Memorandum submitted by the BBC World
Service
BUILDING GLOBAL IMPACT IN THE 21ST
CENTURY
INTRODUCTION
1. Since the submission of our bid for the
Spending Review 2002, the BBC World Service has continued to go
from strength to strength.
We have successfully covered the Iraq war in
the largest-ever news operation for the BBC World Service, and
we have been recognised through a number of high-profile international
awards for our fair and accurate coverage of events in Afghanistan
and the world after September 11.
Global audiences have held at 150 million weekly
listeners in an increasingly competitive environment, online usage
has reached record levels of over 200 million page impressions
in March, and recent independent research indicates that the World
Service is regarded as the most trusted and objective broadcaster
among its international competitors.
The recent global celebrations of our 70th anniversary
illustrated the level of impact the World Service is continuing
to have across the world.
The recent bringing together of the BBC World
Service, BBC World television, and the BBC's international facing
Internet news sites into the new BBC Global News Division under
Mark Byford's leadership means that World Service is now part
of a formidable tri-media BBC global news offer.
2. In order to build on our success, and
to meet increasing competitive challenges, the investment plan
for 2003-06 focuses on a robust set of spending priorities, based
on and shaped by the agreed World Service Three-Year Strategy
2003-06 as submitted in February 2002. The plan is supported by
the award of further funding by the Government announced in July
2002, totalling an additional £27 million per annum by 2005-06.
It also takes into account geopolitical and competitive developments
in the intervening months, which in some cases has led us to adapt
our plans to meet changing circumstances and recognises the need
to establish an unallocated reserve to allow for increased flexibility.
3. The strategic investment priorities for
2003-06 are in the following three areas, and plans have been
sharpened by recent events in Iraq:
— Geopolitical content, especially
in relation to the Arab world and South West Asia.
— Increased competitiveness via FM
in critical markets.
In support of these investments, we will also
implement our capital plan for the modernisation of transmission
and distribution assets.
4. The major emphasis in 2003-04 will be,
as planned, on continuing investment related to the Arab World,
Afghanistan, and South West Asia. We will also move ahead with
strengthened programming for Africa and Europe. However, because
we did not secure all that we bid for, developments for China
and South East Asia will now be considered for 2005-06.
The key strategic themes of FM expansion and
online investment are also continuing as planned, though re-phased,
and at a slower pace than anticipated, especially in 2004-05.
On FM expansion, we have also identified small amounts of additional
funding to be deployed for increased audience measurement and
marketing, two elements which are becoming increasingly critical
to our competitiveness as a global media player.
5. Through these investments, we will seek
to deliver a range of measurable outcomes which will enhance the
impact and influence of the World Service, thereby bringing benefit
to Britain. These will include, by 2006:
— maintaining and enhancing a clear
position as the world's best known and most respected international
broadcaster on radio and online—especially among agreed
target audiences;
— achieving a measured global World
Service radio audience of over 153 million listeners per week;
— growing online usage to a core level
of 200 million page impressions monthly;
— expanding our FM presence to 145
capital cities (75% of all capitals).
6. We have had to re-phase the timings of
some investments to take into account the allocation of our new
funding across the three years, where the bulk was allocated to
2003-04 and 2005-06, with very little incremental funding for
2004-05. Given the increasingly unpredictable global environment,
we will also need to retain flexibility, in particular with regard
to geopolitical content investments in 2005-06.
Therefore, our proposed investment plan should
be seen as a firm financial framework for year one (2003-04) only
and as a provisional allocation of resources for years two and
three. Clearly in the coming months we will share with the FCO
more detailed plans for 2004-05 and 2005-06, as they are drawn
up—taking into account the need to cover the evolving postwar
situation in Iraq and the ongoing developments in international
security.
7. Looking ahead
The world's media environment is extremely dynamic,
and the World Service is under increasing competitive pressure
across the world. There are a number of areas where the World
Service must build impact over the coming years, including:
— The Arab World. A core focus will
be on serving audiences in the Middle East with unbiased news
and information, and building bridges between the region and the
rest of the world through communication and debate. We will need
to continue to improve our newsgathering as well as our ability
to deliver better audibility through local FMs.
— Africa. We must continue to build
on our strength in Africa and focus increasingly on involving,
interactive programming driving the development debate forward.
— Interactivity and involvement. Building
our position as a global hub for discussion and debate online
is central to our plans—this will be an area of further
investment.
