BBC Worldwide

Last updated

BBC Studios Distribution Ltd.
Formerly
BBC Enterprises Ltd. (1979–1995)
BBC Worldwide Ltd. (1995–2018)
Subsidiary
Industry Broadcasting
FateMerged into BBC Studios
Successor BBC Studios
Founded15 May 1979;40 years ago (15 May 1979)
Headquarters,
Area served
Worldwide
Key people
Tony Hall (Chairman)
Tim Davie (CEO)
Owner BBC
Parent BBC Studios Ltd.
Website bbcworldwide.com

BBC Worldwide Ltd. was the wholly owned commercial subsidiary of the BBC, formed out of a restructuring of its predecessor BBC Enterprises in 1995. The company monetises BBC brands, selling BBC and other British programming for broadcast abroad with the aim of supplementing the income received by the BBC through the licence fee.

The British Broadcasting Corporation (BBC) is a British public service broadcaster. Its headquarters are at Broadcasting House in Westminster, London, and it is the world's oldest national broadcasting organisation and the largest broadcaster in the world by number of employees. It employs over 20,950 staff in total, 16,672 of whom are in public sector broadcasting. The total number of staff is 35,402 when part-time, flexible, and fixed-contract staff are included.

Television licensing in the United Kingdom

In the United Kingdom and the Crown dependencies, any household watching or recording live television transmissions as they are being broadcast is required to hold a television licence. Businesses, hospitals, schools and a range of other organisations are also required to hold television licences to watch and record live TV broadcasts. A television licence is also required to receive video on demand programme services provided by the BBC, on the iPlayer catch-up service.

Contents

In 2013/14, BBC Worldwide generated headline profits of £157.4m and headline sales of £1,042.3m and returned £173.8m to the BBC. [1]

In 2012/13 it made a profit of £156.3m on a turnover of £1,115.8m. [2] The company had made a profit of £104m on a turnover of £1,085m in the previous financial year. [3]

BBC Worldwide's profit rate was 11.2% in 2011/2012, up slightly from 9.6% the previous year, down from a peak of 21.5% in 2002/2003, contrasting with 7.8% in 2003/2004. [4]

The company merged with BBC Studios on 1 April 2018, to form a new licensing and production company under the BBC Studios name.

BBC Studios is a British television production and distribution company. It is a commercial arm of the BBC, bringing together the majority of the former BBC Television division's in-house production departments; Comedy, Drama, Entertainment, Music & Events, and Factual. In 2018, BBC Studios merged with the corporation's international licensing and distribution arm, BBC Worldwide under the BBC Studios name.

History

Origins

In addition to broadcasting, the BBC has for much of its life also produced additional materials for sale, the profits of which would be returned to the corporation to aid in the financing of these services. The highest profile of these early products was the listings magazine Radio Times , but the net revenue gained from this in 1928 (£93,686, 10s, 1d) only equated to 10% of total BBC income. [5]

<i>Radio Times</i> British TV and radio listings magazine

Radio Times is a British weekly magazine which provides radio and television listings. It was the world's first broadcast listings magazine when it was founded in 1923 by John Reith, then general manager of the British Broadcasting Company.

Shilling unit of currency formerly used in the United Kingdom, Australia, and other British Commonwealth countries

The shilling is a unit of currency formerly used in Austria, the United Kingdom, Australia, New Zealand, United States and other British Commonwealth countries. Currently the shilling is used as a currency in four east African countries: Kenya, Tanzania, Uganda and Somalia. It is also the proposed currency that the east African community plans to introduce . The word shilling comes from old English "Scilling", a monetary term meaning twentieth of a pound, and from the Proto-Germanic root skiljaną meaning 'to separate, split, divide.' The word "Scilling" is mentioned in the earliest recorded Germanic law codes, those of Æthelberht of Kent.

Penny (British pre-decimal coin) British pre-decimal coin worth 1/240th of a pound sterling

The pre-decimal penny (1d) was a coin worth 1/240 of a pound sterling. Its symbol was d, from the Roman denarius. It was a continuation of the earlier English penny, and in Scotland it had the same monetary value as one pre-1707 Scottish shilling. The penny was originally minted in silver, but from the late 18th century it was minted in copper, and then after 1860 in bronze.

