BBC Studios gets greenlight

BBC Studios, the BBC’s TV production arm, has secured approval to launch as a commercial subsidiary and make programmes for other broadcasters and customers.

BBC chief Tony Hall

The BBC Trust, which oversees the UK pubcaster’s operations, has formally approved the proposals, which have already been supported by the UK government and media regulator Ofcom.

BBC Studios will launch as a wholly owned subsidiary in April, with the organisation committed to supporting the BBC’s public service targets. Profits, like those of distributor BBC Worldwide, will be returned to the BBC.

BBC in-house shows include factual series Planet Earth II, entertainment format Strictly Come Dancing and scripted output such as Doctor Who and Mrs Brown’s Boys.

Tony Hall, BBC director general, said: “BBC Studios will soon be able to produce bold, British, creative content for other broadcasters and services as well as the BBC.”

Hall added that the reforms, which he revealed in 2014, were “vital to the BBC’s future success – I want to ensure we remain the best programme makers in the world through the coming decades.”

They form part of Hall’s “compete and compare” strategy, which aims to encourage more competition to drive up standards and reduce costs. As part of the arrangement, the BBC has relaxed all its in-house production guarantees.

Mark Linsey, director of BBC Studios, added: “BBC Studios has so much to offer creatively, both to broadcasters and the incredible range of talent who work with us.

“We are responsible for many of the UK’s biggest and boldest shows and the breadth of our portfolio, combined with our BBC editorial values and over 50 years’ heritage, make us unique. We have a huge amount of ambition and are excited about continuing our bedrock relationship with the BBC while taking our creative ideas to new audiences.”

Linsey replaced Peter Salmon at the head of BBC Studios earlier this year as part of a raft of changes to the production arm’s senior management team.

Salmon revealed he was leaving his role as director of BBC Studios in February to become chief creative officer at Endemol Shine Group.

The BBC Trust said “effective oversight arrangements for the strategy and commercial performance of BBC Studios” should be put in place to ensure programmes across a broad range of genres are delivered.

It added that commercial performance targets should be set and that Ofcom should review the fair trading arrangements between the BBC and BBC Studios in two years’ time to make sure they are operating as intended to prevent market distortion.

Suzanna Taverne, BBC trustee and chair of the trust’s Services Committee, said: “These are fundamental reforms to the way the BBC commissions and makes programmes. We have put the BBC’s proposals through a rigorous assessment and consultation process, carefully considering the potential risks and benefits to the public, the BBC and the wider broadcasting industry.

“The trust has concluded that the plans to create BBC Studios, moving the majority of programme making onto a commercial footing, will deliver real benefits both for audiences and for the creative market.

“However, it is vital that both the new BBC board and Ofcom closely monitor the performance and impact of BBC Studios to make sure it operates as intended.”