2. BBC WORLD SERVICE THREE YEAR PLAN
2005-08 AND VISION TO 2010
1. INTRODUCTION
This paper sets out a series of significant
changes in the strategic direction of the BBC World Service (BBCWS)
to 2010. It includes specific developments funded by agreed Grant
in Aid levels to and including 2007-08, and outlines:
— The context of the changes.
— The proposed strategic vision to
2010.
— The proposed specific investments
to the end of 2007-08, including proposed service reductions.
— Aspirations beyond 2007-08.
— Success measures to 2010.
2. CONTEXT
2.1 This revised strategy for the BBC World
Service proposes the biggest single set of changes in its recent
history. It is designed to take advantage of geopolitical change,
specifically in Central and Eastern Europe, the development of
independent media there, and support from the FCO for reprioritisation
which will enable the BBC to shift resources to where audience
need is greater and where competition is intensifying.
2.2 In the context of limited funds, and
a more restrictive public spending climate by the Government,
the strategy is predicated on selective and increased investment
in key areas: television and video news in the most important
vernacular languages complementing the global role of BBC World,
increased interactivity across all three media (TV, radio and
online), modernised distribution for radio and stronger marketing.
2.3 While there is a strong case a priori
for the closure of some language services, funds released
from this, plus a refocusing of the English network, and the benefits
of a simpler management structure and savings in administration
and support areas will enable us to make the new investments.
In addition, over the 2005-08 period, other efficiency savings
and changes in the distribution portfolio will fund rising costs.
All this adds up to a demanding set of financial targets in a
part of the BBC that has already made significant efficiency savings
over many Spending Review periods.
2.4 The proposals have been thoroughly discussed
with the Foreign and Commonwealth Office and we have secured the
written approval of the Foreign Secretary for the intended closures
as well as the launch of Arabic television.
3. PROPOSED STRATEGIC
FRAMEWORK TO
2010 AND FINANCIAL
PLAN TO
2008
3.1 Strategic framework to 2010
3.1.1 Vision
To be the world's best known, most creative,
and most respected voice in international news, thereby bringing
benefit to the UK, the BBC and to audiences around the world.
— To provide the most trusted, relevant,
and highest-quality international news in the world, and an indispensable
service of independent analysis and explanation, with an international
perspective which promotes greater understanding of complex issues.
— To connect and engage audiences by
facilitating an informed and intelligent dialogue—a Global
Conversation—which transcends international borders and
cultural divides; and to give audiences opportunities to create,
publish and share their own views and stories.
— And by so doing, to enable people
to make sense of their increasingly complex world and, thus empowered,
lead more fulfilling lives.
3.1.2 Target audiences
— We will target influencers—opinion
formers and decision makers—in every market.
— In less developed markets, we will
also target news followers—audiences with a wider need for
basic news and information.
— We will offer lifeline services to
audiences in areas of conflict or failed states.
3.1.3 Priority markets
We have assessed our existing services against
criteria of geopolitical importance and information need, as well
as prospects for continued impact. As a result we have redefined
our priority markets and services:
— English will continue to be our core
global offer. Alongside BBC World, the BBC World Service English
radio network and the international news online site will serve
audiences around the world as part of a multimedia offer from
the BBC.
— We will seek to provide a vernacular
multimedia service in priority markets—the Arab and wider
Islamic world including Pakistan, Iran and Indonesia; and China,
Russia, India, and Spanish-speaking Latin America.
— China is a critical market but there
is as yet no likelihood of better access to the TV market in the
time frame in question. We will work with BBC Worldwide to maximise
the value of our current offer; and we will continue to lobby
Chinese authorities.
— We will continue to serve less developed
markets in Africa and Asia, such as Nigeria and Bangladesh, as
well as a number of information poor markets with clear need for
independent information.
— We will also continue to serve a
number of other markets such as parts of Eastern Europe, the Balkans
and Turkey, but review our offers there regularly based on political,
market developments and audience impact.
