Published by the British Broadcasting Corporation Broadcasting House London W1A 1AA Website: www.bbc.co.uk © BBC 2001 Annual Report and Accounts 2000/2001 Annual Report and Accounts 2000/2001 Annual Report and Accounts 2000/2001 Contents The BBC in 2000/2001 1 Chairman’s Foreword 2 Running the BBC Board of Governors 4 Executive Committee 6 Overview 8 Review of the Year: Public Services Television 10 Radio 14 Nations and Regions 17 News 20 New Media 22 Education 23 Review of the Year: Commercial Services BBC Worldwide Limited 24 BBC Resources Limited 26 Review of the Year: BBC World Service 27 Review of the Year: Performance against Objectives 28 Accountability 32 Reports from Advisory Bodies 37 Looking Ahead 40 Compliance and Regulatory Matters 44 Financial Review 56 Glossary of Terms 58 Statement of Accounting Policies 59 Financial Statements 62 Broadcasting Facts and Figures 80 Getting in Touch 85 This BBC Annual Report and Accounts is available in public The BBC’s wholly-owned commercial subsidiaries, libraries throughout the UK and on the BBC’s website at BBC Worldwide Limited, BBC Resources Limited and www.bbc.co.uk/info/bbc. It is also available in Welsh, on audio BBC Technology Holdings Limited trade at arm’s length cassette, and in Braille. from the BBC and their accounts are independently audited.This Annual Report includes a summary of their We also publish a BBC Review of the Year, based on the Annual activities in 2000/2001. Report, specially designed to report to licence payers on BBC performance and value for money.This is available in English Copies of any of these reports may be obtained by writing to and Welsh – in print, as an audio cassette and in a version The Secretary, BBC, Broadcasting House, London W1A 1AA. tailored for people with learning difficulties. It is also available in Braille. Annual Reviews of BBC Scotland, BBC Wales, BBC Northern Ireland and BBC English Regions are published simultaneously with this document, as is the Annual Review of the BBC World Service, which is funded by a Grant-in-Aid from the Foreign and Commonwealth Office. 100 Annual Report and Accounts 2000/2001 The BBC in 2000/2001 2000/2001 was a year of transition and achievement. A year in which the BBC . ● Created great award-winning ● Attracted more users than ever to programmes on radio and television BBC Online ● Achieved record radio audiences at ● Halted a decline in news viewing by home and abroad moving BBC One’s late news to 10pm ● Saw BBC One’s share of viewing fall ● Spent more of its income on year on year. programmes and services ● . but also saw BBC Two’s ● Was more highly valued by its share rise audiences ● Developed plans for new digital ● Maintained its reputation for television, radio and education services independence and impartiality This report gives a full account to licence payers and Parliament of our activities and services, and how far we achieved our objectives. Annual Report and Accounts 2000/2001 1 Chairman’s Foreword In 1951 no-one would have dreamt that the young Prince Charles, The year has demonstrated that through its programmes and just two at the time, would one day throw a party at Kensington services the BBC remains the cornerstone of UK broadcasting. Palace celebrating the 50th anniversary of the BBC’s experimental radio drama for farmers.Today The Archers is much more than Meanwhile, around us, commercial competitors are fighting radio drama. It has won the affection not just of farmers, but of harder than ever to capture big audiences and the revenue the 4.5 million people from all walks of life who tune in every they bring through advertising and subscription. Big Brother, week. In 2001, it is more relevant than ever, embracing with craft Who Wants to be a Millionaire? and Popstars were programming and understanding real issues in rural Britain. phenomena born from this commercial drive (they were also terrific entertainment for millions of viewers). And everyone In the past year BBC programmes have been, like The Archers, is trying to second-guess the ever-changing technology on which at the heart of British life, culture and public debate. BBC local we all depend. and regional services, to which so many turned in troubled times in the last 12 months, were more highly valued and more BBC service strategies have been reviewed to reflect changing watched and listened to. BBC journalists showed bravery: from audience tastes and expectations – but the implementation John Ware and the Panorama team investigating the Omagh of new strategies has been fragmented. Established services, bombing to Joseph Winter and Kate Clark, thrown out of like BBC One, BBC Online and national and regional services, Zimbabwe and Afghanistan respectively. BBC political are beginning to see the benefits of increased investment. correspondents showed insight and judgement in the sensitive We await approval