BBC Worldwide and its shareholder, the BBC, have much to
celebrate in the results and progress achieved in the year. And
there are grounds for pride in more than just its financial
performance. BBC Worldwide makes the best of the BBC's creative
output accessible across the world. The international channel
portfolio it owns and distributes now reaches 356m homes, across
every habitable continent. Dancing with the Stars, the
international version of Strictly Come Dancing, has been seen by an
estimated 250m viewers, and has been licensed to 40 countries. The
Planet Earth DVD can be found in one in 25 US homes. To date, over
10m people have been to one of BBC Worldwide's live events. Its
flagship website, BBC.com, achieved a monthly average of 58.5m
unique users. Premium BBC series travel far and wide, with new hits
such as Frozen Planet now sold in 195 markets, and Sherlock in 158.
Doctor Who Series 6 claimed its slot as the most downloaded series
on iTunes in the USA in 2011.
As the UK's largest exporter of finished TV programmes, BBC
Worldwide also represents programming from over 200 independent
production companies. In 2011/12 £76.2m was paid to indies in
upfront rights investment, profit share and royalties. Research
from PACT shows that international revenue today accounts for 25%
of the independent sector's revenue, frequently bringing crucial
co-production money. Without this, some programmes would be simply
unaffordable for the BBC's core UK audiences.
I took on the chair of BBC Worldwide, in my capacity as
Director-General of the BBC, shortly before the year end. This
followed the departure of Robert Webb QC on taking up a full-time
executive position at Rolls-Royce plc. Robert oversaw a period of
successful reshaping and strong performance, and on behalf of both
BBC Worldwide and the BBC, I would like to place on record our
thanks for his service. This year also saw the departure of
Nicholas Eldred, formerly General Counsel for the BBC. Nicholas
served as a BBC-nominated Non-executive Director of BBC Worldwide
for five years, making a valuable contribution throughout.
The subject of governance is reported in full on the Corporate Governance page.
The Company operates in line with the 4 Commercial Criteria: fit
with the BBC's public purposes; not jeopardise the good reputation
of the BBC or the value of the BBC brand; exhibit commercial
efficiency; and comply with the BBC Trust's Fair Trading policy,
the BBC's Fair Trading Guidelines and, in particular, avoid
distorting the market. These are deeply embedded in the company's
culture and processes. So too are BBC Worldwide's values, which
include all those of the BBC.
Serving as Director-General of the BBC gives me a unique
perspective on the value created by BBC Worldwide. Since I became
Director-General, revenue has almost doubled under the leadership
of John Smith, and its headline profits have grown four-fold in
just eight years - a noteworthy track record. In an increasingly
constrained financial environment, BBC Worldwide delivered a record
£215.7m return to the BBC in the year. This is vitally important
money for the BBC, and I am certain that my successor as
Director-General will continue to rely on BBC Worldwide's
contribution.
Looking forward, the BBC's transformation programme, Delivering
Quality First (DQF), designed to deliver operational efficiencies
of 20% over five years, will also make some extra demands on BBC
Worldwide. These include increased investment in BBC productions, a
smaller pipeline of BBC-commissioned content and the need to
balance immediate cash repatriation with BBC Worldwide's own
investment needs. To ensure a strong and growing return in future
years, the BBC is therefore working closely with BBC Worldwide on
possible ways to bring in external investment and promote
growth.
Finally, on behalf of the shareholder, and the UK licence fee
payer, I would like to thank all at BBC Worldwide for their
achievements in delivering another excellent performance this
year.