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British Broadcasting Corpora-tion

Company Profile

Reference Code: DF6A4575-EC99-49A3-8C71-EB552752F3AC

Publication Date: Aug 2007



British Broadcasting Corporation DF6A4575-EC99-49A3-8C71-EB552752F3AC

© Datamonitor (Published Aug 2007)

This profile is a licensed product and is not to be photocopied

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British Broadcasting CorporationTable of Contents

T ABLE OF CONTENTS

Facts & Overview ...........................................................4

Business Descr iption .................................................... 5

History ............................................................................ 6

Major Products & Services ........................................... 9

Key Employees ............................................................ 11

Key Employee Biographies ........................................ 12

Locations & Subsidiaries............................................16

Company View ............................................................. 17

SWOT Analysis ............................................................ 19






British Broadcasting CorporationCompany Overview

COMPANY OVERVIEW

British Broadcasting Corporation (BBC) is a UK based broadcasting company. BBCoperates several public TV channels, a 24 hour cable news channel, digital channels,

national and digital radio networks, and an online news service. The group primarily

operates in the UK. It is headquartered in London, UK and employs about 23,100

people.

The group recorded revenues of £4,177.3 million during the fiscal year ended March

2007, an increase of 4.3% over 2006. The operating loss of the group was £176.1

million during fiscal year 2007, as compared to the operating loss of £208.2 million in

2006. The net profit was £60.7 million in fiscal year 2007, as compared to the net

profit of £3.6 million in 2006.

KEY F ACTS

Head Offic e Broadcasting House

Portland Place

London

W1A 1AA

GBR

Phone 44 20 7580 4468

Fax 44 20 7637 1630

Web Address http://www.bbc.co.uk

# Employees 23,037

Turnover (£ Mn) 4,177.3

Financial Year End March

http://www.bbc.co.uk/

http://www.bbc.co.uk/






British Broadcasting CorporationBusiness Description

BUSINESS DESCRIPTION

British Broadcasting Corporation (BBC) operates several public TV channels, a 24hour cable news channel, digital channels, national and digital radio networks, and an

online news service. The BBC World Service broadcasts radio programming in more

than 30 languages and is the sole source of news in some parts of the world. The

group’s subsidiary BBC Worldwide offers international TV channels (BBC Prime, BBC

America), program distribution, and magazine publishing.

The group’s main business services include BBC Worldwide, BBC Resources, BBC

Monitoring, BBC Research Central, BBC Training, BBC International, beeb.net,

bbcshop.com, bbccanadashop.com, and bbcamericashop.com.

The group’s subsidiary BBC Worldwide sells programmes and footage, runs

commercial TV channels and joint ventures worldwide and produces magazines,

books, tapes, DVDs, CDs and other merchandise. BBC Worldwide operates 18 wholly

owned and joint venture channels that provide entertainment, learning and children

programmes to around 288 million homes worldwide.

BBC Resources offers creative and technical production solutions which include

studio hire, outside broadcasts, post production, design, and costumes advice. BBC

Monitoring supplies news, information and comment gathered from mass media

around the world. It operates around 3,000 radio, TV, press, internet and news agency

sources, translating from up to 100 languages.

BBC Research Central provides Information, footage, pronunciation, radio and photo

research services. BBC International Unit supplies production and technical

assistance, TV facilities to overseas broadcasters transmitting from the UK.

BBC Training & Development Courses provides tailored training and consultancy

services to help individuals and companies working in broadcasting and related

industries.

The beeb.net provides internet access service from the BBC. The Internet shoppingservices provided by BBC Worldwide include bbcshop.com (EU),

bbccanadashop.com, and bbcamericashop.com. These website provide the

customers with media content including DVD/Video, Audio books, downloads, and

gifts.






British Broadcasting CorporationHistory

HISTORY

The British Broadcasting Company was formed in 1922 by a group of leading wirelessmanufacturers. Daily broadcasting by the BBC began in Marconi’s London studio,

2LO, in the Strand, and from Birmingham and Manchester.

In 1927, the British Broadcasting Company became the British Broadcasting

Corporation (BBC) when it was granted its first Royal Charter. The BBC left its first

headquarters in 1932, for Broadcasting House in Portland Place.

