The BBC’s Annual Report outlines the Corporation’s commitment to becoming a major player in the digital future9% of revenue has been set aside for investment in this area. At the same time, expenditure on existing networks will rise to £500 million in the next five years.
Despite the BBC’s current strong financial standing, John Birt, the director general of the BBC, referred to the planned long-term reductions to the licence fee, he emphasised: “The reductions announced for later years will be challenging for the BBC. This will affect our ability to sustain our services as the digital world develops. The BBC will do everything it can to further improve efficiency and to build commercial revenues, but it will still look to the government to ensure that new digital services can be maintained and developed in to the next century.”
The BBC is looking to strengthen the mix of programmes aimed at young people on BBC2. Despite programmes such as This Life, The Comedy Zone, Shooting Stars and The Fast Show, reach among 16-24 year olds fell year-on-year.
Overall, however, Birt had only praise for the BBC’s achievements: “BBC1 narrowed the gap with ITV yet further, down to 2.5% from 8% just a few years ago.” Birt couldn’t resist a dig: “And, BBC1 closed that gap with an imaginative schedule, whilst ITV panicked, reaching for the obvious.” He continued, “BBC2’s share grew in the year – and is now 1% ahead of Channel 4.” Birt did concede that there had been some expensive failure, Rhodes and Nostromo were two dramas that did not live up to expectations.
There was also praise for BBC radio which overall, managed to maintain its reach and share in 1996-1997 despite increasing competition.
The BBC’s presence is steadily growing on the Internet and in the coming year BBC News will be launching a comprehensive online service.
BBC Magazines also had a successful year with profits increasing 13% from 1995-6 and sales up 13%. Radio Times is the most profitable title, but Top of the Pops, Live and Kicking and Top Gear have also demonstrated strong growth.
The Corporation celebrates its 75th birthday this year and the evidence of this report shows that its is finally shaking off its ‘Auntie’ image and looks set to lead the rest of the industry in to the future.
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