Project Canvas to cost partners £115 million in first four years
Project Canvas will cost its partners – BBC, ITV, Channel Five and BT – more than £115 million over the next four years.
The BBC submitted the figures to the BBC Trust, which is currently assessing the proposal to bring on-demand programming to digital TV viewers via Freeview and Freesat.
In a revised proposal, the BBC said it expects Canvas to cost £115.6 million in total over the first four years, which will include development, launch and its first few years of running. During this time, the BBC has estimated a marketing budget of £48.8 million.
However, the corporation predicts a cost recovery of around £17 million, which will leave the four partners will a bill of £24.7 million each.
If the BBC signs up two more partners, which it is currently trying to do, the cost per partner would be reduced to £16.4 million.
The BBC Trust asked the partners to re-evaluate the plans for Project Canvas and hand-in a more detailed proposal, including new costings and how the on-demand platform will work.
In addition to the new figures, the BBC has also revised the original plans, making it possible for non-public service broadcasters to become partners.
The joint venture was initially thought-out as a BBC partnership to help ailing PSBs, however, the corporation has decided to widen it out to other broadcasters.
The u-turn comes after Sky criticised the project, saying it should face a full market impact assessment by Ofcom.
In August, Graham McWilliam, Sky’s group director of corporate affairs, said: “The combination of a wholly unrealistic timeframe for responses along with a failure to seek an independent and comprehensive market impact assessment from Ofcom demonstrates disregard for the principles of good regulation.
“If the Trust continues to pursue its current course of action, it will only serve to undermine further industry confidence in its ability and inclination to act as a genuinely independent regulator of the BBC.”
In its revised proposal to the BBC Trust, the corporation said: “Without a guaranteed PSB majority there is concern that the free-to-air and open principles of Canvas, which are central to the rationale for BBC involvement, will no longer have adequate protection.
“The venture will enshrine these principles within the objects of the venture in the articles of association of the joint venture company.”