BBC Commercial Operations

HC 24, Fifth Report of Session 2008-09 - Report, Together with Formal Minutes, Oral and Written Evidence

Author:

House of Commons - Culture, Media and Sport Committee

Publisher:

TSO (The Stationery Office)

The BBC has engaged in commercial activities since the launch of The Radio Times in 1923. In recent years the BBC's commercial activities have undergone a marked expansion, with the Corporation seeking both to maximise income from traditional sources and diversify into other areas. This growth in the scope and value of the BBC's commercial activities instigated an inquiry by the Culture, Media and Sport Committee.

This report, 'BBC Commercial Operations (HC 24)', presents the findings of the Committee's inquiry, which looked at:

• the governance of the BBC's commercial arm, BBC Worldwide;

• the activities of BBC Worldwide, including programme sales, production, magazines and websites;

• BBC Worldwide's acquisition of Lonely Planet; and

• the possible partnership between BBC Worldwide and Channel 4.

There are major benefits from the BBC undertaking commercial activities. The profits generated by the exploitation of the BBC's intellectual property can be reinvested in the BBC's public services, to the benefit of licence fee payers. However, the manner in which some of the BBC's commercial revenue is generated and the governance arrangements within which the BBC Worldwide operates causes increasing concern.

Worldwide has proved successful in recent years in exploiting new commercial opportunities, made possible by a loosening of the rules that govern the limits to its operations. However, there is a balance to be drawn between Worldwide generating a return for the BBC and limiting Worldwide's operations in order to ensure it upholds the BBC's reputation and does not damage its commercial competitors.

Worldwide's minority stakes in overseas production companies, its controversial acquisition of Lonely Planet, and its growing portfolio of magazines, suggest that the balance has been tipped too far in favour of Worldwide's unrestricted expansion, jeopardising the reputation of the BBC and having an adverse impact on its commercial competitors.

It is in the interests of the UK's creative economy as a whole that BBC Worldwide's activities are reined back. The BBC Trust should reinstate the rule that all BBC commercial activity must have a clear link with core BBC programming.

Extent	253 pages	ISBN	9780215529589
Size	A4	Price	£23.00
Binding	Paperback	Published	07 Apr 2009
Availability	Black and white copy, 1-3 days	Delivery	Delivery options and charges

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