Prior to 1979, several BBC departments dealt with the exploitation and sale of BBC brands and programmes. BBC Publications, which produced magazines, books and other supplementary materials, had expanded rapidly in the late 1960s but still had difficulties with finances: in 1974 the division made a loss of £14,000. [5] This was rectified however as the economic situation eased and by 1982 BBC Publications had a trading profit of £4.7 million. [5] BBC Transcription Services licensed BBC Radio material to overseas broadcasters.

The selling of television programmes was at first handled in 1958 with the establishment of a business manager post. [5] This gradually expanded until the establishment of the Television Promotions (later renamed Television Enterprises) department in 1960 under a general manager. [5] In its first year, the department saw the sale of 550 programmes overseas with a turnover of £234,000, [5] [6] with a further 1,200 programmes sold the following year. [5] Radio programmes were only exploited on the same level with the creation of the Radio Enterprises department in 1965. However, following the retirement of the Radio Enterprises general manager in 1969, the two departments were merged to form the BBC Enterprises department.[ citation needed ]

BBC Enterprises

On 15 May 1979 the department became BBC Enterprises Ltd., a subsidiary company wholly owned by the BBC. [5] [6] By 1982, the division were expanding with divisions responsible for home video (under the brand BBC Video), recorded audio (under the brands BBC Records and BBC Cassettes), film and merchanding. At this point the company had a turnover of £23 million. [5] On 1 April 1986, all commercial activities of the corporation, including BBC Publications, was merged into BBC Enterprises Ltd. [7]

In 1991 BBC World Service Television became the first commercially funded BBC broadcasting operation after the Foreign Office refused to pay for it. [8] BBC Enterprises Ltd was subsequently reorganised on 1 January 1995 as BBC Worldwide Ltd. [9] A review of the BBC's commercial activities took place in 2004 and concluded that the sell off of BBC Worldwide's assets would not be as advantageous as keeping the business and driving it harder. Instead, some changes to its remit, focus, structure and governance were made, e.g. that it would only publish titles in the UK linked to BBC programmes or key genres.

Acquisitions and restructuring

In 2004, BBC Video merged with Video Collection International to form 2 Entertain, which was part owned by BBC Worldwide; the following year the company sold Eve magazine to Haymarket Group [10] and in 2006 the company sold a majority stake in BBC Books to publisher Random House. [11]

In 2007 BBC Worldwide purchased a 75% stake in the travel guide publisher Lonely Planet, [12] acquiring the final 25% of the company in 2011. [13] The acquisition was part of the BBC's strategy to grow its online portfolio and to increase its operations in Australia and the USA. [14]

In January 2009 it was announced that Ofcom had put forward the recommendation that Channel 4 merge with either the commercial network Five or BBC Worldwide. Channel 4's preferred option of a partnership with the latter was confirmed by chief executive Andy Duncan, who added: "We're in discussions with BBC Worldwide at the moment and they're really very exciting." [15] In the same year, the company was awarded the Queen's Award for Enterprise in recognition of the companies growth and success. [16]

In 2012, the company began to reorganise their divisions from a product based system to a location-based system, resulting in Jana Bennett leaving the company. [17]

BBC Worldwide sold Lonely Planet in 2013 to Kentucky billionaire Brad Kelley's NC2 Media for US$75 million (£51.5 million)— significantly less than the £130.2 million the BBC had paid for the company, at an £80 million loss. [18]

In 2017, under revisions to the BBC Charter and subsequent BBC Trust approval, the broadcaster formed a second commercial subsidiary known as BBC Studios, to hold most of the broadcaster's in-house production units (including Factual, Entertainment, Scripted, and Music & Events). In return for the restructuring, which also allows the BBC to produce programmes for competing broadcasters to fund its public services, the BBC agreed to allow BBC Studios and third-parties to bid on tenders to produce its in-house non-news programmes over the next 11 years. [19] [20] [21] [22] On 29 November 2017, the BBC announced that BBC Worldwide would be merged into BBC Studios in April 2018, which gave the broadcaster an integrated division involved in both the production and sale of programming. [23] [24] The company was technically not abolished, but was renamed from BBC Worldwide Ltd. to BBC Studios Distribution Ltd. on 1 October 2018. [25]

