BBC and Annual Report Accounts 2005/2006

British Broadcasting Corporation W1A 1AA .co.uk Annual Repor t and © BBC 2006 Accounts 2005/2006 Purpose, vision and values

The BBC’s purpose is to enrich people’s lives with programmes and services that inform, educate and entertain

The BBC’s vision is to be the most creative organisation in the world

Values Trust is the foundation of the BBC: we are independent, impartial and honest Audiences are at the of everything we do We take pride in delivering quality and value for money Creativity is the lifeblood of our organisation We respect each other and celebrate our diversity so that everyone can give their best We are one BBC: great things happen when we work together Contents

2 Chairman’s statement 4 Director-General’s report 6 The BBC and in the future 10 Board of Governors 12 Executive Board 14 Governors’ review of objectives 22 The BBC at a glance

Governors’ review of services 24 Television 32 Radio 40 New Media 46 News 50 BBC World Service & Global News 54 Nations & Regions

58 Governors’ review of commercial activities

60 Being accountable and responsible 68 Performance against Statements of Programme Policy commitments 2005/2006

76 Compliance

92 Financial review 95 Financial statements

140 Broadcasting facts and figures 151 Getting in touch with the BBC 152 Other information

BBC Annual Report and Accounts 2005/2006 1 Chairman’s statement

This is the last annual report from the The main function of the Trust will be to BBC Board of Governors, which is to ensure that licence fee payers’ expectations be replaced under the new draft Royal of the BBC are fulfilled in terms of the Charter by the BBC Trust. would like to quality and value for money of its services, pay tribute to the work of all Governors and that the BBC remains focused on over the last 80 years.The fact that the fulfilling its six public purposes as set out independence of the BBC endures is in the new draft Charter. In representing due in no small part to their robust the interests of licence fee payers, the Trust stewardship – sometimes in the face will recognise that these interests go of fierce onslaught from political and beyond their direct interest in the BBC. commercial vested interests. Licence fee payers do not exist solely on a media diet provided by the BBC.They value The pressing need for modernisation the choice of services provided by others, of the BBC’s governance arrangements and the Trust will ensure that the BBC was recognised by my predecessor as operates in a way that fully recognises this. Chairman, Gavyn Davies, and the Board has been able to build on the work he I have no doubt that the BBC Executive and his fellow Governors began.This work will sometimes be disappointed by the will be completed by the Trust using the outcome of a Public Value Test – just as new tools at its disposal under the new private sector interests will sometimes Charter: Purpose Remits, Service Licences be disappointed. Our job as BBC Trustees and Public Value Tests (for the details will be to ensure that the widest interests of these, see The BBC now and in the of licence fee payers take precedence over future, page 9). either of those interests.

At the heart of the new arrangements The White Paper published earlier this year is an explicit recognition that the Trust exists after two years of public debate, research to represent the interests of licence fee and evidence-gathering represents a vote payers, not the narrow interests of the of public confidence in the BBC.The new BBC as an institution. Although the new ten-year Charter and the maintenance structures will not be in place until the new of licence fee funding offer the BBC an Charter takes effect, in January 2007, the enviable degree of stability in a fast-changing present Board of Governors fully supports media landscape.The missing piece in the the changes and is already operating within jigsaw is the licence fee settlement. the spirit of the new Charter. For the first time, the BBC has been As a result, the relationship between the completely open with the public about Board and the Executive – those charged the licence fee bid. Its size was based on with the day-to-day running of the BBC – a fully costed business plan at the time has begun to change.There is now real of publication, reflecting the Government’s separation between the two bodies, enabling plan for the BBC set out in last year’s Green the Board to exercise independent oversight Paper. In the subsequent discussions with of the work of the Executive.This will the Government, the BBC has made clear intensify in the future as the Trust uses that its overriding concern is to be able to its new powers to ensure rigorous, meet the needs and expectations of licence independent and fully transparent scrutiny fee payers at the lowest possible cost. of the work of the Executive. Achieving the highest possible settlement

2 BBC Annual Report and Accounts 2005/2006 should not be regarded as a badge of programme, which is designed to release a brilliant comic actor, he was also an honour for those representing the licence money to invest in more and better exceptionally talented writer. He was a fee payers on the Board of the BBC. output. It has also been delivered in the modest man, and even as an established context of the exhaustive – and sometimes star he would sometimes submit scripts Much of our work as Governors this exhausting – process of Charter Review. to the BBC under an assumed name – he year has been focused on financial and said he wanted to make sure they were organisational change in preparation for This is not to say that the picture is accepted because of their quality, not the new Charter. As a result I am confident completely positive. One issue repeatedly because of who had written them. that the BBC is in good shape structurally raised with us in our consultations with Ronnie Barker’s contribution to the BBC to begin the next stage of its development. audiences around the UK this year is the proved beyond doubt that quality and The BBC will end the current Charter problem of limited digital coverage.Those popularity are not mutually exclusive. having met its commitment to achieve licence fee payers affected have expressed Maintaining support from licence fee payers a broadly zero debt position.The self-help justified disquiet that while they contribute over the ten years to come will depend target of £3.3billion imposed by the to the cost of the BBC’s digital output they on the BBC remembering that this is what Government for the period of the current are unable to receive the services.We have distinguishes BBC output. Charter is on track and will be exceeded. encouraged management to speed up their And the Director-General’s additional plans – working with commercial partners value-for-money savings target for – to develop a satellite equivalent of 2005/2006 has been exceeded, making Freeview that would solve these problems. more secure his overall target of achieving £355million of ongoing gross annual savings I’m proud to be the last Chairman of by 2007/2008. Governors and to have been appointed as the first Chairman of the new Trust. Michael Grade In this report we give an objective At the heart of my vision for the BBC Chairman assessment of management performance is the recognition that the survival of a 14 June 2006 during the year under review.Where more licence-fee funded BBC depends not on needs to be done we say so. But the economic theory or political dogma but general picture is encouraging.The overall on the ability of the BBC to retain the reach of the BBC’s television and radio support of the overwhelming majority services is broadly stable at 92.7%, and of the people of the UK through the the reach of the BBC’s online services content and services it offers. continues to grow rapidly. In an increasingly competitive context, where audiences are These can take many forms as the BBC presented with much increased choice, this delivers its historic public service remit is a real achievement. And the achievement to inform, to educate and to entertain. is greater because it reflects no lessening of But they must all share the aspiration overall quality – indeed quite the contrary. to set new standards of quality, whatever The BBC can take justified pride in the the genre or distribution mechanism. growing high quality of its overall output this year – a judgement reflected in the Earlier this year I took part in the memorial many awards it has won. service for Ronnie Barker, whose long career with the BBC exemplifies what I This performance has been delivered mean.The list of his BBC hits is astonishing: against a background of understandable The Navy Lark,The Frost Report,The Two staff concern over the job reductions and Ronnies, Porridge, Open All Hours – these changes in working practices flowing from are among the greatest achievements of the Director-General’s value for money BBC comedy. Ronnie Barker was not just

BBC Annual Report and Accounts 2005/2006 3 Director-General’s report

The BBC is living between two worlds: the radio or television studio. BBC News world of traditional radio and television remains the most popular and trusted broadcasting and the dizzying new world provider of news in the UK and – through of digital media. Our challenge is to strike BBC World Service, bbc.co.uk and BBC the right balance of resources and creative World – around the globe. Its reach now energy between these two worlds and to exceeds 250 million people every week. set the right pace of change. But technology and audience expectations are changing the rules of the game by Move too quickly and we risk underserving the week. the millions of licence fee payers who still rely on us first and foremost for That is why, despite the constant pressure outstanding television and radio. But move of events – a General Election, the terrible too slow and we may find ourselves falling earthquake in Pakistan, the ongoing drama behind and losing contact with some of in Iraq and more besides – many of our audiences altogether. our editors and journalists took time in 2005/2006 to think hard about what 2005/2006 was a year in which the digital comes next for BBC News.Their conclusions revolution shifted up another gear. Month formed part of what we called Creative after month, the BBC’s website set new Future, an attempt to scope the story of records for reach. Page impressions are each of our major areas of content over now more than three billion a month. the next five years or so. Live streaming, downloads, podcasts… the public seized on each new technology Creative Future has plenty to say about and each new trial – not for the sake of technology and its creative impact: the the technology itself, but as a new way need, for instance, for commissioners of receiving outstanding BBC content. to think about projects across television, radio and the web, to explore user- On 7 July 2005, the story of London’s generated content, to think about how agony and fortitude was told brilliantly on-demand should affect what we make across the BBC’s services, from BBC and how we make it. London 94.9 and Radio Five Live to BBC News 24 and the Ten O’Clock News. But But it also reminded us that what counts 7 July marked a new high-water mark most of all for audiences is creative both for bbc.co.uk as a whole and for rich ambition and integrity.Technology is the audio-visual content – sound and pictures means: for the BBC, the end should always streamed live to users across the internet. be the quality of the content itself. Interestingly, what the public most wanted to access that day was not the BBC’s own There were plenty of programmes on professional reports but shaky images of BBC television this year which showed tube tunnels and a shattered bus captured what we can achieve when we combine on mobile phones. innovation with talent and conviction. Bleak House was a phenomenon, a The BBC’s journalism used to be a largely Dickens adaptation with as much depth one-way form of communication. Now as any the BBC has ever made, but eyewitnesses can uplink their testimony conceived as an edgy, contemporary- within seconds and bloggers can take any feeling serial earning its place in the national or global debate far beyond the midweek BBC One schedule next to

4 BBC Annual Report and Accounts 2005/2006 EastEnders, itself in the midst of a creative new strategy helped it to feel more It was also a year when the debate about revival. And those were only two highlights confident and more relevant in the future of the BBC reached a climax in the strongest year for BBC television 2005/2006. Radio 2 consolidated its with the publication of a Government drama in more than a decade, which position as the country’s most popular White Paper.This presents a picture of included To The Ends of The Earth, Bodies, radio station, while Radio 3 built on the a strong BBC, but not one which exists Life on Mars, ShakespeaRe-Told, and Dr Who success of The Beethoven Experience in isolation from the rest of the market. with a brilliant new Doctor. with A Bach .The story of the Despite the picture some of the BBC’s Brixton Angels – convicts inside one of rivals like to paint, we see the future as Despite another heady series of Little Britain’s toughest jails coming together to increasingly dominated by partnerships – Britain, BBC One comedy breakthroughs sing Bach – was one of the most touching with other public bodies, with independent proved elusive, although across television broadcast moments of the year. producers, with other public broadcasters there was a real sense of new talent and with our audiences.The transformed and new ideas arriving on the scene: Meanwhile, Radio 4 experimented relationship with PACT and the memoranda The Show, Extras, BBC successfully with more topical debates of understanding signed with various ’s and The Thick Of It and more distinctive and high-profile bodies over the course of the past year stood out in a strong year on BBC Two, drama. In deciding to abandon its early are evidence of this new approach. Three and Four. From Jonathan Ross to morning medley of UK themes, Come Dancing, entertainment station also sparked off a classic BBC Although the BBC has a good deal to be remained potent on BBC One, while BBC row as an apparently minor change at proud of in 2005/2006, we cannot afford Two’s line-up of panel shows such as QI the schedule’s margins came to stand to sit back and congratulate ourselves. and factual entertainment formats such for something much larger and more Audiences are urging us on: rightly, they as The Apprentice continued to strengthen. important for listeners. After careful raise their standards all the time. We Of our digital services, BBC Four in particular reflection, the Radio 4 team decided have Creative Future to implement, digital thrived during 2005/2006, discovering a to stick to their original judgement, and switchover to lead, and we have changes broader, bolder mix of programmes with in my view they were right to do so. to make to our own management systems drama and comedy complementing its But there was an important lesson here to respond to the introduction of the main diet of documentary and culture. for the BBC: you cannot hope to please BBC Trust. all of the people all of the time, but – Factual output was strong across the especially at a time when they have so We have just had one of the busiest years BBC. was another brilliant much choice – the BBC must never take in our history. But in many ways the real combination of technical innovation with its audience for granted. challenge starts now. visual artistry and storytelling of the highest order. Arena’s ravishing two-parter Our digital radio services continued to about the young Bob Dylan, No Direction build their relationships with listeners, Home, and Facing the Truth from BBC and there was strong, innovative content , which brought together around our sports coverage and children’s those thrown into confrontation by the offering, as well as from our national troubles, were highlights from a powerful and regional services.There have been Mark Thompson and diverse documentary offer. launches too: the first modules of the Director-General Digital Curriculum (now named BBC jam) 14 June 2006 Of all of the BBC’s services, in some ways are receiving a very positive response Radio 1 has the hardest mission: striving from students and teachers alike, and in to offer a distinctive and valuable line-up the last two months we have begun a in one of the most crowded parts of the pilot BBC high-definition TV service – broadcasting market – and to what in another broadcasting first, and another many ways is the UK’s most discerning way of trying to improve the quality that and demanding audience.The station’s the public receives from the BBC.

BBC Annual Report and Accounts 2005/2006 5 The BBC now and in the future

Overview The draft Royal Charter signals far-reaching change at the BBC.The new BBC Trust which will replace the Governors has an explicit duty to represent the interests of licence fee payers.As a result, there will be much sharper separation between those charged with the oversight of the BBC and those charged with delivering its services.

Another significant change is that, for the first time, the new Charter will include a definition of the public purposes of the BBC.These are:

Sustaining citizenship and civil society Promoting education and learning Stimulating creativity and cultural excellence Representing the UK, its nations, regions and communities Bringing the world to the UK and the UK to the world Building digital Britain (helping to deliver the benefits of emerging communications technologies and services and taking a leading role in the switchover to digital television) However, some things, such as funding the BBC via a licence fee, will stay the same.This section outlines the current arrangements and the changes ahead.

