BBC considers axing in-house production in efficiency drive
The BBC is said to be mulling moves to scrap its in-house television production unit in favour of out sourcing production to independent companies.
It is believed such a move would pump around £1bn into the market for independent production companies and would allow the BBC to shed staff and free rein to disregard internal production quotas.
Proponents of the move believe it will deliver better value for license-fee payers by introducing an element of competition to the production process.
George Entwhistle, the BBC’s incoming director general, is facing pressure to look at the issue when he assumes the role next month.
The BBC spent £2.5bn on content on content last year, amounting to two thirds of its annual budget, with half of all broadcast hours (excluding news, sport and current affairs) produced in-house and a quarter from independent studios.
The remainder has been dubbed as the ’Window of Creative Competition’ and is open to bids from all.