Thompson
unveils plans to transform the Βι¶ΉΤΌΕΔ
The Βι¶ΉΤΌΕΔ's Director-General Mark Thompson today outlined a new vision for programmes
and content focused on 'excellence', plus radical plans for funding the ideas
and transforming the Βι¶ΉΤΌΕΔ into a simpler, more agile and creative digital broadcaster.
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An initial 2,900 jobs could go and extra resource to
invest in programmes will also be released through new ways of working, productivity
gains, new technology and efficiencies, as well as overhead cuts.
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The
target is an annual Β£320 million savings within three years, all of which
will be redirected into programme making.
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Mr
Thompson told more than 27,000 staff, listening around the UK and the world, that
change was precipitated by digital technology, which is shifting audience expectations
and their relationship with the Βι¶ΉΤΌΕΔ through on demand, interactivity and personalisation.
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Outlining a new programme strategy focused
on 'excellence' and more investment in journalism, drama, comedy, music, learning,
children's, sporting and national events and areas where the Βι¶ΉΤΌΕΔ has 'commanding
reputations', Mr Thompson said audiences still expected the Βι¶ΉΤΌΕΔ to "raise
its game" with ever better content.
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This
was how the Βι¶ΉΤΌΕΔ would succeed in the digital world, he said.
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He
emphasised that the debate around renewing the Βι¶ΉΤΌΕΔ's Charter also meant that the
Βι¶ΉΤΌΕΔ had to act now to seize the argument, answer its critics and show how it could
release resources to invest in ambitions outlined in its Charter Review manifesto
Building Public Value and the developing programme strategy.
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"My
vision for the future of the Βι¶ΉΤΌΕΔ has three parts: a bold new programme and content
strategy based above all around the idea of excellence; a transformation of the
Βι¶ΉΤΌΕΔ into a state-of-the art digital broadcaster; and an irreversible shift in
the culture of the Βι¶ΉΤΌΕΔ towards simplicity, opportunity and creativity.
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"We
should do what's right for a strong, independent Βι¶ΉΤΌΕΔ and its audiences in the
long term, not what's politically convenient now.
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"There
is an amazing creative prize for the Βι¶ΉΤΌΕΔ and our audiences Β– but it's a prize
that comes at a price. To achieve all this, the Βι¶ΉΤΌΕΔ must undergo nothing short
of transformation.
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"This is not a time
for introspection and endless debate. It's a moment for action.
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"Any
discussion about the future level of the licence fee is bound to begin by asking
how much of the future we can afford to pay for ourselves by becoming more efficient."
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He added that the final investment will depend on how much responsibility the
Βι¶ΉΤΌΕΔ is given to help build digital Britain: "Whichever
way you look at it, the investment needed will run in the many hundreds of millions
of pounds."
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Four reviews have been looking
at the main issues since June, alongside a new programme strategy.
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The
Βι¶ΉΤΌΕΔ's Governors have approved the overall strategy towards transformation and
efficiencies.
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They will consider final costs
and implementation plans for all recommendations in March, to ensure moves are
in licence payers' interests, before giving final approval.
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Mr
Thompson moved to reassure staff who may be affected by job losses, outsourcing
or job moves out of London by emphasising: "The Βι¶ΉΤΌΕΔ has a reputation as a
fair and considerate employer.
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"We will
not be walking away from our responsibilities or the redundancy terms we offer.
We will not abandon the annual pay round or walk away from the Βι¶ΉΤΌΕΔ's defined benefits
pension scheme."
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He said people would
have plenty of time to consider moves from a personal perspective and that comprehensive
relocation assistance would be available for those people whose work moves out
of London.
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The relevant Unions will be consulted
throughout the process.
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Current headline recommendations
include:
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Programme
Strategy
"Audiences want us to
raise our game," said Mr Thompson.
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"They
want a Βι¶ΉΤΌΕΔ totally focused on excellence, which gives them more quality, more
ambition, more depth than they get from any other broadcaster.
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"They
look to us for the 'commanding reputations' of broadcasting. This is where the
greatest efforts and our biggest investment should go. This is the content that
will really stand out in the fragmented digital future."
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Commanding reputations: News & Current Affairs; Comedy and Drama; Music
and music making; Knowledge building and Learning; Sporting and National Events;
Children's; Local and Regional services; New services like interactivity; Navigation
and media literacy.