6 BBC Annual Report and Accounts 2005/2006 Licence fee BBC governance BBC Trust Licence fee payers provide by far the greatest The new draft Charter and Agreement The BBC Trust will have ultimate part of the money the BBC spends – impose radical changes on the governance responsibility for the licence fee. It will including concessions there are 25 million – of the BBC. embody the public interest, represent and the new governance structure the views of licence fee payers, safeguard (see below) will significantly strengthen Under the current Charter, there are the independence of the BBC and ensure the influence of licence fee payers in the 12 BBC Governors, appointed by the that the BBC fulfils its distinctive public direction of the BBC. The level of the Queen on advice from ministers in purposes.The Trustees will approve or licence fee is set by the Government. accordance with Nolan principles that reject broad BBC strategies, determine public appointments should be made on top-level annual budgets, and assess the Parliament merit. All are part-time.They bring a broad performance of the BBC Executive Board Parliament scrutinises BBC affairs through range of experience and expertise to and hold it to account.The Trustees will debates on the floors of both Houses the BBC Board. National Governors for issue Service Licences setting out the remit and through select committee hearings, Scotland, and Northern Ireland and budget of each BBC service, and will where BBC Governors – in future, each chair Broadcasting Councils, and the commission Public Value Tests (see page 9) BBC Trustees – and members of BBC Governor with special responsibility for the when the Executive Board proposes management are called to account for the English Regions chairs the English National significant changes to existing services BBC’s performance.The Charter renewal Forum.The views of people in the nations or the introduction of new services. process has been subject to parliamentary and regions on BBC programmes and scrutiny throughout its course. services are made known through these There will be 12 Trustees, appointed by bodies.The World Service and Global the Queen on advice from ministers in The Royal Charter News Consultative Group gives the accordance with Nolan principles.The The BBC is incorporated under a Royal Governors an independent review of the Trustees will include members dedicated Charter that sets out the BBC’s objects range and quality of the output of BBC to the interests of , Scotland,Wales and constitution. An accompanying World Service and BBC World. and Northern Ireland assisted by Audience Agreement sets out its obligations in Councils.The Trust will be expected to greater detail.The current Royal Charter Under the new Charter, the Board of be open and transparent in everything and Agreement are due to expire at Governors will be replaced by the BBC it does, and actively to seek the views the end of 2006.The new Charter and Trust and there will also be a new formally of, and engage with, licence fee payers. Agreement will run for ten years until the constituted Executive Board with its role Its independence will be underpinned by end of 2016 and licence fee funding will and responsibilities defined in the Charter. a full-time Trust Unit, based on the existing also continue for that period.The new The functions of the two bodies will Governance Unit (see page 8). Charter explicitly recognises the be clearly separated with operational independence of the BBC. responsibility resting with the Executive , the communications regulator, Board.The Trust, as the body responsible already regulates some aspects of the BBC for the strategic direction of the BBC, will and will continue to do so. For example, scrutinise the strategies put forward by the the BBC follows Ofcom’s standards and Executive Board.The Trust will set Purpose fairness codes (except for due accuracy Remits, issue Service Licences (see page 9) and impartiality, which remain the sole and hold the Executive Board to account concern of the Governors – and, in future, for its performance in delivering BBC of the Trustees). Under the new Charter, services against the terms and conditions Ofcom will conduct the Market Impact of these documents. Assessments when the Trust commissions Public Value Tests.

BBC Annual Report and Accounts 2005/2006 7 The BBC now and in the future

BBC Governance Unit Executive Board BBC People The Governance Unit supports the Under the current Charter, the operations Finance work of the Board of Governors, of the BBC are managed by an Executive Marketing, Communications & Audiences providing independent and objective Board made up of BBC executive directors. Strategy advice. It will continue this service It is chaired by the Director-General, who Operations for the BBC Trust, renamed the Trust is the BBC’s chief executive and editor-in- Unit.The Unit is independent of BBC chief.The Executive Board answers to the The BBC’s commercial subsidiaries – which management. Its director is appointed Board of Governors, which appoints the sell goods and services around the world by the Board of Governors – in Director-General. to maximise licence fee investment – are future, by the BBC Trust – and the held under an umbrella company, BBC Unit’s staff are outside the BBC Under the new Charter the Executive Commercial Holdings Limited: management chain.The Unit provides Board will be reconstituted and BBC Worldwide Limited support across a range of BBC strengthened by the appointment of BBC Resources Limited activity including accountability to a significant minority of non-executive BBC World Limited audiences, performance oversight, directors, nominated by the Board and financial scrutiny, compliance, and approved by the Trust.Their role is to The profits these subsidiaries produce complaints and appeals – both support the Executive Board as ‘critical are returned to the BBC for investment editorial and fair trading. friends’ and to bring an external in programme making. perspective and expertise to its work. In addition, the Unit uses external The Executive Board will be responsible Television, radio, online advisers for specific projects. for the delivery of services, the direction Across the UK, the BBC operates eight For example, during 2005/2006, of editorial and creative output, the television channels and ten radio networks, independent advisers carried operational management of the BBC, 46 local and national radio stations, and the out a review of coverage of the and delivering value for money. interactive services bbc.co.uk and BBCi. Israeli–Palestinian conflict, and accountants from PA Consulting BBC Internationally, BBC World Service advised on the progress of BBC The BBC’s 14 divisions produce or broadcasts on radio in 33 languages; BBC management’s efficiency measures and commission all BBC output.There are nine World delivers a global television news scrutinised the BBC’s licence fee bid broadcasting divisions.They manage the service; and the online site bbcnews.com prior to its approval by the Board. BBC networks and their programme offers news and audio for international commissioning and production.These audiences. BBC Worldwide also operates a The Governance Unit has a staff divisions are: portfolio of commercial television channels of 33. In 2005/2006, the total Television in international markets, some BBC cost of the Governance Unit was Radio & Music branded, some operated as joint ventures £8.3million (£8.4million 2004/2005). News with other broadcasters.These services are This included £1.3million for the Nations & Regions not supported by the licence fee but are national and regional advisory Sport paid for either by Grant-in-Aid from the councils (£1.2million 2004/2005). Factual & Learning Government or by advertising. Drama, Entertainment & Children’s The Director of Governance New Media & Technology In addition to broadcast and online is currently reviewing the Unit’s Global News (including BBC World services, the BBC works in the community budget and resources against Service and BBC World) in many different ways, including through the responsibilities of the new BBC which raises large BBC Trust. In addition, there are five divisions sums to help disadvantaged children in providing professional support: the UK.

8 BBC Annual Report and Accounts 2005/2006 Delivering the BBC’s public purposes

Purpose Remits accepted as a better measure of by the National Audit Office in 2005. For each of the BBC’s six public universality and therefore more When the new Charter is in force, the purposes (see page 6) the Trust appropriate to the BBC, which has new measurement framework will form will publish a Purpose Remit setting always made universality (for everyone the basis for the BBC’s Annual Report. out high level pan-BBC priorities for and freely available to everyone) one the BBC in delivering the purposes of its key principles. Public Value Test and how success will be measured. Quality is largely a measure of Public Value Tests will be applied by In developing these remits the Trust audience perception, but also includes the Trust if BBC management wishes will consult publicly. some empirical data. It is tracked to introduce new services or make through surveys that record the significant changes to existing services. Service Licences proportion of the audience who The tests are a recognition that while The Trust will also issue Service believe a particular programme BBC services aim to create positive Licences detailing the budget and or service is of “high quality” and public value, they may also impact the remit of each BBC service, how they contains “fresh ideas and approaches”. market.The tests will assess the contribute to the delivery of the BBC’s Assessments of quality also include potential positive public value of the public purposes, and how performance empirical measures of originality in proposed change and weigh it against should be measured.All the licences the sense of the proportion of hours an assessment of its potential negative will be published. that are new and UK-originated. market impact. Only if the potential Impact is another measure of audience public value created outweighs the Performance measurement framework perception. It is tracked through potential negative market impact will To ensure that BBC services are surveys that record the proportion of the Trust agree to the proposed change delivered in line with remits and Service the audience who believe a particular being implemented.The Market Impact Licences, a new performance programme or service is “enjoyable” Assessments will be conducted by measurement framework has been and “stimulating”. Impact attempts to Ofcom and overseen by a joint steering developed.This is based partly on measure the effect that BBC output group including Ofcom and the BBC measuring licence fee payer perceptions has on enriching the lives of individuals Trust.The Trust will publish the evidence and partly on empirical measurements and citizens. and reasoning behind its decisions. of financial and audience data.The aim is Value for money is primarily an to reach assessments that are objective, empirical financial assessment. It is Public value survey rigorous and transparent, taking into measured in two ways. One is to In addition to regular performance account four factors: reach, quality, divide the total cost of a programme monitoring, the BBC Trust will, every impact, and value for money. or other output by the number of three to five years, commission a major viewers, listeners or users to produce independent survey involving around Reach is a measure of usage. It a cost per viewer/listener/user. 10,000 respondents.The surveys will records the percentage of the The second way is to divide the total provide valuable indicators of important population who view, listen to or use cost by the number of viewing or trends and needs.The Trust will publish a service for a given time over a given listening hours to produce a cost the results, together with any action period (for the BBC, usually 15 per viewer/listener hour. Broader they choose to take as a result. minutes over the course of a week). measures are also taken into account, Reach differs from the traditional such as audience perceptions of how audience measure: share. Share is wisely the BBC spends the licence fee. the percentage of the total audience The new performance measurement watching or listening to a particular framework started to come into use channel or service over a given period in autumn 2004 and continues to be of time. However, reach is generally developed.The framework was assessed

BBC Annual Report and Accounts 2005/2006 9 Board of Governors

The BBC Governors, led by the Chairman of the BBC, represent the public interest.They hold management to account and ensure the BBC’s independence.They are appointed by the Queen on advice from ministers in accordance with Nolan principles that public appointments are made on merit.The Governors are accountable to licence fee payers and to Parliament. Under the new BBC Charter, the Governors will be replaced by a new body, the BBC Trust (see page 6,The BBC now and in the future).

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10 BBC Annual Report and Accounts 2005/2006 1 Michael Grade CBE Canada 2000–2003. President Canada UK 9 Jeremy Peat Chairman Colloquia and Chairman Hestercombe The BBC’s National Governor for Scotland BBC Chairman since May 2004 and Garden Trust, both since 2004. Born 1943. since January 2005 and BBC Trustee Chairman Designate of the BBC Trust Designate. Chairman of the Audit since March 2005. Chairman of Pinewood 5 Baroness Deech DBE (Ruth) Committee, member of the Finance and Shepperton and Chairman of Hemscott BBC Governor since October 2002. General Purposes Committee and of the Group both since 2000, Director of Member of the Audit Committee and Councils and Advisory Bodies Committee. Charlton Athletic FC since 1997. Former the Fair Trading Compliance Committee. Chairman of the BBC Pension Trustees. Panel journalist and theatrical agent. At LWT Independent Adjudicator for Higher member of the Competition Commission from 1973 to 1981, latterly as Director of Education since 2004. Principal of St Anne’s and Director of the David Hume Institute. Programmes; President, Embassy Television College, from 1991 to 2004, having Former Group Chief Economist at the in Hollywood from 1981 to 1984; at the BBC been a Fellow and Tutor in Law there Royal Bank of Scotland. Former economic from 1984 to 1987, latterly as Managing since 1970. Honorary Bencher of the Inner adviser to the Treasury and the Scottish Director of Television Designate; Chief Temple, a Mandela Rhodes Trustee, and Office.Visiting Professor, Executive, from 1988 to 1997; Fellow of the Royal Society of Medicine. University School of Management; at First Leisure Corporation from 1997 to Former Chairman of the Human Fertilisation Honorary Professor, Heriot Watt University; 2000, latterly as Chief Executive; Chairman, and Embryology Authority. Born 1943. Fellow of the Royal Society of Edinburgh; Camelot from 2002 to 2004; Director, member of the Council of the Scottish SMG from 2003 to 2004; at The Television 6 Dermot Gleeson Economic Society. Born 1945. Corporation, latterly as interim Chairman BBC Governor since November 2000 from 2003 to 2004. Broadcasting Press (reappointed August 2004) and BBC 10 Angela Sarkis CBE Guild Harvey Lee Award for outstanding Trustee Designate. Chairman of the BBC Governor since October 2002. contribution to broadcasting 1997. Fellow Finance and General Purposes Committee; Member of the Governors’ Programme of the RTS and BAFTA, and Vice-President member of the Audit Committee; Complaints Committee. Independent of BAFTA since June 2004. Born 1943. Alternate Chairman of the BBC Pension consultant; member of the House of Lords Scheme Trustees. Chairman of M J Gleeson Appointments Commission, and adviser to 2 Anthony Salz Group plc. Chairman of the Major the Department for Education and Skills on Vice-Chairman Contractors Group from 2003 to 2005. teacher workload management and school Vice-Chairman since August 2004. A former director of the Housing leadership. Former non-executive director Chairman of the Fair Trading Compliance Corporation and of the Construction on the National Offender Management Committee; Chairman of the Remuneration Industry Training Board. Former Head Board at the Home Office. Former Chief Committee and member of the Finance of the Home Affairs Section of the Executive, Church Urban Fund and former and General Purposes Committee. Until Conservative Research Department and Vice-President of the African Caribbean January 2006 joint senior partner of the a member of Christopher Tugendhat’s Evangelical Alliance. Chairman, NCVO law firm Freshfields Bruckhaus Deringer, cabinet in the European Commission Diversity Project and a founder member of continuing as a partner until April 2006. 1977 to 1979. Born 1949. the Social Exclusion Unit. A former trustee Chairman of the Tate Gallery’s Corporate of BBC Children in Need. Born 1955. Advisory Group from 1997 to 2002 7 Professor Merfyn Jones (continuing as a member of that group) and The BBC’s National Governor for 11 Ranjit Sondhi CBE a trustee of the Tate Foundation.Trustee Wales since January 2003. Member BBC Governor since August 1998 of the Eden Project. A director of Habitat of the Fair Trading Compliance Committee, (appointed for a second four-year term for Humanity GB.Trustee of the Paul the Governors’ Programme Complaints in August 2002) with special responsibility Hamlyn Foundation. Born 1950. Committee, and the Councils and Advisory for the English Regions. Chairman of the Bodies Committee. Historian and English National Forum and of the Councils 3 Deborah Bull CBE broadcaster. Professor of Welsh History at and Advisory Bodies Committee. Senior BBC Governor since August 2003. Member the University of Wales, Bangor, specialising Lecturer at the University of ’s of the Governors’ Programme Complaints in the modern and contemporary history Westhill College.Trustee of the National Committee and the Remuneration of society and politics in Wales. Pro-Vice- Gallery and Chairman of the Heart of Committee. Principal Dancer, Royal Ballet Chancellor of the University from 1998 and Birmingham Primary Care Trust. Previous from 1991 to 2001. Director, Artists’ Vice-Chancellor from 2004. Author of a positions include Deputy Chairman of the Development Initiative, Royal Opera House number of books and articles. Born 1948. Commission for Racial Equality and member from 1999 to 2001. Creative Director, of Broadcasting Authority ROH2 since 2002. Former member of 8 Professor Fabian Monds CBE and the Radio Authority. Born 1950. Arts Council England. Has written and The BBC’s National Governor for Northern presented programmes and series for BBC Ireland since August 1999 (appointed for 12 Richard Tait CBE Television and BBC Radio, including The a second four-year term from July 2003). BBC Governor since August 2004 and Dancer’s Body in 2002, and published books Member of the Governors’ Programme BBC Trustee Designate. Chairman of on the arts and nutrition. Born 1963. Complaints Committee, the Fair Trading the Governors’ Programme Complaints Compliance Committee, and the Councils Committee. Professor of Journalism and 4 Sir Andrew Burns KCMG and Advisory Bodies Committee. Chairman Director of the Centre for Journalism The BBC’s International Governor since July of the trustees of BBC Children in Need. Studies, University. Former Editor-in- 2005. Member of the Audit Committee. Specialist in communications, information Chief of ITN and Editor, Channel 4 News. Non-Executive Director of J P Morgan systems and entrepreneurial studies. At the BBC, edited Newsnight,The Money Chinese Investment Trust since 2003 Chairman of the Northern Ireland Centre Programme and the 1987 General Election and Chairman of the Council of Royal for Trauma and Transformation in Omagh. results programme.Vice-Chairman, Holloway, University of London since 2004. Former Chairman of Invest Northern International Press Institute; Fellow, Society Former diplomat – posts held include Ireland and former Pro-Vice-Chancellor of Editors and the . Ambassador to Israel 1992–1995, Deputy of the University of Ulster. Born 1940. Born 1947. Under Secretary of State FCO 1995–1997, Consul-General Hong Kong and Macau 1997–2000, High Commissioner to

BBC Annual Report and Accounts 2005/2006 11 Executive Board

The Executive Board manages the operations of the BBC. It is chaired by the Director-General.The Executive Board answers to the Board of Governors, which appoints the Director-General.The Executive Board is supported by three sub-groups: the Executive Direction Group, the Journalism Board and the Commercial Board. Under the new BBC Charter, a significant minority of non-executive directors will be appointed to the Executive Board (see page 6,The BBC now and in the future).

