BBC Digital
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What the inquiry looked at
“The BBC has an ambition of extracting more value from its online presence and sees accelerating digital as essential to its success. To achieve this, the BBC is undertaking a digital transformation. The BBC is also seeking to enhance its digital portfolio, which includes iPlayer, Sounds, News and Sports. This inquiry is based on the National Audit Office investigation into BBC Digital . The Committee will question Director General of the BBC, Tim Davie CBE, in January, to further examine: - whether the BBC is on track to deliver value to its users from this digital transformation - the robustness of the BBC’s plans for digital transformation and - whether the BBC has put in place the resources and governance it needs to deliver this plan. If you have evidence on these questions, please submit it here by 6pm on Monday 2 January 2023. Please have a look at the requirements for written evidence submissions and note the Committee cannot accept material as evidence that has been published elsewhere.”
The committee's words, from the inquiry page on parliament.uk ↗.
What it found
The BBC is increasingly investing in digital products. As of September 2022, 88% of the time that BBC audiences spent with its services was through traditional television and radio broadcasting. But more people are moving towards digital services year-on-year and the BBC considers that it needs to plan for a future where TV and radio distribution is only provided through the internet. We welcome the BBC’s continued commitment to its universal service obligation and note that it is not actively putting a date on switchover (it expects this transition to take place through the 2030s). We caution that the BBC must not move too quickly towards digital only, leaving behind those with poor access to digital services. Maintaining universal service will depend on sufficient broadband coverage across the UK and the BBC will need to work with the Department for Digital, Culture, Media and Sport, which is also responsible for broadband roll-out, to address digital exclusion issues.
The BBC is operating in a very competitive environment across multiple genres and competing against different types of organisations including traditional broadcasters, streamers and audio services. Despite this the BBC has the advantages of its breadth of content, including live coverage, and its support for older technology for longer than its rivals. The BBC’s key digital products are performing well when compared with its rivals.
This is despite it only spending £98 million in 2021–22 on digital product development compared with £1.7 billion spent by Netflix on technology and development.
However, we are not convinced that the BBC currently knows the detail of the resources needed to achieve its digital plans and whether the £500 million to be invested annually by 2025 will be sufficient to also allow it to plan for an internet only future. It will need to develop clearer financial plans including which services it will close and what happens if it does not make the savings required elsewhere to allow it to reinvest in digital development.
The BBC wants to provide a more personalised service for its audiences but, unlike many of its rivals, it will need to develop a personalisation strategy that is consistent with public service obligations. It will need to move more quickly on this and in parallel develop its data security policies to ensure they are fit for purpose as the BBC collects more user data.
What the government said
The government responded on 27 June 2023. The deadline was 28 June 2023.
BBC Response to Public Accounts Committee: BBC Digital Forty-Sixth Report of Session 2022-2
BBC Response to Public Accounts Committee: BBC Digital Forty-Sixth Report of Session 2022-2, 3 July 2023.
Summary written by Accountability Index from the government's response.The BBC welcomes the Committee's recommendations and says it will incorporate them into its Digital First planning, while setting out where its approach differs, for example on personalisation.
- On an internet-only future, the BBC agrees it should work with other broadcasters, government and stakeholders, and says it is doing more detailed work and will develop "detailed plans and scenarios over the next year". It has not put a date on switchover and does not anticipate switching off over-the-air broadcasts "in the near or mid-term future".
- On the digital investment plan, the BBC says its aim is to hold the level of savings and reinvestment in its £500m plans, and that if existing savings plans are not achieved "additional savings plans" will be needed.
- On personalisation, the BBC says it is "not developing a standalone personalisation strategy per se" but incorporating personalisation into the workplans of relevant product teams by 2023/24. It commits to update the Committee on a broader data strategy by December 2023.
- On data, the BBC says it already endeavours to collect the minimum data required and that "work to review data retention practices is additionally in progress".
Treasury minutes: Government response to the Committee of Public Accounts on the Forty sixth report from Session 2022-23
Treasury minutes: Government response to the Committee of Public Accounts on the Forty sixth report from Session 2022-23, 27 June 2023.
Summary written by Accountability Index from the government's response.The document does not set out a government position on the report; it states only that the BBC "will write directly to the Committee regarding the recommendations in the report".
- The document is an introduction from the Committee, and it records that the Committee took evidence from the BBC on 21 November 2022 about its plans for digital transformation, based on a National Audit Office report.
- It states that the Committee published its report on 28 April 2023.
- No agreement, disagreement or specific commitment on the recommendations is stated in the document; the BBC's response is to come directly to the Committee, with no date given.
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How the inquiry ran
Each dot is a dated item listed on this page, from the inquiry's opening on 28 November 2022 to 3 July 2023. The dashed mark is the deadline Parliament records for the government's response.
- Oral evidence 12 Jan 2023
- Report 28 Apr 2023
- Government response 2 responses
- Correspondence 2 letters
What it recommended 4 recommendations · 26 conclusions
2Require BBC to confirm digital investment plan details and sufficiency of £500 million savings.
3Develop BBC plan for recruiting and retaining specialist digital staff, including succession planning.
4Accelerate development of the BBC's personalisation strategy for audiences and public service purposes.
5Review BBC data collection and storage policies, ensure minimum data collection and safety.
1Committee receives evidence regarding BBC's digital transformation plans.
6BBC shows limited strategic planning for wholesale move from traditional broadcasting.
7Director-General clarifies BBC's future digital strategy, stressing no active switchover date.
8Reversal of BBC Three's digital-only move highlights risks of premature switchover.
9BBC acknowledges and addresses NAO recommendations for future broadcast-internet service planning.
10BBC has a critical role in educating older, less tech-confident audiences on new technology.
11BBC's universal service commitments threatened by inadequate broadband roll-out and affordability issues.
12BBC's funding gap significantly increased to nearly £400 million by inflation.
13BBC's product development spending increasing, with significant investment planned for digital transformation.
14BBC's digital product development spending significantly lower than rival media organisations.
15BBC announced £500 million digital-first investment plan funded through savings and commercial income.
16BBC acknowledges £500 million digital investment plan might be insufficient, requiring difficult decisions.
17BBC needs more capital for technology investment but rules out subscription services for funding.
18BBC's digital investment plan lacks sufficient detail on savings and financial contingencies.
19BBC faces a shortage of specialist digital staff due to lower comparative pay levels.
20High staff turnover in BBC's digital product group is hindering technical development.
21BBC faces ongoing challenges attracting and retaining skilled technology staff in a competitive market.
22BBC aims to attract brilliant talent at discounted rates through its public service mission.
23BBC making progress towards sign-in targets for enhanced personalised digital user experiences.
24BBC lacks a comprehensive, organisation-wide strategy for personalising digital user experiences.
25BBC uses a combined approach of human curation and algorithms for content recommendations.
26BBC aims to develop unique recommendation algorithms reflecting its public service values.
27BBC's increased use of personal data for personalisation poses reputational risks.
28BBC affirms no plans to commercialise or sell user data, despite future increased collection.
29BBC planning documents lack explicit strategy for managing reputational risks from increased data use.
30BBC reports 27 data breaches since April 2020 with no ICO enforcement action.
Evidence
Oral evidence sessions 1
- 12 Jan 2023BBC Digital3 witnesses, listed belowparliament.uk ↗
Who gave evidence 3 witnesses
- Leigh TavazivaChief Operating Officer, BBC
- Storm FaganChief Product Officer, BBC
- Tim Davie CBEDirector General, BBC