Annual Report and Accounts 2016/17 BBC Annual Report and Accounts 2016/17 Inform Educate Entertain BBC Annual Report and Accounts 2016/17 Presented to Parliament by the Secretary of State for Culture, Media and Sport by command of Her Majesty This Annual Report and Accounts is also available online at bbc.co.uk/annualreport © BBC Copyright 2017 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 Emperor emperor.works Prepared pursuant to Article 10 of the transitional provisions of the BBC Royal Charter 2016 (Schedule to the Charter). OVERVIEW Contents The BBC at a glance Summary of our mission and how we deliver our purposes p.02 Forewords from the Chairman and Director-General Our priorities for next year p.06 p.20 How we are run Delivering on our Under the terms of the new objectives in 2016/17 Royal Charter, the governance p.14 of the BBC has changed p.12 Detailed financial statements Performance across the UK Review of The BBC provides distinctive and our pan-UK tailored content to audiences in each of the nations of the UK services p.124 p.36 p.22 Overview 28 – Online Governance Financial statements 02 The year at a glance 30 – News in the UK 64 BBC Board 115 Independent auditor’s report 32 – News across the globe 66 Governance report 125 Consolidated income statement Strategic report 34 – by reach 67 Remuneration report 126 Consolidated statement of 06 A message from the Chairman 35 – by genre 74 Audit Committee report comprehensive loss 08 Director-General’s statement 36 Overview of performance 78 Risks and opportunities 127 Consolidated balance sheet 12 New governance across the UK 82 Viability statement 128 Consolidated statement of 14 Delivering our purposes 38 – The BBC in Wales 83 Fair trading report changes in equity 15 – Impartial news 40 – The BBC in Scotland 85 Statement of Board 129 Consolidated cash flow statement 16 – Learning for people of all ages 42 – The BBC in Northern Ireland responsibilities 130 Key themes for the BBC 17 – Creative, distinctive, quality content 44 – The BBC in England 131 Notes to the accounts 18 – Reflect diverse communities 47 Deputy Director-Generals’ review 86 The BBC Trust’s final review 183 Glossary 19 – Reflecting the UK to the world 49 Financial overview 93 Performance data by nation 20 Our priorities for next year 54 Our people 105 Performance against public Additional information 22 Overview of network service 60 Diversity and inclusion commitments 186 Index performance 61 Charitable work IBC Contact information and feedback 24 – Television 63 Environmental sustainability IBC Photo credits 26 – Radio BBC Annual Report and Accounts 2016/17 01 ABOUT THE BBC The year at a glance In a busy year that saw the start of a new Royal Charter, we met our efficiency targets, committed new funding to services in the nations and secured approval for the launch of BBC Studios. We continued to bring audiences, across the UK and around the globe, award-winning content on television, on radio and online. BBC World Service We’ve announced major increases in funding The BBC World Service for Scotland, Wales and Northern Ireland to announced its biggest reflect the importance we place on serving expansion since the 1940s, and representing the whole of the UK. in a move designed to bring its independent journalism to millions more people around the world, including in places where media freedom is under threat. 26m 26 million people tuned in to BBC Planet Earth II One and the News Channel for our coverage of the EU Referendum result. A record-breaking audience Planet Earth II reached 30.3 million viewers came to BBC Online with traffic and had 20 million requests on BBC iPlayer, peaking at 53 million unique browsers globally, and 24.7 million making it the best performing natural history unique browsers in the UK. programme in at least 15 years. 02 BBC Annual Report and Accounts 2016/17 OVERVIEW BAFTAs The BBC won 19 out of 25 BAFTA Television Awards with winners recognised in nine out of ten genres, including for Reality and Constructed Factual for Muslims Like Us. +17% Radio 4’s The Archers team spent over two years researching its domestic abuse storyline, and according to Refuge BBC Three celebrated its first anniversary as and Women’s Aid, which run in an online-only channel and was awarded RTS partnership the National Domestic Violence Helpline, in the month the Channel of the Year 2017. Comedy Fleabag storyline intensified, there was a 17% has proved a resounding success and earned increase in calls to the helpline. its star Phoebe Waller-Bridge a raft of awards, including two accolades from the Royal Television Society and a BAFTA. The BBC is a key partner for Hull’s year as UK City of Culture. Projects that the BBC will host include a major iPlayer Kids new national spoken word festival, a ballet for young children made in Hull, and the recruitment of a hundred local The new iPlayer Kids app community reporters. launched in March. With over 10,000 episodes being made available this year alone, it has all of BBC Children’s world- class content in one place. 