area where Government is 1. Money – if more people watch BBC year to modernise the licence fee in also need to consider the practicalities committed to reform is the so-called programmes on demand without a TV order to cover public service broadcast of enforcement of such changes to the ‘iPlayer loophole’. Whatever BBC services licence (as is currently legal), the BBC’s catch‑up TV.84 The Charter Review will licence fee model, and how this change are consumed (radio, online, on demand), income declines. need to consider how to implement this will relate to any alternative funding a TV licence is currently only required commitment both in the short-term, models. Government would welcome to watch television services that are 2. Fairness – use of the iPlayer loophole under the current licence fee model, views on this issue as part of this broadcast live.80 This means a licence is not to avoid paying the licence fee is unfair and in the future, under any of the consultation. required to watch on demand or catch‑up as licence fee payers are footing the bill alternative models. services.81 It is estimated that 0.5 million for providing content that people only people, around 2 per cent, legally watch watching on demand get to enjoy. on demand or catch-up programmes (on 3. Enforcement – the ability to deter iPlayer and other services) but do not pay evasion is increasingly constrained by the licence fee.82 It is likely this figure will the proliferation of non-traditional TV grow as more people choose to watch receivers such as tablets and mobiles as on demand only. Mediatique forecasts it is easier to conceal these (or to claim estimate that the TV share of on demand legitimate use of them) from TV Licensing content will double from its current enforcement officers. 12 per cent to almost 25 per cent of all viewing by 2017.83 4. Clarity and simplicity – the proliferation of devices combined with the iPlayer loophole risks creating confusion among the public as to who should be paying for a TV licence.
Department for Culture, Media and Sport BBC Charter Review: public consultation 53 Funding model
Enforcement of The Perry Review did, however, make Box 18: TV licence fee enforcement key facts the funding model several recommendations towards improving the current regime, including The BBC Trust is responsible for Number of people convicted The TV Licence Fee Enforcement Review, urgent consideration of the ‘iPlayer overseeing the licence fee collection of a TV licence offence in ‘Perry Review’ was announced in loophole’. It is to be noted that the arrangements put in place by the 2013‑14:86 September 2014 to consider whether Perry Review specifically focused on BBC Executive Board, and ensuring the sanctions currently in place for TV enforcement within the current licence they are “efficient, appropriate and 153,369 licence evasion are appropriate and fair, fee collection framework. It noted that proportionate”. This responsibility was and whether the regime represents “should there be any change in the set out for the first time in the 2006 Amount of Magistrates’ good value for licence fee payers and method of collection… a move to another Royal Charter. The Trust provides a Court time taken up by taxpayers. This was prompted by concerns method of enforcement will become review of licence fee collection each TV licensing cases:87 that the criminal nature of the current more practicable and the question year as part of the BBC’s Annual regime is not a proportionate response of decriminalisation will again fall for Report and Accounts. 0.3% to the problem of TV licence evasion. consideration”.85 And an independent review was duly Number of people imprisoned commissioned from David Perry QC. The Charter Review will need to consider for non-payment of fines the recommendations of the TV Licence relating to a TV licensing The Perry Review concluded that there Fee Enforcement Review and their offence in 2013‑14:88 should be no fundamental change in applicability to both the current, and the sanctions regime as it applies to the alternative funding models. current licence fee collection system. It 32 found that the current regime represents a broadly fair and proportionate response Question 11 Number of licensed households:89 to the problem of TV licence evasion and How should we pay for the BBC provides good value for money (both for and how should the licence fee be licence fee payers and taxpayers). 25.4m modernised?
Department for Culture, Media and Sport BBC Charter Review: public consultation 54 Protected uses of licence fee funds
There are two key issues when Charter Review we will need to consider Box 19: What the licence fee funds discussing what the licence fee funds. the practical steps needed to transfer The licence fee is used to fund Firstly, what areas of activity it should this responsibility, including appropriate the whole range of BBC services: fund and secondly, whether any of governance arrangements. these activities should have their level of funding protected. Both will need These, and other previous uses of the to be considered in the BBC’s funding licence fee have, for example, supported settlement. the roll-out of digital infrastructure, the uptake of new technologies such as digital 57 radio stations 9 television channels BBC Online The BBC has previously agreed to the switchover, and public policy objectives use of the licence fee beyond the direct such as helping more people to ‘get online’ delivery of its services and channels, and the provision of regional news and for a range of projects and programmes content. This Government is committed in support of public purposes. The 2010 to continuing to fund the initiatives iPlayer and Red Button BBC World Service licence fee settlement agreed a range that will allow the media industry to of activities that the licence fee would grow and innovate and believes that it fund including: the World Service, BBC is appropriate for the licence fee (or an Monitoring, S4C (the Welsh language alternative funding model) to fund such In addition the licence fee also funds Public Service Broadcaster), local commitments.92 Through Charter Review some other services and projects including: television infrastructure roll-out and we want to discuss how the BBC’s public content,90 and the roll-out of superfast policy objectives might continue to be broadband through Broadband Delivery supported in this way, (for example UK91. Most recently, the BBC agreed to by supporting digital radio switchover fund the cost of free TV licences for the or regional news and content). S4C (the Welsh Public Local TV Broadband over 75s at the 2015 Summer Budget. The Service Broadcaster) infrastructure roll-out BBC will also take on responsibility for how this concession should be set in the next parliament. Through the course of
Department for Culture, Media and Sport BBC Charter Review: public consultation 55 Protected uses of licence fee funds
In previous licence fee settlements the Government has also asked the BBC Box 20: World Service to commit to funding some things at a The World Service continues to be But the context within which the World Funding for the World Service transferred specific level (a ringfenced amount) to valued across the world for accurate, Service operates is changing. There to the licence fee during the last ensure the ongoing protection of funding impartial and independent news, but it is increased competition from other Charter and the BBC chose to increase for that service. Most recently this has has faced challenges over this Charter international providers such as Russian its operating licence expenditure to included funding for S4C, local television period. As a result of decreased funding and Chinese state broadcasters, and £254 million in 2014‑15.95 Funding levels and the World Service (see Box 19 on and the need to respond to changing new research suggests that digital for 2015‑16 are still to be confirmed. page 55 and Box 20 right). While flexibility audience needs, 15 language services news is dominated by a few successful Making sure the World Service continues is an advantage for managing budgets, closed, radio programming in a number brands with others struggling to reach to have the funding it needs will be vital in some instances there is a particular of languages ended, and there has been a wider audience.94 We want to look to allow it to continue to deliver value reason to ensure a minimum level of a reduction in short-wave and medium- at how this important part of the for the UK. funding to ensure certain services are wave distribution. Despite this, the World BBC’s service can continue to compete protected. In the next funding settlement Service has continued to thrive. It has with other international providers and the Government will need to consider launched Arabic and Persian TV services, remain relevant in a changing global what services should be protected and we and now provides TV, radio and online environment. welcome views on this issue as part of this content in 29 language services and its consultation. audience has continued to increase, now standing at 210 million people.93
Department for Culture, Media and Sport BBC Charter Review: public consultation 56 Protected uses of licence fee funds
Contestable funding This money could still be available to Contestable funding the BBC to compete for, or could be Currently the vast majority of licence solely for other providers, including via fee income is spent on BBC services. Advantages Disadvantages a match-funding arrangement. In either In a world with increasing provision circumstance an alternative organisation −−introduces an element of competition, −−adds an element of uncertainty into and diversity of media services, and with pushing the BBC and other PSBs to be the BBC’s funding which may weaken would need to be identified to oversee the other broadcasters providing content and more efficient; its stability; administration and governance of such services with public service characteristics −−could improve plurality of supply for −−may be costly and complex to administer; a funding pot. This could be the BBC’s (for example, UK originated news, drama, key genres; and and regulator or an alternative organisation. documentaries, arts, and children’s −−could help sustain the broader public service −−the extra accountability measures programming), the Charter Review should broadcasting ecosystem. associated with public money may reduce consider whether there is a case for demand from other broadcasters. alternative providers to be able to access an element of this funding. For example, children’s programming is an area in which the BBC has a near monopoly, as highlighted in the most recent Ofcom PSB Review, and a small amount of contestable funding could introduce Question 12 greater diversity of providers and greater Should the level of funding for plurality in public services provision. The certain services or programmes be principle of contestable funding was previously recommended by the Burns protected? Should some funding be Panel, which advised the previous Charter made available to other providers to Review process. deliver public service content?
