Lords report calls for privatisation of BBC Worldwide
The BBC should sell its stake in commercial venture BBC Worldwide, according to a House of Lords report on the UK film and television industries.
The report from the Lords Communications Committee argued that BBC Worldwide should expand to become a global distributor of UK programming from the BBC and other broadcasters.
This is in contrast to the BBC Trust’s view that expansion could harm the Corporation’s reputation.
Last month, the government put BBC Worldwide on a list of assets it could sell, which prompted a strong response from BBC director general Mark Thompson, who warned that without Worldwide, the BBC brand could be in danger of becoming “an empty vessel” with a huge fall in its inherent value.
Chair of the committee, Lord Fowler, agreed with the government that Worldwide should be privatised. “Such a company, with a continuing link to the BBC, would be capable of becoming a major global brand for distributing UK content, producing additional profits, employment and opportunities for British production companies,” he said.
“At a time where there is substantial public concern about British companies being taken over from abroad there is the opportunity to establish a British-owned global brand,” he added.
“BBC Worldwide has been immensely successful in developing the commercial income of the BBC. All the evidence suggests that there is further scope to expand but to do this will require private capital. It cannot be achieved by using the licence fee. A company with private investment but retaining a BBC shareholding could achieve both bigger profits and also major proceeds from the sale.”
The commercial arm was criticised heavily after it acquired 75% of travel guide Lonely Planet for £89 million in 2007, although this has not stopped it from launching branded magazines in the UK and Brazil, and signing several international licensing deals last month.
Speaking at last year’s MediaGuardian Edinburgh International Television Festival, the then Channel 4 chief executive Andy Duncan claimed that a tie-up between Worldwide and Channel 4 was imminent, although this never materialised.