BBC talent spending down 30%

The BBC has cut spending on ‘top talent’ by nearly 30% in the past five years but the quality of programming could suffer in future as a result, according to a report revealed today.

The pubcaster spent nearly £50m (US$76.6m) on ‘top talent’ – those earning more than £100,000 a year – last year, representing a fall of 29% on the same figure five years ago, according to the independent review commissioned by the BBC Trust and carried out by Oliver & Ohlbaum Associates.

The report also found that spending on overall talent was down by 15% over the same period, to £188m, but warned that “continued downward pressure on talent fees” could damage the quality of some shows.

The review found no evidence that the pubcaster was overpaying its presenters and performers compared with market rates and said that it had made “vast improvements” to managing talent pay. The corporation has received criticism in the past for overpaying talent such as talkshow host Jonathan Ross, who received £6m a year. He has since left the broadcaster.

The report did, however, recommend the pubcaster improve its use of data on talent to prove value for money and suggested it set a benchmark over which it will not pay.

BBC Trust chair Rona Fairhead will tell the Oxford Media Convention that the report shows the broadcaster “has made great strides in reducing talent costs, and it’s clear this has been achieved without affecting quality.”

Fairhead will add that the BBC must prepare for rising costs by building “on its progress – so that it does more to develop new talent, can demonstrate optimum value in its deals and knows when to walk away.”

Today’s report also revealed 67% of the broadcaster’s current talent in factual, lifestyle, entertainment and comedy genres were given their first break by the pubcaster, while 89% had their previous programme at the BBC.