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BBC Studios given approval to become commercial from April 2017.


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Old 23-12-2016, 07:28
mightymillie
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Ok. But the BBC's flagships are all made in-house currently aren't they.
No.
Most of the dramas in the 9pm slots are made by indies. As are Have I got news for you, Question Time, Graham Norton, University Challenge, Masterchef, The Apprentice, Pointless, Mock the Week, National Lottery...
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Old 23-12-2016, 07:37
scoobiesnacks
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This BBC Studios thing is the main tactic I believe to find the savings required for the £750M required for free licence fees for over 75s.

Outsourcing the big shows, more than they do already, means less BBC staff pensions, cheaper salaries and lower costs (at least so they think). It's like the Channel 4 production model.

It also means they will stop paying people when shows aren't on air (zero hours contracts). So there is a risk they have less production development staff to come up with new ideas, and invest in the future. Invent the next Strictly.

I expect lot's of small start ups mainly consistenting of ex BBC and ITV staff, and freelancers. Truth is, TV and Radio production at the BBC has been heading this direction for years with new starters going on freelance, short term contracts, this is like the final push.
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Old 23-12-2016, 07:40
scoobiesnacks
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Putting EastEnders out for bidding is one thing but what about Strictly? its their biggest earner. Are they really going to potentially risk losing production control over it?
They will still own the IP and the content. It's no different to how say Graham Norton's show is made by ITV. BBC must still have a mechanism for production control even though it's outsourced.

It's not without risk to standards though, as the recent Question Time audience controversy has shown.
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Old 23-12-2016, 07:44
ftv
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As the BBC are currently spending several million pounds expanding the EE set at Elstree it seems unlikely they will be handing it to an outside producer.BBC Studios could, of course, retain all these programmes.
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Old 23-12-2016, 07:50
Mark C
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This BBC Studios thing is the main tactic I believe to find the savings required for the £750M required for free licence fees for over 75s.

Outsourcing the big shows, more than they do already, means less BBC staff pensions, cheaper salaries and lower costs (they think). It's like the Channel 4 model.
Didn't the 1991 Broadcasting Act mandate more Indie production on BBC and ITV, along the same lines as C4 ?

None of this is new really. About 7 years ago the BBC sold off most of its OB Truck fleet to SiS. Initially SiS still had most of the major BBC work, but that all changed three years ago when the Beeb spread their contracts amongst the other UK companies.
It'll be interesting to see how the studio side pans out, although as said the studio work is already more 'spread' than OBs were
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Old 23-12-2016, 08:34
mossy2103
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Outsourcing the big shows, more than they do already, means less BBC staff pensions, cheaper salaries and lower costs (at least so they think). It's like the Channel 4 production model.
Spinning off BB Studios is what is happening. This in itself will reduce staff costs, whilst providing an additional (commercial) revenue stream should BBC Studios successfully bid for non-BBC work.
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Old 23-12-2016, 08:44
derek500
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Spinning off BB Studios is what is happening. This in itself will reduce staff costs, whilst providing an additional (commercial) revenue stream should BBC Studios successfully bid for non-BBC work.
This is the big advantage, the BBC making programmes for other broadcasters.
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Old 23-12-2016, 08:58
ftv
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Didn't the 1991 Broadcasting Act mandate more Indie production on BBC and ITV, along the same lines as C4 ?

None of this is new really. About 7 years ago the BBC sold off most of its OB Truck fleet to SiS. Initially SiS still had most of the major BBC work, but that all changed three years ago when the Beeb spread their contracts amongst the other UK companies.
It'll be interesting to see how the studio side pans out, although as said the studio work is already more 'spread' than OBs were
I believe BBC Scotland, Wales and Northern Ireland retained their own OBs.
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Old 23-12-2016, 09:13
Mark C
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I believe BBC Scotland, Wales and Northern Ireland retained their own OBs.
Yes, as did BBC Radio, and BBC News SNG
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Old 23-12-2016, 11:19
mightymillie
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None of this is new really. About 7 years ago the BBC sold off most of its OB Truck fleet to SiS. Initially SiS still had most of the major BBC work, but that all changed three years ago when the Beeb spread their contracts amongst the other UK companies.
It'll be interesting to see how the studio side pans out, although as said the studio work is already more 'spread' than OBs were
They difference with BBC OBs is that the staff transfered to SIS under TUPE.
Consequently SIS made little to no money from the deal, and when the contracts came up for renewal SIS didn't make serious bids to retain the work, sold the trucks and made the staff redundant.
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Old 23-12-2016, 11:34
ftv
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They difference with BBC OBs is that the staff transfered to SIS under TUPE.
Consequently SIS made little to no money from the deal, and when the contracts came up for renewal SIS didn't make serious bids to retain the work, sold the trucks and made the staff redundant.
The BBC are clearly confident of more work as they are re-opening three studios at TV Centre in the spring of 2017.
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Old 23-12-2016, 11:42
David_Flett1
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This is the big advantage, the BBC making programmes for other broadcasters.
I have advocated for sometime that the BBC has the capability to expand commercially both domestically and internationally and create more revenue streams that would ensure the licence fee is kept low. My fear however is that one day it will become yet another target to be sold off to the private sector resulting in much higher costs to the public. Mutualisation would have been the best way of protecting it for the public benefit.
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Old 23-12-2016, 11:54
lundavra
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I have advocated for sometime that the BBC has the capability to expand commercially both domestically and internationally and create more revenue streams that would ensure the licence fee is kept low. My fear however is that one day it will become yet another target to be sold off to the private sector resulting in much higher costs to the public. Mutualisation would have been the best way of protecting it for the public benefit.
I just hope that people like ITV are not allowed to be prepared to make a loss by underbidding BBC Studios to get the big contracts and leave BBC Studios with very little so it is sold off. I can also imagine them making a fuss with the politicians if BBC Studios gets any contracts off them.
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Old 23-12-2016, 12:26
fedman
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I have a VHS tape of Tubular Bells 2 recorded on BBC1. The programme prior to this was What The Papers Say and the end credits were "A Granada Production" This was the 1990s!
The BBC's 'Kilroy' live morning discussion programme came from Teddington Studios starting in 1986. Around the same time 'Food and Drink' was shot and edited at Teddington for the beeb.