The first foreign language service was in Arabic and was introduced in 1938. On the

eve of the Second World War, the BBC launched services to Europe in French,

German, Italian, Portuguese, Spanish and English.

The BBC opened the world’s first regular service of high definition television from

Alexandra Palace in North London, in 1936. The transmissions reached only the

20,000 homes with a television within a 35 mile range of Alexandra Palace. Like radio,

the world’s first regular high definition television service developed rapidly between

1936 and 1939.

BBC Television Centre in West London opened in 1960 and in 1964 BBC2 was

launched with the remit of offering an alternative and more experimental style of

television broadcasting. Radio 1 began in 1967 following the banning of the pirate

radio stations. The Light, Third and Home services were renamed Radios 2, 3 and 4.

In 1967, the first BBC local radio station opened in Leicester and within a few years

there were 20 local stations. In the same year color television broadcasts began on

BBC2, followed by BBC1 in 1969.

CEEFAX teletext was introduced in 1972 and used the television screen to offer

viewers up-to-the-minute news and information. BBC Radio faced competition for the

first time when the first commercial stations, LBC and Capital, opened in London in

1973 and in 1979 the BBC began subtitling of programs on CEEFAX.

The end of the decade saw the BBC bring together all its commercial activities under

a single organization, BBC Enterprises. This was the forerunner of BBC Worldwide

which, by selling BBC programs around the world as well as videos, records, books

and magazines, returned significant funds back to the BBC to invest in new programs.

The 1990s was a decade of innovation and transformation for the BBC; the arrival of

the digital technology and the Internet during the decade marked a new era for

broadcasting. BBC Radio went from strength to strength and the BBC launched Radio







5 in 1990. It was designed to broadcast a mixture of education, youth and sports

programs, with a selection of World Service output.

BBC researchers registered the address of bbc.co.uk in 1991 with the AcademicName Registration Service and between 1993 and 1994 the BBC Networking Club

was set up. Radio 5 was replaced by Radio Five Live in 1994 which was devoted to

live news and sport. In the late nineties the BBC’s new digital services brought

exciting opportunities to television and radio. These created a completely new way for

the BBC to communicate with its audiences.

BBC radio programs from different networks were streamed for the first time in 1996

on the net and 1997 marked the official launch of BBC Online. BBC News 24 was

launched in 1997 as a round the clock, 24 hour news channel. It provided a

continuous news service available to viewers on all digital platforms.

BBC Radio pioneered the world’s first national digital radio service in 1995 and by

1999, the five UK networks, the World Service, the Asian Network and the BBC’s

national radio services in Scotland, Wales and Ireland are also available through

digital satellite and web.

In 2002 the BBC’s digital developments took a major step forward and launched two

new children’s services: CBeebies aimed at children under five and CBBC, aimed at

6-13-year-olds. BBC Knowledge was also replaced in 2002 by BBC FOUR, a new arts

and culture channel.

Following the collapse of the ITV Digital terrestrial service, a consortium made up of

the BBC, BSkyB and Crown Castle, the transmitter company was awarded the DTT

license by the Independent Television Commission. Free view, the new digital

network, was launched in 2002. There were initially 24 free TV channels available on

the Freeview platform, eight from the BBC (plus other interactive and radio services

from the BBC).

Three new radio stations were also launched in 2002: 5 Live Sports Extra, which

provided uninterrupted sports coverage; 6 Music, which offered a mix of classic rock

music from the past, as well as contemporary music and 1Xtra, a station for fans of

cutting edge urban music such as rap, hip hop and R&B. In 2003, BBC Choice was

replaced with a new BBC Three channel, aimed at 16 to 34 year-olds.

The corporation launched a new text service for BBC Local Radio in 2004. The

service provided the latest news, sport, travel and weather headlines to listeners with

digital radios. In 2005, the BBC welcomed the British Government’s proposal for a

new 10 year Charter from 2007 and continued secured funding through the license







fee, as detailed in the Green Paper a report published by the Secretary of State for

Culture, Media and Sport.

