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BBC Worldwide
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BBC Worldwide Limited is the wholly owned commercial subsidiary of the British Broadcasting Corporation, formed out of a restructuring of its predecessor BBC Enterprises in 1995. In the year to 31 March 2007 it made a profit of £111.1m on a turnover of £810.4m.
Worldwide is responsible for a wide range of commercial activities, primarily connected in some way with the output and public purposes of the main BBC. The company's work includes investment in television and film production - Worldwide will often provide additional budget for BBC productions in return for various commercial rights to the programmes, and has also done so for non-BBC programmes as well, such as the Red Production Company drama Mine All Mine for the BBC's rival ITV network in 2004. In 2006, a Content & Production business, headed by former BBC controller of entertainment Wayne Garvie, was formed to produce local versions of BBC formats overseas (maximising revenues by receiving a production fee from the local broadcaster as well as a sum from selling the initial re-versioning rights). BBC Worldwide has also, since, taken a 25% stake in Left Bank Pictures, a newly-formed independent film & TV production company, owned and run by former ITV Productions controller of comedy and drama Andy Harries, and a 25% stake in Cliffhanger Productions – an independent production company that focuses on returning drama for UK networks.
Other major areas of business include international programming sales and distribution, foreign and domestic satellite and cable television channels (such as UKTV in the UK, BBC America in the United States and BBC Entertainment in India), book and magazine publishing (most famously the Radio Times), VHS and DVD releases, spoken word and music audio products, CD-ROMs,videogames, English language teaching, videos for education and training, interactive telephony, library footage sales, magazine subscription fulfilment, exhibitions, live events and film. Some of these are via JVs, e.g. Random House and 2 entertain (see below).
These commercial activities allow BBC Worldwide to return profits and dividends to the BBC to re-invest in public service programming (£189 million during 2005/2006). However, the BBC has often been criticised for the amount of money it makes from Worldwide. Some commercial rivals protest at the advantage the company has from being associated with and being able to exploit the programme catalogue and resources of the BBC in order to provide its goods and services.
Prior to the Charter renewal in 2007, there was much speculation that the BBC might sell off at least some of Worldwide's assets, such as the magazine publishing arm (the third largest in the UK), to appease these criticisms and make a large profit from the sale in the process. However, a review of the BBC's commercial activities in 2004 concluded that this was not as advantageous as keeping the business and driving it harder. Instead, some changes to its remit, focus, structure and governance were made, e.g. that it would only publish titles in the UK linked to BBC programmes or key genres. As a result, BBC Worldwide sold eve magazine to Haymarket Group in 2005. In 2006, the sell-off of certain businesses which were no longer core continued with the sale of BBC Books to publisher Random House.
In July 2004, it was announced that Worldwide's DVD release company, BBC Video, which had been releasing BBC programmes on the format and previously on videotape since the early 1980s, was to be merged with VCI, a video release company controlled by Woolworths Group plc. The new company created, 2 entertain Ltd, is controlled 60% by Worldwide and 40% by Woolworths Group plc. This creates the sixth biggest video company in the UK market, and the largest British-owned brand. Worldwide retains the rights in all the BBC output released by the new company.As of June 2008, Woolworths is considering selling off its part of 2entertain to earn more due to falling sales.As of now BBC Worldwide has yet to make a statement in indicating weather it is interested in buying it or not. Critics have said that it would be hard to validate the use of so much taxpayers money on buying the other part of 2entertain.
See also
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