Department for Culture, Media and Sport BBC Charter Review: public consultation 57 Value for money and efficiency
The BBC is accountable to the Box 21: Headline efficiency Savings in the television division 2013‑14 licence fee payer for providing good savings by the BBC value for the funding it receives.96 Over the Charter period there has The main ways in which the BBC has found savings in the last years are in £78m been extensive public debate of the payroll bills, procurement, estates, IT Scope savings BBC’s efficiency record and value and content reductions. For example, – doing less for money. It is right that in Charter the Corporation cut staff costs by Review this is scrutinised. 17 per cent in real terms between £29m 2011‑12 and 2013‑14 and the number of £2m Renegotiating Following the 2010 funding settlement, senior managers has fallen by 14 per cent Non-staff programming the BBC, like many other public bodies, since 2011, from 477 to 410; though related contracts and has had to make significant savings. The in the first two years ofDelivering overheads reducing production costs settlement resulted in the BBC taking on Quality First there has only been a small a number of new responsibilities while reduction in headcount (1 per cent).97 £133m the licence fee remained frozen at £145.50 An example of how these savings have until 2016‑17. These factors, set against played out in the television division, a £3m £14m growing revenues from a larger number Early and one-off division with particularly large planned Commercial of households and commercial services, income savings savings under Delivering Quality First, resulted in the BBC needing to achieve is set out opposite.98 This breakdown a 16 per cent cash-releasing efficiency shows that the largest proportion of target over four years. The BBC responded £3m £4m the savings in the year 2013‑14 were Contract Staff and staff-related to the funding settlement with a major delivered through scope savings, where management overheads efficiency initiative Delivering( Quality the BBC is doing less, followed by First), setting a target of £700 million of changes to contract management annual recurring savings by the end of and production costs. Source: Reducing costs Through Delivering Quality First, National Audit Office, 2014 2016‑17 compared to a 2011‑12 baseline.
Department for Culture, Media and Sport BBC Charter Review: public consultation 58 Value for money and efficiency
The National Audit Office found in its −−Questions have been raised about the ITV who received a total package of −−When considering the BBC Three and assessment of Delivering Quality First way in which the BBC has modernised £4.4 million in 2014.104 But the BBC’s BBC One+1 proposals recently, the BBC that the BBC has so far found a range parts of its estate. For example, the annual report shows that at least 74 Trust had to balance value for money of means to deliver against its efficiency £1 billion refurbishment100 of the members of staff are paid more than concerns with potential market impacts. targets (see Box 21 on page 58). While Broadcasting House complex in London, the Prime Minister105 and total numbers However it could be argued that where progress has been made, the BBC’s record according to the National Audit Office, employed, unlike in many other parts spare capacity for channels is available over the Charter period also shows up a has far higher benchmarked running of the public sector, have not reduced or unused, there may be other ways of number of instances where licence fee costs than similar buildings.101 significantly.106 delivering value for licence fee payers payers’ money has not been used well, or −−While the BBC recently capped (see Box 22 below). where questions of value for money have severance payments for all staff at been raised. For example: £150,000, this move came only after significant parliamentary pressure about Box 22: BBC Three and BBC One +1 −−£100 million of licence fee income proposals – greater value for money? was spent by the BBC on its Digital the size and scale of BBC severance Media Initiative, which aimed to deliver pay-offs over the Charter period, The BBC Trust recently considered Questions remain, however, over technology to allow BBC staff to some of which went beyond what was proposals from the Executive to move whether the multiplex108 capacity which 102 develop, create, and share broadcast contractually required of the BBC. BBC Three online-only, realising savings the BBC had intended to use for the video and other content from desktop −−In many respects senior remuneration to devote to drama content, and new BBC One +1 service could deliver computers. The initiative failed, and at the BBC compares favourably with launching a ‘BBC One+1’ service.107 greater benefits, for example through delivered no tangible assets, and other broadcasters. For example, the an alternative public service use, or While the BBC Three proposal was the National Audit Office noted, for Director General of the BBC received a through being made available for use by accepted by the Trust, subject to certain example, that ‘the executive board total package of £466,000103 in 2014‑15 commercial broadcasters. conditions and further consultation, applied insufficient scrutiny...’.99 compared to the Chief Executive of the decision was taken not to agree the BBC One+1 service, given the potential impacts on the wider market.
Department for Culture, Media and Sport BBC Charter Review: public consultation 59 Value for money and efficiency
While the licence fee is cheaper than most There are significant differences in the Question 13 pay TV bundles (costing £12 a month perception of the BBC’s value for money Perception of the BBC’s value compared to commercial competitors across regions. In the same 2014 survey for money across regions Has the BBC been doing enough to which typically start from around 60 per cent of Welsh respondents agreed deliver value for money? How could £20 a month), views on the value for that the BBC offers them good value it go further? money of the licence fee remain mixed. for money, followed by 58 per cent in 47% 50% in Northern in Scotland Latest figures from the BBC show that England, 50 per cent in Scotland and Ireland 57 per cent of respondents said that the 47 per cent in Northern Ireland. Different licence fee was good value, and there ethnic groups also have significantly has been little change to this score over different views: 58 per cent among the Charter period.109 The proportion white audiences agree that the licence 58% 60% in England rises with the number of services used: fee offers value for money compared to in Wales 66 per cent of those who use all three just 47 per cent among Black, Asian and agreed that the BBC offers them good 111 BBC platforms (TV, online, and radio) Minority Ethnic audiences. value for money. reported that the BBC offers good value for money.110 Different ethnic groups also have significantly different views: Latest figures from the BBC show that 58% among white audiences 57% of respondents among Black, Asian and said that the licence fee was good value. 47% Minority Ethnic audiences
agree that the licence fee offers value for money.
Department for Culture, Media and Sport BBC Charter Review: public consultation 60 The BBC’s commercial activities
The BBC makes and commissions operates BBC.com around the world, has now narrowed its portfolio of intellectual property has on other UK content that is popular not just with and £30 million through BBC Studios activities and concentrates on marketing broadcasters and producers, who may audiences in the UK, but around the and Post Production, which rents out BBC content. also be seeking to market British content BBC production space. In the last year to an international audience, must world. The current Charter enables Worldwide returned £227 million to the A recurring issue for BBC Worldwide’s be given serious consideration. In this the BBC to carry out a range of Corporation.113 Together with in-house global strategy is its ability to access context, Charter Review will consider the commercial activities to make produced content, Worldwide thereby finance: as it is subject to public bodies’ full range of options for reforming the money that can be invested back supports independent producers of spending rules, BBC Worldwide has a BBC’s commercial operations, including into its programming. BBC-commissioned content who through Government-imposed borrowing limit full or part privatisation of Worldwide. BBC Worldwide can access the scale and of £350 million. This, some have argued, acts as a brake on BBC Worldwide’s ability However, it has been given constraints: reach of the BBC’s global marketing. to develop larger overseas markets such Question 14 any commercial activity must fit with the In determining the best way of returning as the US. public purposes, be commercially efficient, value to the Corporation, BBC Worldwide How should the BBC’s commercial not endanger the BBC’s reputation and has tested different strategies. BBC As global audiences continue to expand, operations, including BBC brand and follow fair trading rules. Worldwide profits have grown since so too do the opportunities for driving growth in revenue. Clearly, making the Worldwide, be reformed? The BBC’s commercial activities are the beginning of the Charter period with significant international successes such most of existing BBC programming is conducted through the BBC’s largest a good thing, and can help the BBC subsidiary, BBC Worldwide. BBC as Sherlock, Doctor Who, Strictly Come Dancing, and Dancing with the Stars, continue to invest in high quality content. Worldwide is the world’s largest TV However, there are other factors to distributor outside the large US studios,112 which has been exported to over 50 114 consider. It is important for UK licence and markets BBC content both in the UK countries. However, not all decisions were successful, for example, Worldwide fee payers that BBC output is not driven and in the rest of the world. It generates solely by the consideration of its retail revenues of around £1 billion per year. acquired and subsequently divested itself of Lonely Planet, a travel guide book value in international markets. Equally, The BBC also generates £90 million the impact that the sale of BBC of sales through Global News, which publisher, at a significant loss. Worldwide
Department for Culture, Media and Sport BBC Charter Review: public consultation 61 4. BBC governance and regulation
Department for Culture, Media and Sport BBC Charter Review: public consultation 62 BBC governance and regulation