BBC Global Channels Asia announced the launch of BBC Entertainment on Astro,Malaysia’s direct to home (DTH) satellite television services provider in January 2007.

Four months later, the group shifted five offices from London to mediacity, UK at

Salford Quays, an internationally significant hub for the media and creative industries

with the UK’s leading broadcast, media and technology companies in it. In July 2007,

BBC launched iPlayer, the service which enabled the computer users to download the

programs broadcasted by BBC over the past seven days.






British Broadcasting CorporationMajor Products & Services

M AJOR PRODUCTS & SERVICES

British Broadcasting Corporation (BBC) is a UK based broadcasting company. Thegroup’s key products and services include the following:

Television Channels:

BBC One

BBC Two

BBC Three

BBC Four

CBBC

CBeebies

Jam BBC

Journalism:

BBC News

BBC News 24

BBC World services

BBC World

BBC Parliament

BBC Sport

Interactive TV

iPlayer

Audio and music:

Radio 1

Radio 2

Radio 3

Radio 4

Radio Five LiveFive Live Sports Extra

1Xtra BBC

BBC 6 Music

BBC 7

Asian Network

England local television and radio

Scotland local television and radio

Wales/Cymru local television and radio






British Broadcasting CorporationMajor Products & Services

Northern Ireland local television and radio

BBC Orchestras

BBC Singers

BBCi websites

BBC learning and education

Digital curriculum

BBC World Service

BBC America

BBC Canada

BBC Food

BBC Kids (Canada)

BBC Prime

BBC World

Animal Planet

People+Arts

UKTV

UKTV (Australia)

BBC websites:

bbcshop.com

bbccanadashop.com

bbcamericashop.com






British Broadcasting CorporationKey Employees

KEY EMPLOYEES

Name Job Title Board Total Annual Comp.Mark Thompson Director General

(Since: 2004)

Executive Board -

Mark Byford Deputy Director General

(Since: 2004)

Executive Board -

Jenny Abramsky Director of Audio and Music

(Since: 2006)

Executive Board -

Jana Bennett Director of Vision

(Since: 2006)

Executive Board -

Tim Davie Director of Marketing, Communica-

tions and Audiences

(Since: 2005)

Executive Board -

Ashley Highfield Director of BBC Future Media andTechnology

(Since: 2006)

Executive Board -

Stephen Kelly Director of BBC People

(Since: 2006)

Executive Board -

Zarin Patel Group Finance Director

(Since: 2005)

Executive Board -

John Smith Chief Executive of BBC Worldwide

(Since: 2004)

Executive Board -

Caroline Thomson Chief Operating Officer

(Since: 2006)

Executive Board -

Marcus Agius Director

(Since: 2006)

Non Executive Board -

Mike Lynch Director

(Since: 2007)


David Robbie Director

(Since: 2007)


Samir Shah Director

(Since: 2007)


Robert Webb Director

(Since: 2007)







British Broadcasting CorporationKey Employee Biographies

KEY EMPLOYEE BIOGRAPHIES

Mark Thompson

Board: Executive Board

Job Title: Director General

Since: 2004

Mr. Thompson has been Director General of British Broadcasting Corporation (BBC)

since 2004. He is the Chairman of the Executive Board and the BBC Direction Group,

made up of all the BBC’s divisional Directors. Prior to his current position, he has

served as Director of Television; Director of National and Regional Broadcasting;

Controller BBC Two; Head of Factual; Head of Features; Editor, Panorama, and

Editor, Nine O’Clock News. Previously, he served as the Chief Executive of Channel 4

from 2002 to 2004.

Mark Byford


Job Title: Deputy Director General

Since: 2004

Mr. Byford has been Deputy Director General of BBC since 2004. He is Chairman of

the Journalism Board which brings together all the BBC’s journalism at aninternational, UK, national, regional and local level. He is also a Trustee of the BBC

Pension Scheme. Prior to the current position, he has served as Director, Global

News and World Service; Director of Regional Broadcasting; Head of Centre, Leeds,

and Home Editor, Television News.

