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BBC Annual Report and Accounts 2013/14 the BBC’S Mission Is to Inform, Educate and Entertain BBC Annual Report and Accounts 2013/14

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BBC Annual Report and Accounts 2013/14 the BBC’S Mission Is to Inform, Educate and Entertain BBC Annual Report and Accounts 2013/14 BBC Annual Report and Accounts 2013/14 The BBC’s mission is to inform, educate and entertain BBC Annual Report and Accounts 2013/14 Presented to Parliament by the Secretary of State for Culture, Media and Sport by command of Her Majesty 21 July 2014 Extended versions of the financial statements provided in Part Two of this report were also laid before Parliament on 21 July 2014 and are available online at: bbc.co.uk/annualreport © BBC Copyright 2014 The text of this document (this excludes, where present, the Royal Arms and all departmental or agency logos) may be reproduced free of charge in any format or medium provided that it is reproduced accurately and not in a misleading context. The material must be acknowledged as BBC copyright and the document title specified. Photographs are used ©BBC or used under the terms of the PACT agreement except where otherwise identified. Permission from copyright holders must be sought before any photographs are reproduced. You can download this publication from: bbc.co.uk/annualreport Designed by Fishburn™ thisisfishburn.com Prepared pursuant to the BBC Royal Charter 2006 (Art.45) Contents Overview Overview 02 The BBC at a glance 02 Our role and purpose 04 Serving everybody 05 Better value for money 130 Additional information 130 Glossary 131 Index The BBC exists to serve the public, IBC Contacts and its mission is to inform, educate and entertain Part One 08 Chairman’s foreword Part One 09 Setting strategy and The BBC Trust’s assessing performance 10 Setting strategy 12 Quality and distinctiveness review and assessment 20 Value for money 26 Serving all audiences 29 Openness and transparency 31 Understanding audiences 35 Inside the trust 36 BBC Trustees The Trust exists to get the best out of the BBC 38 Governance for licence fee payers. It is the governing body 42 Trust finances of the BBC and sets the strategic direction, measures performance and holds the Executive to account Part Two 46 Director-General’s introduction Part Two Strategic report The BBC Executive’s review 49 Delivering our strategy 50 Our achievements and assessment 54 Our vision for the future 59 Performance 60 Performance by content area 66 Performance by service 71 Performance by genre 73 How we run the BBC 74 People (including headcount, severance pay and talent spend) 78 Diversity 79 Training and apprenticeships 80 Partnerships 81 Outreach and corporate responsibility including charity appeals Governance and finance report 85 Governance 86 Executive Board 88 Risks and opportunities 91 Governance report and Nominations Committee 93 Report of the Senior Independent Director 95 Remuneration report 108 Audit Committee report 112 Fair Trading report 115 Managing our finances The Executive is responsible for the 116 Review of the Managing Director, BBC Finance & Operations operational delivery of BBC services and the 118 How we use the licence fee 119 Commercial trading direction of BBC editorial and creative output 127 Looking forward 128 Summary financial statement in line with the framework set by the Trust 129 Auditor’s report BBC Annual Report and Accounts 2013/14 01 The BBC at a glance Our role and purpose The BBC serves the public interest through the promotion of its six public purposes Sustaining citizenship Representing the UK, and civil society its nations, regions and communities The BBC provides high quality news, current affairs The BBC reflects the and factual programming UK’s many communities, to engage its audiences in promoting awareness important current events of different cultures and and ideas. viewpoints, but also brings audiences together for shared experiences. Promoting education Bringing the UK to and learning the world and the world to the UK Education and learning lie at the heart of the BBC’s The BBC supports a global mission and have a part to understanding of play in the delivery of all its international issues and public purposes. broadens UK audiences’ experience of different cultures. Stimulating creativity Delivering to the public and cultural excellence the benefit of emerging communications, The BBC encourages interest, engagement and technologies and services participation in cultural, In promoting its other creative and sporting purposes, the BBC helps activities across the UK. audiences to get the best out of emerging media technologies. nnThe BBC exists to serve the public, and its nnThe following pages outline the strategic mission is to inform, educate and entertain. objectives agreed by the Trust and the Executive Within the overall public purposes, the Trust and provide some highlights illustrating how the sets the strategic framework for the BBC, and BBC has worked to achieve them. the Executive, led by the Director-General, delivers the BBC’s services and creative output. 