Category: Βι¶ΉΤΌΕΔ
Date: 07.07.2006
Printable version
The Board of Governors has today published the Βι¶ΉΤΌΕΔ's Annual Report and Accounts for 2005/2006 which records further progress in delivering an efficient
Βι¶ΉΤΌΕΔ focussed on providing licence fee payers with quality content across all
platforms. See - press release.
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Notes to Editors
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The Annual Report & Accounts covers the period 1 April 2005 to 31 March 2006.
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The Board of Governors has also published today two reports produced by the
National Audit Office, as part of the value-for-money programme of work agreed
by the Governors' Audit Committee with the NAO. See separate press release.
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A summary of key performance data included in the Annual Report is listed below
(pages 6-8).
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1. Summary of Governors' Assessment of Performance
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The Annual Report, produced by the Governance Unit, is divided into several
sections, providing an extensive assessment by the Governors of the Βι¶ΉΤΌΕΔ's
performance. These include:
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- The Βι¶ΉΤΌΕΔ now and in the future: which provides a description
of the new
performance measurement framework that will take effect with the start of the
new Charter (pages 6 to 9) and the cost of the Governance Unit, which
fell
slightly from Β£8.4m to Β£8.3m (page 8)
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- Pan-Βι¶ΉΤΌΕΔ objectives: which cover programme strategy, driving
digital,
value-for-money; impartiality and independence, and accountability (pages 14-
20).
The Governors' objectives for 2006/2007 are also included (page 21). On
impartiality and independence, there is a report on management's handling of
the
significant editorial issues over the year, including the General Election and
Live 8.
Further information on this is also provided in the Compliance Section
(page 89) and the review of Βι¶ΉΤΌΕΔ News (pages 46 to 49).
The accountability
objective includes a report on programme complaints (page 19), where there has
been an improvement in the volume of those responded to within 10 workings days
(91% compared to 88% last year).
The full complaints report is on pages 62 and
63 and notes the significant increase in volume primarily driven by the improved
accessibility for making complaints.
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- A review of each of the Βι¶ΉΤΌΕΔ's services, based on commitments
in the
Statements of Programme Policy for 2004/2005 and issues arising from the normal
course of the Βι¶ΉΤΌΕΔ's business (pages 24 to 59).
The Governors summarise
their
assessment in an overview of each platform:
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Television
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Βι¶ΉΤΌΕΔ Television is facing sharply increased competition as the number of digital
channels grows rapidly. Audiences to Βι¶ΉΤΌΕΔ ONE and Βι¶ΉΤΌΕΔ TWO have fallen and the
rising numbers watching the digital channels Βι¶ΉΤΌΕΔ THREE and Βι¶ΉΤΌΕΔ FOUR, whilst
increasing, have not yet made up the losses.
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Younger viewers have been lost in
disproportionately large numbers - when they switch from analogue to digital
they show an increased tendency also to switch away from television.
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Creatively, Βι¶ΉΤΌΕΔ ONE has had an outstanding year. Βι¶ΉΤΌΕΔ TWO is continuing to
refine its schedule in order to increase its appeal and reach while staying true
to its remit.
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Βι¶ΉΤΌΕΔ THREE's audience is continuing to grow strongly - the
challenge is to broaden reach by appealing to younger audiences. Βι¶ΉΤΌΕΔ FOUR has
had a very good year and its audiences rate it very highly indeed.
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In
children's television, the CΒι¶ΉΤΌΕΔ Channel is in strong creative health and has
continued to increase its audience. CBeebies recorded a reduction in reach, a
reflection of both the pressing need for creative renewal of the channel and of
the increasing competition for its audience.
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Radio
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Overall, Βι¶ΉΤΌΕΔ Radio continues to perform strongly - indeed its top performing
output attracts audiences on a par with hit television shows.
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In general terms
audiences are strong, although the picture varies across the portfolio and the
rising popularity of downloaded music threatens reach to younger listeners who
now have somewhere else to go for their music other than radio.
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The Βι¶ΉΤΌΕΔ's
digital-only stations are generally in good health and are beginning to make a
contribution to the overall reach of Βι¶ΉΤΌΕΔ Radio.