Good governance and regulation Getting this framework right is vitally Box 23: How the Trust model came about are vital to a successful BBC. It is important – but it is not enough on its what makes sure the BBC does own. The BBC also needs the right people, Until 2007 the BBC had a Board of In 2005, an independent panel, behaviours and organisational culture to Governors who were responsible for chaired by Lord Burns, appointed by what it is meant to. It means thrive. Good governance and regulation acting as trustees of the public interest the Government recommended that building the right framework of are a precondition but not a guarantee for by overseeing any complaints, approving the Board of Governors should be accountability, incentives, checks the future success of the BBC. the BBC’s strategic direction, appointing replaced by an independent Public and balances necessary to make the Director General and ensuring that Service Broadcasting Commission (PSBC). This section therefore looks at: BBC management implemented its sure the BBC delivers for licence fee The recommendation was that the PSBC payers, takes account of its market −−The current model; and strategy. The Secretary of State was responsible for approving new services. would advise Ministers on the level of impact, spends its money wisely −−Options for reform. the licence fee as well as taking over the and is held to account in doing so. This model came under some criticism, regulatory responsibilities held by the It also looks at a range of wider particularly that the Board of Governors Governors and operating a contestable governance issues: were expected to be both a ‘cheerleader’ element of the licence fee. The Panel −−Service Licences and Public Value Tests; and ‘critic’ of the BBC, a model that also recommended the creation of a led to a lack of clarity between the unitary board. This recommendation was −−Public and democratic accountability; governance and regulatory functions rejected by the then Secretary of State and and was ultimately unsustainable. who instead introduced the Trust model. −−Royal Charter. This led some to a perception that the BBC had not been run in the interests of the licence fee payer and that the arrangements did not have sufficient transparency and accountability. Good governance and regulation are a precondition but not a guarantee for the future success of the BBC
Department for Culture, Media and Sport BBC Charter Review: public consultation 63 The current model
The BBC is a unique organisation There are three key groups that make up in delivering this. This means it sets out and the last Charter created the current system of governance and what each service should do, decides a model of governance and regulation of the BBC: the BBC Trust, the how they should be assessed, monitors BBC Executive and Ofcom. compliance and approves any changes. regulation aimed at addressing the The Trust operates independently from shortcomings of the previous model The BBC Trust is, as described above, the Executive with separate staff and of a Board of Governors (see Box the sovereign body of the BBC. It is budget – 61.8 full time equivalent staff 23 on page 63) while respecting currently chaired by Rona Fairhead who, and expenditure of £10 million115 the independence of the BBC. as Chairman of the Trust, may also be in 2014‑15. known as Chairman of the BBC. The The result of this was the Trust overriding aims of the BBC Trust are to act model. There were also a number as stewards of the licence fee, guardians of other innovations, such as Public of the public interest and to promote the Value Tests and Service Licences, public purposes. In doing this the Trust and improvements in areas like is responsible for setting the strategic transparency and complaints which direction of the BBC, approving the high- level strategy and budgets for services, are discussed in later sections. and holding the Executive to account
Department for Culture, Media and Sport BBC Charter Review: public consultation 64 The current model
The Executive Board is made up of a mix The role of Ofcom in relation to BBC responsibility for representing licence These concerns led to a review of BBC of Executive and Non-Executive members governance and regulation is important. fee payers recognises the importance of internal governance in 2013 which with a Chairman who can either be a non- As the regulator responsible for the wider their interests and the Trust has over the recommended changes to the way executive or the Director General. Since broadcasting and telecommunications last Charter period developed a range of the governance principles were put into the creation of the current governance landscape it has a variety of mechanisms for engagement with the practice. However, many, including the model the Chairman of the Executive responsibilities that relate to the BBC public. Through the introduction of a new Chairman of the BBC Trust,116 and Board has in practice been the Director both directly and in terms of setting the variety of mechanisms and tools the Trust the Culture, Media and Sport Select General (currently Lord Hall). The role of wider framework. Key among these are has made sure the BBC’s decisions are Committee report on the future of the the Executive Board is, in short, to run the its regulation of broadcast content (for given improved scrutiny. BBC117 have gone further, proposing that BBC. It is responsible for delivering the example in relation to issues such as more fundamental reform may be needed BBC’s services, its editorial and creative harm and offence), handling complaints However, over the course of this Charter to address systemic problems with the output, and management of the BBC. on these issues, being consulted on the there have been a range of issues which existing model. Criticisms remain that It does all of this in line with the strategies setting of quotas, and its role in Market critics suggest are symptomatic of the Trust is conflicted as both regulator and priorities set by the Trust. Impact Assessments – some of these ineffective governance structures: of and cheerleader for the BBC. The areas are addressed later in this section. −−failed delivery of major projects such distinction between the Trust and the as the Digital Media Initiative; Executive, while set out in Charter, is not This current Governance model has well understood or articulated. There are some important advantages. In clearly −−serious editorial failings, such as the also suggestions that in the current model separating the role of the BBC Trust cancelled report on Jimmy Savile the Trust might lack the necessary powers and the Executive, with separate staff, and the Newsnight/Lord McAlpine and sanctions to effect change. finances and public reporting, the allegations; and regulatory elements of the Trust’s role are −−lack of clarity about responsibilities and at greater distance from the Executive insufficient scrutiny by the Executive than they were under the Governor’s and the Trust, as demonstrated by model. This has helped to improve the excessive severance payments to rigour with which the BBC can be held senior staff. to account. Giving the BBC Trust explicit
Department for Culture, Media and Sport BBC Charter Review: public consultation 65 Options for reform
There is a range of options Reformed Trust model seen as reacting to changes led by An approach that modifies the existing the Executive, as was shown with the system brings certain advantages over for reforming the model of The first option is to retain the current proposal to add video to BBC Radio 1, more radical reforms. All organisational governance and regulation. framework, but to reform it further by: or move BBC Three online. This could change takes time, costs money and −−Clarifying roles – despite the formal be resolved by changing the specific introduces disruption, risk and uncertainty. The three strategic options are: structures, the separation of the Trust responsibilities of the Trust and how it Smaller changes to the current system −−a model based on the Trust; and Executive has not always been relates to the Executive, or indeed by would reduce these risks and increase clear, and the wider public does not introducing specific mechanisms that confidence in outcomes. It is also worth −−a new standalone regulatory understand the division. This is often would mean the Trust taking a more noting that the Trust is less than a decade organisation (such as the Public seen as contributing to the problems active role in setting the strategy for old and with more time, and some of Service Broadcasting Commission the BBC has had in dealing with some the BBC. the structural changes suggested above, set out in the Culture, Media and of the challenges it faced in the last it might be able to reform further and Sport Select Committee Report); −−Strengthening powers of Charter. Some of the confusion, both address some of the criticisms levelled and enforcement – the Trust has a range real and perceived, could be resolved by of mechanisms for holding the at it. But there are also substantial −−moving more regulation to Ofcom making clear the distinction between Executive to account. Strengthening drawbacks to this approach. However while abolishing the Trust. the BBC Executive and the Trust, further these in any way, for example by far the roles of the Trust and Executive clarifying responsibilities, and including giving the Trust the ability to withhold are clarified, the structure retains a The latter two options would likely the monitoring of the division of funding, might help improve the fundamental tension in requiring the see the BBC having a unitary board, responsibilities as an obligation. effective regulation of the BBC. Trust to act as a regulatory body while remaining part of the BBC. With even which would set the strategy and be −−Strengthening the strategic function the Chairman of the Trust describing a responsible for delivery, with an external of the Trust – one criticism sometimes move from the Trust model to an external body or bodies performing regulatory levelled at the Trust is that while it regulator as a front runner, it is clear that functions. All options have their benefits approves the BBC’s formal strategy, there is a case for more radical change. and weaknesses as set out below. In it is too passive in setting the strategic addition to this strategic question there direction of the organisation. Rather will be many decisions about where than being the driving force of what responsibilities for specific elements of licence fee payers want, it is instead governance and regulation will need to sit.
