The BBC is the largest spender on original TV production in the UK, investing £1.2 billion, with over 70% of its annual TV budget dedicated to original titles. Yet, despite its dominance, the broadcaster faces an uncertain future as the UK Government considers long term plans for its funding model, Ampere Analysis said in its latest report.
The two-year freeze on the current licence fee has dealt a blow to the BBC's public TV revenue, impacting its content budget and resulting in a 25% reduction in first-run TV commissions this year, according to Ampere's commissioning tracking. As the freeze concludes in Spring 2024, the UK Government has now confirmed a below-inflation increase to the licence fee price, signaling further cuts and a challenging road ahead.
The BBC's core TV business faces a depleting share in the UK's original commissioning market as result of these cost-cutting efforts and intensifying competition from SVOD platforms. Yet, there are recent signs of success. Ampere’s latest consumer survey found that, in the third quarter of 2023, BBC iPlayer emerged as the joint top streaming service in the UK, alongside YouTube and ahead of Netflix, and positive viewing figures for the return episode of the “Doctor Who” franchise (which was for the first time part-funded by Disney in return for international distribution rights) underline the broadcaster's continuing popularity amongst UK audiences. Strategic partnerships, exemplified by the collaboration with Disney, stand out as a pivotal avenue for the BBC in navigating financial constraints while developing franchise IP for a wider global audience.
“However, future success hinges on secure multi-year funding and independence from commercial and political pressure. Ampere's recent analysis of Public Service Media in Europe highlights the importance of funding models that prioritize financial stability and independence for Public Service Media providers to invest in high-quality, distinctive programming while fulfilling their mandates and maximizing public value,” said Neil Anderson, Senior Analyst at Ampere Analysis and the author of the report.