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A new remit for Βι¶ΉΤΌΕΔ Asian
Network was set to deal with some problems previously identified.
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We have
always regarded distinctiveness as lying at the heart of the remits for Radio 1
and Radio 2. Under the present governance system we believe we have been
successful in ensuring that management have delivered distinctive output for the
two networks.
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Using the tools available to the Trust we believe it will be
easier both to maintain this - and to provide further objective measures of
performance in this regard.
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New Media
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The proposed Βι¶ΉΤΌΕΔ i-Player will be subject to a Public Value Test before we or
the Trust decide whether or not to approve a full launch.
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bbc.co.uk has made
good progress towards re-shaping itself to meet the new tighter remit we set for
it last year to ensure a clearer focus on delivering the Βι¶ΉΤΌΕΔ's public purposes.
The mid-term review we promised in response to the Graf report is scheduled for
2007 and we would anticipate the Trust would fulfil this commitment.
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Βι¶ΉΤΌΕΔ
management have a good record of partnership with private sector new media
operators and we welcome their commitment to continue to develop this.
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Indeed,
we have made it clear that the Governors, and in future the Trust, will pay
close attention to the Βι¶ΉΤΌΕΔ's new media activities to ensure that the Βι¶ΉΤΌΕΔ
operates in a way that does not inhibit UK entrepreneurial activity in this
sector.
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News
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Overall audiences to Βι¶ΉΤΌΕΔ News have fallen somewhat, although the picture varies
sharply between media.
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In very broad terms, audiences for traditional Βι¶ΉΤΌΕΔ
television news bulletins and current affairs programmes are falling, although
audiences for online and on-demand news continue to surge, and audiences to Βι¶ΉΤΌΕΔ
radio news remain strong.
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Output across all platforms has remained strong and
confident, with notable responses to breaking stories and set-piece events at
home and abroad, and some fine pieces of investigative reporting.
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The move to
place News 24 at the heart of the Βι¶ΉΤΌΕΔ television news operations is already
paying dividends.
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Global News
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This has been a year of great change in many parts of the division - change
driven by the pressing need to respond rapidly and imaginatively to major shifts
in technology, audience and geopolitics.
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This has particularly affected the
World Service, which has undertaken one of the biggest transformations in its
history.
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We are encouraged that, despite these upheavals, audiences to the
division's news services have reached record levels - with tri-media weekly
reach above 210 million.
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Nations & Regions
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Regional television news bulletins and national and local radio continue to
perform strongly across the United Kingdom.
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Βι¶ΉΤΌΕΔ Wales has made a particularly
strong contribution to network drama this year.
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The sense of connection between
the Βι¶ΉΤΌΕΔ and its audiences will be strengthened over the coming years by
increased commissioning and production across the UK and through the move of
significant parts of the Βι¶ΉΤΌΕΔ production base out of London.
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By the end of the
next Charter period the Βι¶ΉΤΌΕΔ plans to spend more than Β£1billion a year on
programmes made outside London - an increase of more than a third.
