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BBC Publishes Annual Report

BBC Publishes Annual Report

The BBC’s annual report, published today, shows a continued decline in BBC1’s share, despite an extra £165m being spent on programmes across the board, including drama, entertainment and sport.

The BBC spent more of its income on programmes and services last year, increasing the proportion from 76% to 81%. However, according to the report it will be at least 18 months before audiences feel the full benefit of the new investment.

The BBC’s board of governors note that although BBC1’s share fell, the decline has slowed and progress has been made to strengthen the mix of programmes.

BBC chairman, Sir Christopher Bland, said: “The task of modernising the organisation and finding 1.1 billion in savings, efficiencies and commercial income by 2006, as required by the government, has and would continue to be difficult.”

According to the report, BBC services continue to reach 94% of the population every week and BBC1 has been the most watched terrestrial channel in all homes, as well as strengthening its performance in digital homes.

BBC director general, Greg Dyke, said that his first year had been one of change. “Real savings on the cost of BBC’s overheads were being made and plans had been outlined to alter the BBC’s digital television services and to launch a series of new digital radio services.”

He added: “Bigger changes will come over the next two years, when we increase spending on programmes and services by more than £450m, the largest increase in the BBC’s history. The BBC’s task is to make sure we spend our money well, to ensure we improve the services we give the licence fee payers.”

BBC Worldwide also enjoyed a successful year with sales up 14% to £73m and cash flow contribution to the BBC up to a record £96m.

Press speculation today claimed that UK managing director of BBC Worldwide, Peter Teague, has the quit the corporation and will leave in the spring when his contract runs out.

Teague, who is believed to be leaving to run his own company, will be appointed to the interim position of managing director of consumer publishing, spanning books, videos, DVD’s and audio.

A spokesperson for BBC Worldwide today refused to comment.

BBC: 020 8743 8000 www.bbc.co.uk BBC Worldwide: 0208 433 2000 www.beeb.com

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