PART TWO: BBC Annual Report and Accounts 2006/2007 ReportAnnual and BBC PART TWO: Annual Report and The BBC is required under the terms of its Charter to produce an Annual Report and Accounts in two parts. The BBC Trust prepares the first part, the BBC Executive prepares the second and each reflects the different roles Accounts 2006/2007 and responsibilities of the two bodies.Together the two parts make up the BBC’s review and assessment of its year. The BBC Executive’s review and assessment Contents 01 Director-General’s introduction 02 About the BBC 24 Executive Board 26 The BBC at a glance Review of services 28 Future Media & Technology 32 Vision 38 Audio & Music 44 Journalism 52 Commercial activities 53 Engaging with the audience Performance 54 Statements of Programme Policy commitments 2006/2007 64 Broadcasting facts and figures 76 Managing responsibly Finance 82 Financial overview 86 Governance and financial statements 147 Getting in touch with the BBC 148 Other information British Broadcasting Corporation Broadcasting House London W1A 1AA This is what we do... bbc.co.uk © BBC 2007 Welcome As I write this, our friend and colleague With The Street, Life On Mars and How Our present task is to develop detailed Alan Johnston remains missing in Gaza. Do You Solve A Problem Like Maria? it was a plans for the future which we can place Perhaps by the time you read it, the fine year for TV drama and entertainment, before the BBC Trust. Some – like the BBC situation will have changed. For now though, while Planet Earth combined extraordinary iPlayer and high definition television – will Alan’s family and those who know him at technical innovation with awe-inspiring rely on new digital technologies. But we the BBC are trapped in a suspended state artistry.Two years ago, perception of know that success for the BBC ultimately of anxiety and uncertainty. quality was a significant concern for the depends not on technology but on the BBC Governors; in 2006/2007, many creativity and professionalism of our In photos and on camera – unsurprisingly of the key measures in this area went up. people.As the public have always known, given the stories he covers – Alan has BBC Radio proved it’s possible to grow they are our most precious resource. a serious look, the very picture of a audiences while strengthening a reputation formidable BBC foreign correspondent. for creativity and excellence. Our online Which is why the story of Alan Johnston Off camera he has a different side – fiercely and interactive services broke one record matters so much. intelligent and engaged in the debate, but after another. with a mischievous twinkle in his eye. But there were bumps along the way as More than anything else the BBC is built well.The editorial mistakes on Blue Peter on the talent, courage and integrity of the and Saturday Kitchen were so serious men and women who work for it.These because, despite being unintentional, they Mark Thompson qualities matter in everything we do, but went right to the heart of our contract Director-General nowhere more than in our journalism. In with our audiences – a contract based 12 June 2007 Iraq,Afghanistan, Gaza and in many other on trust.We are taking every step we can countries and regions, BBC journalists to minimise the chances of such mistakes remain when other news organisations happening again. have left.They know that agency copy and pictures – no matter how good – are Our response to the telephony no substitute for the immediacy, integrity, controversy was part of a broader effort accuracy and human empathy of eye­ by the BBC to become more open and witness reportage. more willing to learn from its mistakes. The new BBC Trust has begun a broad and We take the safety of our journalists and searching debate about the impartiality, everyone else who works for and with quality and distinctiveness of the BBC’s the BBC, incredibly seriously.We also have services. It is a debate we welcome. to recognise there are assignments and We believe that a more open BBC will vital stories to report that can never be be a stronger BBC and one which serves made risk-free. the public better. It has been a momentous year for Behind the scenes, BBC Worldwide the BBC in other ways – a strong delivered triple the profits of three new Charter, a challenging licence fee years ago back to the public services. settlement and Creative Future, our The transformation of the BBC vision of what the BBC could become gathered pace, releasing money and if it achieves its full creative potential resources for new investment but in the new digital environment. without audiences reporting any loss of quality in existing services. About the BBC Monthly licence fee breakdown The purpose of the BBC is to enrich people’s lives with great programmes and services that inform, educate 49p £7.54 and entertain. Our vision is to be the most creative, trusted organisation in the world. Eight national TV channels Over 240 websites on including BBC One and Everyone has a unique relationship bbc.co.uk, supporting the BBC Two plus regional with the BBC and our audience wants full breadth of output programming us to provide them with moments of delight, inspiration, excitement and entertainment.They also expect us to be factual, honest and act with £1.17 75p integrity. Our aspiration is not only to create exceptional content and services but to offer everyone an experience of the BBC that truly Ten national radio stations, Forty local radio stations, makes a difference to their lives. broadcasting a range of music, from Radio nan Gàidheal news and sport to Radio Jersey The BBC is constitutionally established by a ten-year Royal Charter with an The total cost of a TV licence accompanying agreement which sets per month per household out our obligations to licence fee £1.01 payers in detail.After an extensive period of consultation and negotiation our Charter was renewed this year. Cost of broadcasting all TV Our aim is to evolve into a BBC that and radio output, plus cost of can provide the greatest programmes collecting the TV licence from over 25 million homes and services for our audience in the =£10.96 digital age and deliver the maximum amount of value for their licence fee. This is what we do... Going to the ends of the earth… How we spent your £10.96 A year of change It also involves building a greater monthly licence fee The new Charter is much clearer in defining understanding of UK parliamentary 49p helped pay for the BBC’s online just what the licence fee payer should expect processes and political institutions services, ranging from innovative and of us as we move to the wholly-digital, and helping people to make full use distinctive content such as GCSE Bitesize, on-demand world.We have to demonstrate of information technologies. to services like interactive live sports more clearly and transparently that our plans Promoting education and learning: streams that reflect and extend the range for the future will deliver real public benefit. enabling people to learn about many of the BBC's programmes. different topics, passions and interests in And so the evolution of the BBC has begun. ways they will find engaging, entertaining £7.54 helped pay for over 4,800 hours of Our Creative Future initiative has provided and challenging, and promoting and programmes each month across eight TV the editorial blueprint which will ensure we supporting formal educational goals channels, ranging from high quality drama strive to be more creative in our content, for children, teenagers and adults. (eg Life on Mars, Jane Eyre, Torchwood) to programmes and services.We need to fully factual output (eg Planet Earth, The Power embrace the opportunities of digital, as with Stimulating creativity and cultural of Art) and children’s programmes (eg Charlie the iPlayer, which will make our broadcast excellence: maintaining a world-class and Lola, Jackanory). content available to licence fee payers when reputation for creative and innovative they want it.We have restructured, aiming content that breaks new ground and sets £1.17 helped pay for over 6,500 hours to be a more simple organisation, with fewer, trends whilst at the same time supports of radio programmes each month on ten more coherent multimedia output divisions, the creative economy by engaging and national radio stations, spanning a range of and with slimmer central services. And developing the very best talent. distinctive speech and music-based output we must be more open to audiences Representing the UK, its nations, regions from the Today programme on Radio 4 to and to partners such as the independent and communities: portraying and Wake Up to Wogan on Radio 2. It also goes production sector, who now have more celebrating the rich range of cultures and towards events such as the Proms season opportunities than ever before to contribute communities across the UK at national, and the Radio1 Big Weekend. ideas and content through our Window of regional and local level across the Creative Competition initiative. range of our output; creating shared 75p each month goes towards 40 local experiences from great state occasions, radio stations, including programming in This evolution is taking place against the important national sports events and Welsh and Gaelic, helping to connect background of a licence fee settlement which great entertainment that draw large people to their communities. is considerably less than we had asked for, and diverse audiences. presenting real challenges and hard decisions £1.01 of your licence fee each month is ahead.