Plus: original entertainment and programmes that are part of the national
conversation like Jonathan Ross and Have I Got News For You; ground-breaking new
features and format factual programmes.
Investment will be made in: original British drama and comedy across radio
and television; origination budgets for the successful CΒι¶ΉΤΌΕΔ and CBeebies channels;
Βι¶ΉΤΌΕΔ FOUR; Music, including a new pan Βι¶ΉΤΌΕΔ music strategy and the Alternative Proms
as a contemporary contrast to the classical festival; Specialist Factual and interactivity;
original journalism, enhanced news gathering and current affairs on Βι¶ΉΤΌΕΔ ONE, with
more money and slots for Panorama and enhanced presence in the Middle East and
across the Islamic world; sporting and national events; extending the impetus
behind documentaries and the Arts, especially on Βι¶ΉΤΌΕΔ ONE and TWO; more ambitious
content on Radio and in New Media.
But less: peaktime repeats on Βι¶ΉΤΌΕΔ ONE, derivative or formulaic programmes.
Value For Money Review
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Three year savings target of Β£320 million Β– % will vary from division
to division
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Professional Services, including
Finance, Property and Business Affairs, Βι¶ΉΤΌΕΔ People, Strategy & Distribution,
Policy & Legal, Marketing, Communications and Audiences.
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Costs
in Professional services will be reduced by 25% (Β£57m). Divisional support
will also be reduced.
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Total number of posts
affected = 2,500, half as redundancies and half outsourced... Β£68³Ύ
Better
procurement and non headcount savings... Β£93³Ύ
15%
efficiency savings in output areas - Radio & Music, TV, New Media, Βι¶ΉΤΌΕΔ News,
Nations & Regions... Β£79³Ύ
15% savings
in cost-per-hour prices for commissions from all supply sources... Β£80³Ύ
(This includes DEC, F&L and Sport but excludes
sports rights).
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Mr Thompson said: "Plans
will combine programme strategy aspirations, VFM savings and the impact of other
reviews.
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"This means net redundancies
may be less than a 15% savings target suggests.
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"We
want to invest in new content whilst also making productivity gains in existing
output.
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"It may mean fewer posts on existing
tasks, but new posts for new tasks.
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"But
we need to save before we can spend."
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Content
Supply Review
Mr Thompson said: "This
is about making sure audiences have access to the best programmes and content
in the years to come.
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"There is a legitimate
case for giving greater and fairer access to independents but I passionately believe
a 50% quota would be a grave mistake.
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"In-house
production is one of the great glories of the Βι¶ΉΤΌΕΔ. It is a critical mass of talent
and training which is important to the whole of the UKΒ’s creative industries.
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"As broadcasting fragments it's all the
more important that the Βι¶ΉΤΌΕΔ maintains a strong and confident in-house production
capacity."
25% statutory independent production quota maintained in TV Β– ensuring the
Βι¶ΉΤΌΕΔ 'comfortably exceeds' it every year
in-house production commissioning guarantee of 50% of non-news output
more creative decisions delegated to in-house leaders
executive producers able to plan more effectively
25% Window of Creative Competition for both in-house and the independents
Reduce in-house production capacity for TV from over 70% to 60% overall, ie 10%
over the minimum output deal
Averages will vary from genre to genre
In Factual & Learning this means just over 400 job losses
Simplify and improve the commissioning process, with equal access for both in-house
and external suppliers
In Radio Β– extend the 10% voluntary independent quota to include Sport, radio
in the Nations and the new digital radio channels
A review of commissioning on Radio 4
Jenny Abramsky, Director of Radio & Music, will lead development of a new
pan Βι¶ΉΤΌΕΔ music strategy
In New Media Β– a 25% quota for external production of online content and
services in line with Graf Report recommendations
The Βι¶ΉΤΌΕΔ will retain strength and depth across all genres and sufficient scale
to continue to help to train the industry.
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Out
of London
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Mr Thompson said: "Out
of London is a much bigger idea than creating a state of the art creative and
broadcast centre in Manchester.
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"It ties
in with all the themes in Building Public Value about re-connecting and embedding
the Βι¶ΉΤΌΕΔ in communities all over the UK.
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"It
will change our tone of voice as an organisation.
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"It
will open doors to new talent and new perspectives.
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"It
will win back trust in parts of the country which can currently feel quite alienated
from the Βι¶ΉΤΌΕΔ."