BBC Worldwide profit and sales 1995–2012

Figures adjusted using RPI to 2012 prices BBC Worldwide profit and sales 1995-2012.png
Figures adjusted using RPI to 2012 prices
Profitability of BBC Worldwide BBC Worldwide profit rate 1995-2012.png
Profitability of BBC Worldwide
DateHeadline Sales (2014)Profit (2014)Sales (Cash)Profit (Cash)Profit rate
1995/1996£527m£84m£332m£53m15.9% [26]
1996/1997£630m£115m£409m£75m18.3% [4]
1997/1998£640m£120m£430m£81m18.8%
1998/1999£726m£120m£495m£82m16.5%
1999/2000£798m£136m£560m£96m17.1%
2000/2001£885m£148m£632m£106m16.7%
2001/2002£881m£169m£640m£123m19.2%
2002/2003£879m£188m£657m£141m21.4%
2003/2004£917m£71m£706m£55m7.7%
2004/2005£991m£112m£784m£89m11.3%
2005/2006£992m£135m£810m£111m13.7%
2006/2007£1,076m£138m£916m£118m12.8%
2007/2008£1,134m£116m£1,004m£103m10.2%
2008/2009£1,219m£164m£1,074m£145m13.5%
2009/2010£1,256m£204m£1,158m£188m16.2%
2010/2011£1,119m£107m£1,085m£104m9.5%
2011/2012£1,115m£125m£1,115m£125m11.2%

Historical price conversion as per RPI figures from "Office for National Statistics – Dataset selector" . Retrieved 24 August 2013.

Operations

BBC Worldwide's current headquarters BBC Television Centre, Wood Lane, London W12 - geograph.org.uk - 686894.jpg
BBC Worldwide's current headquarters
BBC Worldwide's London headquarters until 2008. BBC Worldwide - Wood Lane, W12 - geograph.org.uk - 676813.jpg
BBC Worldwide's London headquarters until 2008.

In 2013, BBC Worldwide reorganised the company along geographical, rather than divisional, lines to better serve its audiences around the world and to position itself to take advantage of opportunities in high growth markets. The seven geographic markets are grouped into three regions: North America; UK, Australia and New Zealand; and Global Markets (Asia, CEMA, Latin America and Western Europe). The two global business areas - Content and Brands - set the strategic framework and parameters for activities within the regions and keep a close connection into BBC Worldwide's parent, the BBC. Digital is embedded throughout the business. [27]

BBC Worldwide was responsible for a wide range of commercial activities, primarily connected in some way with the output and public purposes of the main BBC. In the past, the business was divided into five operating businesses which covered the entire operations of the company: Channels; Content and Production; Brands, Consumers and New Ventures, Consumer Products and Sales and Distributions.[ citation needed ]

The Channels division was formed in 2005 [28] and is the company's largest generator of revenue and growth. It operates the broadcasting of several international channels and domestic networks: [28]

The Content and Production division was formed in 2006 and invests the company's money into new productions by both the BBC and other independent productions. [29] It also exploits the formats of BBC programmes and alters them to be suitable for an international audience – an example is the exploitation of the Strictly Come Dancing brand to become Dancing with the Stars – maximising revenues by receiving a production fee from the local broadcaster as well as a sum from selling the initial re-versioning rights. [29] The division works alongside the Sales and Distribution division, which sells the broadcasting rights to completed programmes made by the BBC and other producers – an example being the Red Production Company drama Mine All Mine for the ITV network in 2004. It includes the selling of individual clips through the BBC Motion Gallery to other broadcasters. In the financial year 2010/11, this division sold the rights to over 74,000 hours worth of television content. [30]

The other two divisions of the company deal with the individual programme brands: Global Brands focuses on the international recognition of the brands [31] while the Consumer Products division produces a variety of goods based around these brands. The work of the former includes expanding the brands into new areas – the Top Gear Live tour is a key example of this. [31] The latter creates and sells a variety of consumer products, occasionally as a stake or partnership in another company, including VHS and DVD releases, spoken word and music audio products, CD-ROMs, videogames, books and magazines. [32]

Assets and brands

These commercial activities allow BBC Worldwide to return profits and dividends to the BBC to re-invest in its broadcasting operations. In 2007/08 BBC Worldwide invested £75.1m in in-house and independent programmes commissioned by the BBC. However, the BBC has often been criticised for the amount of money it makes from BBC Worldwide. Some commercial rivals protest at the advantage the company has from being associated with and being able to exploit the programme catalogue and resources of the BBC to provide its goods and services. [43]

See also

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