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12 BBC Annual Report and Accounts 2005/2006 1 Mark Thompson 6 Tim Davie Director-General since June 2004. Director of Marketing, Communications Chairs the Executive Board and the & Audiences since April 2005. Responsible Executive Direction Group, made up of for all the BBC’s marketing, publicity, press all the BBC’s divisional directors. Previously and PR, audience services and audience Chief Executive, Channel 4 since 2002. research activities.Trustee, BBC Children in Former BBC positions include Director Need since September 2005. Director of of Television; Director of National & Freeview and also Digital UK. At PepsiCo Regional Broadcasting; Controller BBC Two; from 1993, latterly as Vice-President, Head of Factual; Head of Features; Editor, Marketing and Franchise, PepsiCo Europe. Panorama, and Editor, Nine O’Clock News. Joined Procter & Gamble’s marketing department in 1991. 2 Mark Byford Deputy Director-General since January 7 Ashley Highfield 2004. Chair of the Journalism Board which Director of New Media & Technology brings together all the BBC’s journalism since October 2000. Responsible for at an international, UK, national, regional bbc.co.uk, interactive television services, and local level.Trustee of the BBC Pension new platforms (broadband, mobile, etc), Scheme. Former BBC positions include the BBC’s technology portfolio, technical Director, Global News and World Service; innovation, and research and development. Director of Regional Broadcasting; Head Previously Managing Director of Flextech of Centre, , and Home Editor, Interactive, the pay-television company’s Television News. new media division. Former positions include Head of IT and New Media for 3 John Smith NBC’s European Channels. BBC Chief Operating Officer since June 2004, responsible for all the BBC’s 8 Zarin Patel commercial and resourcing subsidiaries, as Group Finance Director since January well as leading its property strategy. From 2005. Responsible for financial strategy, March 2005, also Chief Executive Officer planning, control, corporate reporting of BBC Worldwide Limited. Formerly BBC activities and licence fee collection. Director of Finance, Property & Business Trustee of the BBC Pension Scheme. Affairs. AccountancyAge Financial Director Former BBC positions include Head of the Year in 2001. Non-executive of Revenue Management and Group director at Severn Trent plc and Chairman Financial Controller.Trained as a chartered of their Audit Committee. Previously with accountant with KPMG, where she spent British Rail Group, overseeing demergers. 15 years before joining the BBC in 1998. Member of the Accounting Standards Governor, University of the Arts London Board until November 2004. and member of their Audit Committee.

4 Jenny Abramsky CBE 9 Caroline Thomson Director of Radio & Music since April Director of Strategy since April 2005, 2000. Responsible for BBC Radio 1, 2, 3, 4, incorporating previous responsibilities as Five Live, BBC Asian Network, BBC 6 Music, Acting Director, Strategy and Distribution 1Xtra, Five Live Sports Extra, BBC 7, since December 2004, and Director television classical music, Music Live, the Policy and Legal (formerly Public Policy) BBC Proms and the three BBC orchestras since May 2000. Lead Director of the based in England. Previous BBC positions Charter Renewal Task Force since June include Director of Continuous News; 2004.Trustee of the BBC Pension Scheme. Director of Radio; Controller, BBC Radio Director of Freeview and also Digital UK. Five Live; Editor, Radio News & Current Non-executive director of The Pensions Affairs, and Editor, Today. Regulator. Former positions include Director of Strategy & Corporate Affairs, 5 Jana Bennett OBE BBC World Service; Commissioning Editor, Director of Television since April 2002. Science and Business at Channel 4, and Responsible for the BBC’s television political assistant to Roy Jenkins. channels – BBC One, BBC Two, BBC Three and BBC Four; related interactive Stephen Dando, former Director, BBC People, programming; and overseeing content announced his resignation in January 2006 on the UKTV joint venture channels and and left the BBC in April 2006. Jeremy BBC America and BBC Prime. Previously Nordberg was appointed Acting Director General Manager and Executive Vice- during the recruitment of a new Director. President at Discovery Communications Inc. in the US; Director of Production at the BBC; Head of BBC Science; Editor, Horizon, and Senior Producer on Newsnight and Panorama.

BBC Annual Report and Accounts 2005/2006 13 Governors’ review of objectives

Overview Our responsibilities as Governors include setting annual objectives for the BBC.We review management’s performance against these objectives periodically in the course of the year and publish a formal assessment in the Annual Report.This Report follows that pattern and in this section we report on performance against our 2005/2006 objectives.

In future, however, the Trust that will replace the Governors will use a new set of tools to hold the BBC to account (see page 6,The BBC now and in the future). The Trust will have to decide if it wishes to continue the current system of annual objectives in addition to the new accountability tools.

In the meantime, we have rolled forward many of last year’s objectives – amended as appropriate – into 2006/2007.These objectives can be found on page 21.

14 BBC Annual Report and Accounts 2005/2006 408,415 hours

of BBC Television and Radio broadcast in 2005/2006 – 46.6 hours of output for every hour of every day

Beethoven Extras Thinking cross-platform: Beethoven, BBC Two’s Bringing fresh comedy to the BBC: Ricky Gervais drama-documentary complemented Radio 3’s and Stephen Merchant, creators of The Office, wrote, Beethoven Experience which broadcast all the directed and appeared in their new comedy, Extras composer’s music over a single week

Objective one These noted the extremely rapid pace (to below 8.5%) and this is reflected in Programme strategy of change in audience expectations and our amended objective for 2006/2007. in technology and examined how they Ensure that BBC management would affect key areas of output: Research under way by BBC Television develops a five-year editorial journalism, drama, music, sport, comedy, shows that audiences have positive as strategy for BBC programmes entertainment, children and teens, and well as negative feelings about repeats. and services focused on knowledge-building. Major themes from While there is a low tolerance of the work included: a need to think ‘cross- peak-time repeats on BBC One, nearly maximising public value. platform’ – that is, across TV, radio and half the respondents say they appreciate the internet for audiences at home and an opportunity to catch up on missed In 2005/2006 this will include: on the move; a need to shift investment programmes, and nearly two-thirds agree and creative focus towards 24/7 services; that there are some programmes they Beginning to reduce the a need to recognise that on-demand will would always be happy to see repeated. volume of repeats on be a key driver of how the BBC delivers In taking forward its work in this area the BBC One in peak time content in the future and also how it BBC needs a clear repeats policy that takes Undertaking work to better commissions it; a need to re-invent the full account of licence fee payers’ attitudes understand audience BBC’s approach to the internet; and finally, and changes in technology – particularly concerns regarding a need to develop a new relationship with the move towards on-demand. derivative programming, and audiences as partners and participants. Management are working on this. specifically, reducing the volume of makeover and Further work will be done in the coming For some time we have been concerned year to translate the findings into innovative about a decline in audience perceptions lifestyle programmes on service strategies.We and subsequently the of quality of BBC Television output and BBC One in peak time Trust will scrutinise these as they develop we are pleased to see some evidence that Beginning to increase overall and ensure that, where appropriate, Public perceptions are improving – the number investment in original UK Value Tests are carried out. Innovation is, of people disagreeing with the statement: comedy and drama of course, not an end in itself. Audiences “the BBC sets the standards for programme expect high quality from the BBC as well as making in the UK” fell from 26% to 23% innovation and we will ensure that audience between Q4 2003 and Q4 2005. views on the quality of any new output are We are encouraged by the good fully taken into account by management. One factor affecting perceptions of quality start made in achieving this objective. is audience concern over derivative In March 2005 the Director-General In the meantime, we note that BBC One programming. In an effort to achieve a launched Creative Future, an ambitious continues to make progress towards better understanding of the issues, the and broad-ranging review of key reducing repeats in peak time.The level in Governance Unit asked BBC Audience programme genres.This aims to translate 2005/2006 was 8.9% (9.7% in 2004/2005). Research to re-examine existing data – the BBC’s public commitments on In the longer term, significant further in particular the BBC’s Pulse survey quality, creativity and excellence into an reductions are expected – cutting BBC One (a daily online questionnaire involving editorial strategy covering the next five repeats in peak time to around 5%. But 15,000 representative television viewers). to seven years and embodying the public these reductions will not show in full on The findings were presented to us in purposes of the BBC as set out in the screen until 2008 because of the time it March 2006.The research made clear that new Charter. Emerging insights from takes for the results of new commissioning audience concern reflects not just copycat this work have been presented to the to come through and for the results of programming but also tired and worn Governors for discussion during the the Director-General’s efficiency drive to formats demonstrating a lack of originality year. In April 2006 the first public produce the new investment funds needed. and innovation. Management had already announcements from the Creative Future In the current year we do not expect to begun to develop a long-term strategy to project were made. see a reduction of much more than 0.4% refresh and raise the ambition of the early

BBC Annual Report and Accounts 2005/2006 15 Governors’ review Total broadcasting spend 2005/2006 (£million) of objectives 2006 2005 Television 1,443 1,456 Radio 218 221 bbc.co.uk 72 69 BBC jam 36 8 Interactive TV (BBCi) 18 17 Local radio and regional television 370 356 Programme related spend 338 339 Overheads and Digital UK 315 282 Restructuring 107 51 Transmission and collection costs 320 309 Total 3,237 3,108

For further explanation of these figures see Note 2b on pages 106 to 107

Objective two evening part of the peak-time schedule Of the remaining analogue-only homes, on BBC One and we asked them to take Driving digital more than three-quarters were aware of these findings into account in this work – by Freeview. However, awareness of the BBC’s concentrating their efforts on programmes Ensure that BBC management digital channels in these homes has shown or formats that may have reached the end drives the market for free-to-air a slight fall.This almost certainly reflects the of their creative life.This is reflected in the digital television, digital radio probability that these homes, by definition, revised wording of our objective for and new media whilst now contain a higher proportion of those 2006/2007. hardest to convince. continuing to serve the needs of In line with our 2005/2006 objective, the analogue-only audience by: About one in three homes in the UK had the volume of makeover and lifestyle become fully digital (that is, able to receive programming in BBC One peak time Raising awareness of how all BBC services through television and fell to 6.5% in 2005/2006 (from 7.7% in the BBC’s digital services broadband) by the end of 2005. Reaching 2004/2005).This reflected, in particular, add value to the overall this figure is a significant milestone, but management’s decision not to re-commission portfolio there is much still to do. For example, the Changing Rooms and Groundforce. However, Improving their availability growth of broadband has been impressive; we believe that some lifestyle programming Working in partnership with however it appears that most of this should remain part of the mix on BBC One the commercial sector to growth comes from narrowband – it holds particular appeal for audiences the drive take-up households upgrading, rather than new BBC finds hard to reach, including 25 to 34 households gaining access to the internet. year olds and some ethnic minority groups. In other words it does not signal much of a lessening of the internet digital divide. Also in line with our objective, work is The key role of the BBC here has been under way to deliver increased investment underlined by the Government’s decision For the BBC there is a growing issue of in comedy and drama. In comedy, BBC One to place a sixth public purpose on the BBC how best to focus its marketing effort. On (where six pilots have already been in the new Charter, that of “building digital the one hand there is the pressing need to announced) and BBC Two will see the Britain”, and we can report positive encourage people to take their first steps greatest benefits. In drama, the investment progress made during the year. into the digital world; on the other there is beginning to show on screen, but is the need to encourage those who have the longer lead times here mean that The BBC has a number of roles to play. already made the move to go further and substantial change will not be evident These include: continuing to encourage become fully digital.There is some concern until 2007/2008. More than half the extra take-up through the provision and that the latter group may become irritated investment is going to BBC One, with marketing of high quality digital content; by messages designed for the former. some additional investment in BBC Three. raising public awareness of, and providing public information on, all aspects of We are encouraged to note from survey switchover; and maintaining active support evidence that the BBC digital channels are of Digital UK, the body coordinating the seen as “good use of the licence fee” by switchover to digital television in the UK. an increasing proportion of audiences. BBC News 24 in particular is seen as “good The UK now has the highest digital use of the licence fee” by nearly 70% of television penetration of any country the audience (although this has decreased in the world and the BBC’s marketing slightly this year). Awareness of digital radio efforts have undoubtedly helped in this is growing and sales of DAB sets are achievement. By the end of 2005, some growing rapidly – more rapidly than the 70% of homes in the UK had at least one increase in reach of BBC digital stations. set capable of receiving digital television This perhaps reflects the fact that sets are and 24% had converted all their sets. bought primarily for improved reception,

16 BBC Annual Report and Accounts 2005/2006 5.4p

cost per hour of viewing/listening to the BBC, based on average consumption

BBC News 24 Urban Classic Driving digital: Simon McCoy and Building bridges: MC Purple with the BBC Concert presenting BBC News 24, one of the BBC’s portfolio Orchestra – a collaboration between 1Xtra, one of extra channels available to digital viewers of the BBC’s digital stations, and Radio 3, making connections between very different audiences