Manchester - a state of the art centre, populated by services relevant
in decades to come, with brilliant career and creative opportunities
Moves of real money and decision making power will redress lower spend per head
in the North than in London and develop a thriving creative community
Moves include: children's TV and Radio including two national children's networks,
CΒι¶ΉΤΌΕΔ and CBeebies; Βι¶ΉΤΌΕΔ Sport; Five Live and Five Live Sports Extra; New Media
and R&D; Formal Learning, including the Digital Curriculum
Create a Media Enterprise Zone in partnership with PACT, regional development
bodies and other broadcasters
Estimated number of staff moving = 1,800
Value of commissioning moving = Β£275m. Value of network production moving
= Β£225m
Governors support the Manchester vision. It is a large scale investment and they
will give final sign off when the financial picture for the next Charter period,
including the licence fee, is clear
It is likely to be five years before any major moves take place
Peter Salmon will lead the Manchester initiative
Other moves - besides Manchester, network commissions from the Nations
will increase by 50% to 17% of overall network commissions
TV drama made outside London to increase from 30% to 50% during the next Charter
We will appoint a commissioner for Daytime in Birmingham, for Comedy and Entertainment
in Glasgow and part of Factual commissioning will be based in Bristol
We will pursue the vision of more local TV and radio, Open Centres and buses giving
people access to learn new media, outlined in BPV.
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Commercial
Review
Mr Thompson said: "We
believe that the Βι¶ΉΤΌΕΔ should only have commercial activities which exploit and/or
export Βι¶ΉΤΌΕΔ content and the Βι¶ΉΤΌΕΔ brand.
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"We
have a duty to run these activities to maximise profits for the licence-payer.
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"However, it is not essential that all
businesses are fully-owned by the Βι¶ΉΤΌΕΔ.
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"We
will actively start to explore options, including those of partnering, joint venturing
or sale with the management teams of Βι¶ΉΤΌΕΔ Broadcast and Βι¶ΉΤΌΕΔ Resources, and with
the market."
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Βι¶ΉΤΌΕΔ Broadcast and Βι¶ΉΤΌΕΔ Resources - we will look at new ownership options (JV, partnership
or sale) which work in the best interests of the businesses and the Βι¶ΉΤΌΕΔ
We will be inviting bids for Βι¶ΉΤΌΕΔ Broadcast in the New Year
Βι¶ΉΤΌΕΔ Resources Β– we will ensure strong contracts with the Βι¶ΉΤΌΕΔ and look at
the impact of other Reviews, particularly Out of London and work moving to Manchester,
then decide on the best option
There will be strong safeguards for continuity of service and for staff who provide
crucial and high quality services to the Βι¶ΉΤΌΕΔ and to other clients
Βι¶ΉΤΌΕΔ Worldwide Β– the Βι¶ΉΤΌΕΔ should be the long term owner of Worldwide's TV channels
business, TV sales and magazines
There are opportunities for growth in global channels and sales with other UK
broadcasters
Magazines should focus more on brands and subjects connected to the Βι¶ΉΤΌΕΔ's core
programmes and mission, but there will be opportunities overseas
Trailing magazines on air should stop
Worldwide's books, learning and other businesses lack scale so JVs, partnering
or sale will be considered
There will be governance reform in Worldwide by introducing non-executive directors
Βι¶ΉΤΌΕΔ Worldwide will have the challenge of doubling profits over the next 24 months.
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Any
proposal to transfer the ownership or control of Βι¶ΉΤΌΕΔ Resources or to privatise
Βι¶ΉΤΌΕΔ Broadcast whole or in part would require the approval of the Secretary of
State.
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Later today, Mr Thompson will be delivering
the New Statesman Lecture and will also say: "I've come back to the
Βι¶ΉΤΌΕΔ at a critical moment in its history: a moment which calls both for a spirit
of conservation Β– for the nurturing and protection of some of the Βι¶ΉΤΌΕΔ's greatest
strengths and traditions Β– but also for a spirit of quite radical change.
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"In
a way, you can see the Βι¶ΉΤΌΕΔ as three quite different things wrapped up into one.
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"First, it is a very substantial, highly
creative, sometimes rather unruly multimedia broadcaster.
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"Second,
it is a financially and constitutionally unique institution in the British public
firmament.
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"Third, it is a World Heritage
site.
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"Despite its eccentricities and
failings, it remains one of the greatest Β– perhaps the greatest Β– force
for cultural good on the face of the earth."
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