RIP Tedder's
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Old 23-12-2016, 13:36
Richardcoulter
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This is the big advantage, the BBC making programmes for other broadcasters.
I have advocated for sometime that the BBC has the capability to expand commercially both domestically and internationally and create more revenue streams that would ensure the licence fee is kept low. My fear however is that one day it will become yet another target to be sold off to the private sector resulting in much higher costs to the public. Mutualisation would have been the best way of protecting it for the public benefit.
I just hope that people like ITV are not allowed to be prepared to make a loss by underbidding BBC Studios to get the big contracts and leave BBC Studios with very little so it is sold off. I can also imagine them making a fuss with the politicians if BBC Studios gets any contracts off them.
All very good points.

How long do we think it will be before BBC Studios are sold off?

This will mean that the BBC bd will just be like another channel 4 or 5 who don't make their own programmes and buy them in.

The only difference will be that the BBC will be funded by the licence fee and the others by adverts etc.
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Old 23-12-2016, 14:51
mikw
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The only difference will be that the BBC will be funded by the licence fee and the others by adverts etc.
There is another difference. A fair bit of the BBC and TV output isn't covered by the commercial sector, irrespective of which company makes them.
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Old 23-12-2016, 15:26
mossy2103
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I would have thought that the only way that BBC Studios would be sold off would be if the Government of the day forced it (by fair means or otherwise) to be sold.
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Old 23-12-2016, 16:08
lundavra
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All very good points.

How long do we think it will be before BBC Studios are sold off?

This will mean that the BBC bd will just be like another channel 4 or 5 who don't make their own programmes and buy them in.

The only difference will be that the BBC will be funded by the licence fee and the others by adverts etc.
So they will have a lot more money so be prepared to make a loss to get a contract and squeeze a competitor (i.e. BBC) out.
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Old 23-12-2016, 16:29
David_Flett1
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All very good points.

How long do we think it will be before BBC Studios are sold off?

This will mean that the BBC bd will just be like another channel 4 or 5 who don't make their own programmes and buy them in.

The only difference will be that the BBC will be funded by the licence fee and the others by adverts etc.
I fear that we could see a break up of BBC by the review point of the next charter likely to be 2020/21 especially if the Conservatives have a large majority which seems increasingly likely. BBC Worlwide is a key target and no doubt studios could also be a target.

I have been through this on many threads Richard and unfortunately the vast majority of the 25 million licence holders accept any changes that are imposed on them without rasing a murmur. Over the course of the next charter 21 million will see licences rise to try and keep funding neutral because 4 million and more will receive free licences together with funding of other government projects and policies. This could be as much as £1.5 billion each year by the end of the next charter. Can you imagine SKY asking their subscribers to fund millions of free subcriptions for over 75's?

There is no point looking back in hindsight and choosing a different path in privatising much of our publicly owned services, we can read our bills for energy and communications every time they drop through the door or in our email box to see what has happened under privatisation but even then how many look at the annual financial statements of these companies, the management salaries, the directors remunerations, the shareholder dividends. All of these were built and paid for through generations by the public but were sold off with poor returns and reasons given that public services were poorly managed. Mangagement of our services remains poor the only difference is that management gets paid more for their incompetance.

Much of the media has self interest at heart so we are unlikely to see any challenges or forensic examination of what will happen in the next charter, there wasn't much of that during the review and it helps the media that the vast majority of the 25 million licence payers don't pressure them to do so.