for our planned new television and radio months before and during the general election. services, which received strong public support in consultations last autumn. Disappointingly, the new digital curriculum for A new three-year, above-inflation funding settlement was schools is still not off the ground. announced by the Government for BBC World Service during the year – accompanied by stretching audience targets. Much of the BBC’s planning activity has been properly subject Achieving a record audience of 153 million by March this year to external examination and probing, although we need to means the service is well on the way. recognise that many of the BBC’s critics come with a desire to rein in the BBC for their own commercial ends. BBC programmes have also surprised and delighted.Who else but the BBC would have broadcast an eight-hour reading of The BBC has not been standing idle.We showed decisiveness Harry Potter? EastEnders scaled new dramatic heights during in the autumn in moving the late evening news on BBC One the ‘Who Shot Phil?’ episodes this spring. Clocking Off,The Sins to ten o’clock.The programme is, so far, performing well; most and Down to Earth showed that innovation at the BBC is not importantly, overall news audiences to BBC One and ITV are just about reality TV and new gameshow formats.Wonderful up significantly. factual series like A History of Britain, State of the Planet and Congo have opened eyes and are helping people to learn. Comedy like The new organisational structure,‘One BBC’, has been My Family, Marion and Geoff and Happiness made the nation implemented, and the complexities of network commissioning laugh. And through the BBC, everyone was able to celebrate have been addressed. Management has started to streamline the unprecedented success of British sportsmen and women divisions, cut overheads further, and move more money directly at the Olympic Games. into programmes. In the coming year, that process will 2 Annual Report and Accounts 2000/2001 accelerate, and there will be a significant turnover in staff as the content website in Europe – would be a less competitive BBC. balance of the workforce changes. A new commercial subsidiary More important, it would also be a much less valued part of has been established, BBC Technology Holdings Limited, which British life and mean much less to millions of people in the UK. should make money for the BBC and help fund the full service strategy. The Governors take their four core responsibilities seriously.The BBC has strategies in place to take it to the end of this Charter. These changes should ensure that we will continue to be Its independence from political and commercial pressure, central to UK broadcasting in the digital age. Indeed, the thrust though regularly tested, is secure.This report demonstrates that of the commercial competition over the last 12 months suggests Governors praise success, but do not cover up failure – and that far from diminishing, our traditional role of providing quality have the power to encourage and accelerate change. broadcasting for the benefit of all will become increasingly important. Accountability is always high on our agenda; this year it has been a key theme.The ways in which the BBC listens to and interacts In December the Government published its plans for the with the public are crucial in building the relationship of trust future regulation of communications in the UK, including and openness which is due to licence payers. broadcasting and the BBC.The White Paper, A New Future for Communications, recognised the unique role of the BBC, and, Through the difficulties of the past year – among them the in particular, the special role of the Board of Governors in potentially devastating terrorist bomb at BBC Television safeguarding the public interest. Despite strong lobbying from Centre in West London in February – our staff have been many of the BBC’s competitors – principally those who also an inspiration.The task of modernising the organisation and lobbied last year against the BBC receiving increased funding – finding £1.1 billion through savings and increasing commercial the Government decided that the Governors ought to retain income by 2006 has been and will continue to be difficult. But their core responsibilities for: the BBC has the clout, creativity and determination to succeed. • setting BBC strategy; I shall leave the BBC later this year with lasting affection • protecting its independence; for my colleagues on the Board of Governors, the Executive • assessing its performance against objectives and promises; Committee and all the members of staff who make the BBC • appointing senior management. what it is. I am very proud of the achievements of this highly creative organisation and of its talent, ambition and fierce Responses to the White Paper demonstrate that the BBC’s independence.