Jenny Abramsky


Job Title: Director of Audio and Music

Since: 2006

Ms. Abramsky has been Director of Audio and Music since 2006. Prior to the current

position, she served as Director of Continuous News; Controller, BBC Radio Five

Live; Editor, Radio News and Current Affairs, and Editor, Today.

Jana Bennett


Job Title: Director of Vision

Since: 2006







Ms. Bennett has been Director of Vision since 2006. She is also a Director of BBC

Worldwide. Previously, she served as General Manager and Executive Vice President

at Discovery Communications in the US, Director of Production at the BBC, Head of

BBC Science, Editor of Horizon, and Senior Producer on News-night and Panorama.

Tim Davie


Job Title: Director of Marketing, Communications and Audiences

Since: 2005

Mr. Tim Davie has been Director of Marketing, Communications and Audiences since

2005. He is also a Director of Freesat (UK) and Digital UK. Previously, he served at

Pepsi from 1993 as Vice President, Marketing and Franchise, Europe. He served in

the Procter & Gamble’s marketing department in 1991.

Ashley Highf ield


Job Title: Director of BBC Future Media and Technology

Since: 2006

Mr. Highfield has been Director of BBC Future Media and Technology since 2006.

Previously, he served as Managing Director of Flextech Interactive, the pay television

group’s new media division and as Head of IT and New Media for NBC’s Europeanchannels.

Stephen Kelly


Job Title: Director of BBC People

Since: 2006

Mr. Kelly has been Director of BBC People since 2006. He is Trustee of the BBC

Pension Scheme. Previously, he served as Chief HR Officer at BT Global Services,

BT’s global networked IT services business.

Before joining BT, he led HR functions in British Rail, National Provident Institution

and Balfour Beatty.

Zarin Patel


Job Title: Group Finance Director

Since: 2005







Ms. Patel has been Group Finance Director since 2005. She is a Director of BBC

Worldwide. Earlier she has served as Head of Revenue Management and Group

Financial Controller. She was trained as a chartered accountant with KPMG, where

she spent 15 years before joining the BBC in 1998. She is also a Governor, University

of the Arts London, and member of their Audit Committee.

John Smith


Job Title: Chief Executive of BBC Worldwide

Since: 2004

Mr. Smith has been Chief Executive of BBC Worldwide since 2004. He has formerly

served as BBC Chief Operating Officer and Director of Finance. Currently he is

Director at Severn Trent and Chairman of their Audit Committee. Earlier he has

served as Director of Vickers and as a member of the advisory board of Zurich

Financial Services UK and was a Director of the Royal Television Society and Member

of the Accounting Standards Board until 2004.

Caroline Thomson


Job Title: Chief Operating Officer

Since: 2006

Ms. Thomson has been Chief Operating Officer of BBC since 2006. Earlier, she has

served as Director of Strategy since 2004 and Director, Policy and Legal (formerly

Public Policy) since 2000. She has been a Lead Director of the Charter Renewal Task

Force since 2004. She is also a Director of Digital UK and of The Pensions Regulator.

Previously, she has served as Deputy Chief Executive, BBC World Service;

Commissioning Editor, Science and Business at Channel 4, and political assistant to

Roy Jenkins.

Marcus Agius

Board: Non Executive Board

Job Title: Director

Since: 2006

Mr. Agius has been Director of BBC since 2006. He is Chairman of the BBC Executive

Board’s Remuneration Committee. He is also Chairman of Barclays. He is a Trustee

of the Royal Botanic Gardens, Kew and Chairman of the Foundation and Friends of

the Royal Botanic Gardens, Kew. Previously, he served Chairman of Lazard London

and Deputy Chairman of Lazard and Chairman of BAA.







Mike Lynch


Job Title: Director Since: 2007

Mr. Lynch has been Director of BBC since 2007. He is a technology entrepreneur and

founder and Chief Executive Officer of Autonomy.

David Robbie


Job Title: Director

Since: 2007

Mr. Robbie has been Director of BBC since 2007. He is Chairman of the BBC

Executive Board’s Audit Committee. Previously, he served as Group Finance Director

at CMG, then Chief Financial Officer at Royal P&O Nedlloyd before joining Rexam as

Group Finance Director in 2005.