Objective three and listening behaviour does not from increased pension augmentation costs automatically change with the purchase Value for money of post closures. Although actual spend on of a set. We have therefore asked for implementation costs in 2005/2006 was marketing effort to include some focus Ensure that BBC management lower than forecast, at £34million, this is a on the content of the BBC’s DAB services implements the findings of the result of timing differences in post closures and their unique value to licence fee value-for-money review by: and the overall one-off implementation costs payers as well as on access to the services. are expected to remain at £241million. bbc.co.uk has maintained high levels of awareness and we are pleased to see Making savings of £105million The savings reported above go beyond an increase in awareness of BBCi 24/7 – in 2005/2006 towards the the cumulative seven year self-help targets 48.2% (42.4% 2004/2005) – reflecting the target of annual savings of of £3.3billion by 2006/2007 agreed with marketing effort put into promoting its £355million by 2008 the DCMS for the current Charter period. core news and children’s output. Developing a detailed, three- year plan to transform the The value-for-money targets are ambitious Technical and financial constraints are BBC’s processes and make it and require strong change management.We restricting opportunities for improving more efficient and effective in engaged PA Consulting to provide us with the availability of digital services. Coverage providing services that meet assurance that management’s three-year of digital terrestrial cannot be increased the needs of licence fee payers plans were sufficiently detailed and robust to beyond the current 73% until digital drive the transformational change needed to switchover. Significant further increases achieve the targets. Management have acted in the BBC’s DAB network depend on on recommendations from PA Consulting: the licence fee settlement.Where digital Good progress has been made towards they have taken full and appropriate television is concerned, the BBC is this objective. In March 2005 the Director- ownership for the change programme and continuing its efforts – with commercial General announced a three-year efficiency introduced a monitoring framework; and public service broadcasters – to launch programme which aims to deliver strengthened their central change team who a free-to-air satellite service.This would £355million of ongoing gross annual cash engage with leaders at all business levels. extend the BBC’s digital channels to areas savings by 2007/2008.The BBC exceeded Detailed divisional change plans include not currently reached by Freeview. its savings target for 2005/2006, comprising roadmaps, key milestones and measures £99million of ongoing cash savings and a with regular reporting of progress against In the meantime we are encouraged by the further £7million of one-off programme these to both management and Governors. BBC’s efforts to drive take-up by building genre mix changes. It remains on track to partnerships with manufacturers, retailers deliver its three-year target of annual savings. Progress towards developing a full and broadcasters across television, radio, business architecture – establishing the mobile and broadband ISPs. In addition, The majority of the cash savings were principles underlying the execution of the BBC has been active in the Freeview achieved through post closures across agreed BBC strategy – has been slower consortium to ensure that Freeview’s both content and professional service than initially expected. However, significant technology and content are in good shape divisions which reduced headcount by progress has now been made and it is for switchover.The BBC has also been 917 and 215 respectively.The second expected the full framework will be closely involved in the set up, launch and year of the programme is expected to see completed in the autumn incorporating communications strategy of Digital UK more savings derived from transformational the Creative Future recommendations (formerly ‘SwitchCo’). changes to ways of working. and the licence fee settlement.

One-off implementation costs in the original plan were forecast to be £197million over the three-year programme. During the year this forecast rose by £44million to £241million, the increase resulting mainly

BBC Annual Report and Accounts 2005/2006 17 Governors’ review of objectives 1.7 million

contacts from members of the public to BBC Information in 2005/2006

Newswatch Being open and accountable: the Newswatch website gives audiences who may be unhappy with BBC News a way to be heard

Objective four In terms of impartiality, the first major Guidelines (the text of the guidance note is Impartiality and independence challenge of the year came in May with the available on the advice page of the Editorial General Election. In the event, the number Guidelines section of bbc.co.uk). Ensure that the BBC meets of complaints about impartiality, unfairness the highest standards and balance was low.The most high-profile In the summer, a further editorial challenge of accuracy, fairness and complaint came from the Conservative was created by Live8, the global music event The Heckler impartiality expected Party and related to on staged to focus attention on issues of Third BBC Three, a study of political heckling World debt in the week of the G8 summit. by audiences in all its produced by BBC News.The programme The BBC had to find a way to serve its programmes. makers had sent three hecklers to a audiences – who rightly expected to see public meeting addressed by the then and hear this event – but also to uphold its In particular, strengthen Conservative leader Michael Howard. commitment to impartiality by not allowing editorial processes to The hecklers had been fitted with radio the BBC to be perceived to offer a free ride deliver high-quality, trusted microphones to record their interventions for a political campaign.The impartiality journalism by implementing and these were spotted by the meeting issues were aired in editorial policy forums the recommendations of the organisers who seized the equipment. within the BBC in the run up to Live8, and Neil Report and acting on The Conservative complaint alleged raised with us in a report from the Director- the Governors’ independent bias and breach of BBC guidelines. General.The outcome was that, in addition reviews of impartiality. Management rebutted both charges, to the event itself, a range of material was the complaint was not referred to the broadcast that set it in context and enabled Governors, and the programme was viewers and listeners to make up their own broadcast without further complaint. minds about the issues involved. In overall terms we are satisfied with performance against this objective. During The suicide bombings in London on 7 July During the course of the year we the year under review BBC news coverage sparked an intense public debate on the commissioned a study of the impartiality met high standards of accuracy, impartiality BBC use of the word ‘terrorist’.The BBC’s of BBC News’ coverage of the Israeli- and independence, and substantial published Editorial Guidelines do not ban Palestinian conflict (see box), and asked progress was made in implementing the use of the word but take the position management to update us on the progress recommendations of the Neil Report and that:“The word ‘terrorist’ can be a barrier of implementing the findings of our earlier the Governors’ impartiality reviews. rather than an aid to understanding.We impartiality study on coverage of the EU should try to avoid the term, without (see page 65). The Neil Report was the result of a attribution.We should let other people management review led by Ronald Neil – characterise while we report the facts In terms of audience perceptions, results from a former Director of BBC News and as we know them.” A number of a regular tracking survey conducted by MORI Current Affairs – to consider the editorial commentators took issue with this, show that around three-quarters of the lessons of the Hutton Inquiry into the suggesting that the BBC was, in effect, UK public (76%) say they trust BBC news death of Dr David Kelly.The report was condoning terrorism by being hesitant programmes the most to give a fair, informed published in 2004 and we endorsed its about using the word. In the light of this and balanced view on important events recommendations, which included changes public debate, management reviewed and issues compared to any other news to journalistic practice, the handling of the published guideline.They decided programmes.When asked to consider all of editorial complaints, and the way BBC not to make any change to the guideline the services that the main broadcasters offer, journalists are trained. In particular it but to publish a guidance note for BBC and not just news, over half of those surveyed recommended the establishment of a programme makers providing additional believe that the words ‘Fair’,‘Accurate’ and BBC College of Journalism and progress context on the value of precision and ‘Trustworthy’ are most applicable to the BBC. has been made here (see page 64). consistency of language.We endorsed In a separate survey, around three-quarters The other recommendations had already this approach, and it was published to of opinion formers (73%) believe the BBC been implemented. supplement the advice in the Editorial is impartial and independent.

18 BBC Annual Report and Accounts 2005/2006 Programme spend by genre 2005/2006 (£million)

2006 2005 Factual and learning 394 351 News and current affairs 485 458 Entertainment 253 267 Sport 372 438 Children’s 140 134 Drama 427 398 Music and arts 241 245 Speech – Local Radio 182 175 Total 2,494 2,466

Education for children is included in Children’s; Film is included in Drama; Religion is included in Factual and learning

Governors’ roadshow Listening to licence fee payers: BBC Chairman Michael Grade and fellow Governors taking questions at a public meeting in Cardiff. Public accountability activity is an important part of the Governors’ role BBC News coverage of the Israeli-Palestinian conflict Objective five The proportion of Conservative supporters who believe the BBC is biased against the In October 2005 we commissioned Accountability to audiences Conservative Party has fallen from 26% in an independent panel chaired by Q2 2005 to 21% in Q1 2006. Sir Quentin Thomas, President of the Deliver greater transparency British Board of Film Classification, to and accountability to licence As highlighted by the BBC Chairman in his “assess the impartiality of BBC News fee payers in 2005/2006 by, Goodman Media Lecture in May 2005, the and Current Affairs coverage of in particular: BBC faces new challenges on impartiality the Israeli-Palestinian conflict with as a result of technological and social particular regard to accuracy, Management ensuring change.We, in collaboration with BBC fairness, context, balance and bias, management, are leading a project to deliver actual or perceived.” that the changes to the a set of principles underlying impartiality complaints handling process in the 21st century.The project will seek The panel presented their report are being implemented across to identify how to deliver impartiality in to us in April 2006 and we published the organisation ways that are relevant and convincing it in full shortly afterwards. Its main Governors developing to the BBC’s many different audiences. finding was that there was no Service Licences as the The focus will be on UK audiences and deliberate or systematic bias. key tool for exercising domestic output and will consider the effective stewardship of implications for all genres of programming. The panel went on to say, however, the public’s money that the audience feel they do See pages 89 to 90 for further information not understand the conflict and, about editorial compliance. perhaps for that reason, do not see it as important or interesting. We are encouraged by progress on this The panel’s view was that objective and look forward to further impartiality required a full and moves to increase transparency and fair account and in that regard accountability when the Trust is established. they found the BBC coverage to be inconsistent, not always providing Changes to the complaints handling system a complete picture and in that sense were made in February 2005 and are now misleading.The panel made a number well established across the BBC.The aim of recommendations, including that of the system is to ensure that the BBC the BBC should provide licence handles editorial complaints effectively, fee payers with greater context including responding to complainants to assist their understanding of within ten working days. Initially, complaints the complexities of the conflict. are handled either by the programme concerned, or by BBC Information. We passed the report to Complainants unhappy with the response management and asked them to have recourse to the independent Editorial respond to us by June 2006, with Complaints Unit, and, if still unsatisfied, to the response set in the context the Governors’ Programme Complaints of the Neil Report.The panel report Committee, the final court of appeal. is available on the BBC Governors’ website: www.bbcgovernors.co.uk. In 2005/2006, 91% of all complaints to the Management’s response will also be BBC received a response within ten working published there, together with our days – an improvement from 88% at the start own conclusions. of the year. For the full report of editorial complaints in 2005/2006, see page 62.

BBC Annual Report and Accounts 2005/2006 19 Governors’ review Audience approval of the BBC Combined monthly reach of of objectives BBC Television, BBC Radio and bbc.co.uk (%)

2005/2006 6.6 2005/2006 94.3 2004/2005 6.5 2004/2005 95.6 2003/2004 6.7 2003/2004 96.6 2002/2003 6.8 2002/2003 96.2 2001/2002 6.8 2000/2001 6.5

Source: Pan-BBC Tracking Study age 15+ Source: Pan-BBC Tracking Study age 15+, Note: Figures are a mean score out of ten claimed usage

This system, however, is for editorial to, pay substantially more than the current the current year as part of the Governors’ complaints only and does not cover such £10 per month for existing BBC services Accountability to Audiences Objective things as TV licensing or complaints against If the licence fee increased to £150 a for 2006/2007. off-air events.The new draft Agreement, year (in 2005 pounds) in 2013/2014 the published alongside the new Charter, proportion of people willing to pay for requires the Trust to develop and consult existing services would fall from about on a complaints framework that includes a 75–80% to about 65–70% in clear definition of the different categories 2013/2014.This rises to 70–75% if the of complaints.This will be developed during proposed new services are added 2006 and consulted on once the Trust is When asked about a licence fee in place. supplement to pay for help for the vulnerable during digital switchover, 53% We have sought to increase our public support and 47% oppose. However, if the accountability activity this year.We held our Government proceeds with this proposal first ever AGM, in London, and since then we it would not be the straw that broke the have held public meetings in , Cardiff licence fee’s back and Belfast. During the year we launched our own website: www.bbcgovernors.co.uk. Service Licences are one of the Public consultations have also been a key key accountability tools currently in development this year with a number being development.The licences will detail the launched since summer 2005. Details of budget and remit of each BBC service, these – and of the issues raised by licence how they contribute to the delivery fee payers at our public meetings – can be of the BBC’s public purposes, and how found on the Governors’ website. performance should be measured. Our work on these included a public One area where we wanted to know consultation on the framework in the latter more about licence fee payers’ opinions part of 2005.The responses to this (which was their response to the BBC’s own can be found on the Governors’ website) licence fee bid (a licence fee rising to are being taken account of in the drafting £150, in 2005 pounds, in 2013/2014). of the Service Licences themselves. We also wanted to understand licence Service Licences are part of the new fee payers’ reaction to the Government’s governance arrangements that will come plan to fund targeted help via the licence into force with the arrival of the Trust fee.We commissioned Professor Patrick and the new Charter. Barwise to carry out an independent investigation of these two areas. His report, We have done a good deal of work to published in April 2006, concluded that: develop our accountability in preparation for handing over to the Trust. Accountability There is no ‘tipping point’ above which to licence fee payers is an imperative willingness to pay would drop dramatically across the BBC and will be a particular The more consumers know about the focus for the Trust. Since his appointment, BBC’s proposed new services, the more the BBC Chairman has regularly made positive their attitude himself available for questioning by licence When asked to think about it, and if really fee payers on BBC radio phone-ins and we forced to choose between paying the are developing other new ways to reach licence fee and losing the BBC’s services, out to the audiences with accountability most licence fee payers would, if they had activity. Progress will be monitored over

