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Under the BBC's Fair Trading Commitment, BBC Worldwide is required to pay a fair market price for all programme rights it acquires from the BBC. A key responsibility of the International Television team is the valuation of rights and the negotiation of terms with the BBC Rights Agency. Generating money to fund additional BBC programmes During the 1990s, investment by BBC Worldwide and our international co-production partners has become a crucial element of BBC programme funding, with £55m invested this year. Despite an increasingly competitive and commercial marketplace, this year saw a continued rise in programme sales, from £126 m to £135m (7% year-on-year). Showcase '99 During spring 1999 we held our 23rd BBC Showcase, the world's largest programme market hosted by a single broadcaster. It attracted more than 400 buyers from all over the world to sample and buy BBC programming. International pressure on revenues We are operating in an increasingly price-conscious, ratings-driven climate, with broadcasters all over the world feeling the pressure. The market is increasingly fragmented: programme prices are falling, and we have to sign a larger number of lower-value contracts (resulting in higher transaction costs per sale). Television export research commissioned This year, BBC Worldwide co-funded research by David Graham & Associates to provide an objective picture of how the UK is faring in international terms. The report was launched by Chris Smith MP, Secretary of State for Culture, Media and Sport, on 11 April 1999. BBC Worldwide Chief Executive Rupert Gavin will serve on a DCMS inquiry into television exports. Innovative methods of boosting revenues To win in this competitive marketplace, BBC Worldwide has started to pursue two innovative strategies: - Pioneered by our EMEIA region (see EMEIA), branded blocks are regularly scheduled selections of BBC programming shown on non-BBC channels overseas. - Channels - both BBC-owned and joint ventures - provide invaluable 'shop windows' around the world for BBC programming. Revenues from this source now account for 33% of BBC Worldwide's total programme revenues, up substantially from 24% last year. Feature films BBC Worldwide is working with BBC Films to develop a funding strategy that will deliver a more steady flow of BBC Worldwide investment into BBC movies. Recent films in which BBC Worldwide had a financial or distribution interest include Mrs Brown and Hideous Kinky. Improving relationships with producers This year we have put considerable effort into improving our relationships and image within the independent community and we have engaged actively with PACT, the producers' association, making good progress towards greater openness and responsiveness. |
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