— Maximising the value of partnerships.
As more of our audiences come to us through FM partners, we have
to make sure our relationships with key partner stations are as
robust as possible.
— Marketing and brand building. As
competition increases, raising awareness of the BBC and promoting
our brand will be critical—in a world where, in particular,
our commercial competitors outspend us in marketing and promotion
by vast margins.
— The BBC Global News Division. As
part of the BBC's global tri-media news offer, the World Service
will be able to benefit from greater coordination and collaboration
with BBC World and with the BBC's global internet news operation.
Implementing our holistic Global News strategy will be a critical
priority.
THE SPENDING
REVIEW SETTLEMENT
2003-06
8. In July 2002 the Chancellor of the Exchequer
announced the new World Service funding settlement for 2003-06.
The additional funds made available in each
of the three years are shown below, set against the original requests:
| 2003-04
£million
| 2004-05
£million | 2005-06
£million
| Total
£million |
| New operating funds requested | 10.5
| 26.0 | 35.2 | 71.7
|
| New operating funds made available | 8.0
| 13.0 | 27.0 | 48.0
|
9. In the Spending Review bid the World Service requested
£71.7 million cumulative increase in operating funds over
the three-year period 2003-06. The Chancellor announced the World
Service will receive £48 million in additional operating
funds over this period, representing 67% of what was requested.
In addition, the annual capital baseline was maintained at
£31 million from 2003-04 to 2005-06.
This settlement represents 3.4% real-terms growth on average
for each of the three years, and amounts to a significant investment
in the World Service and its activities.
10. When added to the existing baseline for 2002-03 of
£200.9 million, the following baselines apply for the 2002
Spending Review period.
| Operating
£million
| Capital
£million | Total
£million
|
| 2002-03 baseline before SR 2000 and SR 2002
| 170.9 | 30.0 | 200.9
|
| 2003-04 increase from SR 2000 | 10.0
| 1.0 | 11.0 |
| 2003-04 increase from SR 2002 | 8.0
| - | 8.0 |
| 2003-04 Grant in Aid | 188.9
| 31.0 | 219.9 |
| 2004-05 increase from SR 2002 | 5.0
| - | 5.0 |
| 2004-05 Grant in Aid | 193.9
| 31.0 | 224.9 |
| 2005-06 increase from SR 2002 | 14.0
| - | 14.0 |
| 2005-06 Grant in Aid | 207.9
| 31.0 | 238.9 |
STRATEGY SUMMARY:
THE WORLD
SERVICE IN
THE 21ST
CENTURY
11. Priorities 2003-06
The strategic priorities for 2003-06 laid out in the bid
focus on the following three areas:
— Increased competitiveness via FM in critical markets.
In support of these investments, we will also continue to
implement our capital plan for the modernisation of transmission
and distribution assets.
12. This Three-Year Plan sets out how the World Service
can be a modern voice of enormous impact and trust for the UK
in a turbulent world, an indispensable reference point and a connecting
hub of dialogue and debate for audiences around the globe.
| New investments | 2003-04
£million
| 2004-05
£million | 2005-06
£million
|
| Geopolitical content | 9.1 |
9.2 | 12.5 |
| Online development | 2.7 |
3.1 | 6.7 |
| Increased competitiveness via FM | 1.9
| 2.6 | 5.4 |
| Creation of unallocated reserve | 2.3
| 2.9 | 4.2 |
| Total new operating spend | 16.0
| 17.8 | 28.8 |
13. An unallocated reserve will be established in accordance
with the FCO Permanent Under Secretary's settlement letter dated
18 July 2002. The £4.2 million reserve planned by 2005-06
represents 2% of operating Grant in Aid for that financial year.
STRATEGY DETAILS:
GEOPOLITICAL CONTENT
INVESTMENTS
14. As with the original bid, the proposed content investments
include five key elements:
— The Arab World and South West Asia.
15. Since we submitted the plan in February 2002, a number
of developments—including the level and phasing of the settlement—have
taken place which lead us to alter slightly the focus and timing
of our investments. The war in Iraq in particular has meant that
we have had to utilise already a large portion of the unallocated
reserve for 2003-04.
16. Iraq and the Arab world
Covering the Iraq conflict has been the BBC's largest ever
news operation, involving enhanced programmes, newsgathering and
transmission resources across BBC World Service radio, the BBC's
international facing online sites, and BBC World television.