20 BBC Annual Report and Accounts 2005/2006 Governors’ objectives for 2006/2007

The existing BBC Charter requires us 2 Driving digital Worldwide to improve return to the to set and report on annual objectives. Ensure that BBC management prepare for BBC by providing double digit growth in The objectives for 2006/2007 focus on digital switchover and drive the market underlying profit (ie excluding exceptional major pan-BBC priorities. for free-to-air digital television, digital items) plus ongoing sales growth and to radio and new media whilst continuing achieve competitive performance levels, Under the new Charter the BBC Trust to serve the needs of the analogue-only delivering a return on sales of at least will have a new set of tools for holding the audience by: 10% and EBITDA (earnings before BBC to account based on Purpose Remits, interest, tax, depreciation and Service Licences and Statements of Raising awareness of how the BBC’s amortisation) margin of at least 22% Programme Policy. digital services add value to the Net licence fee sales to increase by overall portfolio 1.04%, with evasion falling from 4.7% The Trust will take a view on whether or Improving their availability in 2005/2006 to 4.6% not there is a continuing role for annual Working in partnership with the corporate objectives for the BBC. In the commercial sector to drive take-up 4 Impartiality meantime we have decided that the Ensure that the BBC meets the highest 2006/2007 objectives should cover the 3 Value for money standards of accuracy, fairness and same strategic priorities as those for Ensure that BBC management deliver impartiality expected by audiences. In 2005/2006, updated to reflect progress value-for-money savings whilst retaining particular, respond to the Governors’ made during the year as well as new quality output. In 2006/2007, this will be independent reviews of impartiality initiatives for the coming transitional measured against the following goals: to ensure strong editorial processes year – to be approved where necessary and training that deliver high quality, by the Governors or the Trust. Headcount: Achieving headcount trusted journalism. reduction targets of 2,055 in 2006/2007, 1 Programme strategy towards the target of 3,763 for the three 5 Accountability Ensure that BBC management continue years to 2007/2008 Focus on improving the BBC’s to develop and begin to implement Savings: Making gross cumulative cash accountability to audiences. In particular: the five-year editorial strategy for BBC savings of £211million in 2006/2007, programmes and services by translating which includes new gross cash savings of The BBC Governance Unit to: the findings of Creative Future into service £112million, towards a target of annual Develop and conduct a major public strategies and pan-BBC proposals. gross cash savings of £355million by survey looking at attitudes towards 2007/2008 (after three years) the BBC, for consideration by the In Television, continue progress towards Implementation costs: Incurring BBC Trust the detailed objectives set in 2005/2006: implementation costs of no more than In readiness for the Trust, work with the £148million in 2006/2007 from the total Broadcasting Councils and English Reducing the volume of repeats in of £241million one-off implementation National Forum to develop an action BBC One peak to below 8.5% in costs included within the three-year plan plan to engage more widely with 2006/2007 (towards a target of 5% Business model: Developing a coherent audiences, build the profile of the in 2008/2009)1 business architecture which underpins Councils, and contribute advice across Continue to increase overall investment the BBC’s transformation the range of the BBC’s public purposes in original UK comedy and drama Financial planning: Implementing a financial BBC Management to: Refresh BBC One’s early evening output, plan that ensures the most effective Develop new service strategies in paying particular attention to the lifecycle allocation of BBC funds to meet the response to the Creative Future project of programmes or formats needs of the licence fee payer, begins to ensuring that all audiences are well set targets for continuous improvement served and in particular to provide 1 Definition of repeats to include digital transfers from and has the flexibility to deal with new adequate focus on improving perceptions BBC Three and BBC Four, but not digital premieres audience priorities and cost pressures. among those audiences less favourable (eg Spooks) In particular: towards the BBC

BBC Annual Report and Accounts 2005/2006 21 The BBC at a glance

Television Radio

BBC Five Live Sports Extra is a part-time network BBC Radio 1 aims to offer a high-quality providing additional sports coverage through BBC One aims to be the UK’s most valued service for young audiences combining the rights already owned by BBC Radio Five Live television channel, with the broadest range best new music, a comprehensive range of live to deliver greater value to licence fee payers. of quality programmes of any UK studio sessions, concerts and festivals, and mainstream network. tailored speech output.

1Xtra aims to play the best in contemporary BBC Radio 2 aims to bring listeners a broad range black music, with a strong emphasis on delivering of popular and specialist music focused on British BBC Two aims to bring challenging, intelligent high-quality live music and supporting new talent and live performances, complemented by television to a wide audience by combining British artists. serious factual and specialist subjects with a broad range of speech output. inventive comedy and distinctive drama.

BBC 6 Music aims to engage with lovers of BBC Radio 3 is centred on classical music, popular music by offering the best music from the and also aims to provide a broad spectrum of BBC sound archive together with current releases jazz and world music, drama and arts, and includes outside the mainstream, complemented by music BBC Three aims to offer innovative live and specially recorded performances. British content and talent, providing a broad news and documentaries. mix of programmes aimed primarily at younger audiences.

BBC Radio 4 uses the power of the spoken word BBC 7 is a speech-based digital radio service to offer programming of depth which seeks to offering comedy, drama and readings mainly from engage and inspire with a unique mix of factual the BBC speech archive. It is also the home of programmes, drama, readings and comedy. children’s speech radio. BBC Four aims to be British television’s most intellectually and culturally enriching channel, offering a distinctive mix of documentaries, performance, music, film and topical features.

BBC Radio Five Live broadcasts live news and BBC Asian Network aims to offer a sport 24 hours a day and aims to present events contemporary mix of music and speech, as they happen in an accessible style, with particular with particular emphasis on challenging debate emphasis on targeting 25 to 44 year olds. and live performance, to young British Asians.

The CBBC Channel aims to offer a distinctive mixed schedule for 6 to12 year olds, encouraging the development of existing and new interests, helping children to understand and embrace the world around them.

CBeebies aims to offer a mix of high-quality, UK-produced programmes designed to encourage learning through play for children aged five and under, in a consistently safe environment.

22 BBC Annual Report and Accounts 2005/2006 New Media News Nations & Regions

BBC English Regions serves a wide range of urban and rural communities on television, radio and online and aims to be the most trusted and creative local broadcaster in England. bbc.co.uk aims to provide innovative and BBC News seeks to provide the best journalism distinctive online content, promoting internet use in the world and aspires to be the world’s to develop a deeper relationship with licence fee most trusted news organisation: accurate, BBC Scotland aims to produce a broad range payers and to strengthen BBC accountability. impartial and independent. of distinctive television and radio programmes for all age groups that properly reflect the diverse nature of Scotland.

BBCi offers digital television audiences all-day, up-to-the-minute content including news, weather, learning, entertainment and BBC Cymru Wales is committed to interactive programming. producing services which reflect the unique BBC News 24 aims to deliver news, analysis and culture and history of Wales, and its social insight, supported by the BBC’s newsgathering and political landscape. operations, all day, every day of the year.

BBC Northern Ireland aims to provide something BBC Parliament is the only UK channel of value for everyone in the community through dedicated to the coverage of politics, featuring its broad portfolio of programmes and services BBC jam is a free online service providing debates, committees and the work of the that reflect local interests and experiences. high-quality interactive resources structured devolved chambers of the UK. around key elements of the school curriculum for 5 to 16 year olds.

BBC World Service provides international news, analysis and information in English and 32 other languages on radio and the internet.

BBC World is the BBC’s commercially-funded international 24-hour television news and information channel.

BBC Annual Report and Accounts 2005/2006 23 Governors’ review of services – Television

Overview BBC Television is facing sharply increased competition as the number of digital channels grows rapidly.Audiences to BBC One and BBC Two have fallen and the rising numbers watching the digital channels BBC Three and BBC Four have not yet made up the losses.Younger viewers have been lost in disproportionately large numbers – when they switch from analogue to digital they show an increased tendency also to switch away from television.We are reassured by the Director-General’s clear focus on winning back younger audiences as a priority for the coming period.

Creatively speaking, BBC One has had an outstanding year. BBC Two is continuing to refine its schedule in order to increase its appeal and reach while staying true to its remit. BBC Three’s audience is continuing to grow strongly – the challenge is to broaden reach by appealing to young audiences. BBC Four has had a very good year and its audiences rate it very highly indeed. In children’s television, The CBBC Channel is in strong creative health and has continued to increase its audience. CBeebies recorded a reduction in reach, a reflection of both the pressing need for creative renewal of the channel and of the increasing competition for its audience.

BBC Television now draws its material from a wide range of sources inside and outside the BBC. BBC Cymru Wales has made a particularly strong contribution to the BBC’s drama output this year.

24 BBC Annual Report and Accounts 2005/2006 20 million

people watched at least 15 minutes of Planet Earth (BBC One, March–April 2006)

Bleak House Showing high quality classic drama: cast-members Making strong family entertainment: cricketer from Bleak House – BBC One made a big , winner of the 2005 Strictly Come impact by running this Dickens serialisation as Dancing, with partner Lilia Kopylova.The series a soap, an approach in tune with the original format has won international success as a British publication of the novel television export

reach of the BBC’s own digital channels Programmes such as this define the notion is going some way to replace (though of quality on the BBC. not yet wholly) BBC One’s lost viewers. Nevertheless, given the size of the has continued to delight channel’s budget and its importance early evening family audiences on Saturdays in building licence fee payers’ overall – a reinvention of real wit and flair. Remit satisfaction with the BBC, there is no The potentially problematic departure BBC One aims to be the UK’s most room for complacency.There is a particular of Christopher Eccleston from the title role valued television channel, with the problem with younger viewers who show was seized as an opportunity and David broadest range of quality programmes of an increased tendency to move away Tennant was in place in time to provide any UK mainstream network.The channel from television when they switch from a successful Christmas special before starting is committed to widening the appeal of all analogue to digital.We note management’s a new series in 2006/2007. Dr Who’s genres by making a range of subjects commitment in the Statements of television output is extended by a rich accessible to a broad audience. BBC One Programme Policy to tackle declining website and there have been imaginative is committed to covering national and reach with popular drama and family experiments with interactive elements – international sports events and issues, entertainment that brings in a younger the Christmas special was supported by showcasing landmark programmes and audience.This will mean continuing to a specially written interactive adventure exploring new ways of presenting take creative risks, and maintaining strong accessed via the red button.The audience specialist subjects. resolve when they do not succeed. for this approached half a million. In our For example, BBC One was ultimately consultations with viewers and listeners, The continuing modernisation of BBC One, unsuccessful in its attempt to establish they often cite programmes such as the Corporation’s flagship television service, Davina McCall in an unfamiliar setting, Dr Who as good BBC family entertainment. remains a key priority for the BBC. During but the attempt was worth making. Strictly Come Dancing, which had another the year under review the channel has had successful series, is another programme some outstanding creative successes. The creative successes have come from that draws similar unprompted praise However, these have not prevented a a broad range of genres including drama, from audiences. further erosion of overall audience reach. entertainment and factual. In drama, three In all homes, BBC One’s average 15-minute titles – all very different in kind – stand out: Life on Mars also used the idea of time weekly reach to viewers aged 4+ fell Bleak House, Doctor Who and Life on Mars. travel – this time to reinvent one of the by 2.2 percentage points, or nearly one They have helped BBC One maintain its staple television genres, the detective series. million people. Average reach in 2005/2006 clear lead among all UK channels as the It brilliantly played 21st-century sensibilities was 79.7% or 44.5 million people “channel best for drama” in the BBC’s against 1970s realities (including 1970s (81.9%/45.4 million in 2004/2005)1. audience research. fashions) through the plot device of sending a modern-day detective back These figures do need to be seen in Bleak House had everything that audiences in time. Its grip on the public consciousness context. In an increasingly competitive expect from a BBC classic costume drama: was evidenced by the number of environment BBC One continues to reach fine acting (and imaginative casting), strong opinion pieces that used more viewers than any other television writing, intelligent direction and the highest the series title as a jumping-off point channel in both analogue and multichannel production values.What made it different for nostalgic articles comparing past homes. In multichannel homes, where the was the decision to run it as a soap, with and present ways of doing things. choice of viewing is by definition far wider, half-hour episodes stripped across the BBC One is still watched by more than week and an omnibus edition at weekends. One of the great strengths of BBC One is its three out of four viewers.The rapid spread This was an inspired idea that went with range – not just drama and entertainment, of digital, and the inevitable audience the grain of the original publication of but religion, factual, documentary, news and fragmentation that accompanies it, means Dickens’ novel in instalments, each one current affairs, children’s, sport and more – that some degree of erosion of reach may ending with a cliffhanger, and it helped to and the fact that it can demonstrate quality be inevitable over time, and the growth in draw in large and appreciative audiences. right across the range, not just in a handful

BBC Annual Report and Accounts 2005/2006 25 Governors’ review of services – Television

Live8 Planet Earth Showcasing big events: the Live8 concert in Hyde Bringing natural history into sharp focus: David Park, mounted at short notice, was a big – but not Attenborough’s latest series, Planet Earth, brought insurmountable – test for the BBC a close-up view of nature, including unique pictures of a Himalayan snow leopard, rarely seen and never before pictured like this

of genres. Memorable factual output Although the output was of variable some question marks over its performance. included Planet Earth, narrated by David quality, overall this was a public service This year it seems to have stabilised. Attenborough, which exploited new enterprise of admirable ambition, and of This was reflected in the steadying of technologies in film-making to bring rarely a scale and scope that only the BBC could scores for BBC One when audiences seen facets of nature into astonishing close- have delivered. By chance, Live8 coincided were asked which was the best channel for up. Cameraman Mark Smith’s sequence of with the season and raised some soaps – these scores had declined sharply a snow leopard hunting a mountain goat impartiality issues as a result – our report in 2004/2005 – and by the awards won, high in the Himalayas – the culmination on page 18 shows how they were managed. including a Bafta. However, ITV maintains of a year’s quest – was an extraordinary a very large lead in this area, reflecting achievement. David Attenborough’s great Notable popular arts coverage included in part its much larger output of soaps. gifts as an ambassador for and interpreter A Picture of Britain, a celebration of the Viewers expressed strong and unprompted of the natural world were also on display British landscape as seen through the eyes appreciation of a special EastEnders in his BBC One series on the world of of artists, writers and composers.This series, episode marking Armistice Day. insects, Life in the Undergrowth. a collaboration with Tate Britain, was presented by David Dimbleby, who In a relatively quiet year for sport on There were a number of major set-piece demonstrated that his distinctive approach BBC One, coverage of the Six Nations events during the year.The 60th works well on material far removed from Rugby and the Commonwealth Games anniversaries of VE Day and VJ Day were his usual fare of politics and current affairs. demonstrated once again that major well marked with a mixture of outside He brought a fresh audience to arts sporting events remain hugely popular. broadcasts of the major public events and programming on BBC One. Just as output exploring the historical context. memorable, The Queen, by Rolf brought The issue of repeats is one that audiences The ability of the BBC to mount big BBC cameras into Buckingham Palace often raise in our consultations and we outside broadcasts at short notice and to observe Rolf Harris painting an 80th are encouraged by BBC One’s continuing cope with complex logistical problems was birthday portrait of the Queen – one progress in reducing repeats in peak time. demonstrated over 48 hours in April with of the more remarkable combinations For more on this, see our report on exemplary coverage of the funeral of Pope of access, cast and occasion to feature pages 15 to 16. John Paul II in Rome, followed the next day anywhere on British television during by equally memorable coverage of the the year. 1The population aged 4+ rose by 400,000 between wedding of Prince Charles and Camilla 2004/2005 and 2005/2006 Parker Bowles in Windsor. Later in the year, Little Britain returned to BBC One for Live8, the Hyde Park concert highlighting another successful series. However, poverty in Africa in the week of the G8 although the channel has maintained its summit, was organised at extremely short position among all its UK competitors notice and the BBC’s coverage was all the as the “channel best for comedy” in BBC more notable for that. audience research, there is a pressing need to deliver other new comedies that work Africa was also the theme of the BBC’s for mainstream audiences and meet Africa Lives season.This celebration and audience expectations from BBC One in exploration of African life and culture this key programme genre.The Director- spread across all BBC channels and General has made BBC One comedy a platforms but was led by BBC One. It high priority for additional investment and included output from many different a number of new pilots are in the pipeline. genres, including The Girl in the Café,a romantic comedy written by Richard EastEnders continues to be an important Curtis; Geldof in Africa, a personal journey part of the BBC One schedule and an by Bob Geldof, and a story line in Holby important driver of perceptions of the City that sent two characters to . channel as a whole. Last year we noted