— We will close our services in 10
languages that no longer fulfil these agreed strategic criteria:
Czech, Greek, Hungarian, Polish, Slovak, Slovene, Bulgarian, Croatian,
Thai and Kazakh. These currently attract under 4 million weekly
listeners for a spend of ca £12 million. Portuguese for Brazil
will become an Internet-only offer, and we will reduce spend on
Hindi online.
3.2 Specific investment proposals through
2007-08
3.2.1 Arabic Television
Developing an Arabic television news service
is our highest priority. We would launch a 12-hour offer in early
2007, supported by a text and audio service for the remaining
part of the day, with a view to going to full 24-hour provision
as funds become available.
— TV is the dominant news medium in
the Arab world.
— Audience research commissioned in
2003, and repeated in 2005, has indicated a very strong demand
for a BBC Arabic television service. Between 80-90% of those surveyed
said they would be "very" or "fairly likely"
to use the service—with about half in the "very likely"
group. The trusted nature of the brand—its independence
and strong record in news—is cited by most potential users
as the reason for their strong interest.
— The offer would build on the trusted
legacy of the BBC's Arabic radio services. In surveys from the
region over recent years, and in bespoke focus group research,
the BBC emerges as the most trusted international news provider
on radio.
— Even though there are strong competitors
in the region—mainly Al Jazeera and Al Arabiya—the
Middle East is still relatively immature as a TV news market.
There is a clear opportunity to occupy a genuine "high ground"
in the market, away from the perceived pro-US offer of Al Hurra
and with a different and wider perspective to the Arabic regional
channels such as Al Jazeera and Al Arabiya.
— The establishment of an Arabic television
service would mean the BBC was the only media player with a genuine
tri-media offer and all the opportunities which flow from this
in terms of cross-promotion and awareness raising.
— We would maximise synergies between
a linear TV offer and emerging on-demand opportunities on broadband,
mobile and other platforms, especially video news reports.
— The channel proposition would consist
of world class news and current affairs about international and
major regional issues. This would be complemented by discussion
programmes and debates mounted in conjunction with our radio and
online services.
— We believe the commercial impact
on BBC World will be minimal as the channel propositions will
be complementary rather than competitive.
— In five years' time, we would expect
at least 25 million weekly viewers, as part of an overall BBC
tri-media portfolio, and to be the largest international Arabic-language
TV news channel in terms of reach after Al Jazeera.
3.2.2 Digital interactive services
— BBC World Service will aim to deliver
broadband video news reports in vernacular languages and make
them available on broadband (including as downloads), mobile,
and other platforms.
— High priorities for video investment
will be Arabic, Spanish, Portuguese for Brazil, Persian and Russian.
— We will invest in a wide range of
opportunities for audiences to engage with our content and to
publish and share their views and stories—the Global Conversation.
3.2.3 Strengthened distribution on FM and other
platforms
We will invest in the acquisition and management
of distribution partners on FM and other emerging audio platforms
and in ensuring our product portfolio remains competitive.
3.2.4 Marketing activities
We will invest further in marketing our services
in the context of increasing competition.
These investments will total over £33 million
over three years.
3.2.5 Other television aspirations
We will also move quickly to explore the viability
of priority TV services outside Arabic—focusing on Russia,
Latin America, and India, by leveraging partnerships with local
and regional players, given the difficult financial climate.
3.3 Funding change: 2005-06 to 2007-08
We are proposing to achieve a balance of efficiency
savings and reprioritisation representing up to 20% of our total
operating budget in order to enable new high-priority activities
and absorb rising costs.
3.3.1 Language service reductions
The strategic analysis shows that there are
10 language services that no longer fulfil the key criteria for
investment. Eight of these (Czech, Greek, Hungarian, Polish, Slovak,
Slovene, Bulgarian, and Croatian) are in Central and Eastern Europe,
where the huge changes in the political and media environment
of the last fifteen years now means that the need for BBC language
services is far lower, and in many cases the trend is of audience
decline. We also propose to close the Thai service and Kazakh
for reasons of lower impact. Furthermore, we propose to reduce
our investment in Portuguese for Brazil, retaining the online
service.
In addition, with the roll out of an Arabic
tri media service, savings will be sought by 2007-08 on production
and distribution synergies. Once Arabic TV is proven, we will
also examine Arabic radio with a view to reducing investment in
non-peak areas.
