Source · Select Committees · Public Accounts Committee
Recommendation 4
4
Accepted
Prioritise generation of new intellectual property and report clearly on progress against its targets.
Conclusion
Progress in developing new IP remains behind target, which in turn will limit sustainable long-term revenue streams. The BBC told us that it has achieved 31% of income for 2024–25 from its most profitable streams through new intellectual property (IP), against a 40% ambition for generating revenue from new (IP). Owning and developing IP is central to securing sustainable long-term returns; the success of Bluey, for example, illustrates the commercial value this can bring. While the BBC recognises the importance of strengthening its IP portfolio, this is a complex area with high stakes as new content carries a real risk of failure, even as it offers the potential for significant future income. To address this, the BBC told us that it is investing in talent within its commercial operations, supporting independent production companies, and acting earlier to identify promising IP opportunities. We note that these are positive steps, but progress must accelerate if the BBC is to develop intellectual property and long-term sustainable returns in a fast-changing media environment. recommendation The BBC should: a. set out in its response to this report how it will prioritise generation of new IP given its importance in delivering viewers and generating sustainable long-term returns; and b. report clearly on progress against its IP target in its Annual Report and Accounts, to support accountability.
Government Response Summary
The BBC agreed that generating new IP is important, describing its ongoing activities in content creation, brand nurturing, and investment in third-party IP. It stated it already reports on Owned IP success but will not split out a specific IP target in its Annual Report and Accounts.
Government Response
Accepted
HM Government
Accepted
The BBC agrees with the Committee’s recommendation. Recommendation implemented BBC Studios makes and distributes some of the world’s most sought-after content, as well as nurturing well-known brands and formats - both for the BBC, but also for other partners and platforms globally. Its mixed model means it is focused on developing new IP as well as nurturing existing IP and creating formats from it that are sold globally (for example, Strictly Come Dancing for the BBC, and Dancing with the Stars for the US market with Disney/ABC; or Death Valley which was one of the biggest Comedy launches in the UK in the last five years and which has now been sold to 100 markets globally). It also takes on work for hire with major international platforms and broadcasters, such as the award-winning Baby Reindeer and Conclave. The BBC operates under fair trading and has no internal quotas, so BBC Studios wins business with the BBC as part of a fair and competitive process. It is worth noting that the entire commissioning market has fallen over the last few years, which affects all producers. BBC Studios is committed to developing long-term Intellectual Property (IP), which remains central to its strategy for growing the Global Content Studio. BBC Studios’ mandate to drive long term sustainable returns means we will develop all IP which delivers value, albeit the BBC remains our biggest single customer. Alongside BBC Studios-created IP, it also invests in and exploits third-party IP (for example, Bluey – the most-streamed show in the USA for two years running) to diversify the business and build future value, targeting opportunities and investing in sources that can ultimately generate Owned IP. 4b PAC recommendation: The BBC should: • report clearly on progress against its IP target in its Annual Report and Accounts, to support accountability. The BBC partially agrees with the Committee’s recommendation Revenue generated from IP is closely monitored by BBC Studios’ management teams to assess performance and understand the contribution of its IP blend. BBC Studios already regularly reports on the success of its Owned IP and impact on profits in the BBC’s Annual Report and Accounts, and it will continue to provide this level of transparency going forward but will not split out a specific IP target.