26 BBC Annual Report and Accounts 2005/2006 6 million

average audience to the final episode of The Apprentice (BBC Two, February–May 2006)

Springwatch The Catherine Tate Show Tracking the changing seasons: and Investing in distinctive comedy: Catherine Tate’s Kate Humble involved the audience in recording sketch show, which had its second season in 2005 – the coming of spring – many thousands helped part of the BBC’s response to audience pressure to build a detailed picture of the season unfolding develop fresh UK comic talent across the UK

the implementation of the strategy with a A Music Memorial Film from Auschwitz was view to broadening its appeal.The results a moving tribute to the Jewish musicians were presented to us in July 2005. who died in the death camps.The Winter Olympics were the highlight of sport on The key challenge identified was connecting the channel during the year. with digital audiences and anticipating the Remit expansion of on-demand technologies. , presented by Bill Oddie, drew BBC Two sets out to be a mixed-genre While audience appreciation was high, and large audiences with its fresh approach channel combining serious factual and there had been innovation in music, arts to natural history for family audiences. specialist subjects with inventive comedy and religion as well as growth in current It successfully encouraged viewers to and distinctive drama to bring challenging, affairs at 9pm, the amount of original contribute their own observations of intelligent television to a wide audience. drama and comedy had declined.To nature through its national survey of counter this, further investment was springtime phenomena. In 2003 we approved a new strategy planned in these two genres, alongside for BBC Two which aimed to underline further innovation in factual programmes. The Monastery drew large and appreciative its distinctive public service role as a At the same time, trials began to explore audiences as it followed five laymen channel offering a more challenging mix the potential benefits of on-demand by spending 40 days and nights in a Benedictine of output than BBC One and, in particular, making programmes available on monastery trying to discover if the monastic with a strong and distinctive factual core. broadband via the redesigned website.This disciplines had something to offer them. This was achieved by shifting funding away should increase reach as audiences will be This was a surprising, thoughtful and tactful from entertainment, reducing the volume able to watch outside the scheduled slot. use of reality television techniques to of lifestyle programmes and increasing We endorsed these proposals for the explore serious spiritual themes. Top Gear, the amount of arts and current affairs in further evolution of the channel and will a longstanding cornerstone of the schedule, peak time. continue to monitor progress. brought wit, verve and imaginative production styles to its coverage of The repositioning was achieved but at In the year under review, BBC Two carried cars and everything to do with them. some cost in terms of audience numbers, a broad range of outstanding output.This The Apprentice and Dragon’s Den returned exacerbated by increasing competition for included Elusive Peace: Israel and the Arabs, for successful second series, inventively viewers from the growing number of digital a three-part series exploring the last eight opening up the world of business and channels. Audience reach has continued to years of the peace process entrepreneurship to new audiences. The fall, although the rate of decline has slowed through interviews with key protagonists. Apprentice has been one of the successes and this may be a sign that audiences are Coast, the result of a collaborative of the broadband trial on bbc.co.uk/bbctwo, stabilising, although there are problems partnership across the BBC, was an where entire programmes have been made reaching younger and ethnic minority ambitious series exploring the maritime available for downloading – initial public audiences. In 2005/2006, average weekly history and geography of the UK coastline. demand has indicated the potential appeal 15-minute reach to viewers aged 4+ in Strong comedy included Extras, Ricky of non linear programming. all homes was 59.1% or 33 million people Gervais’ latest excursion into the comedy 2 (61.4%/34 million in 2004/2005)2. However, of self-delusion, and Catherine Tate The population aged 4+ rose by 400,000 between these figures are averages. Reach is higher in consolidated her reputation with a new 2004/2005 and 2005/2006 analogue-only homes, but very significantly series of The Catherine Tate Show which lower in satellite homes.This suggests that pushed more of her catch-phrases into BBC Two faces further threats to its general usage.William Golding’s epic trilogy audience position as the UK moves towards of novels To the Ends of the Earth was analogue switch-off. adapted into a memorable classic drama. Martin Scorsese’s illuminating documentary In last year’s Annual Report we noted that on Bob Dylan, Arena: No Direction Home, the new channel controller was reviewing created enormous interest. Holocaust –

BBC Annual Report and Accounts 2005/2006 27 Governors’ review of services – Television

Funland Naked City Commissioning innovative drama: Ian Pulestone- Reporting cutting-edge art: 1,700 volunteers Davies and Frances Barber in the dark comic assembled naked on the Quayside at Gateshead to thriller Funland – part of BBC Three’s commitment be photographed by the US artist Spencer Tunick – to bring its audiences distinctive new drama a collaboration between BBC Three and the Baltic Centre for Contemporary Art

news offering, 60 Seconds, which has proved BBC Three has continued to perform a successful format for delivering news to strongly with home-grown comedy. Two the younger adult audiences targeted by Pints of Lager and a Packet of Crisps, the channel. Experiments with changing Tittybangbang, Man Stroke Woman, Ideal and the transmission time of the longer bulletin a further series of the channel’s established and altering its format and presentation hit Little Britain are good examples of the Remit were not successful in significantly increasing channel’s vigour in tackling this difficult and BBC Three is dedicated to innovative its impact. risky genre. Strong drama included the dark British content and talent aimed primarily comedy Funland. at younger audiences.The channel is A second recommendation from committed to a mixed schedule of news, management was to alter the channel’s The Flashmob – the Opera format was current affairs, music, arts, factual remit.The original wording committed successfully repeated, this time in knowledge-building content and coverage the channel to a number of specific factual with a version of the Faust story of international issues, as well as to high- sub-genres including education, science, performed in front of the shoppers in the quality, distinctive new drama, comedy religion and ethics, and business. In practice, Meadowhall shopping centre. Naked City,a and entertainment. the channel management discovered that collaboration with the Baltic Centre for this large number of narrow commitments Contemporary Art on Tyneside, recorded Audiences to BBC Three are continuing was a hindrance rather than a help in the artist Spencer Tunick’s project to to grow. In 2005/2006, average weekly delivering high-quality factual content to assemble 1,700 naked volunteers on the 15-minute reach to viewers aged 4+ in its audiences. Some of BBC Three’s most Quayside and photograph them. multichannel homes was 16.1% or 6.8 million successful factual output did not fit easily people (14.8%/5.6 million in 2004/2005)3. into the specified sub-genres. For example, BBC Three has done innovative work to it was unclear whether Little Angels extend its output beyond broadcast, for At its launch in 2003, BBC Three was given (on parenting skills) or Body Hits (on health example by premiering the new series of an extremely demanding remit – the issues) should be classified as education its comedy The Mighty Boosh on broadband conditions for approval laid upon it by the or science. In management’s view, it would via bbc.co.uk. Secretary of State were much more detailed be more productive to consolidate its than for the other BBC digital television commitments into a single ‘knowledge- The channel’s overall success is to be channels. In general terms it has done building’ category and to increase its hours applauded. However, there are areas for well and has maintained its commitment commitments in this area. concern.The channel has a specific remit to UK-produced content and its remit for to appeal to younger audiences but the innovation and risk-taking. However, it was We endorsed both recommendations. average age of its audience is towards clear that some parts of the schedule were With the agreement of the Secretary the older end of the target age-range. not delivering value for money, in particular of State the wording of the remit was Management are looking to refocus on the 7 O’Clock News. As we noted in last changed (the new wording is at the head younger audiences, and a re-emphasis year’s Annual Report, we asked management of this review). on risk-taking, distinctive and high to consider the future role of news on quality origination may hold the key BBC Three and their conclusions were The channel’s commitment to factual here.The channel cannot afford any presented to us in June 2005. knowledge-building output has produced long-term decline in audience perceptions some notable successes in the year under of its originality. The main recommendation was to drop review on the general theme of self- the 7pm news and close its website. improvement.They include Honey We’re 3The number of individuals in multichannel homes Although admirably innovative, the bulletin Killing the Kids (on parents’ role in their grew by 5 million to 42.5 million between 2004/2005 and 2005/2006 had not succeeded in generating a children’s unhealthy eating habits, with a substantial audience nor had its associated linked exhibition at the Science Museum); interactive news services.This has not been Spendaholics (on personal debt); and the case with the channel’s other hourly Dog Borstal (on training pets).

28 BBC Annual Report and Accounts 2005/2006 127 hours

of new educational programming broadcast on BBC Three in 2005/2006

The Jitterbug Years Fantabulosa Tracing history through music: BBC Four used Drama to make you think: Michael Sheen contemporary hits and archive footage to bring as Kenneth Williams in Fantabulosa, alive the story of post-war Britain – part of the a compelling portrait revealing the brilliant channel’s Lost Decade season examining British comedian’s darker side culture from 1945–1955

Documentaries are a particularly strong feature of the channel.The Storyville strand (shared with BBC Two) has drawn justified praise for its eclectic commissioning. Outside the Storyville strand, memorable documentary has included Monsoon Remit Railway, an evocative portrait of the BBC Four aims to serve audiences in Assam and Bengal railway and some search of even greater depth and range of the lives it touches. in their viewing.With an ambition to be British television’s most intellectually BBC Four is the home of international film and culturally enriching channel, BBC Four on the BBC.The channel showed all three sets out to balance a distinctive parts of Heimat (Edgar Reitz’s monumental mix of documentary, performance, chronicle of modern German history) and music, film and topical features to has continued its commitment to the World offer a satisfying alternative to more Cinema Awards.This sits alongside support mainstream programming. of the Grierson Awards for documentary and the Samuel Johnson Award for non- Audiences to BBC Four continue to rise. fiction as part of the channel’s wider In 2005/2006, average weekly 15-minute engagement with these genres. reach to viewers aged 4+ in multichannel homes was 6.1% or 2.6 million people Innovative comedy is one of the ways the (4.8%/1.8 million in 2004/2005)4. channel seeks to broaden its appeal while staying true to its remit, and the second BBC Four has continued steadily to build series of the sharp political satire The Thick its reputation for unashamedly literate, of It demonstrated what can be achieved intelligent and challenging output. BBC here.The channel also seeks to increase audience research suggests that BBC Four its impact with seasons of linked output. viewers rate the channel ahead of all its The Lost Decade was an eye-opening UK competitors, terrestrial as well as digital, series of documentaries examining different for the high quality of its programmes. aspects of life in Britain between 1945 and 1955; the subjects covered included sex, The channel has made an impact by censorship, food, politics, sport, leisure developing one-off dramas on and culture.The Bob Dylan season built contemporary themes and personalities. imaginatively on the momentum created Fantabulosa was a memorably bleak by the Scorsese documentary on BBC Two portrait of the comedian Kenneth with a collection of new and archive films. Williams based on his diaries, and Folk Britannia celebrated the traditional The Chatterly Affair an engagingly oblique music of the UK through a linked series of dramatisation of the 1963 trial for documentaries, archive programming and obscenity of D H Lawrence’s novel. live performances. The Quatermass Experiment was the first live drama on BBC television for 4The number of individuals in multichannel homes many years. A View from a Hill brought grew by 5 million to 42.5 million between 2004/2005 and 2005/2006 a satisfying chill to Christmas with a fine adaptation of M R James’ classic ghost story.

BBC Annual Report and Accounts 2005/2006 29 Governors’ review of services – Television 56%

of children in Great Britain aged 7–15 accessed bbc.co.uk/CBBC in December 2005

Jonny’s Hotshots Encouraging sports participation: England international Jonny Wilkinson shares the secrets of rugby with CBBC viewers

formally to us.Their report was presented primarily for use in the classroom and are to us in July 2005. focused on the school curriculum.

Management identified some specific The launch of new digital channels aimed problems with inexperienced presenters at sections of CBBC’s heartland audience (although making the point that the means that the channel may have to work channel is required to develop new on-air hard to maintain its reach in the coming talent) and accepted that occasionally period. However, on the evidence of the last Remit boundaries of taste had been crossed in year it is well placed to meet the challenge, The CBBC Channel aims to offer a the Saturday morning show Dick and Dom and management have embarked on a distinctive mixed schedule for children in da Bungalow. However, they assured programme of refreshing the channel, from 6 to 12 years old, encouraging us that proper controls were in place, including ending some long-running and them to find out more about existing including induction training, editorial successful titles. interests or inspiring them to develop guidelines and programme review forums. new ones, and helping them to We endorsed their approach to tone and 5The number of individuals in multichannel homes understand and embrace the world presentation style and supported the grew by 5 million to 42.5 million between 2004/2005 and 2005/2006 around them.The channel puts an overall performance of the channel, which emphasis on encouraging participation. has been a very successful addition to the BBC portfolio and prompts very positive Audiences to The CBBC Channel have feedback from parents. continued to rise. In 2005/2006, average weekly 15-minute reach to viewers aged The CBBC Channel’s philosophy is 4+ in multichannel homes was 6.0% or “learning through fun”. An element 2.6 million people (5.6%/2.1 million in of learning and life skills development 2004/2005)5. pervades a large part of its output including drama and factual. Blue Peter, The distinctiveness of the channel remains Newsround and Short Change demonstrate its high quality, its range (including news, that there is a serious thread to the education and drama), its low level of channel. Short Change deals with consumer repeats, its freedom from adverts and its issues and equips children to make high proportion of quality UK-originated informed choices. Newsround now has an material throughout the day. During the investigative strand, examining problems year more quality content, particularly such as underage drinking in the UK. drama, received its premiere on The CBBC The Newsround Press Pack website was Channel – and CBeebies – rather than launched, enabling children to learn the BBC One or Two. basics of journalism and see their work published, and the site has proved The channel’s presentation style is lively extremely popular.The channel also and energetic and it works hard to stay in launched Sportsround, a weekly sports show tune with its demanding audiences. In last that encourages children to take part year’s report we noted the reservations in sport. In Jonny’s Hotshots, the England raised by Professor Patrick Barwise in his international Jonny Wilkinson gave rugby independent review of the channel masterclasses to a group of children. commissioned by the Department for The schedule also includes Class TV,a Culture, Media and Sport (DCMS) about four-hour block of schools programmes the tone of voice of The CBBC Channel, transmitted every weekday during term and we asked management to respond time.These programmes are designed