246m 2016 has been the biggest year yet for BBC iPlayer, which received 246 million monthly requests on average. BBC Annual Report and Accounts 2016/17 03 ABOUT THE BBC Inform. Educate. Entertain. Distinctive, world-class content that is engaging, risk-taking, educational and award-winning. Award-winning drama Channel of the Year We create BBC One drama The Night Manager BBC Three named the Royal Television was the biggest winner in the television Society’s ‘Channel of the Year’ award, section at America’s prestigious Golden cementing a great first anniversary as cutting edge Globes awards. an online-only channel. BAFTAS News Channel of the Year content... The BBC won 19 out of 25 BAFTA BBC News won ‘News Channel Television Awards, with winners of the Year’ at the RTS Television recognised in nine out of ten genres. Journalism Awards. Read more on content performance on pages 22 to 35 Television Online ...broadcast Nine pan-UK television services, Services including BBC News, Sport, including online-only youth service BBC Weather, CBBC, iPlayer and iPlayer Three. National and regional television Radio and BBC Red Button via a variety across multiple services across England, Scotland, of internet-connected devices including Wales and Northern Ireland. tablets, smartphones and connected televisions – as well as computers. channels... Radio Ten UK-wide radio networks and two BBC World Service national radio services each in Scotland, Television, radio and online services in Wales and Northern Ireland, 40 local 28 languages, with 11 more announced radio stations in England and the in 2016. Channel Islands. BBC staff Knowledge-sharing ...working with Our people are talented, diverse, BBC engineers have always been at the dedicated and passionate. They make forefront of technological development. us what we are. We provide a ‘centre of excellence’, talent across sharing advances and best practice Partnerships across the industry. We work with organisations that share the UK creative our passion for creativity, quality and Training distinctiveness. We are committed to offering opportunities to everyone. Since 2014, industries. Investment 1% of our workforce has been made up The BBC is a major investor in the of apprentices and in February 2017, we UK creative industries, contributing announced a £1 million scheme to Read more on BBC staff and talent on pages 54 to 60 hundreds of millions of pounds to recruit, train and develop journalists the wider sector. with disabilities. 04 BBC Annual Report and Accounts 2016/17 OVERVIEW BBC One drama Poldark To provide impartial news and To reflect, represent and serve We deliver information to help people the diverse communities of understand and engage with all of the UK’s nations and our public the world around them regions and, in doing so, support the creative economy To support learning for people across the UK purposes... of all ages To reflect the UK, its culture To show the most creative, and values to the world highest quality and distinctive output and services Read more on delivering our purposes on pages 14 to 19 Our aim is to reinvent the BBC for a new ...through generation. We will do this by delivering our aims and against our ambitions. – Making sure everyone gets – Financial stability ambitions... value from the BBC – Making the BBC an even – World-class creativity greater place to work – Global reach Read more on our plans for next year on pages 20 and 21 Investing as much money as possible in ...ensuring delivering great content and services. value for Reduction in overheads Senior manager pay bill 95% of the BBC’s controllable spend The ratio of senior managers to total money for our this year was focused on content and public service employees is now 1.6% delivery, just 5% was spent on running and the paybill for senior managers has the organisation. reduced by over £36 million since 2009. audiences. Talent spend reduction Total cost savings Our total spend on on-screen and £172 million of annual savings were Read more about our finances on on-air talent has been reduced to 11.5% delivered during the year.