BBC should put in-house production to tender to boost creative industries by £575m, Pact suggests
The BBC should scale back in-house production on shows such as EastEnders and Holby City, and sell them to the highest bidder, independent producers’ trade body Pact has suggested.
Stating that the move would boost the UK creative economy by more than £575m over a ten year period, the report by Oliver & Ohlbaum Associates (O&O) suggests that large parts of the BBC’s production base should be wound down, with some transferred to BBC Worldwide and others sold.
“Independent producers and the programme supply market have proven themselves time and again to be capable of making award-winning content which fulfils the BBC’s public service broadcasting objectives and has an international commercial appeal,” stated John McVay, chief executive of Pact.
“The BBC can maintain its reputation and fulfil its public service remit, but it can make every pound it gets go further - getting more money on screen, on-air and on-line.”
The report suggests that for the BBC, the net benefit per year is likely to be £30m, with a net present value in 2017 of £470m.
Referring to BBC director general Tony Hall’s Compete or Compare speech in July, the report suggests that transferring BBC in-house to BBC Worldwide or new commercial subsidiary, which could allow BBC Productions to compete for third-party business effectively, would be the BBC’s preferred option.
“Licence fee-payers care about value for money and top quality content – viewers don’t care who makes the shows. The rationale for maintaining a large in house production division and guarantee is crumbling – the BBC themselves recognise this,” McVay concluded.
“It is therefore in everybody’s interest that the BBC has the flexibility and resources in order to ensure that the best ideas always make it on-screen.”
Pact’ has published the report to coincide with the Edinburgh International TV Festival.
Earlier today BBC One controller Charlotte Moore was grilled by Channel 4's Krishnan Guru-Murthy on whether the channel took enough creative risks.