30 BBC Annual Report and Accounts 2005/2006 Weekly reach of BBC Television services 2005/2006 (% individuals)

2005/ 2004/ 2006 2005 BBC Television 85.3 86.6 BBC One 79.7 81.9 BBC Two 59.1 61.4 BBC Three 11.8 9.4 BBC Four 4.5 3.0 The CBBC Channel 4.2 3.5 CBeebies 6.4 5.8 BBC News 24 5.4 4.2 BBC Parliament 0.2 0.2

Source: BARB,TNS/Infosys, age 4+ in All Homes, average 15-minute weekly reach 2005/2006

Charlie and Lola Learning about life: Lauren Child’s award-winning children’s books about family relationships, brought to CBeebies in a new UK animation

News and the channel continues to find innovative ways to exploit the educational possibilities of online.The Something Special website and associated programmes are designed to help children with learning difficulties.The language used in the Remit programmes is supported by Makaton signs CBeebies aims to offer a mix of new and symbols, designed to be understood and landmark, high-quality, UK-produced by children in the early stages of language programmes to educate and entertain development and recognised as an effective the BBC’s youngest audience.The service way of building the communication skills of provides a range of programming designed people with learning difficulties. to encourage learning through play for children aged five and under, in a CBeebies’ success is recognised by parents consistently safe environment. who consistently rate it as the best channel for children. However, although it remains Reach to CBeebies fell slightly during the the market leader among all children’s year, although because the number of channels, the fall in reach during the year homes where the channel can be received under review is a clear sign that it is is rising, the number of people watching starting to face problems in an increasingly the channel rose6. In 2005/2006, average competitive digital world. Some of its weekly 15-minute reach to viewers aged programme titles have reached the end 4+ in multichannel homes was 8.8% or of their creative life and there is a pressing 3.7 million people (9.0%/3.4 million people need to refresh the portfolio. Management in 2004/2005). As many viewers are aged have made clear their awareness of the under four these figures underestimate the issue in their Statements of Programme true size of the audience. Policy and we note their commitment to provide more content for the older The channel’s philosophy is “learning age range among CBeebies’ viewers. through play” and almost all the programming is linked to the Government’s 6The number of individuals in multichannel homes Foundation Stage Curriculum. New grew by 5 million to 42.5 million between 2004/2005 and 2005/2006 programming this year included Lazytown, encouraging health and fitness, and Charlie and Lola, a new UK animation looking at family relationships through children’s eyes – a production of great charm and freshness. Muffin the Mule was revived, giving its viewers insight into the value of friends and teamwork. Strong returning series included Boogie Beebies (dance and sing-along); The Roly Mo Show (drama and storytelling); and Tweenies (community and social skills).

CBeebies’ interactive service is the second most-used BBC interactive service after

BBC Annual Report and Accounts 2005/2006 31 Governors’ review of services – Radio

Overview The radio landscape continues to change at great speed, with consolidation in the commercial sector, and the rapid spread of new ways of listening. Increasingly, younger audiences are listening via digital platforms, leading to expectations that they will be offered not just music but also supporting visual materials, and BBC Radio has begun to experiment using interactive television. It has also extended its podcasting trial – this will be included in the Public Value Test to be applied to the BBC iPlayer.

Overall, BBC Radio continues to perform strongly – indeed its top performing output attracts audiences on a par with hit television shows. In general terms audiences are strong, although the picture varies across the portfolio and the rising popularity of downloaded music threatens reach to younger listeners who now have somewhere else to go for their music other than radio.The BBC’s digital-only stations are generally in good health and are beginning to make a contribution to the overall reach of BBC Radio. We agreed a new remit for BBC Asian Network to deal with some problems there.

We have always regarded distinctiveness as lying at the heart of the remits for Radio 1 and Radio 2. Under the present governance system we believe we have been successful in ensuring that management have delivered distinctive output for the two networks. Using the tools available to the Trust we believe it will be easier both to maintain this – and to provide further objective measures of performance in this regard.

32 BBC Annual Report and Accounts 2005/2006 356

new sessions and Live Lounge performances broadcast on Radio 1 in 2005/2006

Sunday Surgery One Big Weekend Promoting safer sex: The Radio 1 Sex Tour,a Taking music to the audience: Zane Lowe, one of collaboration with the , travelled the hosts of Radio 1’s Big Weekend in Sunderland, round the UK investigating sexual attitudes as part taking the best new music to an area often of Radio 1’s Sunday Surgery – here, in Londonderry, overlooked by the major festivals with Big Brother star Kemal

retains a distinctive schedule. When health. It broadcast live from Wrexham, compared with key commercial stations, Glasgow, Sunderland and Londonderry, and Radio 1’s daytime output (which includes included live audiences, celebrity guests, peak listening times) carried many more contributions from listeners via texts, emails new songs and with less repetition of and phone calls, and a live online chat- Remit tracks, a higher proportion of new music room debate.The Open University BBC Radio 1 aims to offer an exciting, coming from UK acts and a much greater supported the tour with short online high-quality service for young audiences. commitment to live music.We are strongly courses. Don’t Panic was a three-week It is committed to playing the best new of the view that this distinctiveness should campaign run during the exam results music and delivering a comprehensive be maintained, including in peak time, and season offering expert help and advice. range of live studio sessions, concerts that any overlap with Radio 2 should be The campaign was run in conjunction with and festival broadcasts.The network aims kept to a minimum. the Department for Education and Skills to cover all the significant youth music (DfES) helpline.The DfES received almost genres with a wide-ranging playlist and The station has extended the range and 12,000 calls, with Radio 1 given as the main a diverse team of specialist DJs. It also diversity of its live events. Particularly reason for calling. delivers tailored speech output including noteworthy was Radio 1’s Big Weekend news, documentaries and advice from Sunderland, bringing the best new A key challenge for Radio 1 is the campaigns, with integrated online music to an underserved area. increasing popularity of downloaded music and interactive services. which gives fans a destination other than Strong presenters are one of the keys to radio for the music they want.The station Radio 1 plays a key role in enabling the Radio I’s success and the group assembled is experimenting with its own digital BBC to reach young audiences and the in recent years underpins the station’s offerings as part of the BBC’s podcast trial. success of the station is critical to the range and creative strength. Presenters For the first time content has been made success of BBC Radio as a whole.We are such as Zane Lowe (recognised this year available via mobile phones and there have pleased that the new strategy we approved with a Sony Gold Award) helped to been experiments with visual material to for Radio 1 in 2003 continues to bear fruit. draw listeners to new music. However, support the on-air offer. The station has reversed the annual there is evidence that some specialist declines in audiences recorded between programming has low awareness and we 1The number of adults 15+ rose by 0.5 million to 2000 and 2003. In 2005/2006, Radio 1 had note management’s commitment to tackle 49.4 million between 2004/2005 and 2005/2006 an average 15-minute weekly reach to this in the Statements of Programme Policy. adults aged 15+ of 10.2 million people or 20.6% (10 million/20.4% in 2004/2005)1. Although music will always lie at the heart of Radio 1, a substantial proportion of the This has been achieved with no diminution output is devoted to speech. Newsbeat, of Radio 1’s commitment to a distinctive which provides UK and international news schedule with a strong commitment to and analysis specially tailored for a young specialist music, to UK music, to new music audience, continues to do an excellent and to live music. In order to ensure that job of bringing BBC editorial values to distinctiveness is maintained, Radio 1 carries an audience the BBC finds hard to reach out continuous monitoring of its output via other channels. During the General and in addition Radio 1 and Radio 2 are Election, Newsbeat ran three extended monitored by an external agency for a specials with party leaders. sample week twice a year to assess their distinctiveness – against each other and The station also continues to run effective against key commercial stations.The social action campaigns. The Radio 1 Sex Governance Unit has studied the external Tour was an ambitious attempt to tackle agency’s findings which show that Radio 1 ignorance among young people on sexual

BBC Annual Report and Accounts 2005/2006 33 Governors’ review of services – Radio 50

the average age of listeners to Radio 2

Live and Exclusive Showcasing the best international talent: the great Motown singer-songwriter Stevie Wonder performing at the Abbey Road Studios for Radio 2’s Live and Exclusive series

other station sampled, had a much lower repetition rate, and played a very high proportion of tracks not played on any other station.The overlap of tracks with Radio 1 was very small. More than 50 live Remit tracks were played – the non-BBC stations Remit BBC Radio 2 aims to bring listeners a sampled played little or no live music.The BBC Radio 3 is centred on classical broad range of popular and specialist introduction of Service Licences will provide music, and also aims to provide a broad music, with particular support for new a further assurance that the distinctiveness spectrum of jazz, world music, drama and established British artists; live music, of the station will be maintained. and arts programmes. It focuses on through concerts and studio sessions; and presenting live and specially recorded songwriting.The network also offers news, Notable music output included Stevie Wonder music from across the UK and beyond, current affairs, documentaries, comedy, Live and Exclusive and Paul McCartney Sold including contributions from the BBC readings, religious output and social action, on Song – both recorded live at Abbey Road performing groups. designed to appeal to a broad audience. Studios.The McCartney session was part of Radio 2’s impressive Sold on Song initiative Radio 3’s audience is broadly stable: average Radio 2’s audience has fallen a little, but to encourage the art of songwriting, which 15-minute weekly reach to adults aged 15+ it remains the UK’s most listened-to radio includes a rich website offering advice and was 2 million people or 4.1% in 2005/2006 station with average 15-minute weekly guidance for budding songwriters. Another (2 million/4.2% in 2004/2005)3. reach to adults aged 15+ of 13.1 million specially recorded session, David Gilmour people or 26.5% in 2005/2006 Live and Exclusive, drew 400,000 online Editorially, Radio 3 has had a year full of (13.3 million/27.2% in 2004/2005)2. downloads. Radio Ballads – a powerful blend innovation, ambition and achievement.Two We note management’s commitment of memory, speech and music – revived a of the highlights of its year – indeed two in the Statements of Programme Policy to form pioneered by the BBC Home Service of the highlights of the BBC’s year – were continue to seek a more ethnically diverse in the 1950s and used to it to bring to life The Beethoven Experience (all the music audience for the station through the choice social issues including HIV/Aids, the decline over seven days) and the Bach Christmas of topics, contributors and interviewees. of the steel industry, and the sectarian (all the surviving music over ten days). struggle in Northern Ireland. As with Radio 1, we are strongly committed The Beethoven Experience caused some to maintaining the distinctiveness of Radio 2, A high proportion of Radio 2’s output is controversy.The nine symphonies, played including in peak time. As far as the station’s speech and this also seeks to be distinctive, by the BBC Symphony Orchestra, were music output goes, its distinctiveness lies including documentaries, arts programming, made available for free downloading for largely in the breadth of music played – comedy and high-quality news, current a limited period and resulted in 1.4 million more than 20 genres of music are offered, affairs and discussion. Notable speech downloads – far more than had been including rock, pop, soul, country, jazz, folk, output included Amadeus, one of Radio 2’s predicted. As a result, some in the record brass band and musical theatre – and in wide-ranging contributions to the 250th industry complained that the BBC was its commitment to live, mostly UK, music anniversary of the birth of Mozart. Peter unfairly damaging their business by giving throughout the schedule.To ensure that Shaffer’s play was adapted into a powerful away what they were in business to sell. this distinctiveness is maintained, Radio 2 eight-part dramatic reading narrated Management accepted that while some is monitored by an external agency for by F Murray Abraham, recreating his stakeholders in the industry had been told a sample week twice a year to assess Oscar-winning film role as Salieri. Malcolm of the plan and had not expressed any distinctiveness against Radio 1 and against McLaren’s Musical Map of London was a reservations, there had been no formal key commercial stations.The Governance surprising and atmospheric portrait of consultation – which there would have Unit has studied the external agency’s the from the godfather of punk. been had the scale of take-up been findings which show that Radio 2’s daytime correctly anticipated.The download ouput (which includes peak listening times) 2The number of adults 15+ rose by 0.5 million to experiment was not repeated during carried many more individual tracks than any 49.4 million between 2004/2005 and 2005/2006 Bach Christmas.

34 BBC Annual Report and Accounts 2005/2006 321 hours

of original comedy broadcast on Radio 4 in 2005/2006

Pitch Perfect The Raj Quartet Breaking new ground: schoolchildren taking part Making classic radio drama: Prasanna Puwanarajah, in a new choral and instrumental work Mark Bazely and Anna Maxwell Martin in Radio 4’s commissioned by Radio 3 in collaboration dramatisation of Paul Scott’s novel, The Raj Quartet with BBC Sport as a celebration of football

This controversy – from which important more responsive to events.The same lessons were learnt – should not be desire can be seen in the move towards allowed to overshadow the astonishing fast-turnaround topical drama and a greater ambition of the two projects themselves. sense of timeliness in features. The performances – a mixture of historic recordings and specially commissioned Remit At the same time, however, many of the concerts – were supported by thought- BBC Radio 4’s remit is to use the power familiar landmarks of the schedule are provoking commentaries from a wide of the spoken word to offer programmes still in place and still performing strongly. range of speakers, both musicians and of depth which are surprising, searching, The Archers – the world’s longest-running non-musicians. For the Bach Christmas, revelatory and entertaining.The network radio drama – marked its 55th anniversary Radio 3 invited organists throughout the aims to offer in-depth and thoughtful in January 2006. UK to play the Toccata and Fugue in news and current affairs and seeks to D Minor on 18 December, and more than engage and inspire its audience with a Journalism – both mainstream and specialist – 500 did so.There was also a memorable unique mix of factual programmes, drama, continues to provide the spine of the and moving concert from Brixton Prison readings and comedy. schedule. In Coming Home, part of the BBC’s with prisoners singing the chorale from output marking the 60th anniversary of the a Bach Cantata to mark the composer’s Audiences to Radio 4 are broadly stable. In end of World War Two, Charles Wheeler own brief spell in jail. 2005/2006, average 15-minute weekly reach presented five personal interpretations of to adults aged 15+ was 9.5 million people what the moment meant. In The Race is On, The playwright Harold Pinter and the or 19.2% (9.4 million/19.3% in 2004/2005)4. Peter White told the story behind the composer James Clarke collaborated on successful London Olympics bid, gaining Voices, a piece commissioned by Radio 3. The loyalty of Radio 4 listeners is legendary remarkable access to the decision makers. The cast included Pinter himself.This dark – and so is their determination to make and disturbing piece – the words of their views known when changes are Outside journalism, the range of the torturers and the tortured set to a proposed to parts of the schedule that Radio 4 schedule remains one of its haunting radiophonic score – was as some listeners particularly value.When great strengths.This year, for example, saw compelling as it was uncompromising. management announced that the ‘UK Melvyn Bragg attract much attention for Theme’ (a medley of folk tunes played at his In Our Time listeners’ poll to find the In sharp contrast, Pitch Perfect was a new 5.30am each day) was to be axed to make greatest philosopher (the unexpected choral and instrumental work involving a way for a news briefing, it provoked many victor being Karl Marx). Strong new large number of schools and two football newspaper editorials, a vociferous campaign comedy included Ed Reardon’s Week, the clubs, commissioned as a celebration of to keep the music, and even questions in diaries of a failed but admirably undefeated soccer in partnership with BBC Sport. Parliament.We did not believe this was a writer; memorable classic serials included The BBC Singers and the BBC Concert matter of sufficient significance to justify a fine dramatisation of Paul Scott’s novel Orchestra rehearsed with the school intervention by the Governors. However, about India in the 1940s, The Raj Quartet; students – including two mammoth this intense sense of ownership by its and the network began an ambitious and sessions at Highbury Stadium and Stamford listeners means that modernising urges for engagingly narrated 90-part history of the Bridge – for a performance on 18 the network have to be handled with British empire, This Sceptred Isle: Empire. November as part of Children in Need night. particular care and tact. The latter series is supported by a richly detailed website which includes The BBC Proms had another strong year, However, no schedule is incapable of further a valuable archive of listeners’ personal despite the London bombings. Highlights development and refreshment, and this is as Empire histories. included the Proms debuts of Placido true of Radio 4 as it is of any other part of Domingo and Ravi Shankar. the BBC. Innovations such as the weekly 4The number of adults 15+ rose by 0.5 million to obituaries programme Last Word and the 49.4 million between 2004/2005 and 2005/2006 3The number of adults 15+ rose by 0.5 million to introduction of a Profile slot are part of 49.4 million between 2004/2005 and 2005/2006 an overall move to make the station

