The BBC has welcomed the UK National Audit Office (NAO) report’s findings that it had a clear rationale for creating BBC Studios. The report deems that the corporation has planned well and the merger has got off to a good start following the launch of the new BBC Studios in April 2018.
The BBC said: “In a time of unprecedented change across the global market, and with continued tough financial challenges, the success of BBC Studios is vital in helping the BBC deliver value for money for the licence fee payer as well as distributing and promoting British creativity worldwide.”
“BBC Studios was formed by the merger of the BBC’s production arm with its international distribution and sales business, formerly known as BBC Worldwide, to create a global, integrated business that is better able to compete in the market. The strategic aim is for BBC Studios to be a creator, producer, owner and distributor of IP serving customers all over the world. This integrated approach is consistent with established market practice where other production companies operate integrated production-distribution businesses.”
“BBC Studios generates value for money for the licence fee payer through profits, content investment, cashflow management and driving sales in its core businesses. In 2018/19, BBC Studios returned £243m to the BBC public service, principally in dividends and investment in programming, and has contributed over a billion pounds in the last five years. Since the merger, the company is also enjoying a strong reception for its creative work, including over 30 commissions secured from third parties including both UK broadcasters and global brands like Amazon, Apple and Netflix. It remains the UK’s most awarded production company with nearly 80 awards won in the last financial year across multiple genres,” the broadcaster concluded.