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2. Financial performance
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- Licence fee revenue Β£3,101m (up Β£160m on 2004/5)
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- Cost of collection 4.9% (down from 5.2% 2004/5)
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- Evasion 4.7% (down from 5.0%)
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- Public Service net funds were Β£18m at year end (from Β£89m
net borrowings
last year)
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- Income & Expenditure broadly in balance (small surplus
of Β£3m on Group
income of over Β£4bn. Compares to Β£188m deficit last year)
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- Headcount for the Group has reduced by 4,000 since 1 April
2004 and
2,523 in the year to 31 March 2006
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- Βι¶ΉΤΌΕΔ Worldwide returned in cash Β£185m (up 28% from Β£145m last
year)
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- Cumulative self-help savings Β£3.2bn at March 2005
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- Self-help target of Β£3.3bn on track to be exceeded by March
2007
and therefore "broadly zero debt position" by the end of the current
licence fee
settlement period
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- Public Service Broadcasting spend up Β£129m since 2004/5,
of which Β£53m
was additional spend on the digital channels and in particular
on Βι¶ΉΤΌΕΔ Jam, and
Β£107m was exceptional restructuring costs for the efficiency programme
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- 82% of transmitted programme spend is analogue (from
85% in 2004/5. The
reduction is due to boosted spend on sports on 2004/5). Total analogue spend
was
Β£1,778m. Total digital spend was Β£378m
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- Βι¶ΉΤΌΕΔ defined benefit pension scheme retains a small Β£13m surplus (on
assets of Β£7.8bn) based on the formal actuarial valuation carried out in 2005
(down from surplus of Β£274m from interim actuarial valuation in 2004)
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- FRS17 calculation shows net surplus of Β£170m - up from 2004/5 net
deficit of Β£422m
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- Expenditure on overheads was 11% of all spend on output
(compared to 10%
in 2004/5 - mainly due to one off benefits last year, including National
Insurance and property rebates)
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3. Audience data
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All weekly reach data is based on 15 minutes; TV viewing is based on all
individuals aged 4+; Radio listening is based on all adults aged 15+.
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a. All Βι¶ΉΤΌΕΔ
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- Total Βι¶ΉΤΌΕΔ Television and Radio weekly reach = 92.7%
of population (down
slightly, from 92.9% in 2004/2005)
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- Total Βι¶ΉΤΌΕΔ Television weekly reach = 85.3% (down from 86.6%
last year)
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- Total Βι¶ΉΤΌΕΔ Radio weekly reach = 66.5% (marginally down, from
66.6% last
year)
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- bbc.co.uk average monthly reach was 13.7m adults (up
from 10.6m last
year)
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- bbc.co.uk reached 57% of GB internet audience in April
2006.
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b. Βι¶ΉΤΌΕΔ Television
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- Βι¶ΉΤΌΕΔ ONE weekly reach in all homes 79.7% (down from
81.9% last year)
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- Βι¶ΉΤΌΕΔ ONE weekly reach in multi-channel homes 77.1% (down
from 78.7% last
year)
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- Βι¶ΉΤΌΕΔ TWO weekly reach in all homes 59.1% (down from
61.4% last year)
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- Βι¶ΉΤΌΕΔ TWO weekly reach in multi-channel homes 52.9% (down
from 53.3% last
year)
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- Βι¶ΉΤΌΕΔ THREE weekly reach in multi-channel homes 16.1%
(up from 14.8% last
year)
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- Βι¶ΉΤΌΕΔ FOUR weekly reach in multi-channel homes 6.1% (up
from 4.8% last
year)
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- CΒι¶ΉΤΌΕΔ weekly reach in multi-channel homes 6.0% (up from
5.6% last year)
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- CBeebies weekly reach in multi-channel homes 8.8% (down
from 9.0% last
year)
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- Βι¶ΉΤΌΕΔ News 24 weekly reach in multi-channel homes 7.4%
(up from 6.7% last
year)
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- Βι¶ΉΤΌΕΔ Parliament weekly reach in multi-channel homes
0.2% (down from 0.3%
last year)
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c. Βι¶ΉΤΌΕΔ Radio
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- Radio 1 weekly reach 20.6% adults (up from 20.4% last
year)
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- Radio 2 weekly reach 26.5% (down from 27.2% last year)
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- Radio 3 weekly reach 4.1% (down from 4.2% last year)
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- Radio 4 weekly reach 19.2% (down from 19.3% last year)
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- Radio Five Live weekly reach 12.0% (down from 12.7%
last year)
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- Digital Radio networks now reach 2.2 million adults
each week
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d. All Βι¶ΉΤΌΕΔ Share
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- Total Βι¶ΉΤΌΕΔ TV & Radio share of viewing/listening = 42.7% (down from
43.1%)
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- Total Βι¶ΉΤΌΕΔ TV share = 34.9% (down from 36.2% last year)
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- Total Βι¶ΉΤΌΕΔ Radio share = 54.9% (up from 54.0% last year).
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Βι¶ΉΤΌΕΔ Governance Unit
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