Personally I do not think there is any organisation, media or otherwise who could deliver what the BBC does from the money it receives via the licence fee, certainly not in the private sector. However it should be owned and funded by the public with a strong public remit and only accountable to the public. It is the reason I favour mutualisation because the BBC is a very high calbre player internationally and can be even better and rasie more revenue that can support keeping the money the public pay kept low and continue to offer the services it does now and most likely improve on them.
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Old 23-12-2016, 16:32
David_Flett1
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I would have thought that the only way that BBC Studios would be sold off would be if the Government of the day forced it (by fair means or otherwise) to be sold.
And what has stopped the government, mainly blue in colour doing this with most of our public services? By 2020/21 the Conservatives are likely to be returned with a large majority and will feel free to do as they please even before then it is likely that Channel 4 will be sold.
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Old 23-12-2016, 17:39
mightymillie
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The BBC are clearly confident of more work as they are re-opening three studios at TV Centre in the spring of 2017.
That is BBC Studioworks, the facilities part, not BBC Studios, which is the programme part.

Opening new studios in London is clearly sensible: there is already a shortage, and Fountain has just been sold off for housing.

But it has nothing to do with what BBC Studios does.
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Old 23-12-2016, 18:18
mlt11
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This BBC Studios thing is the main tactic I believe to find the savings required for the £750M required for free licence fees for over 75s.

Outsourcing the big shows, more than they do already, means less BBC staff pensions, cheaper salaries and lower costs (at least so they think). It's like the Channel 4 production model.

It also means they will stop paying people when shows aren't on air (zero hours contracts). So there is a risk they have less production development staff to come up with new ideas, and invest in the future. Invent the next Strictly.

I expect lot's of small start ups mainly consistenting of ex BBC and ITV staff, and freelancers. Truth is, TV and Radio production at the BBC has been heading this direction for years with new starters going on freelance, short term contracts, this is like the final push.
A lot of discussion on these forums tends to be speculation about the future. There is much less review of what has actually happened in the past - which is a pity as the past can be a useful guide to what will happen in the future.

The last 6 years have been amazing when looked back upon. In the 2010 Licence Fee settlement, the BBC had to make savings of £700m between 2011 and 2017.

Now, what has happened to the output of BBC programming in that period and how well is it serving the public?

We don't have final figures for 2016 yet but between 2010 and 2015 BBC1's viewing share actually rose - from 20.8% to 21.9%. It's a phenomenal performance really when considered against the backdrop of "huge cuts" (and note no big sports event in 2015).

And go through all the main programmes - News, Regional News, Strictly, Casualty, Holby, Eastenders, Doctor Who, Pointless, Lottery, Apprentice, Antiques Roadshow, One Show, all the dramas (each of which only run for a few series), Planet Earth, Question Time, This Week, Andrew Marr, Newsnight, Daily Politics, Olympics, World Cup Finals, Euros, Match of the Day, Wimbledon [the list goes on and on and on] - all remain exactly as they were in 2010, all remain of exceptionally high quality, the public is still being served brilliantly.

Of course there have been some content cuts - but they've been largely confined to fringe areas. It bears restating - BBC1's viewing share is up - and up by 5% (1.1 percentage points).

If we look at BBC1 + BBC2 combined (ie taking in more cuts) - viewing share is almost precisely flat - down from 27.7% to 27.6%. It's astonishing when you sit back and think about it.

The question now is can this astonishing performance be repeated over the next 5 years, despite facing another large round of cuts. Of course nobody can know the answer yet for sure - but my expectation is that it can - for some of the reasons given above - the changes to BBC Studios being an important part - ie both taking cost out and bringing more revenue in.

We've seen huge cost reduction right across (terrestrial) TV - in particular ITV has done much the same thing. Though the BBC has been more successful in limiting the impact on screen - though arguably ITV's cuts have been deeper (and they started earlier - back around 2008).

Of course the BBC will have to make more content cuts - but like the last few years I expect them to be concentrated on fringe areas and I think it's most likely that BBC1 will repeat what it's done in the last few years - ie BBC1 audience share in 2021 will be as high as it is now.
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Old 24-12-2016, 09:00
ftv
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Strange how these cuts never seem to involve the salaries of BBC managers
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Old 24-12-2016, 09:02
A.D.P
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Strange how these cuts never seem to involve the salaries of BBC managers
But they have!
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Old 24-12-2016, 10:15
technologist
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And the number of managers as well ...
The pilon affair showed that they met the target 18 months earlier ,
And since then there are many posts gone..
Like tv Channel controllers etc etc...

The PwC study concluded that the BBC was amongst the most e cient organisations in the public sector and regulated industries in terms of managing overheads. In 2015/16, 94% of the BBC’s controllable spend was focused on content and delivery, with just 6% spent on running the organisation. This is well below both the public sector average of 11%, and the regulated industry average of 9%.


From 14/15 annual report finance p 16 http://downloads.bbc.co.uk/abouttheb...BC-FS-2016.pdf
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