02 BBC Annual Report and Accounts 2013/14 The BBC’s objectives Overview This year the BBC has aimed to deliver four strategic objectives Quality and Value for money Openness and Serving all audiences distinctiveness transparency All BBC services should The BBC should improve The BBC should enable The BBC should reflect offer high-quality content value for money and open the public, and the market the diversity of its that is distinctive in terms itself to external scrutiny of in which it operates, to audiences in both its of its creative ambition, this area. It should become understand how it spends programmes and its high editorial standards more efficient and increase its money, how it performs workforce. All audiences and its range and depth. investment in content and what it plans to do next. should have access to whilst reducing overheads. relevant BBC services. In light of a new strategy agreed during the year, the Trust and Executive have agreed some changes to these objectives Make the most creative and Innovate online to create a more distinctive output personal BBC nnCreate outstanding content to build nnInnovate fast online and enhance the BBC’s reputation in key genres people’s personal connection and make each service as distinctive as with the BBC it can be nnEnsure the BBC reflects the diversity of the UK Serve all audiences Improve value for money through a simpler, more efficient and more nnMaintain the mass appeal of channels open BBC nnPursue universal access on new nnCreate a simpler, more efficient platforms and keep pace with new and more open BBC consumption behaviours nnBuild new creative partnerships nnBetter reflect the different nations, regions and communities nnEngage staff with the strategy BBC Annual Report and Accounts 2013/14 03 The BBC at a glance Serving everybody with a range of great content delivered in new ways Reaching new audiences Audience reach Total time spent Percentage of UK adults who Length of time these audiences spend use BBC TV, radio or online with the BBC each week. each week. 96% 18.5 hours 2012/13: 96% 2012/13: 19.5 hours Highlights of the year Leading the way with digital content Doctor Who The Doctor Who 50th Special was shown on TV in 98 countries; was broadcast in 15 languages; and sold 649,138 cinema tickets in 25 countries. In the UK it was watched by an average audience of 12.8 million, plus an additional 3.2 million iPlayer requests. Wimbledon A peak audience of Introducing iWonder 17.0 million viewers In March 2014, knowledge and learning sites on BBC Online watched Andy Murray (which includes iWonder) achieved record reach, visited by win Wimbledon, 5.6 million UK internet browsers on average per week. the highest for a Wimbledon final since at least 2002 (when current measurement BBC Weather app began). 94% of the The BBC Weather app, released audience felt the in June 2013, has been downloaded BBC’s coverage was 6.3 million times. high quality. News CBeebies app The day of the birth of HRH Prince The CBeebies app, released in George was a record day for global August 2013, has been downloaded performance on BBC News Online 2.4 million times. – visited by 19.4 million browsers from around the world. 04 BBC Annual Report and Accounts 2013/14 Better value for money Overview Cost per household Ongoing savings Public support for the licence fee A six-year licence fee settlement was We have saved £374million p.a. so far 53% of the public support the licence agreed in 2010 which has frozen the through our Delivering Quality First fee as the means of funding the BBC, licence fee at £145.50 until 2017. programme and are on track to achieve compared with 26% for advertising and the full £700million p.a. savings required 17% for subscription. by 2016/17. Per day p m 40 2012/13: 40p £374 Source: Ipsos Mori Monthly spend by licence fee BBC spend in the creative economy 2013/14 £12.13 per household Total of £1.1bn BBC performing groups £25m (2012/13: £24m) Radio £2.30 (2012/13: £2.30) Artists, contributors Online £0.61 and copyright £282m (2012/13: £0.61) (2012/13: £282m) Other services and production costs £0.73 Acquired programmes (2012/13: £0.49) transmitted £59m (2012/13: £70m) Licence fee collection and pension deficit costs £0.49 External programme facilities (2012/13: £0.49) and resources £257m (2012/13: £232m) Television £8.00 (2012/13: £8.24) Independent programmes transmitted £484m (2012/13: £490m) 2013/14 2012/13 The cumulative impact and spending power of over Spend % of Spend % of 20 million television licences can deliver more than content per year licence per year licence alone. As well as in-house staff, we are able to provide work £m fee £m fee for many freelance individuals and thousands of large and Television 2,276 66 2,472 68 small businesses across the UK – delivering sustainable Ten channels benefits to digital and creative industries, as well as the Radio wider British economy.
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