Although the war itself is now over, coverage of post-war
developments will remain very high on the editorial agenda, with
extra programmes of analysis and reportage across all three media.
We will continue the Arabic 24x7 schedule and will continue to
fund the new Cairo production office, whilst we assess its long-term
value as a hub to generate content from the Arab world.
Our web operation will continue to foster debate and dialogue
from communities who see the Iraq conflict from many different
viewpoints and act as an enabler to improve understanding of often
polarised perspectives. We will also continue to seek FM opportunities
in the Arab world wherever possible, building on our recent success
in opening FM relay transmitters for Arabic and English in Baghdad
and Basra.
More generally, BBC is now also reviewing its tri-media offer
in the region in the light of the need to ensure maximum impact.
17. South West Asia
We are continuing the core thrust of our proposed investments,
by maintaining the output extensions introduced since September
11. We are continuing the extra programming in key languages (Arabic,
Persian, Pashto and Urdu), and also maintaining the extra medium
wave frequency (1314 kHz) to the area to ensure audibility is
strong; strengthening our journalistic presence in the region;
and launching targeted programming aimed at supporting reconstruction
in Afghanistan. We will also continue to roll out FM relays in
Afghanistan, with current plans to add a further eight to the
transmitters in place in Kabul and Mazar-e-Sharif. Currently,
the BBC's Kabul FM achieves an unprecedented weekly reach of 82%.
We will invest in key areas for strengthening our relevance
in Afghanistan, including developing a Persian bulletin targeted
specifically at listeners there. We will also introduce an evening
programme for Uzbek speakers there. For Central Asia, we will
enhance the output in Kyrgyz and Kazakh.
18. Africa
Africa continues to be a key priority for enhanced services.
As proposed in our bid, we have begun transmissions of an interactive,
high profile weekly programme in English, "Africa Live"
to increase understanding of vital development issues. We will
also enhance newsgathering across the continent. As proposed,
we will also now support on a permanent basis the successful,
temporarily funded lifeline programming for the Great Lakes region
of Africa, including Rwanda, via Grant in Aid.
19. English News
Given the importance of English as our core global news service,
we are planning further investment in our English news and current
affairs. The extra funding will cover continued extended newsgathering
in the context of global security and the aftermath of the Iraq
war; extended capacity to present core programmes from key geopolitical
centres, including the Arab world, and to mount special "one-off
debates" and an enhanced ability to produce major news-making
interviews for English News and Current Affairs programmes supported
by web-based interactive forums.
20. Europe
In line with our original proposal, we will improve content
and presentation of Europe Today, our key English-language flagship
programme for Europe from 2003-04. In addition, we will produce
landmark series for a number of European languages focusing on
accession issues in what is a critical next phase in the evolution
of the new Europe.
21. Landmark Series
As proposed in our bid, we will also invest in major high
profile landmark series in English, reversioned into key languages,
including on themes of global importance such as global security,
Islam and modernity, migration and HIV/AIDS.
22. China
Our bid contained a proposal for a daily flagship Asia business
programme in English for audiences in China and South East Asia
from Singapore, reflecting China's growing importance on the global
trade arena. Given the phasing of the allocated funding, we will
seek to introduce this service in 2005-06.
STRATEGY DETAILS:
ONLINE AND
FM DEVELOPMENTS
23. Online developments
Investments in Internet services have been a key feature
of World Service's evolution in the digital age. Our service is
already reaching significant numbers of users and gaining recognition
as industry-leading. Key investments include:
Greater depth and breadth in key subjects in English and
other 24x7 languages
Globally, we will further increase the depth and breadth
of our English and Arabic offers. In 2003-04, we will extend Russian
and Portuguese for Brazil online to full 24x7 services, and enhance
our online offer for communities in South Asia
World forums and interactivity
We will also invest in improving interactivity in English
and a number of key languages including Arabic, developing World
Forums to promote engagement through interactivity and high profile
debate.
Upgrading regionally significant languages
From 2005-06, we plan to invest significantly in upgrading
additional key regional languages to expanded online services.
Distribution and rights costs
A major development has been the rapidly rising cost of maintaining
an effective Internet distribution infrastructure. The effect
of increased demand is that server infrastructure now needs to
be upgraded earlier than thought a year ago. This is critical
to ensure that we keep pace with our international competitors.
