Our strategic objectives

2. Become more international

In order to ensure long-term growth, especially in the online age where borders are increasingly irrelevant, we need to develop the business internationally. We have initially focused on the English-speaking markets of the USA and Australia, while also developing strategies for other key regions. Understanding consumer demand region by region, providing localised content and rolling out engaging and relevant BBC-branded television and online channels are important facets of our approach.

Our aim is to increase the share of headline sales derived from outside the UK to two-thirds of the total by 2012. In 2010/11 we achieved 55.5% (54.6% 2009/10). Given strong growth in the UK too (up 5.6%), we expect to take a further year to reach this target.

International


Next steps

  • Focus strongly on growing our market share in the USA and Australia

  • Drive sales and new business, on a regional basis, in all other overseas markets, developing specific business plans for each region

  • Grow international sales across every operating business


Progress in 2010/11

As noted in last year's Review, focusing on building the scale of all of our business areas in a single key market, as we have done since 2007 in Australia, has been a highly effective tactic in growing international revenue. Sales and profit in this territory continued to improve in 2010/11. In 2010/11 we turned our attentions firmly to the USA, the world's largest media market. Market conditions and our activity and plans are set out n our Case study: Expanding in the USA page.

We also took the decision in the year to evolve the orientation of the company gradually to one that is focused on five geographic regions outside the UK. Each region is being overseen by one of our Executive team: Marcus Arthur for Australasia, Steve Macallister for Asia, Paul Dempsey for EMEA, Jana Bennett for Latin America and Herb Scannell for North America. We are also in the process of appointing Executive Vice Presidents for each. These new roles are designed to maximise revenue growth across all divisions in each region and to look for many new business development opportunities.


TV distribution

At the heart of our international expansion is our well established TV programme and format sales operation. We have sales offices in most major markets (see Where we are in the world) and stage the world's only TV sales fair to be hosted by a single distributor - BBC Showcase (below).

Our customer base has expanded alongside the growth in both digital and pay-TV sectors, and we are assiduous in following up the right opportunities to get our content seen in every market, looking for clients with whom we can build a long-term relationship wherever possible. In addition our sales teams have been highly successful in using frontlist titles to broaden interest in related areas of our back catalogue.


Formats

One challenge that exercises every TV distributor is finding new hit formats for the international market. Our jewel in the crown, Dancing with the Stars, continues to perform very well. It was licensed to four new markets in 2010/11 - Armenia, South Korea, Indonesia and Vietnam - affirming its position as the world's most successful reality TV format in the Guinness Book of Records.

We are also working on other unscripted formats, including Junior Doctors, and we have 19 scripted formats (drama and situation comedy) in development.


Publishing

Across our publishing businesses we have continued to tailor products  for local markets. Lonely Planet advanced plans to expand its offering in languages other than English, releasing the first of its locally produced Chinese language guides in China's provinces in May 2010. The team plans to establish operations in India over the next 12 months to develop print and digital products for Indian travellers and has given Globo Livros the exclusive right in Brazil to publish Lonely Planet guides in Portuguese.

Magazines now has 56 licences for international editions of its titles in place across 60 territories, as well as joint-venture businesses in India and Australia. Lonely Planet magazine has been a particular success with eight international editions in print at year end and two more due to launch in 2011.


BBC-branded platforms

Our other major vehicles for international expansion are our Channels business and BBC.com.

BBC Showcase and bigger and better

BBC Showcase continues to grow in size and success. The main event is held annually in the UK, and we also organise bespoke versions in Beijing and Rio de Janeiro. Because of the strong increase in our customer base in recent years, we took the decision to move the UK fair from Brighton to Liverpool in order to be able to welcome even more clients from February 2012. Amongst the great series launched in 2011 were Mad Dogs from Left Bank Pictures, our own production of Top Gear USA and, from the BBC, Frozen Planet and Wonders of the Universe featuring Professor Brian Cox (right).

Showcase Professor Brian Cox
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