BBC Magazines Denies Sell Off Ahead Of Charter Review
The BBC has quashed rumours that it is planning to sell off its magazine publishing unit following attempts by former director general Greg Dyke to secure venture partners to purchase the division.
With the prospect of charter review looming large on the horizon and with increasing criticism of its commercial activities, the BBC could be forgiven for off-loading portions of its commercial business.
However, a spokesman confirmed to NewsLine that this was not the case. He said: “There is no intention to sell off magazines, or to seek a joint venture. It’s a large, profitable, successful business as it is.”
He added: “It is something that was looked at a couple of years ago, but there are no plans to continue with it at the moment. We recently acquired Origin Publishing and launched several new magazines and the operation is very successful.”
The BBC’s commercial activities currently operate at a profit of around £123 million, using the cash to supplement the licence fee and fund programme making. However, the practice has been criticised by many rival companies claiming that BBC Worldwide’s unique position and public funding mean it enjoys an unfair advantage over its rivals and that it should be outlawed by the Government and competition watchdogs.
The latest rumours that the Corporation is preparing to slim down its non-core businesses are not the first to have surfaced. In 2000 the BBC denied reports that it was hatching a plan to sell off BBC Worldwide, with then chairman Rupert Gavin quoted as saying: “There is no question of selling off any of BBC Worldwide” (see BBC Denies Plans For Worldwide Sell Off).
Earlier this year the BBC escaped a Government grilling over its online activities when a review of the Corporation’s £111 million operation was completed by former Trinity Mirror chief executive, Philip Graf.
A number of publishers and media owners including Emap and News International had demanded that the BBC’s online activities be investigated, claiming that guaranteed funding through the licence fee had a detrimental effect on the marketplace for commercial website operators (see BBC To Emerge Unscathed From Online Review).
BBC: 020 8743 8000 www.bbc.co.uk
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