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BBC Annual Report and Accounts 2015/16 the BBC’S Mission Is to Inform, Educate and Entertain

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BBC Annual Report and Accounts 2015/16 the BBC’S Mission Is to Inform, Educate and Entertain and Accounts 2015/16 and Accounts BBC Annual Report BBC Annual Report and Accounts 2015/16 The BBC’s mission is to inform, educate and entertain Attenborough and the Giant Dinosaur BBC Annual Report and Accounts 2015/16 Presented to Parliament by the Secretary of State for Culture, Media and Sport by command of Her Majesty Extended versions of the financial statements provided in Part Two of this report were also laid before Parliament on 12 July 2016 and are available online at bbc.co.uk/annualreport Book 1 of 2 © BBC Copyright 2016 The text of this document (this excludes, where present, the Royal Arms and all departmental or agency logos) may be reproduced free of charge in any format or medium provided that it is reproduced accurately and not in a misleading context. The material must be acknowledged as BBC copyright and the document title specified. Photographs are used ©BBC or used under the terms of the PACT agreement except where otherwise identified. Permission from copyright holders must be sought before any photographs are reproduced. You can download this publication from bbc.co.uk/annualreport Designed by FleishmanHillard Fishburn fhflondon.co.uk Prepared pursuant to the BBC Royal Charter 2006 (Art.45) Overview The BBC exists to serve the public, and its mission is to inform, educate and entertain. The BBC at a glance 02 Our role and purpose 02 Serving everybody 03 Better value for money 04 The BBC’s objectives 05 Additional information 161 Glossary 161 Index 162 Contacts IBC Part Two: the BBC Executive’s review and assessment The BBC Executive is responsible for the operational delivery of BBC services and the direction of BBC editorial and creative output in line with the framework set by the Trust. Director-General’s introduction 56 Strategic report Delivering our strategy 59 Our achievements 60 Delivering our strategy 64 Part One: the BBC Trust’s The BBC’s objectives for the coming year 71 review and assessment Performance 75 Performance by content area 76 Performance by reach and genre 87 The Trust is the governing body of the BBC and sets the The BBC in each of the nations 90 strategic direction, measures performance and holds the BBC Executive to account. Governance and finance report Finance 99 Chairman’s foreword 08 Review of the Managing Director 100 Charter Review – Listening to audiences 11 Financial achievements 103 Setting strategy and assessing performance 17 Financial overview 104 Delivering the public purposes 18 Summary financial statement 113 Setting strategy 20 Auditor’s report 114 Reviewing service performance 22 Operations 115 Upholding editorial standards 29 Our people 116 Demonstrating value for money 31 Developing new talent and skills 121 Serving audiences across the UK 35 Outreach 124 – Wales 35 Partnerships 126 – Scotland 37 Supporting good causes 128 – Northern Ireland 37 Environmental sustainability 130 – England 39 Governance 131 The BBC and the wider market 40 Executive Board 133 Overseeing other activities 43 Report of the Senior Independent Director 134 Inside the Trust 45 Governance report and Nominations Committee 136 BBC Trustees 46 Executive Remuneration report 138 Governance 48 Audit Committee report 148 Trust finances 51 Risks and opportunities 153 Fair trading report 157 Viability statement 160 bbc.co.uk BBC Annual Report and Accounts 2015/16 01 The BBC at a glance Our role and purpose The BBC serves the public interest through the promotion of its six public purposes. — the BBC exists to serve the public and its — the following pages outline the strategic objectives mission is to inform, educate and entertain. agreed by the Trust and the Executive and Within the overall public purposes, the Trust provide some highlights illustrating how the BBC sets the strategic framework for the BBC. has worked to achieve them The Executive, led by the Director-General, delivers the BBC’s services and creative output The BBC’s public purposes: Sustaining citizenship and civil society Promoting education and learning Stimulating creativity and cultural excellence Providing high quality news, current affairs Supporting formal education in schools Encouraging interest, engagement and and factual programming to engage its and colleges and informal knowledge and participation in cultural, creative and sporting viewers, listeners and users in important skills building. activities across the UK. current and political issues. Representing the UK, its nations, Bringing the UK to the world Delivering to the public the benefit of emerging regions and communities and the world to the UK communications, technologies and services BBC viewers, listeners and users can rely Building a global understanding of international Assisting UK residents to get the best out on the BBC to reflect the many communities issues and broaden UK audiences’ experience of emerging media technologies now and that exist in the UK. of different cultures. in the future. 