3.3.2 English output
— The English schedule is also changing
to reflect increased focus on news and information. A number of
non-News programmes will be decommissioned in the area of factual
and music and there will be a merging of programme titles in other
areas. These changes have already been announced to the relevant
staff.
— There will be significant savings
in the way BBC News currently produces its output for the World
Service. This will involve a re-organisation in the way the teams
are set up and their senior producer supervision.
— Initial estimates indicate a number
of job losses in BBC News which supplies the World Service with
its English news and current affairs programmes. This is in addition
to 16 post closures in non-News programmes.
3.3.3 Regional structures and support areas
We will reduce the number of managerial regions
from five to three. This rationalisation will lead the way to
further savings when we complete our review of support staff and
business development which has been on hold pending the outcome
of our review.
3.4 Rising costs and efficiencies
— Before funds can be refocused for
new investments in 2005-08, we must also meet our obligations
under Spending Review 2004 in relation to rising costs. We will
continue to achieve further efficiency savings of at least 2.5%
on baselines throughout the 2004 Spending Review period, in order
to fully fund all rising costs.
3.5 Overall financial picture
The overall financial picture over the three
year plan shows that:
— We will absorb most of our rising
costs, via efficiency savings and changes in distribution methods.
— We will invest new funds granted
under SR02 and SR04 in the vital developments outlined earlier,
and towards the savings generated by language service closures
and other programme/managerial changes.
— Funds have been set aside to cover
expenses such as increased employer pension contributions, from
2007-08.
3.6 Impact on jobs
— It is currently forecast that there
will be 236 overall job reductions from these restructuring proposals.
However more job reductions will be announced after the impact
of the restructuring on BBC News has been discussed with unions
and staff.
— The current forecast total is made
up of 218 posts due to the closure of 10 language services (around
127 jobs in the UK and 91 overseas); and a further 18 posts lost
in other reprioritisation, such as the Portuguese for Brazil service
concentrating on news bulletins and online.
— In all around 201 new jobs have been
or will be created by the new investment. It is expected that
148 new jobs will be created by the new Arabic channel; 41 new
posts for New Media and interactive initiatives; and 12 in international
offices.
3.7 Aspirations beyond 2007-08
To deliver the 2010 vision we also aspire to
further initiatives beyond 2007-08. Where possible, we plan to
bid for additional funding in Spending Review 2007 to fund these.
— We will seek to upgrade our 12-hour
Arabic television offer to a full 24 hour service.
— We will seek to launch a limited
Persian television offer funded through Grant in Aid.
— Depending on the evolution of television
markets elsewhere, we will continue to explore opportunities in
other languages, emphasising partnerships as a cost-effective
route to market.
— We will invest in further digital
interactive services.
— Video production
in further languages: Urdu, Mandarin and Hindi.
— Continuing expansion
of interactive and user-generated content.
— We will continue to invest in strengthening
radio distribution where relevant.
— We will continue to invest in strengthening
marketing initiatives.
3.8 Strategic success measures by 2010
— BBC World Service aims to achieve
the highest reputational ratings of any international news provider
in all priority markets, overall and among target audiences.
— By 2010, we aim to have increased
the global reach of the BBC's international news services—including
through the World Service—around the world from over 190
million to over 250 million weekly users. While we expect radio
audiences to decline somewhat, despite a migration from short
wave to FM and other platforms, growth in digital media and vernacular
television will more than compensate, alongside growth in BBC
World.
— The services operated by the BBC
World Service will make a key contribution:
— We are aiming to
vigorously defend radio audiences, though by 2010 we expect a
slight decline in radio listening.
— We are aiming to
reach significant new audiences through vernacular television
by 2010, with about half through Arabic. The balance would come
through a presence in a further range of vernacular TV markets—depending
on partnerships and additional funding.
— We are aiming to
multiply our reach in new digital media like online, broadband,
and mobile.
— We aim to secure the highest reach
of any international news provider in all priority markets—both
overall and among target audiences.
— We also aim to be recognised as providing
the most innovative interactive services of any international
news provider.
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