BBC Annual Report and Accounts 2005/2006 35 Governors’ review of services – Radio

Olympic victory Weekend Business Being where the story is: Radio Five Live gave Making news: international media tycoon Rupert extensive coverage to the competing bids to stage Murdoch gives a rare full length interview to Five the 2012 Olympics – and was there in Trafalgar Live’s weekly business show Weekend Business Square when London’s victory was announced

The station also carried strong General Election campaign reporting, collaborating usefully with 1Xtra and the Asian Network. Weekend Business, presented by Jeff Randall, scored a notable coup with its interview with Rupert Murdoch.The FIFA President Remit Sepp Blatter, who rarely gives long, live, Remit BBC Radio Five Live broadcasts live wide-ranging interviews, gave one to Brian BBC Five Live Sports Extra is a part-time news and sport 24 hours a day, aiming Alexander on Sport on Five – and the extension of BBC Radio Five Live, aimed to present events as they happen in a contents made headlines. at bringing a greater choice of action to modern, dynamic and accessible style. sports fans. It extracts more value for It sets out to cover national and Notable sports event coverage included licence fee payers from sports rights international subjects in depth, using Wimbledon, the Champions League, and already owned by the BBC by offering wide-ranging analysis and debate to Five Live’s commentary on the Oval Test – alternative commentaries to those inform, entertain and involve news and the decider in the gripping Ashes series. provided on Five Live. sports fans of all ages, with particular All the station’s daytime programmes came emphasis on 25 to 44 year olds. live from the Oval and the coverage, which Five Live Sports Extra has established The network also provides extensive encouraged strong interaction with the itself as a valued sister station to Five Live, live events coverage, supported by the audience through text messages and emails, delivering extra value to licence fee payers BBC’s global newsgathering operations complemented to good effect the more from existing BBC sports rights.The BBC and portfolio of sports rights. traditional coverage on Radio 4’s Test Match does not buy additional sports rights solely Special. Fighting Talk continues to build its for use on Five Live Sports Extra. Its Audiences to Radio Five Live have slipped. reputation for lively and engaging discussion audiences are rising: in 2005/2006, average Average 15-minute weekly reach to adults of sports issues and events. 15-minute weekly reach to adults aged aged 15+ was 5.9 million people or 12.0% 15+ was 0.47 million people or 1.0% in 2005/2006 (6.2 million/12.7% The main issue for Radio Five Live is its (0.41 million/0.8% in 2004/2005)6. in 2004/2005)5. dependence on medium wave where reception is poor in some parts of the UK. The service has enabled the BBC to Radio Five Live has had a good year We note management’s commitment in widen choice for listeners, for example editorially, in both its sports coverage and its the Statements of Programme Policy to by continuing to broadcast sports news and current affairs output. Its coverage put greater effort into encouraging the commentaries when sports coverage on of the July bombings in London was audience to listen via digital platforms. Five Live is curtailed to enable full coverage particularly strong.The station was in the of breaking news. It also enables the BBC middle of its weekday morning phone-in 5The number of adults 15+ rose by 0.5 million to to offer sports fans a greater choice of when the news broke.The presenter, 49.4 million between 2004/2005 and 2005/2006 matches and events, for example an Matthew Bannister, reacted with calm alternative Premiership match to the one authority and intelligence as he led the broadcast on Five Live on most weekends. output into a rolling news format lasting It has also offered uninterrupted coverage many hours. All broadcasting is a team effort, of Test Match cricket and of the qualifying but Bannister’s performance gave the Five rounds of Formula One. Live team a real edge that day.The strength of the network is demonstrated by the 6The number of adults 15+ rose by 0.5 million to fact that on only the previous day it had 49.4 million between 2004/2005 and 2005/2006 broadcast a day of memorably ambitious and vivid multi-location coverage of the announcement in Singapore of the winner of the competition to stage the 2012 Olympics.

36 BBC Annual Report and Accounts 2005/2006 Weekly reach of BBC Radio services 2005/2006 (% adults age 15+)

2005/ 2004/ 2006 2005 BBC Radio 66.5 66.6 BBC Radio 1 20.6 20.4 BBC Radio 2 26.5 27.2 BBC Radio 3 4.1 4.2 BBC Radio 4 19.2 19.3 BBC Radio Five Live 12.0 12.7 BBC National/Local Radio 20.5 20.8 BBC Five Live Sports Extra 1.0 0.8 1Xtra 0.7 0.6 6 Music 0.6 0.5 BBC 7 1.2 0.9 BBC Asian Network 0.9 1.0 BBC World Service 2.6 2.6 Carnival coverage Extending the experience: 1Xtra extended its reporting of the Notting Hill Carnival by Source: RAJAR, age 15+, average 15-minute weekly reach for 2005/2006 experimenting with interactive television coverage available via the red button

programming. In particular, the documentary strand in the weekday current affairs programme, TX Unlimited, has broadcast some distinctive journalism on a range of sensitive subjects including anorexia, child soldiers in Africa, and death Remit row in the US.The station did useful work 1Xtra aims to play the best of in its first ever full social action campaign, contemporary black music, with a strong Between the Sheets, a month-long series emphasis on delivering high-quality live of programmes, interviews, features and music and supporting new British artists. documentaries examining all aspects of 1Xtra also brings listeners a bespoke sexual health. news service, regular discussion programmes and specially commissioned The station’s contribution to the BBC’s documentaries, plus information and Africa season was admirably ambitious, advice relevant to the young target broadcasting live from South Africa, Kenya audience, particularly – although not and Ghana, and using music as a way into exclusively – those from ethnic minorities. other subjects.

1Xtra’s audiences are rising: in 2005/2006, 1Xtra has made good use of its website, average 15-minute weekly reach to adults which is the most popular of those of the aged 15+ was 0.36 million people or 0.7% BBC’s digital stations. It hosts all the BBC’s (0.31 million/0.6% in 2004/2005)7. black music message boards – a new project aimed at bringing musical communities 1Xtra has continued to build its confidence, together. Taggerz, an innovative online ambition and reputation – and to reach animated drama about a gang of graffiti audiences the BBC has traditionally found artists, attracted 200,000 unique users over it very hard to attract. It plays a wide range six months. 1Xtra has also experimented of contemporary black music, the great with interactive TV – coverage of the majority new (ie less than a month from Notting Hill Carnival was available via the release) and a high proportion of it UK red button on digital television. music. Its live music coverage is a notably strong element of the schedule, ranging 7The number of adults 15+ rose by 0.5 million to from small club nights to stadium tours by 49.4 million between 2004/2005 and 2005/2006 international stars and events such as the Notting Hill Carnival. Specialist music is well covered, including extended output such as Hip Hop Weekend.

In our last two Annual Reports we raised concerns about the quality of some of 1Xtra’s speech output.We are encouraged by the good progress made over the course of the year under review and note management’s commitment in the Statements of Programme Policy to continue to enhance the depth and range of speech

BBC Annual Report and Accounts 2005/2006 37 Governors’ review of services – Radio 510 hours

of current affairs programming broadcast on 1Xtra in 2005/2006

Curator of the day Giving talent free rein: Franz Ferdinand singer Alex Kapranos with BBC 6 Music DJ Nemone. Franz Ferdinand members curated the station for a day, choosing music of special significance to the band

of John Lennon – including an exclusive interview with his widow,Yoko Ono, and a showing of Lennon archive material on the BBC’s Big Screen in .

Remit One issue of concern is the strong Remit BBC 6 Music aims to engage with lovers gender imbalance in the audience, which BBC 7 is a speech-based digital radio of popular music, offering them current is approximately 70% male.The station service offering comedy, drama and releases outside the mainstream, aims to appeal to all music lovers, and we readings, mainly from the BBC archive. new concert and session tracks, and note management’s commitment in the The network is zoned around types music from the BBC sound archive. Statements of Programme Policy to broaden of programmes so people know that It concentrates on music and artists that the appeal of the network, particularly at a certain time of day a particular are not well supported by other radio in respect of the male/female balance type of output will always be available. stations, and is committed to providing of listeners. BBC 7 also aims to be the home of context for the music it plays, through children’s speech radio, with regular music news, documentaries, debate and 8The number of adults 15+ rose by 0.5 million to live programming for children. stimulating interactive content. 49.4 million between 2004/2005 and 2005/2006 Audiences to BBC 7 are rising and it is the Audiences to BBC 6 Music are rising. most listened to of the BBC’s digital-only In 2005/2006, average 15-minute weekly stations. In 2005/2006, BBC 7 had an reach to adults aged 15+ was 0.32 million average 15-minute weekly reach to adults people or 0.6% (0.25 million/0.5% in aged 15+ of 0.59 million or 1.2% (0.44 2004/2005)8. million/0.9% in 2004/2005)9.

The growth of 6 Music’s audience The bedrock of the output remains the confirms its place in the BBC Radio BBC archive and the station has found portfolio as a distinctive service highly imaginative ways of scheduling this to gain valued by its listeners. Its standing in the maximum impact. An Oscar Wilde season wider music business is demonstrated by mined a rich seam of work including its ability to attract big names. Both Franz drama, fiction and letters; an Alan Bennett Ferdinand and Kaiser Chiefs agreed to season included 40 Years On, Kafka’s Dick curate the station for a day – choosing and An Englishman Abroad; the actor the album of the day, selecting sessions Bill Nighy introduced a selection from and concert tracks from the BBC archive, his impressive range of radio work; and and playing music that had influenced the station broadcast the entire canon them.The station’s strong roster of of Sir Arthur Conan Doyle’s work. presenters – including Phill Jupitus, Steve Lamacq and Tom Robinson – adds to its In addition to archive-based output, BBC 7 authority. Stuart Maconie’s Freak Zone, is tasked with commissioning some original catering to more experimental tastes, output. New comedy is a specialisation. brings a knowledgeably eclectic flavour The BBC New Comedy Awards included a to Sunday output. search for new stand-up talent throughout the UK, with the winners given the chance The station has done well with anniversary to write for a radio comedy show. specials, among them four days of output A discussion programme, Serious About marking 30 years of punk, and a day Comedy, was also launched. Science fiction marking the 25th anniversary of the murder and fantasy is an area where BBC 7 aims

38 BBC Annual Report and Accounts 2005/2006 37%

of adults have listened to the radio via digital television (Q1 2006)

BBC Comedy Award The Hype Show Searching out new talent:Tom Allen, chosen from Making distinctive music: DJ Kayper, one of the 400 contestants as BBC New Talent Stand Up UK leading female DJs, has a regular weekly slot, Comedian of 2005. He and five finalists won the The Hype Show, on BBC Asian Network. Changes chance to write for a BBC Radio comedy show have been made to increase its appeal to young British Asians

to provide for an underserved audience Key initiatives include measures to increase and, working with the BBC writersroom the distinctiveness of the music output, initiative, the station broadcast ten original particularly in daytime programming, 15-minute dramas from UK writers new to including investing in live music and national network radio. More than 20 new developing new talent; transforming the readings were broadcast, and Boxing Day Remit level of journalism by building strong links became Narnia Day, with an eight-hour BBC Asian Network aims to entertain with BBC News and emphasising original dramatisation of the first four of C S Lewis’ and inform young British Asians with a stories and investigative journalism; and Chronicles of Narnia. Its star cast included contemporary mix of music and speech. repositioning the tone and style of the Paul Scofield and David Suchet. While the primary target audience is language programmes to increase their British Asians under 35, the network appeal to the target audience. The children’s service has continued to strives to have a broader appeal amongst develop well, with new opportunities for all who share an interest in British Asian We have welcomed these changes, which children to write for radio and appear on issues, music and culture.The network is were the result of widespread consultation air. A Storyteller competition drew 2,000 committed to being the definitive forum with audiences and staff. entries and the winners came into the for informed debate about news and radio studio to help produce the readings issues related to British Asians. It plays There is already some evidence of the of their stories. a broad range of South Asian-influenced journalism becoming more ambitious – for music, with a particular emphasis on example, the Asian Network sent its own 9The number of adults 15+ rose by 0.5 million to live performance and new British Asian reporters to cover the Pakistan earthquake. 49.4 million between 2004/2005 and 2005/2006 artists. Programming is provided in Other parts of the output also continue to a range of South Asian languages, to do well, including the innovative daily soap reflect the linguistic influences on young Silver Street.We will keep the progress of British Asians. the Asian Network towards its new remit under review during the coming year. In 2005/2006, BBC Asian Network had an average 15-minute weekly reach to adults 10The number of adults 15+ rose by 0.5 million to aged 15+ of 0.44 million people or 0.9% 49.4 million between 2004/2005 and 2005/2006 (0.5 million/1.0% in 2004/2005)10.

Some criticisms of the Asian Network were made in the Government’s independent review of the BBC’s digital services, and during this year BBC management have developed a series of programme changes that took effect in April 2006.The remit of the service has been changed to take account of this (the new remit is at the head of this section).

The main thrust of the changes is to clarify the primary target audience (British Asians under 35) and to establish three areas where performance must improve: editorial ambition, the level of innovation, and ensuring distinctiveness from commercial Asian radio stations.

BBC Annual Report and Accounts 2005/2006 39