Department for Culture, Media and Sport BBC Charter Review: public consultation 66 Models of governance and regulation
Standalone regulator model In moving regulation to an external body There is also a significant risk that this Ofcom fully separated in both structure and would confuse the regulatory landscape The notion of a standalone regulator Ofcom is a well respected independent title from the BBC, this model removes by dividing media and telecoms model is used here to represent a range of regulator with a strong track record, which much of the criticism about the conflict responsibilities in an increasingly options that each have a similar structure, is why it has been suggested by some of being both regulator and cheerleader. converging sector. This would be sometimes referred to as ‘OfBeeb’. Their that it could take on a greater role in the It could also bring all of the key strategic exacerbated if the regulator were given common feature is a second body – regulation of the BBC. The third option and operational responsibilities together any additional responsibilities relating to completely distinct from the BBC and is therefore for the regulatory function in a unitary board, with very clear lines of public service broadcasting. Ofcom – that performs some or all of to move to Ofcom with the delivery and accountability and a strong non-executive the oversight and regulatory functions governance functions likely residing with membership that can ensure the The detail of exactly what responsibilities that currently sit with the Trust. Most a unitary board. A version of this proposal interests of the British public are properly and powers sit within this regulator would commonly, this model sees the BBC was considered as an option in the Burns represented. A standalone regulator would be up for debate and there are a range of adopting a unitary board which would Report at the last Charter Review, and was also not risk being distracted by wider proposals that could give the body strong consolidate the strategy setting and revisited in the recent Culture, Media and responsibilities. powers. This could either be through responsibility for operational delivery – changing the balance of responsibilities Sport Select Committee Report. although some of the strategic elements But this model is not without its that this regulatory body and Ofcom This option would be similar in many of this function could sit in the distinct challenges. Single purpose regulators have, or by giving the body responsibility ways to a standalone regulator. The body. An approach of this kind was the are difficult to set up in a way that does for other decisions such as the allocation specific ways in which Ofcom would option that the original Burns report not lead to their being either overly of any contestable funding (explored need to change in order to execute in 2006 and the Culture, Media and dependent on or confrontational with the further in Chapter 3). such a role depend on the specific Sport Select Committee report in 2015 organisation they regulate, as historical responsibilities it acquired but it would recommended. examples, such as the Postal Services likely require significant extra resources Commission (Postcomm) regulation of and could involve additional structures Royal Mail, demonstrate. A structure set within Ofcom itself such as independent up to regulate from outside the BBC may advisory boards. also struggle with being too far removed – unable to influence the decision making of a powerful unitary board.
Department for Culture, Media and Sport BBC Charter Review: public consultation 67 Models of governance and regulation
This option is attractive because Ofcom However, there are also difficulties. The With all three models there is a question Question 15 is already known to be an effective scale of this kind of activity could involve of who the governing body is ultimately regulator, and it fully understands significant disruption which would need accountable to. Under the current system How should the current model of the broadcast and wider media and to be mitigated both for the BBC and this is the licence fee payer, described in governance and regulation for the telecommunications sector. The cost potentially for Ofcom. While Ofcom such a way to encompass public interest BBC be reformed? and disruption of moving responsibilities does undertake measures of public value, more broadly. There are merits to this to Ofcom would likely be lower than it does not currently approve particular approach – it explicitly ties the thinking the creation of an entirely new body. services. This change could also be seen as of the organisation to those who pay Such a move would consolidate media making Ofcom too powerful, expanding for it and provides a very clear link of and telecommunications regulatory its already large remit and expenditure. accountability. However, we may want to responsibilities within a single body which Last year Ofcom had a budget of think differently about this. Representing has the benefit of simplicity and clarity, £117 million and nearly 800 staff.118 the public interest is a complex task – particularly within converging sectors. In differentiating between the interests of clearly dividing governance and regulation audiences, special interest groups, and in this way this model also effectively society at large, and taking into account removes any potential conflict of interest. the benefits not just for those who consume the BBC’s content, but the UK as a whole. There is also clearly a need to consider the implications should the funding model change, as discussed in Chapter 3.
Department for Culture, Media and Sport BBC Charter Review: public consultation 68 Models of governance and regulation
Box 24: Governance framework To make informed decisions about General governance principles BBC specific principles Practical issues the best approach to governance and −−Leadership: clear roles and −−Public accountability: accountable −−Value for money: governance model regulation there needs to be a clear responsibilities. to the public as equivalent to represents good value for the public. understanding of what it is trying to −−Effectiveness: balance of skills and shareholders, including transparency. −−Deliverable: proportionate and achieve and a framework for assessing experience. Appropriate appointment −−Sensitive to market impact: appropriate governance model this. A proposed framework is set out and evaluation processes. mechanisms to ensure any impact taking into account risk and cost below. There are some principles of is understood and justified. of implementation. good governance which apply to all −−Accountability: transparency, risk organisations. The BBC is no exception management and internal control −−Independence: free from editorial and already reports against these systems. Relationship with auditors. interference. principles – codified in TheUK Corporate −−Regulation: appropriate regulatory Governance Code – in its Annual Report framework. and Accounts. There are, however, some differences. This is why we are proposing an assessment framework that includes both general and BBC specific principles as well as taking into account the cost and delivery to ensure value for money for the public.
Department for Culture, Media and Sport BBC Charter Review: public consultation 69 Service Licences and Public Value Tests
The Charter Review process is an The Service Licences set out what each Together these allow the BBC Trust to −−The use of PVTs is reactive, looking opportunity to set the framework service does and how, for example the take a fully informed view of the costs at a proposal in isolation rather than for what we want the BBC to BBC 1 licence sets out that it should be and benefits of the proposed change. taking a view of the BBC as a whole ‘…the BBC’s most popular mixed-genre The subsequent decision can have and the role that each service should do and how it should do it. But television service across the UK, offering material effects on the services audiences play within it. there will undoubtedly be key a wide range of high quality programmes,’ receive, as with, for example, the recent −−The Service Licences, while increasing decisions at other points in time. and ‘…the BBC’s primary outlet for major provisional decision of the Trust to the level of scrutiny and control may The last Charter put in place new UK and international events and it should approve the proposal for BBC Three to not hold the BBC to a high enough mechanisms to ensure any changes reflect the whole of the UK in its output’. move online but to reject the proposal standard or contain enough specific properly reflect the public interest Service Licences are reviewed at least for a BBC +1 channel. The introduction details about output. and take due account of market twice each Charter period. Each review of these processes has been broadly involves consultation with industry and welcomed and is a significant step −−The mechanisms for enforcement of impact. These were Service Licences the public to ensure each service is still forward, however there may be the Service Licence reviews may not be and Public Value Tests (PVTs). meeting the needs of licence fee payers. potential to strengthen the overall system sufficiently robust. For example, there The PVTs are the mechanism by which by addressing some of the criticisms that have been industry complaints that any significant changes proposed to have been made: recommendations about the average services are assessed. They are usually listening age of the BBC’s most in response to proposals from the BBC −−The PVT can be too blunt an popular radio stations have not been 119 Executive and have two key parts: instrument, it is a single, relatively adequately enforced. costly and time consuming process −−an assessment of public value applied once proposals cross a undertaken by the Trust and involving threshold of relevance. It is therefore Question 16 significant consultation with the public not always able to react to changes How should Public Value Tests and and industry; and effectively; either taking too long to deliver or missing a change Service Licences be reformed and −−a Market Impact Assessment (MIA) who should have the responsibility undertaken by Ofcom on behalf of the that did not meet the threshold of BBC Trust which seeks to understand significance. This can be exacerbated for making these decisions? and explain any impact on the market by the time it can take for the Trust to that the proposed changes might have. receive a proposal.