Samir Shah


Job Title: Director

Since: 2007

Mr. Shah has been Director of BBC since 2007. He is also the Chief Executive Officer

of Juniper Communications and former Head of Political Programmes and Head of

Current Affairs at the BBC. He is Chairman of the Runnymede Trust, a trustee of the

Victoria and Albert Museum and Special Professor in Post-Conflict Studies in the

School of Modern Languages and Cultures, University of Nottingham.

Robert Webb


Job Title: Director

Since: 2007

Mr. Webb has been Director of BBC since 2007. He is the chairman of the BBC

Executive Board’s Fair Trading Committee. Previously, he served as Head of

Chambers, 5 Bell Yard and a Recorder of the Crown Court between 1993 and 1998.

He became General Counsel for British Airways in 1998. He is also a Director of the

London Stock Exchange, Hakluyt and a Board Member of London First.






British Broadcasting CorporationLocations & Subsidiaries

LOCATIONS & SUBSIDIARIES

BBC Films 1 Mortimer Street

London

W1T3JA

GBR

T: 44 20 7765 0251

F: 44 02 7765 0278

BBC Northern Ireland Broadcasting House

Ormeau Avenue

Belfast

BT2 8HQ

GBR

T: 44 87 0010 0222

F: 44 28 9032 6453

BBC Breakfast

Room 1605

BBC Television Centre

Wood Lane

London

W12 7RJ

GBR

BBC Panorama

Room 1127

BBC White City

201 Wood Lane

London

W12 7TS

GBR

beeb.net Customer

Services

21 Tyndrum Street

Glasgow

G4 0JY

GBR

BBC Ceefax

Room 7540

BBC Television Centre

Wood Lane

London

W12 7RJ

GBR






British Broadcasting CorporationCompany View

COMPANY VIEW

A statement by Mark Thompson, Director General of British Broadcasting Corporationis given below. The statement has been taken from the company’s 2007 annual

report.

As I write this, our friend and colleague Alan Johnston remains missing in Gaza.

Perhaps by the time you read it, the situation will have changed. For now though,

Alan’s family and those who know him at the BBC are trapped in a suspended state of

anxiety and uncertainty.

In photos and on camera - unsurprisingly given the stories he covers - Alan has a

serious look, the very picture of a formidable BBC foreign correspondent. Off camera

he has a different side - fiercely intelligent and engaged in the debate, but with a

mischievous twinkle in his eye.

More than anything else the BBC is built on the talent, courage and integrity of the

men and women who work for it. These qualities matter in everything we do, but

nowhere more than in our journalism. In Iraq, Afghanistan, Gaza and in many other

countries and regions, BBC journalists remain when other news organisations have

left. They know that agency copy and pictures - no matter how good - are no

substitute for the immediacy, integrity, accuracy and human empathy of eyewitness

reportage.

We take the safety of our journalists and everyone else who works for and with the

BBC, incredibly seriously. We also have to recognize there are assignments and vital

stories to report that can never be made risk-free.

It has been a momentous year for the BBC in other ways - a strong new Charter, a

challenging license fee settlement and Creative Future, our vision of what the BBC

could become if it achieves its full creative potential in the new digital environment.

With The Street, Life On Mars and How Do You Solve A Problem Like Maria? It was a

fine year for TV drama and entertainment, while Planet Earth combined extraordinarytechnical innovation with awe-inspiring artistry. Two years ago, perception of quality

was a significant concern for the BBC Governors; in 2006/2007, many of the key

measures in this area went up. BBC Radio proved it’s possible to grow audiences

while strengthening a reputation for creativity and excellence. Our online and

interactive services broke one record after another.

But there were bumps along the way as well. The editorial mistakes on Blue Peter and

Saturday Kitchen were so serious because, despite being unintentional, they went






British Broadcasting CorporationCompany View

right to the heart of our contract with our audiences - a contract based on trust. We are

taking every step we can to minimize the chances of such mistakes happening again.

