Champion of UK programming overseas
14. The BBC argues that Worldwide offers international
exposure and recognition to UK talent.[33]
Acting as a "platform" for BBC and independently produced
programmes, overseas channels such as BBC America and BBC Entertainment
have been credited with launching British stars on the global
stage. For instance, "The Office […] broke new
ground in the US following its hugely successful transmission
on BBC America".[34]
The BBC also claims that this exposure has been the catalyst for
programme formats to be purchased by US networks and re-made as
local versions (e.g. The Office, Ramsay's Kitchen Nightmares).[35]
However, there are no figures publicly available to determine
whether this has actually generated a profit for the licence fee
payer and the BBC could certainly be more forthcoming in this
respect.
15. Nevertheless, BBC Worldwide's overseas network
of channels and programmes do have the potential to enhance and
extend the BBC's reputation overseas. The BBC told us that Worldwide's
activities have built the BBC's reputation for quality and objectivity
in key markets such as India, the USA and Eastern Europe.[36]
It argues that the extension and development of its brand overseas
is an "increasingly important element of the BBC's ability
to attract and retain top talent for the benefit of UK licence
fee payers".[37]
However, some of Worldwide's other activities, notably its investment
in overseas production houses, were identified by other witnesses
as having the potential to damage the BBC brand.[38]
We consider this issue in greater depth in Chapter 5, but a summary
of the view of the BBC's critics is that its minority stakes in
overseas production houses give Worldwide little editorial control
over content, while subjecting the BBC to reputational risk. Critics
also maintain that such stakes may limit the returns for licence
fee payers by giving individual companies preferential rights
to BBC programmes or formats, rather than auctioning each in the
open market.
16. We recognise that significant benefits are
realised from the BBC undertaking commercial activities. Clearly,
the profits generated by the exploitation of its intellectual
property allows the BBC to invest more in its public service remit
than would otherwise be the case. We also note the positive sentiments
expressed by significant sections of the creative economy in relation
to the business practices of BBC Worldwide, although we are conscious
that the industry is unlikely to bite the hand that feeds it.
The principle that the BBC should be able to maximise the value
of its brand by exploiting its intellectual property, subject
to appropriate safeguards, in order to relieve pressure on the
licence fee is clearly sensible. We share the view of the public
and the Government in this respect. In the chapters which follow
in this report, however, it is the manner in which some of the
BBC's commercial revenue is generated, and the governance arrangements
within which Worldwide operates, which give rise to legitimate
concern.
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