BBC Executive Board Work Plan and Statements of Programme Policy 2015/16 WORK PLAN 15/16 1 Contents Contents……………………………………………………………………………....……….2 1. Strategic Overview of the Year…………………………………………………………….3 2. BBC Budget 2015/16………………………………………………………………………..6 3. Statements of Programme Policy…………………………………………………………12 WORK PLAN 15/16 2 1 Strategic overview of the year In 2015/16 the BBC intends to transform its offer for young people, both through its mainstream services and through stations and channels specifically targeted at younger audiences. A core part of this, subject to approval from the BBC Trust, is the evolution of BBC Three from a linear channel to an online, on-demand hub for television – and also for new forms of content, created especially for social media. “At the same time, the BBC will start building a more personal relationship with its audience. To do this, the Corporation will revolutionise the way in which it uses data, making it possible to give audiences personalised content, to provide recommendations guiding them to the programmes and services that they need and want, and to make sure the BBC is available across multiple devices, so audiences can start watching on their smartphone, and pick up where they left off on their laptop.” Doing more for young people and changing the organisation’s relationship with viewers and listeners of all ages are the BBC’s specific goals for the next year. They are accompanied by two unchanging BBC objectives: the ambition to create distinctive world-class content and the need to demonstrate value for money in everything that the BBC does. WORK PLAN 15/16 3 1.1 Make distinctive, world-class content To bring the best to everyone, the BBC needs to make and commission the best programmes, content and services. In 2015/16 the BBC will ensure that it delivers a range of creative highlights and develops its portfolio so that this content can be enjoyed by as many people as possible. Making great programmes means getting the best talent and the best ideas, wherever they are to be found. This year the BBC will do more to ensure that it reflects the diversity of the UK, both on and off screen. 1.2 Transform our offer for younger audiences This year the BBC will do more to increase the reach of its services to young people and the amount of time that younger audiences spend watching, listening to or using them. The Corporation will also set targets for increased consumption of mainstream services by people aged under 35. Younger people don’t have the same engrained media habits as older generations and so are quicker to use new platforms and providers, but the rise of digital media is an issue that affects all age groups. To address it the BBC will continue to innovate online, to increase the amount of content that is accessed through the Internet, and to create more genuinely multiplatform content. The BBC has never been afraid of technological innovation, and the transformation of BBC Three, if approved by the BBC Trust, will be the first time that a linear channel has moved entirely online. This move will help the Corporation to create new kinds of content for younger audiences, but also to set a template for BBC channels in an Internet-first future. 1.3 Develop a more personal BBC The BBC maintains a strong relationship with the public through its programmes and services, reaching around 96% of people every week. In the next financial year the organisation will go further, providing recommendations on iPlayer and the BBC homepage, and personalised services on News and Sport, notifying audiences when new series arrive, matches start or news breaks, and remembering favourites and interests all in one place online. “ Making this possible will require a new focus on data and personalisation, part of the BBC’s objectives in 2015/16. As well as changing the relationship that audiences have with its content, the BBC also aims to change their relationship with the BBC as an organisation in 2015/16. This will be done by making the BBC’s governance more open and collaborative, and by building editorial and operational partnerships. WORK PLAN 15/16 4 1.4 Demonstrate value for money in every area of our work The Delivering Quality First programme has secured significant savings and in the next year the BBC will continue to deliver the savings that are required to release money that can be reinvested in the Corporation’s strategic priorities. This work will not just reduce the cost of the BBC, particularly off-screen, but will also make it a simpler and better place to work. As well as continuing to look for further savings, the Corporation will also aim to use the money that it spends in 2015/16 as efficiently as possible by ensuring that an increasing proportion of spend is competitively tendered or compared to market norms. 1.5 Temporary services In order to provide the best possible coverage of events for our audiences, the BBC occasionally launches temporary services. These must demonstrably contribute to the fulfilment of one or more of the BBC’s public purposes, and adhere to the following three principles: a) Value for money — oversight of all new activity to ensure as much shared learning as possible, and best use of limited resources b) Market impact — that temporary services are of an appropriate scale, scope and duration c) Platform neutrality — that temporary services are so far as practicable offered to platforms on a fair, reasonable and non-discriminatory basis. A new process for temporary services was introduced in March 2014 which requires , the BBC to publish a provisional list of temporary services that we plan to launch during 2015/16. Our plans are: Radio 2 Eurovision from 21 to 24 May 2015, carrying more extensive coverage of the Eurovision Song Contest which we plan to make available via DAB, online and mobile Glastonbury in June 2015, where we plan to make extended coverage available on Red Button streams. Wimbledon from 29 June to 12 July 2015, which we plan to make available on Red Button streams. Jazz popup - a proposed jazz popup from 12 to 15 November 2015 highlighting the best of jazz from the BBC together with live coverage of the London Jazz Festival, which we plan to make available on DAB, online and mobile. The BBC will publish further information about each service no later than 28 days before its planned launch. WORK PLAN 15/16 5 2. BBC budget 2015/16 2.1 Introduction The unique way in which the BBC is funded places responsibilities on the organisation to: maximise licence fee income through its efficient and effective collection; optimise funding from other sources, but do so in a way that is consistent with the terms of the BBC Charter and other obligations; provide value for money by concentrating expenditure on the services and content that the licence fee payer most wants from the BBC; and to ensure that this output is then delivered as cost-efficiently as possible. This budget aims to deliver efficiencies, for reinvestment in online innovation and new creative content, while at the same time preserving the high quality of the content that the BBC provides to all audiences. 2.2 Current Funding position The Budget is built on the agreement with the Government in October 2010 that the licence fee should remain at £145.50 to the end of the Charter and that the BBC should additionally fund the BBC World Service, BBC Monitoring, and an expanded partnership with S4C, and also support new local television services and broadband roll-out. The following sections set out how the BBC plans to fund the delivery of these obligations over the next twelve months. WORK PLAN 15/16 6 2.3 Budget detail Licence fee income As in recent years, and as it will be for the remainder of the Charter period, the licence fee for the year has been frozen. Licence fee income is projected to be £3,727m based on an assumed underlying rate of growth of 0.8% in the number of households required to pay the licence fee. Despite the current collection environment, it is projected that the current evasion rate can be maintained. As a result of the structure of the contract with Capita for the collection of the licence fee, a small reduction in collection costs is planned for 2015-16. In addition, the BBC will continue to generate income from its trading and commercial operations which include BBC Worldwide, Global News Limited, and Studios and Post Production. Financial plans The 2015-16 budget delivers a deficit of £282m - primarily as a result of meeting the ongoing obligations to fund World Service (ahead of savings planned for later years) and pension deficit cash payments. The deficit reduces in 2016-17, as DQF savings are delivered and income and expenditure are brought back into balance. The total content budget is maintained at £2.8bn. There is a small planned reduction in Television expenditure which is offset by additional investment in online and digital content. Inflation is assumed at 1.5% per annum and the plan further assumes that DQF savings are delivered in line with the plan to total £700m in 2016-17. Capital funding for the redevelopment of the EastEnders production site in Elstree is provided, as well as for New Broadcasting House in Cardiff – although the final plans for the latter are still subject to formal Trust approval. There is continued investment in new initiatives in 2015-16, with a significant proportion funded from the BBC’s annual £700m savings target.