Background

BBC Worldwide's Global Channels business is the UK's number one international television channel broadcaster in terms of reach.

The business has a diverse portfolio of 18 channels that span the globe and connect audiences in 288 million unique homes around the world (an increase of 43 million homes, 18% up on 2004/05) with great British content from the BBC and other UK programme makers.

As well as an international presence, Global Channels has a UK presence, through UKTV, a joint venture with Flextech. UKTV comprises ten channels - eight pay TV and two digital free-to-air - with a combined annual reach of 18 million unique homes.

This year, BBC Worldwide's various channel interests consolidated into a single business, under a new Managing Director, Darren Childs.

The Global Channels business is poised to create a series of BBC-branded channels around the world, which add value to UK programming by making it accessible to international audiences and which maximise revenues through channel subscription and advertising sales.

Performance and activity

The Global Channels business has seen strong growth in many of its domestic and international channels this year, and 2005/06 saw the launch of BBC Prime in a new territory, South Korea.

Sales increased from £141m to £165m (a growth of 18%) and profits have leapt by over 70% to £6.9m, up from £4.0m in 2004/05. BBC America, the business's wholly-owned channel in the United States, and UKTV, both delivered particularly strong performances. Sales include 50% of UKTV's revenues, although under our current accounting policy, profits only include UKTV's dividends paid to BBC Worldwide.

BBC America

In 45 million homes, BBC America continues to grow the BBC brand in the world's largest and most competitive TV marketplace. The eight-year-old channel delivers a mix of innovative and engaging entertainment programmes to almost half the cable homes in the US.

Successful BBC shows such as Waking the Dead and Conviction, and other programmes like Footballers' Wives, have contributed to a 20% increase in primetime ratings, year on year, in both the final quarter of 2005 and the first quarter of 2006.

This year BBC America also increased its levels of investment in co-productions which include Blackpool and Gideon's Daughter (BBC), Waterloo Road (Shed) and the forthcoming Jekyll (Hartswood), Robin Hood and Low Winter Sun (both Tiger Aspect).

Aimed at a 25-54 demographic, BBC America attracts blue chip advertisers. The channel is supported by its own website, bbcamerica.com, which this year increased unique users by 22%.

The financing of the channel is currently being restructured with a view to further improving its profitability.

During 2005/06, BBC America moved operations from Bethesda, Maryland, to share a site with BBC Worldwide's sales operation in New York.

UKTV

The channels continued to perform very well, and the business nearly doubled its dividend to BBC Worldwide from the previous year from £2.1m to £4.0m.

UKTV has ten distinctive channels: UKTV Gold, UKTV History, UKTV Style, UKTV G2, UKTV Drama, UKTV Documentary, UKTV Food, UKTV People, UKTV Style Gardens, and UKTV Bright Ideas (plus time-shifted channels for catch-up viewing). These are available in 11.1 million pay TV homes. In addition two of these channels - UKTV History and UKTV Bright Ideas - are available free to air, through Freeview.

Together these form a powerful and compelling network offering viewers a wide range of quality programming, including award-winning BBC shows and an increasing number of original commissions and acquisitions. The network is a valuable customer for BBC Worldwide's Global TV Sales business.

In April 2006, UKTV's CEO Dick Emery, announced his plans to retire at the end of the calendar year. It was Dick's vision that created UKTV and he has led the business brilliantly for nearly a decade.

Other channels

The strategy for BBC Prime and BBC Food, which air in territories across Europe, Africa and Asia, is currently under review, with the aim of refreshing and relaunching them over the next 18 months.

BBC Worldwide operates three channels in Canada, two via a joint venture with Alliance Atlantis Communications. BBC Canada continues to be a star performer ranking fourth in digital channels with women aged 25-54. BBC Kids ranks number four out of digital channels for children aged 2-11. BBC Worldwide also has a joint venture with CTV and Discovery Communications Inc, Animal Planet Canada, which regularly ranks in the top four digital channels.

In Australia and New Zealand, UK.TV, a joint venture channel with Foxtel and FremantleMedia, now in its tenth anniversary year, gained record audience share and six ASTRA Award nominations.

BBC Worldwide also has two joint ventures with Discovery Networks Inc: People+Arts, which operates exclusively in Iberia and South America, and Animal Planet, in which BBC Worldwide has 50% stake. In April 2006 BBC Worldwide sold its 20% interest in Animal Planet US back to Discovery Communications Inc.

BBC Japan ceased operation in April 2006, when its distribution partner, JMC, closed. The Global Channels business is currently looking for new ways to have a presence in this market.

Summary

The decision to bring all BBC Worldwide channels under one business will bring a sharper focus on increasing revenue, profits and subscribers.

In the next year, Global Channels will look to build on the foundations laid in 2005/06 by developing existing markets and launching new, strongly branded channels in key territories, which will be available on all platforms and all devices.

The business will continue to pursue its aim of providing a richer consumer experience and a deeper engagement with its audiences, in order to drive revenue and profit for BBC Worldwide.

Sales(£m)	06	05
UK	88.5	78.2
Overseas	76.9	62.4
Total	165.4	140.6

Profits(£m)	06	05
UK	3.6	2.1
Overseas	3.3	1.9
Total	6.9	4.0

More on BBC America