Source · Select Committees · Public Accounts Committee
Recommendation 22
22
Accepted in Part
Creating new intellectual property is inherently uncertain, necessitating early engagement with UK talent.
Conclusion
At the same time, the BBC was clear that creating new IP was inherently uncertain and high-stakes: it told us that success was unpredictable, describing commissioning as a “spread-betting game” in which some developments would fail even when strategic bets were well-judged. It also said it therefore needed to “get there early,” working proactively to identify promising UK writers and partners at an early stage to improve the odds of success in a competitive market.48 The BBC 43 BBC Group Annual Report and Accounts 2024–25, p. 76 and Q 44 44 Qq 41, 44 45 Qq 43-44 46 Qq 41, 44 47 Qq 41-42 48 Q 46 13 also noted “chill winds” across the wider production sector, which added to execution risk even as the BBC seeks to expand its pipeline of BBC owned titles.49
Government Response Summary
The BBC will ensure that BBC Commercial’s overall returns including dividends to the BBC Group are published annually in its Annual Report and Accounts, while reporting what is required under accounting regulations.
Government Response
Accepted in Part
HM Government
Accepted in Part
3.1 The BBC partially agrees with the Committee’s recommendation. Target implementation date: 2026 aligned with Ofcom and BBC Annual Report and Accounts publication. 3.2 The BBC is committed to report whatever is required under accounting regulations. While the BBC already also provides a substantial amount of information on its commercial activities in its Annual Report and Accounts, it will ensure that BBC Commercial’s overall returns including dividends to the BBC Group are published annually in its Annual Report and Accounts. 3.3 The BBC Group already reports annually to Ofcom who monitor its commercial activities. Annual reporting to Ofcom includes detailed financial performance of BBC Studios and BBC Studioworks, its two core commercial businesses, including revenue, direct and common costs, and therefore both Gross Profit and percentage profit margin (Earnings Before Interest, Taxes, Depreciation, and Amortisation). The BBC Group’s reporting obligations to Ofcom are detailed in the BBC’s Annual Report and Accounts, along with its other general duties in relation to commercial activities.