Department for Culture, Media and Sport BBC Charter Review: public consultation 70 Public accountability
representative. These councils provide The BBC is also subject to the Freedom In addition to the overall There are three main forms of insights into what audiences want and of Information (FOI) Act (except for governance and regulatory models direct public accountability: and how changes are made during expect from the BBC in their nations, and information held for the purposes of −−Research and Audience Councils; on how well the BBC is doing this. They journalism, art or literature). These sources Charter we need to consider also provide an Annual Report to the of information help civil society and the −−transparency; and whether the direct accountability Trust. This provides a direct mechanism, wider media hold the BBC to account. of the BBC should be reformed. −−complaints handling but the system is not very visible to the Stories about the BBC, often derived from public at large and it is unclear what the transparency reporting or FOI requests, impact of these councils has been on the are regular features in many national Research and Audience Councils overall operation of the BBC. newspapers, such as the Daily Mail’s One of the main ways in which the reporting of training costs at the BBC120 BBC engages with the public is through Transparency or the Telegraph’s reporting of IT thefts.121 its programme of research. Some of Transparency is a second key method However, there are elements of the BBC this is done ‘in-house’, but much is for ensuring the BBC is acting in the that are not as transparent, particularly commissioned from independent experts, best interests of the public and other in relation to commercial activities, polling and research organisations. stakeholders. Despite concerns around lack and the scale and complexity of the It looks at all aspects of the BBC – TV, of transparency within the BBC, there have organisation can make it difficult for radio, and internet as well as editorial been a number of improvements over the people to understand how decisions are issues, the BBC as an organisation and last Charter. The BBC proactively publishes: being made and how and when they can different audience groups. The Trust also contribute their views. There are areas undertakes a wide range of consultations −−executive pay and expenses; where full transparency may not be to inform decisions it is taking. −−the minutes of BBC Trust meetings; possible for commercial, journalistic or Audience Councils are a further way of −−details of planned changes in its public artistic reasons. But we need to make sure One of the main ways in providing a direct link between licence consultations and services; that the right balance is struck in making information available in the right way to which the BBC engages fee payers and the Trust. There is an −−Service Licences; and Audience Council for each nation in the build trust with licence fee payers. This with the public is through −−protocols for how it operates. its programme of research. UK. Each feeds into their BBC Trust Board could include looking at the way in which
Department for Culture, Media and Sport BBC Charter Review: public consultation 71 Public accountability
the FOI Act applies to the BBC, whether to the Trust and the Editorial Standards organisation can take responsibility for the a more detailed level of information can Committee if appropriate. The Committee later stages of handling and adjudicating Box 25: BBC editorial be published (for example, publishing regularly publish their decisions and an on all complaints. This could sit within complaints statistics124 salaries and staff structures in line with overview is provided in the BBC’s Annual the BBC, a standalone regulator or Ofcom Government transparency requirements) Report. There are separate protocols for so long as they were properly equipped Stage 1: Editorial and and whether more commercial data general complaints and indeed complaints to do so. general complaints could be made available. One area where about the Trust itself.122 Ofcom are transparency is particularly important is responsible for editorial standards 259,886 complaints in relation to open and fair competition across the broadcasting sector, which Question 17 answered on time through their fair trading rules. includes the BBC, with an exemption 96% for impartiality and accuracy which is How could the BBC improve Complaints handled solely by the BBC Trust. This engagement with licence fee Stage 2: Editorial complaints to means that in many areas there can be payers and the industry, including the Editorial Complaints Unit In addition, the BBC relates to the an overlap with both the BBC and Ofcom public by listening to what people through research, transparency and having responsibility. 583 complaints have to say when they write to and complaints handling? call the organisation. The BBC handles The process for handling complaints has 85% answered on time hundreds of thousands of editorial and been reviewed and improved over the last general complaints each year (see Box Charter period with 96 per cent answered Stage 3: Appeals to the Trust’s 25 opposite). Editorial complaints make on time in the last year.123 However, Editorial Standards Committee up the bulk of these and are handled concerns have been expressed around initially by the BBC audience services the dual line of reporting. The BBC and 326 complaints team. Where this does not resolve the Ofcom have put in place procedures to issue it is passed to the division that the make this dual reporting as streamlined as 98% answered on time complainant is concerned with. Where possible, however this in itself is not able this is still unable to resolve a complaint to completely remove the duplication. it will be escalated to the Editorial Some have argued that it might be more Complaints Unit before being escalated effective to make changes so that one
Department for Culture, Media and Sport BBC Charter Review: public consultation 72 Democratic structures
In addition to its direct public The BBC also has accountability to the for the Chairman of the BBC Trust. The National Audit Office devolved nations; for example, following BBC also lays their Annual Report and accountability, the BBC is The NAO conducts value for money the Smith Commission, a Memorandum Accounts in the UK Parliament at the end scrutinised by the democratic examinations of the BBC, to a of Understanding between the UK and of every reporting year. programme agreed with the BBC Trust. structures in the UK – Government Scottish Governments, the BBC and the This is a requirement of the Framework and Parliament. This is supported Scottish Parliament has been agreed. The CMS Select Committee can conduct by the role of the National Audit inquiries into areas of current interest, Agreement between the Government and the BBC and access has been enhanced in Office (NAO) in scrutinising its This requires the BBC to lay its Annual for example in February 2015 it published 125 recent years. Recent reports have included spending. Report and Accounts before the Scottish the Future of the BBC Report. During Parliament and appear before their the previous Parliament the Committee looking at the savings made through committees on the same basis as for conducted four separate inquires into Delivering Quality First (March 2015) and the UK Parliament. As part of this review the BBC and the PAC conducted two. on Managing the BBC’s estate (January we will consider whether these scrutiny In addition the BBC was called to give 2015) and have fed into parliamentary functions are proving effective, while evidence before several other Select scrutiny. In recent years there have been safeguarding the BBC’s independence. Committees such as the European calls for the NAO to have statutory Scrutiny Committee. There is therefore access to the BBC’s accounts, as they Parliamentary Committees extensive opportunity for Parliament to do with other Government departments scrutinise the BBC. However, through and agencies. This would allow the Parliamentary Select Committees are set Charter Review we would be interested NAO to audit the BBC’s Annual up to scrutinise the work of Government in views as to whether any improvements Report and Accounts and subject the departments and their associated bodies, could be made. Corporation to greater scrutiny. Greater including the BBC, on behalf of the financial accountability is an important House of Commons and the electorate. requirement, which should not undermine The BBC is most often called before the the BBC’s editorial independence. Public Accounts Committee (PAC) or the Culture, Media and Sport (CMS) Select Committee, the latter also has a role in conducting a pre-appointment hearing
Department for Culture, Media and Sport BBC Charter Review: public consultation 73 Democratic structures
Government Because it has a unique model it can Question 18 be unclear whether targets designed for The BBC is formally independent from Government departments and agencies Government, but as a publicly-funded How should the relationship do and should apply to an independent body its spending is included in the between Parliament, Government, broadcaster. The function of setting the overall level of public expenditure as Ofcom, the National Audit Office BBC’s requirements for accounting for categorised by the Office for National and the BBC work? its public funding is carried out through Statistics. Ordinarily arm’s-length bodies the Charter Review and licence fee and other publicly-funded organisations What accountability structures and settlements and as such we will consider must conform with controls on their expectations, including financial how the BBC should be treated in respect expenditure and other guidance set out in of any obligations that might arise in transparency and spending controls, HM Treasury’s Managing Public Money.126 between these reviews. should apply? At present this is not the case for the BBC, which has a different framework set out in the Charter and Framework Agreement and is regulated by the Trust. This means that the BBC has different reporting requirements and financial controls to other publicly-funded bodies.
Department for Culture, Media and Sport BBC Charter Review: public consultation 74 Royal Charter
The BBC has been governed by Most of the detail of the operation of There is some debate as to whether Question 19 a Royal Charter since 1927. The the BBC is then set out in a Framework a Royal Charter and accompanying Charter is the constitutional basis of Agreement between Government and Framework Agreement remain the most Should the existing approach the BBC. This includes its purpose remits, suitable way to enshrine the BBC. There the Corporation and guarantees its of a 10-year Royal Charter and funding, how the Service Licences and are many options for reform, among Framework Agreement continue? independence from Parliament and PVTs are supposed to work, regulatory which the most relevant is the length of Government. obligations, complaints handling and its the Charter. There is no set length: there relationship with Ofcom. have been eight Charters which have varied in length between five and fifteen The BBC has been governed years, as well as occasional supplemental by a Royal Charter since Charters. The most recent two Charters have both been for ten years. 1927 The key trade-off is between the benefits of certainty and flexibility. Given the fast-changing media world the relative costs of being inflexible grow. One way of handling this might be to change the length of the Charter – reducing it to a timeframe over which we can be more certain. Alternatively, it would be possible to introduce a new mechanism that provides a point of review mid-way through a Charter period either to a fixed The Royal Charter is the constitutional timetable or with a relevant trigger. basis of the Corporation and guarantees its independence from Parliament and Government.
Department for Culture, Media and Sport BBC Charter Review: public consultation 75 Endnotes
Department for Culture, Media and Sport BBC Charter Review: public consultation 76 Glossary
BBC Executive Broadband Delivering Quality First Ofcom The Executive Board is responsible for A term used to by retail Internet service Delivering Quality First (DQF) is the BBC’s The Office for Communications – the operational management of the BBC. providers to describe their high-speed, plan for how it can deliver the highest independent regulator and competition always-on, access to the Internet. The quality programmes and content to authority for the UK communication BBC Trust term broadband originally refers to the audiences until the end of the Charter industries. The BBC Trust is the governing body range of high frequency signals used in 2017. of the BBC. to carry the data being transmitted. On demand Digital Switchover See ‘catch-up TV’ above. BBC Group Broadband is most often delivered via connection through a telephone line or The process of switching over the The BBC Group refers to the BBC and analogue television broadcasting system PSB it’s commercial subsidiaries. cable service, but can also be delivered Public Service Broadcasting (or using wireless and satellite connections. to digital, as well as ensuring that people adapted or upgraded their televisions Broadcaster) – in the UK these are: the BDUK A potential access speed of less than BBC, ITV, Channel 4, S4C and Channel 5. Broadband Delivery UK– the delivery 512Kbps is deemed not to be broadband. and recording equipment to receive arm for the Government’s broadband digital TV. This process was completed PVT programmes (and part of the Department Catch-up TV across the UK in 2012. Public Value Test – the way of weighing for Culture, Media and Sport). or TV ‘on demand’, is a system for public value against market impact. The watching TV programmes after they have MIA Market Impact Assessment – an BBC Trust uses PVTs to work out the value been broadcast using a computer, phone, to the public of new BBC services and etc. that is connected to the internet. element of the Public Value Test that looks at the impact of any new BBC changes and to work out the impact it DAB service or significant change to an could have on the wider market. Digital Audio Broadcasting – digital radio. existing BBC service. DCMS NAO Department for Culture, Media and Sport. National Audit Office.