Therefore, we must invest significantly from 2003-04 to address
this issue. We must also invest to meet the rising cost of rights
to material from news agencies as part of our online offer.
24. Increasing competitiveness via FM
World Service is already present on FM in 138 capitals around
the world. In a growing number of markets, FM is now the main
means of delivery of our services. The World Service must enter
the next phase of its FM strategy with clear lines of investment.
The first of these will be to address the critical markets
of India and Russia. Both of these are extremely difficult environments
where media consumption patterns, competition and regulatory environments
pose significant challenges to the World Service's position. In
both cases, an enhanced FM and medium wave presence is central
to success. On the back of in-depth strategic reviews in 2002-03,
we will invest, where possible, to improve audibility and to support
re-broadcasting deals and content enhancements for FM from 2003-04.
In addition, we will continue our efforts to expand the FM
network to new target capitals and major cities. Enhancing existing
FM presence in terms of hours of World Service output being broadcast
will further reinforce and safeguard our position.
Finally, we are planning to invest additional resources in
marketing and audience research to support our FM strategy. We
will increasingly need to promote our services both to audiences
in competitive media environments and to potential partners.
STRATEGY DETAILS:
CAPITAL PLAN
25. The capital Grant in Aid remains at £31 million
per annum throughout the three-year period.
The capital plan is structured to support the Three-Year
Strategy in two principal ways:
— It provides for the modernisation of transmission
assets that are due for replacement or upgrade where there is
a demonstrable need for their continued use.
— The modernisation of Singapore will be completed
in 2006-07.
— In Cyprus, new work to replace the 27 short
wave antennas will commence.
— The refurbishment of Ascension Island will
need to begin in this Spending Review period.
— In Antigua work must start on the replacement
of the BBC transmitters.
— The Global Distribution System (GDS) for serving
transmitter sites and FM partners from London must also be upgraded.
— It ensures that the World Service is digitally
capable to compete effectively across existing, expanding and
new platforms.
— Digital Short Wave: A technical standard for
digital short wave (DRM) has now been officially approved by the
International Telecommunications Union, and initial DRM implementation
will begin in year two of the new Spending Review period in Western
Europe. Pilot funding will enable the BBC's UK-based transmitters
to Europe to become digitally capable.
— Digital Production: The World Service is introducing
digital production technology to all the language services in
Bush House via the Go Digital project. As highlighted in our bid,
the second phase of this programme is to roll out the technology
to overseas offices and to upgrade digitally our English news
and production areas.
26. Detailed capital expenditure plans will be refined
as the three-year period unfolds. Provisional, headline expenditure
categories are shown in the table below.
| Outline capital plan | 2003-04
£million
| 2004-05
£million | 2005-06
£million
|
| Transmission & delivery | 11
| 17 | 18 |
| Digital production | 10 |
8 | 6 |
| Technology systems infrastructure | 5
| 3 | 4 |
| Other, including overseas bureau development
| 5 | 3 | 3 |
| Capital expenditure | 31 |
31 | 31 |
OUTCOMES
27. By 2006, in agreement with the FCO, the investments
outlined will deliver a number of important benefits for Britain.
The outcomes have been redefined to be more relevant and comprehensive
than previous measures, and include the following:
— As a headline target, the BBC World Service will
enhance its position as the best-known and most respected voice
in international radio and online broadcasting
— This will be measured by comparative information
on Awareness, Reach, Objectivity and Relevance scores in relation
to main international public service radio competitors, in key
markets covering around 75% of the global audience annually (the
remaining 25% to be surveyed at intervals). This will cover both
performance nationally and among target groups of cosmopolitans
(opinion formers and decision makers). In some markets—like
the USA—we will focus our surveys on key cities.
— Supporting measures include:
— Achieving a global World Service radio audience
of 153 million listeners per week. At present, our global audience
figure remains the world leader amidst exploding competition.
— Growing global World Service online traffic
levels to rise to 200 million monthly page impressions, and a
commensurate level of unique users (figure to be determined as
technology development allows).
— Securing a strengthened position as a leading
global interactive hub for debate and discussion, measured through
the number and quality of high-profile online forums in key languages
— Increasing our presence on FM across the world—to
rise to at least 145 capitals (75% of the global total) by 2006.
— Maintaining satisfactory audibility for short
wave transmissions where these remain relevant.
BBC World Service
June 2003
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