02 BBC Annual Report and Accounts 2015/16 bbc.co.uk Overview 02-05 This year in summary Serving everybody With a range of great content delivered in new ways. Reaching new audiences Audience reach Total time spent General impression (mean average) Percentage of UK adults who use Length of time UK audiences spend Audience’s general impression of the BBC. BBC Television, radio or online each week. with the BBC each week. 96% 18.3hrs 7/10 2014/15: 97% 2014/15: 18.3hrs 2014/15: 7/10 Leading the way with digital content Content highlights iPlayer Radio app There were over one million downloads of radio programmes via the BBC iPlayer Radio app in less than a month after its launch, with Radio 4 drama proving the most popular. General Election Mobile was the preferred screen to access BBC News Online during the election. Over 76.1m unique browsers globally used BBC News Online and in the UK, the BBC’s coverage across all platforms reached 89% of all adults and 84% of 18 to 34s in results week. Biggest non-sport programme The final of The Great British Bake Off reached more than 15 million people, making it the most watched programme in 2015. More news analysis We’re now giving audiences even more news analysis and explanation of the day’s biggest local, national and international stories, by extending the BBC’s News at Ten by an extra 15 minutes from Monday to Friday. Apps Biggest music audience 18.3 million individual stories A clip from the world-exclusive have been downloaded to the Adele at the BBC has become the CBeebies Storytime app so far. most watched clip on the BBC YouTube Channel with over 48 million views. bbc.co.uk BBC Annual Report and Accounts 2015/16 03 This year in summary Value for money Cost per household Ongoing savings A six-year licence fee settlement was agreed in 2010 which has 2015/16 was the penultimate year of the ‘Delivering Quality First’ frozen the licence fee at £145.50 until 2017. (DQF) savings programme, which has delivered £621m sustainable savings by 31 March ’16. The programme remains on track to deliver a total of £700m in annual recurrent savings by 31 March ‘17. Per day 40p £621m 2014/15: 40p 2014/15: £484m How your monthly licence fee is spent 2015/16 BBC spend in the external creative economy 2015/16 £12.13 per household Total of £1.1bn 1. Television £7.02 1. Independent programmes (2014/15: £7.27) transmitted £460m (2014/15: £455m*) 2. Radio £2.06 2. Artists, contributors 5 6 (2014/15: £1.94) 5 6 and copyright £272m 4 4 (2014/15: £280m) 3. BBC World Service £0.83 3. External programme facilities 3 1 (2014/15: £0.73) 3 and resources £203m (2014/15: £216m*) 4. Other services and 4. Acquired programmes production costs £0.79 1 transmitted £67m (2014/15: £0.73) 2 (2014/15: £66m) 5. Online £0.76 5. External online (2014/15: £0.61) expenditure £33m 2 (2014/15: £22m) 6. Licence fee collection and 6. BBC performing groups £24m pension deficit costs £0.67 (2014/15: £25m) (2014/15: £0.85) 2015/16 2014/15 The cumulative impact and spending power of over 20 million Spend % of Spend % of television licences can deliver more than content alone. As well per year licence per year licence as in-house staff, we are able to provide work for many freelance £m fee £m fee individuals and thousands of large and small businesses across Television the UK – delivering sustainable benefits to digital and creative Nine channels 2,201 58 2,366 60 industries, as well as the wider British economy. Radio This external spend is in addition to the c.£1.1 billion internal spend the BBC makes within the 15 network stations 642 17 652 16 creative industries. and Local Radio * The prior year balance has been updated following an adjustment to the data that has allowed a Online more accurate analysis. BBC Online and BBC iPlayer 238 6 201 5 BBC World Service 261 7 253 6 Other services and production costs 247 6 248 6 Licence fee collection and pension deficit costs 210 6 290 7 The above analysis corresponds to UK PSB Group content expenditure on page 108, although the costs incurred to generate other income are excluded as they are not funded from the licence fee. The BBC has reviewed its analysis of PSB Group expenditure support costs during the year and consequently restated to make the prior year classification consistent with the current year. 04 BBC Annual Report and Accounts 2015/16 bbc.co.uk Overview 02-05 The BBC at a glance The BBC’s objectives The BBC has an enduring mission: to inform, educate and entertain.
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