Our response to the telephony controversy was part of a broader effort by the BBC tobecome more open and more willing to learn from its mistakes. The new BBC Trust

has begun a broad and searching debate about the impartiality, quality and

distinctiveness of the BBC’s services. It is a debate we welcome. We believe that a

more open BBC will be a stronger BBC and one which serves the public better.

Behind the scenes, BBC Worldwide delivered triple the profits of three years ago back

to the public services. The transformation of the BBC gathered pace, releasing money

and resources for new investment but without audiences reporting any loss of quality

in existing services.

Our present task is to develop detailed plans for the future which we can place before

the BBC Trust. Some - like the BBC iPlayer and high definition television - will rely on

new digital technologies. But we know that success for the BBC ultimately depends

not on technology but on the creativity and professionalism of our people. As the

public have always known, they are our most precious resource.

Which is why the story of Alan Johnston matters so much.






British Broadcasting CorporationSWOT Analysis

SWOT ANALYSIS

British Broadcasting Corporation (BBC) is a UK based broadcasting company. BBCoperates several public TV channels, a 24 hour cable news channel, digital channels,

national and digital radio networks, and an online news service. The group has strong

news segment, capturing around 11% of the global news audience. Strong news

segment provides a base for the group to capture the market share in other media

segment. However, increasing competition threatens to erode the market share of the

group.

Strengths

Strong news segment

BBC has strong news segment supported by global correspondent network. BBC

Global News includes BBC World Service radio, BBC World television, the BBC’s

international online news services, BBC Monitoring, and BBC World Service Trust.

BBC news provides extensive coverage across variety of issues including hostilities,

war, sports, politics and various national and international happenings. BBC’s global

news coverage capabilities have enabled strong market position in UK and

international markets. Around 80% of the adults in the UK and 11% of global news

audience accounting to around 233 million people access to various kinds of news

across radio, TV and internet. The group has 44,000 hours of news productions over

the BBC. Strong news segment provides a base for the group to capture the market

share in other media segment.

Wide product portfolio

The group has wide product portfolio which includes programs that entertain, provide

learning and information for various age groups across the globe. The groups TV

channels include BBC One, BBC Two, BBC Three, BBC Four, CBBC, CBeebies, Jam

BBC among others. While BBC One, BBC Two, BBC Four provide broad range of

Strengths Weaknesses

Strong news segment

Wide product portfolio

Strong performance of BBC Worldwide

Weak operating performance

Opportunities Threats

iPlayer

Efficiency improvement initiatives

ArabicTV

Intense competition

Controversies harming reputation

Technological changes







programs on factual and specialty subjects, comedy, drama, documentaries,

performance, music, film and topical features, BBC Three, CBBC, CBeebies, Jam

BBC provide content for learning and development of youth and younger children.

Other TV channels that provide local content to other programs include BBC English

regions, BBC Northern Ireland, BBC Cymru Wales and BBC Scotland.

The group’s news channels include BBC News, BBC News 24, BBC World services,

BBC World, BBC Parliament, and BBC Sport. BBC provide music, live concert

programs, festival and other studio sessions over Radio through its Audio and Music

segment which includes Radio 1, Radio 2, Radio 3, Radio 4, Radio Five Live, Five

Live Sports Extra, 1Xtra BBC, BBC 6 Music, BBC 7, and Asian Network channels. The

content of the Audio and Music is made available after the broadcast fro seven days

over various other platforms. BBC Radio monthly downloads has grown at 57%,

increasing to 3.2 million in March 2007. As of March 2007, BBC Radio had 33.5million adult listeners accounting to 56% of UK radio listeners. The other channels of

the group include BBC America, BBC Canada, BBC Food, BBC Kids (Canada), BBC

Prime, BBC World, and Animal Planet. The group also operates website like

bbcshop.com, bbccanadashop.com, and bbcamericashop.com. Wide product

portfolio enables the group to optimize its product mix by offsetting losses from one

set of products with the profits from other set.

Strong performance of BBC Worldwide

BBC Worldwide, the group’s commercial activities segment operates global channels,sells TV programs, involves in content production, magazines and digital media. This

segment is also focused on the future content creation. This segment has recorded

strong performance in the last year. The segment recorded profits of £111 million in

March 2007, 24% increase over 2006 and achieved a threefold increase over three

years. The group invests its profits on the new content generation and funding future

programme making. Continued focus on the new content generation and future

programmes would provide the group to gain an edge over competitors.