Department for Culture, Media and Sport BBC Charter Review: public consultation 77 Glossary
S4C Smart television Telecommunications A Welsh language public service television The integration of the Internet (and Conveyance over distance of speed, channel based broadcast throughout associated software applications) into music and other sounds, visual images Wales. television sets and associated devices or signals by electric, magnetic or such as Blu-Ray players, games consoles electromagnetic means. The first television channel to be aimed and set-top boxes. Consumers can specifically at a Welsh-speaking audience, browse the Internet and access a range of Terms of Trade S4C is (after BBC One, ITV, BBC Two and services (catch-up TV, video-on-demand, Guidance produced by Ofcom (in their Sky1) the fifth-oldest television channel user-uploaded content), as well as linear ‘Code of Practice for Commissioning in the United Kingdom (Channel 4 was broadcast TV content, via their TV screen. from Independent Producers’) setting launched in the rest of the country one out how Public Service Broadcasters day later). Spectrum should negotiate agreements with the Radio spectrum – those sections of the independent production sector over Service Licence electromagnetic spectrum (typically the commissioning of new works. Services Licences are issued by the BBC defined as between 3KHz and 300GHz) Trust for every UK public service. It defines which are used by a wide range of wireless Ultra HD the scope, aims, objectives, headline based services including broadcasting, Ultra-high-definition television (also budget and other important features of telecommunications and business radios. known as Super Hi-Vision, Ultra HD each service and states how performance television, UltraHD, UHDTV, or UHD) is assessed by the Trust. Superfast Broadband includes 4K UHD (2160p) and 8K UHD BDUK (see page 77) defines Superfast (4320p), which are two digital video Broadband as having a potential headline formats proposed by NHK Science & access speed of at least 24Mbps, with no Technology Research Laboratories and upper limit. Typically, at a wholesale level, defined and approved by the International the underlying capability can be measured Telecommunication Union (ITU). in gigabits. The retail market then takes this capability and delivers affordable WOCC propositions. Window of Creative Competition.
Department for Culture, Media and Sport BBC Charter Review: public consultation 78 Endnotes
1 Ofcom Communications Market Report 6 National Audit Office, BBC Digital 12 Digital televisions that are connected 17 BBC Annual Report and Accounts 2014: http://stakeholders.ofcom.org. Media Initiative, January 2014, p.11: to the internet and therefore able to 2014‑15, p. 88: www.bbc.co.uk/ uk/market-data-research/market-data/ http://www.nao.org.uk/wp-content/ provide services that this connection aboutthebbc/insidethebbc/ communications-market-reports/ uploads/2015/01/BBC-Digital-Media- enables howwework/reports/ara cmr14/ Initiative.pdf 13 Mission and values, ‘Inside the 18 BBC Annual Report and Accounts 2 BBC iPlayer Monthly Performance Pack, 7 BBC announcement, 21 May 2015: BBC:’ www.bbc.co.uk/corporate2/ 2014‑15, p. 88: www.bbc.co.uk/ January 2015: http://www.bbc.co.uk/ www.bbc.co.uk/mediacentre/ insidethebbc/whoweare/mission_and_ aboutthebbc/insidethebbc/ mediacentre/latestnews/2015/iplayer- latestnews/2015/combined- values howwework/reports/ara performance-pack-jan15 globalaudience 14 BBC, Purpose remits, BBC 2013: http:// 19 BBC’s Diversity Strategy 2011‑15, p. 12: 3 BBC Trust Service Review of BBC Music 8 Ofcom’s PSB Review published on 2 downloads.bbc.co.uk/bbctrust/assets/ http://downloads.bbc.co.uk/diversity/ Radio, 2015, p12: http://downloads. July, considers the wider PSB market files/pdf/about/how_we_govern/ pdf/Diversity_strategy_110523.pdf bbc.co.uk/bbctrust/assets/files/pdf/ – Government will consider Ofcom’s purpose_remits/2013/purpose_remits. 20 BBC Annual Report and Accounts our_work/music_radio/music_radio.pdf findings in due course. Pdf 2014‑15, p. 88: www.bbc.co.uk/ 4 BBC announcement, 21 May, 2015: 9 Freeview Channel Guide, Spring 15 Including Baroness Tanni Grey aboutthebbc/insidethebbc/ www.bbc.co.uk/mediacentre/ 2015: www.freeview.co.uk/wp- Thompson, Lenny Henry, Asian howwework/reports/ara latestnews/2015/combined- content/uploads/2015/02/Freeview- Network presenter Nihal and Lady 21 BBC’s Diversity Strategy 2011‑15, p.11: globalaudience ChannelGuide_Feb-2015.pdf Benjamin. BBC press release, June http://downloads.bbc.co.uk/diversity/ 2014: www.bbc.co.uk/mediacentre/ 5 National Audit Office, Reducing 10 Internet Access – Households and pdf/Diversity_strategy_110523.pdf latestnews/2014/bame-representation- Costs Through Delivering Quality Individuals 2014, Office of National plans 22 Royal Charter for the continuance of First, February 2015 , p.11: http:// Statistics, 7 August 2014, p.1: www.ons. the BBC, October 2006, Article 5: www.bbc.co.uk/bbctrust/news/press_ gov.uk/ons/dcp171778_373584.pdf 16 BBC Annual Report and Accounts http://downloads.bbc.co.uk/bbctrust/ releases/2015/reducing_costs 2014‑15, p. 88: www.bbc.co.uk/ 11 Broadband Delivery UK (BDUK) target: assets/files/pdf/about/how_we_govern/ aboutthebbc/insidethebbc/ https://www.gov.uk/broadbanddelivery- charter.pdf howwework/reports/ara uk
Department for Culture, Media and Sport BBC Charter Review: public consultation 79 Endnotes
23 European Audiovisual Observatory 27 BBC Annual Report and Accounts 33 The Communications Market Report, 40 BBC Trust, Service Review of Yearbook 2013, company reports, 2014‑15, p.73: www.bbc.co.uk/ Ofcom, 2014 p.154: BBC Television 2014 Supporting 2011‑12 and 2012‑13 data where aboutthebbc/insidethebbc/ Performance Analysis, p. 13: http:// 34 RAJAR, Data Release, Q1 2015. available: http://www.obs.coe.int/en/-/ howwework/reports/ara downloads.bbc.co.uk/bbctrust/assets/ www.rajar.co.uk/docs/news/RAJAR_ pr-yearbook-2013-volume-2 files/pdf/regulatory_framework/service_ 28 UK TV Annual Report 2012 and UK TV DataRelease_InfographicQ12015.pdf licences/service_reviews/television_ 24 Ralph Rivera, Fifteen Years of BBC Annual Report 2014: http://corporate. 35 THIRA is a collaborative project led services/television_services.pdf Online, BBC Blog, 12 December uktv.co.uk/article/results/ by the BBC and co-funded by the 2012: www.bbc.co.uk/blogs/ 41 Ofcom PSB Review consultation 29 The Digital Switchover Help Scheme, Technology Strategy Board which bbcinternet/2012/12/fifteen_years_of December 2014, p. 21: http:// DCMS, February 2012: http:// addresses usage of larger resolution bbc_online.html stakeholders.ofcom.org.uk/binaries/ downloads.bbc.co.uk/aboutthebbc/ video formats: thira.ch.bbc.co.uk/ consultations/psb-review-3/statement/ 25 BBC Audience Information Data Tables, insidethebbc/howwework/partnerships/ 36 BBC Annual Report and Accounts PSB_Review_3_Statement.pdf July – September 2014 downloads: helpscheme/SHS_scheme_agreement_ 2014‑15, p. 129: www.bbc.co.uk/ bbc.co.uk/aboutthebbc/insidethebbc/ feb2012.pdf 42 BBC Trust Purpose Remit Survey Winter aboutthebbc/insidethebbc/ howwework/accountability/pdf/ 2012‑13, p.8: www.bbc.co.uk/bbctrust/ 30 2010 licence fee settlement: http:// howwework/reports/ara summary_audience_information_july_ our_work/audiences/previous_prs_ www.bbc.co.uk/bbctrust/our_work/ sept_2014.pdf 37 BBC Annual Report and Accounts reports.html strategy/licence_fee/2010_settlement. 