BBC Studios plan ‘needs scrutiny’

The governing body of the BBC has supported the UK pubcaster’s plans to turn its in-house TV production division into a commercial venture but said the proposals need “further scrutiny.”

Tony Hall

The new division, announced by BBC director-general Tony Hall in March, is aimed at producing programming for broadcasters in the UK and abroad as part of its ‘compete and compare’ strategy.

Set to launch in April, BBC Studios will operate independently of BBC Television. The pubcaster plans to establish the division as a commercial subsidiary, assuming it is approved during this year’s royal charter renewal process.

And the BBC Trust has now said, in advice to the UK government, that the changes “would bring potential benefits to audiences but need significant further scrutiny.”

The Trust, which is facing scrutiny of its own over its future, said that “creating BBC Studios and opening up BBC production to more competition would best serve the interests of audiences compared with the alternatives.”

It added that the government could therefore support BBC Studios in the forthcoming discussions around the BBC’s charter.

However, the Trust said that it, or a future regulator, would need to explore whether the BBC Studios plan “represents a viable business proposition that is likely to sustain itself and generate returns without any form of subsidy from the BBC’s public service side.”

Peter Salmon

It also said it would explore issues around the fulfilment of the BBC’s public remit and ensure that “commercial transactions between BBC Studios and the BBC’s public service are at market rates and that Studios is not given any inappropriate advantage over competitors.”

“This is one of the biggest proposed changes to BBC TV production in its history,” said BBC Trust chairman Rona Fairhead.

“Our early conclusions are that BBC Studios and the opening up of more programming to competition could deliver real benefits both for audiences and the creative market. However, there needs to be a proper, robust assessment of the full impact of these plans before a final decision can be reached.”

Earlier this year BBC Studios, headed by Pater Salmon, appointed Anna Mallett as chief operating officer to oversee business and tech activities.