Weaknesses

Weak operating performance

The group has recorded weak operating performance over the past few years. BBC’s

has incurred operating losses fro the past five years 2003-2007. Operating loss of

BBC reached £176.1 million in 2007, as compared to operating loss of £406.6 million

in 2003. Though the operating loss is declining over the mentioned period it remains

significant in the fiscal year 2007. The group’s cash flows have declined from £216.1

million in 2006 to £133.6 million in 2007. Continued losses from the operations would







adversely affect the financial position and the group’s ability to invest in the future

production ventures.

Opportunities

iPlayer

The group has launched iplayer, a service that enables the computer users to

download the programmes broadcasted on the television for the past seven days.

This service allows free downloading of 450 hours of programs on to the computers.

Initially this service is made available for all the customers using Microsoft products.

This service is likely to increase the availability of BBC’s content and add more

broadband and 3G mobile users to the subscriber base. Development of iPlayer

compatible with other software platforms would increase the subscriber base of the

group, enabling it to strengthen its revenue streams.

Efficiency improvement initiatives

The group has been implementing few initiatives for improvement of its efficiency in

the last two years. In 2005, the group has initiated ’Three year Value for Money’

efficiency program to make £355 million annual recurring cost savings across the

BBC. Until March 2007, the group has saved £228 million through automation of

business and programme making processes; contracts with suppliers and outsourcing

of more activities, and rationalizing its property. In line with its strategy, the group has

closed its services in ten languages.

Currently, the group is planning to focus on the quality of its TV and radio hours and

Web pages rather than the volume of the content. As part of its efficiency

improvement initiatives the group is planning to cut around 6,000 jobs by the end of

current financial year. Effective implementation of these initiatives would provide the

group with necessary saving and over a period improve its financial position.

ArabicTV

BBC is about to launch ArabicTV in 2007. ArabicTV service is expected to be themajor international news provider in the Middle East offering a service in Arabic

across television, radio and online, sharing views and perspectives across the region.

This service would provide 12 hours of broadcasting in the Middle East and would be

available free via satellite or cable connection. ArabicTV expands the global foot print

of the group in to the Middle East and provides better content regarding Arabic

countries for global broadcasting.

Threats




Intense competition

The group faces intense competition from other broadcasting, production and media

companies. Depending on the broadcasting medium viz. radio, TV and internet thegroup competes with other radio stations, television channels and other website that

provide similar content. Some of the competitors of the group include British Sky

Broadcasting Group, Channel Four Television Corporation, FremantleMedia, ITN,

Granada International, Cinesite, and You Tube. In acquiring subscribers for its new on

demand service, iPlayer, the group competes with new entrants like You Tube and

established players like Channel 4 which provide similar content. Intense competition

threatens to affect the market share of the group.

Controversies harming reputation

The group had faced contrivances alleging misuse of license fee to poach talent from

competitors. The salaries of top BBC’s presenters in TV and radio were leaked to

newspapers, many of which were inaccurate. The market rates for key talent, paid as

salaries to the BBC artists were compared with those paid by the competitors. BBC

payments were considered high and the group was accused of disrupting markets by

paying higher salaries. Involvement in such controversies would adversely affect the

reputation of the group.

Technological changes

The group’s businesses operate in the highly competitive and rapidly changing media

and entertainment industries. Several of its businesses are dependent to a large

extent on their ability to acquire, develop, adopt, and exploit new and existing

technologies to distinguish their products and services from those of their competitors.

Technological development, application and exploitation can take long periods of time

and require significant capital investments. If the group chooses technologies or

equipment that do not become the prevailing standard or that are less effective, cost-

efficient or attractive to its customers than those chosen by its competitors, or if it

offers products or services that fail to appeal to consumers, are not available at

competitive prices or do not function as expected, the group’s competitive position

could deteriorate, and its operations, business or financial results could be adversely

affected.

Media Britishbraodcastingcorporation

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