2014‑15, p. 3: www.bbc.co.uk/ 26 BBC Trust Service Review: Radio 1, html 43 Public Service Broadcasting in the aboutthebbc/insidethebbc/ 1Xtra, Radio 2, Radio 3, 6 Music and Internet Age, Ofcom, 2 July 2015: 31 2010 licence fee settlement: http:// howwework/reports/ara Asian Network March 2015 p. 13: stakeholders.ofcom.org.uk/binaries/ www.bbc.co.uk/bbctrust/our_work/ http://downloads.bbc.co.uk/bbctrust/ 38 BBC Trust Purpose Remit Survey consultations/psb-review-3/statement/ strategy/licence_fee/2010_settlement. assets/files/pdf/our_work/music_radio/ Autumn 2013, p. 31: PSB_Review_3_Statement.pdf html music_radio.pdf 39 Public Service Broadcasting in the 32 BBC announcement, 8 April 2015: Internet Age, Ofcom, 2 July 2015, p. http://www.bbc.co.uk/mediacentre/ 14: stakeholders.ofcom.org.uk/binaries/ latestnews/2015/dab-network consultations/psb-review-3/statement/ PSB_Review_3_Statement.pdf
Department for Culture, Media and Sport BBC Charter Review: public consultation 80 Endnotes
44 59 per cent: BBC Annual Report and 49 BBC announcement, 21 May 2015: 54 BBC Announcement, 8 October 59 BBC Governors Review: BBC coverage Accounts 2014‑15 p. 27: www.bbc. www.bbc.co.uk/mediacentre/ 2013: www.bbc.co.uk/mediacentre/ of the European Union, 2005: www.bbc. co.uk/aboutthebbc/insidethebbc/ latestnews/2015/combined- latestnews/2013/dg-global-audience. co.uk/bbctrust/our_work/governors_ howwework/reports/ara globalaudience?lang=cy Html archive/european_union.html 45 BBC Trust Purpose Remit Survey 50 BBC Announcement, 21 May 2007: 55 BBC Executive data and BBC Annual 60 BBC Trust, Review of the breadth of Autumn 2013, p. 28: www.bbc.co.uk/ http://www.bbc.co.uk/pressoffice/ Report and Accounts 2014‑15, p.139: opinion reflected in the BBC’s output, bbctrust/our_work/audiences/previous_ pressreleases/stories/2007/05_may/21- www.bbc.co.uk/aboutthebbc/ 2013: www.bbc.co.uk/bbctrust/our_ prs_reports.html global.shtml insidethebbc/howwework/reports/ara work/editorial_standards/impartiality/ breadth_opinion.html 46 PSB Annual Report 2014, Ofcom, p. 51 The economic return to the UK of the 56 BBC Annual Report and Accounts 6: http://stakeholders.ofcom.org.uk/ BBC’s global footprint, BBC, November 2014‑15, p.75: www.bbc.co.uk/ 61 BBC Trust Purpose Remit Survey broadcasting/reviews-investigations/ 2013, p. 7: www.bbc.co.uk/mediacentre/ aboutthebbc/insidethebbc/ 2012‑13: www.bbc.co.uk/bbctrust/our_ public-service-broadcasting/annrep/ latestnews/2013/bbc-global-footprint. howwework/reports/ara work/audiences/previous_prs_reports. psb14/ html html 57 BBC Annual Report and Accounts 47 BBC Annual Report and Accounts 52 BBC Annual Report and Accounts 2014‑15, p.75: www.bbc.co.uk/ 62 BBC Annual Report and Accounts 2014‑15 pp. 76-78: www.bbc. 2013‑14, p. 33: www.bbc.co.uk/ aboutthebbc/insidethebbc/ 2014‑15, pp. 71‑72: www.bbc. co.uk/aboutthebbc/insidethebbc/ aboutthebbc/insidethebbc/ howwework/reports/ara co.uk/aboutthebbc/insidethebbc/ howwework/reports/ara howwework/reports/ara howwework/reports/ara 58 BBC Trust review of the breadth of 48 ITU (United Nations specialized agency 53 The economic return to the UK of the opinion reflected in the BBC’s output, 63 BBC Trust Service Review of BBC for information and communication BBC’s global footprint, BBC,November July 2013: http://www.bbc.co.uk/ Television July 2014 p. 22: http:// technologies), press release, 26 March 2013, p. 4: www.bbc.co.uk/ bbctrust/our_work/editorial_standards/ downloads.bbc.co.uk/bbctrust/assets/ 2015: www.itu.int/net/pressoffice/ mediacentre/latestnews/2013/bbc- impartiality/breadth_opinion.html files/pdf/regulatory_framework/service_ press_releases/2015/17.aspx#.VZz- global-footprint.html licences/service_reviews/television_ SGTF-CY services/television_services.pdf
Department for Culture, Media and Sport BBC Charter Review: public consultation 81 Endnotes
64 Daily Mail, 18 June 2011: www. 68 BBC Trust Supply arrangements for the 72 BBC Trust Supply arrangements for the 75 Culture, Media and Sport Select dailymail.co.uk/tvshowbiz/ production of BBC television, radio and production of BBC television, radio and Committee, 4th Report: Future of the article-2004929/The-Voice- online content and services, BBC, 19 online content and services, June 2015: BBC, 2015, para. 138: www.publications. confirmedair-BBC-One-X-Factor.html June 2015: http://downloads.bbc.co.uk/ http://downloads.bbc.co.uk/bbctrust/ parliament.uk/pa/cm201415/cmselect/ bbctrust/assets/files/pdf/our_work/ assets/files/pdf/our_work/content_ cmcumeds/315/31502.htm 65 BBC Trust, Service Review of Music content_supply/2015/content_supply_ supply/2015/content_supply_review.pdf Radio Services, March 2015. p. 28: 76 Culture, Media and Sport Select review.pdf http://downloads.bbc.co.uk/bbctrust/ 73 Public Service Broadcasting in the Committee, A public BBC, 2005, p. assets/files/pdf/our_work/music_radio/ 69 BBC announcement, 25 June 2015: Internet Age, Ofcom, published 2 July 34: www.publications.parliament. music_radio.pdf www.bbc.co.uk/mediacentre/ 2015 p. 30: http://stakeholders.ofcom. uk/pa/cm200405/cmselect/ latestnews/2015/compete-or-compare- org.uk/binaries/consultations/psb- cmcumeds/82/8208.htm 66 Public Service Broadcasting in the radio review-3/statement/PSB_Review_3_ Internet Age, Ofcom, 2 July 2015, 77 This includes watching live TV Statement.pdf p.3: http://stakeholders.ofcom.org.uk/ 70 PSB Review consultation, Ofcom, broadcasts on a delay, but does not binaries/consultations/psb-review-3/ December 2014 p. 2: http:// 74 Telegraph Online, ‘ITV Threatens include ‘on demand’ services. www. statement/PSB_Review_3_Statement. stakeholders.ofcom.org.uk/binaries/ Legal Action Against BBC Production tvlicensing.co.uk/check-if-you-needone/ pdf consultations/psb-review-3/statement/ Plans’, 21 June 2015: www.telegraph. topics/technology--devices-andonline- PSB_Review_3_Statement.pdf co.uk/finance/newsbysector/ top8 67 Public Service Broadcasting in the mediatechnologyandtelecoms/ Internet Age, Ofcom, 2 July 2015, p. 71 BBC Trust Supply arrangements for 78 Culture, Media and Sport Select media/11690018/ITV-threatens- 3: http://stakeholders.ofcom.org.uk/ the production of BBC television, radio Committee, 4th Report Future of legalaction-against-BBC-production- binaries/consultations/psb-review-3/ and online content and services, June the BBC, 2015: www.publications. plans.html statement/PSB_Review_3_Statement. 2015 p. 53: http://downloads.bbc.co.uk/ parliament.uk/pa/cm201415/cmselect/ pdf bbctrust/assets/files/pdf/our_work/ cmcumeds/315/31502.htm content_supply/2015/content_supply_ review.pdf
Department for Culture, Media and Sport BBC Charter Review: public consultation 82 Endnotes
79 BBC Annual Report and Accounts 82 BBC Freedom of Information response, 87 The TV Licence Fee Enforcement 92 For more about the BBC’s public 2014‑15 p. 3: www.bbc.co.uk/ 16 April 2014: downloads.bbc.co.uk/ Review, July 2015 purposes see Chapter 1. aboutthebbc/insidethebbc/ foi/classes/disclosure_logs/tv_licence/ 88 The TV Licence Fee Enforcement 93 BBC Annual Report and Accounts howwework/reports/ara RFI2014-0469-no-licence-needed- Review, July 2015. 2014‑15: www.bbc.co.uk/aboutthebbc/ claims.pdf 80 Under the Communications Act 2003 insidethebbc/howwework/reports/ara 89 TV Licensing Freedom of Information it is a legal requirement to be in 83 The BBC’s distribution arrangements Release 2014 www.tvlicensing. 94 Nic Newman, David A. L. Levy and possession of a valid TV Licence to use for its UK Public Services: A report by co.uk/about/foi-licences-facts-and- Rasmus Kleis Nielsen, Digital News any television-receiving equipment, Mediatique presented to the BBC Trust figuresAB18 Report 2015, Reuters Institute, 2015: such as a television set, digital box, Finance Committee, November 2013, www.reutersinstitute.politics.ox.ac.uk/ DVD or video recorder, PC, laptop or p.57: downloads.bbc.co.uk/bbctrust/ 90 Amendment to the Agreement, publication/digital-news-report-2015 mobile phone, to watch or record TV assets/files/pdf/review_report_research/ September 2011 downloads.bbc.co.uk/ programmes as they are being shown vfm/distribution.pdf bbctrust/assets/files/pdf/about/how_ 95 BBC Annual Report and Accounts on TV. If a person is only watching on we_govern/agreement_amend_sep11_ 2014‑15, p.129: www.bbc.co.uk/ 84 Summer Budget 2015: www.gov. demand services (e.g. through iPlayer sum.pdf aboutthebbc/insidethebbc/ uk/government/publications/ or other catch-up services), there is no 91 howwework/reports/ara summerbudget-2015/summer- Broadband roll-out and use agreement need for a licence. 96 budget-2015 (16 July 2012) between BBC Trust and Royal Charter for the continuance of 81 A licence is required to watch television DCMS: http://downloads.bbc.co.uk/ the BBC, October 2006, Article 38(1)(h): 85 The TV Licence Fee Enforcement programme services (including delayed bbctrust/assets/files/pdf/our_work/ http://downloads.bbc.co.uk/bbctrust/ Review, July 2015. broadcasts) but not on demand services local_television/broadband_agreement. assets/files/pdf/about/how_we_govern/ (services such as iPlayer where access 86 Ministry of Justice Quarterly Statistics, pdf charter.pdf to the service is on demand i.e. at the Outcomes by offence, May 2014 request of the viewer. www.gov.uk/government/statistics/ criminal-justicestatistics-quarterly- december-2013
Department for Culture, Media and Sport BBC Charter Review: public consultation 83 Endnotes
97 Reducing costs through Delivering 101 Managing the BBC’s Estate, National 105 BBC Annual Report and Accounts 2014- 109 BBC Annual Reports and Accounts Quality First, National Audit Office, Audit Office, 2014, p. 7: http:// 15, p.85: www.bbc.co.uk/aboutthebbc/ 2014‑15, p.23: www.bbc.co.uk/ 2015, p.26: http://www.bbc.co.uk/ www.nao.org.uk/wp-content/ insidethebbc/howwework/reports/ara aboutthebbc/insidethebbc/ bbctrust/news/press_releases/2015/ uploads/2015/01/Managing-the-BBC- howwework/reports/ara 106 Reducing costs through Delivering reducing_costs estate.pdf Quality First, National Audit Office, 110 BBC Trust Purpose Remit Survey 98 Reducing costs through Delivering 102 Severance payments and wider 2015, p.26: http://www.bbc.co.uk/ 2012‑13, p.9: www.bbc.co.uk/bbctrust/ Quality First, National Audit Office, benefits for senior BBC managers, bbctrust/news/press_releases/2015/ our_work/audiences/previous_prs_ 2015, p.25: http://www.bbc.co.uk/ National Audit Office, 2013, p.5: reducing_costs reports.html bbctrust/news/press_releases/2015/ http://www.nao.org.uk/wp-content/ 107 BBC Trust, Provisional conclusions on 111 BBC Trust Purpose Remit Survey reducing_costs uploads/2013/07/10193-001_BBC_ proposed changes to BBC television and 2013-14, p.9: www.bbc.co.uk/bbctrust/ BOOK.pdf 99 Digital Media Initiative, National Audit online services, 30 June 2015: www. our_work/audiences/previous_prs_ Office, 2014, p.9: http://www.nao.org. 103 BBC Annual Report and Accounts bbc.co.uk/bbctrust/our_work/services/ reports.html uk/wp-content/uploads/2015/01/BBC- 2014‑15, p.110: www.bbc.co.uk/ service_changes 112 Creative Industries, TV Case 2: BBC Digital-Media-Initiative.pdf aboutthebbc/insidethebbc/ 108 A group of digital channels that are all Worldwide TV exports, 2014: www. howwework/reports/ara 100 Managing the BBC’s Estate, National broadcast on the same frequency. The thecreativeindustries.co.uk/industries/ Audit Office, 2014, p.13: http:// 104 ITV plc Annual Report and Accounts BBC’s proposal is to use capacity on the tv-film/tv-film-case-studies/tv- www.nao.org.uk/wp-content/ 2014: www.itvplc.com/investors/ PSB-3 multiplex – this is currently the casebbc-worldwide-tv-exports uploads/2015/01/Managing-the-BBC- announcements/annual-report-and- only multiplex with sufficient capacity 113 BBC Annual Report and Accounts estate.pdf accounts-2014 to carry a 24-hours a day channel. 2014‑15 pp. 134-135: www.bbc. co.uk/aboutthebbc/insidethebbc/ howwework/reports/ara
Department for Culture, Media and Sport BBC Charter Review: public consultation 84 Endnotes
114 BBC Announcement, 8 April 2014: 119 Culture, Media and Sport Select 122 BBC Trust, BBC Protocol E3 – www.bbc.co.uk/mediacentre/ Committee, Written Evidence Complaints Framework, October 2014: worldwide/50th-country-strictly submitted by Global Radio [FBB0091]: http://downloads.bbc.co.uk/bbctrust/ www.data.parliament.uk/ assets/files/pdf/regulatory_framework/ 115 BBC Annual Report and Accounts writtenevidence/committeeevidence. protocols/2014/e3_complaints_ 2014‑15, p. 42: www.bbc.co.uk/ svc/evidencedocument/culture-media- framework.pdf aboutthebbc/insidethebbc/ andsport-committee/future-of-the- howwework/reports/ara 123 BBC Annual Report and Accounts bbc/written/4506.html 2014‑15, p. 20: www.bbc.co.uk/ 116 Rona Fairhead, BBC Governance: The 120 Mail Online, ‘BBC Blows £220000 of aboutthebbc/insidethebbc/ Case for Intelligent Reform, 4 March Licence Fee Payers Money Training howwework/reports/ara 2015: www.bbc.co.uk/bbctrust/ Staff,’ 13 October 2014: www. news/speeches/2015/oxford_media_ 124 BBC Annual Report and Accounts dailymail.co.uk/news/article-2790700/ convention 2014‑15, p.20: www.bbc.co.uk/ bbc-blows-220-000-licence- aboutthebbc/insidethebbc/ 117 Culture, Media and Sport Select feepayers-money-training-staff- howwework/reports/ara Committee, 4th Report Future of useiphone-nearly-800-employees- the BBC, 2015: www.publications. sentcourse-costs-300-person.html 125 Culture, Media and Sport Select parliament.uk/pa/cm201415/cmselect/ Committee, 4th Report Future of 121 Telegraph Online, ‘More than 80 cmcumeds/315/31502.htm the BBC, 2015: www.publications. iPads among goods stolen from BBC,’ parliament.uk/pa/cm201415/cmselect/ 118 Ofcom Annual Report and Accounts 23 December 2014: www.telegraph. cmcumeds/315/31502.htm 2014‑15, p.14: http://www.ofcom. co.uk/news/uknews/crime/11311683/ org.uk/content/about/annual- Morethan-80-iPads-among-goods- 126 HM Treasury, Managing Public Money, reportsplans/1262041/annual- stolenfrom-BBC.html July 2013: www.gov.uk/government/ report-14-15/annual-report-14-15.pdf publications/managing-public-money
Department for Culture, Media and Sport BBC Charter Review: public consultation 85 To find out more visit www.gov.uk/bbccharterreview
Department for Culture, Media & Sport 4th Floor, 100 Parliament Street London SW1A 2BQ www.gov.uk/dcms July 2015 © Crown copyright 2015