500 more jobs to go at BBC as BBCS sales suffer in a ‘challenging’ market
Natural history series Planet Earth III is narrated by David Attenborough
UK pubcaster the BBC has said it will cut a further 500 jobs by 2026 while its Studios arm has seen its sales drop to £1.8bn (US$2.32bn) during the 2023/24 financial year from £2.1bn in 2022/23.
The corporation released its annual report and results from its BBC Commercial operation, which includes sales and production arm BBC Studios (BBCS) and BBC Studioworks, this lunchtime.
The annual report said: “We are becoming a leaner, more agile organisation and we are accelerating our digital-first approach to reach audiences where they are. Public service roles continue to reduce this year, with headcount down 10% in the last five years; a reduction of almost 2,000 roles.
“Over the course of the next two years, we will look to further move the money we have into the priority areas that provide real value for audiences. This means, in public service, we will close and transfer roles in some areas and create roles in growth areas. By the end of March 2026, we expect to see a total reduction of around 500 public service roles.”
The coporation’s operating deficit has increased to £263m and will hit £492m by 2025, according to today’s report. The previous Conservative government’s decision to set the annual licence fee increase lower than inflation and the number of people now refusing to pay the fee are exacerbating that situation.
BBCS blamed the fall in sales on the effects of a global commissioning downturn and “very challenging market conditions.”
It also saw earnings before interest, tax, depreciation and amortisation (EBITDA) fall to £202m from 2022/23’s figure of £252m.
However, it is the third consecutive year that BBCS has posted EBITDA of over £200m and the company claims it’s still on track to deliver its 2022 ambition of doubling the business by 2028.
There could be further clouds on the horizon, though, with one of its biggest exports currently mired in controversy.
Previous contestants on Strictly Come Dancing, which dominates the BBC One weekend schedules in the run-up to Christmas and is sold internationally as Dancing with the Stars by BBCS, have started to come forward with allegations of bullying and physical abuse on the programme.
Professional dancer Graziano Di Prima was axed from the show last week following claims he hit and spat at his dancing partner, Zara McDermott, during rehearsals. Before that, dancer Giovanni Pernice was suspended over claims of misconduct made by his dance partner, actress Amanda Abbington.
BBCS made a series of key strategic investments during the financial year, most notably taking full ownership of BritBox International.
It acquired ITV’s share of the British content streaming service for a cash consideration of £255m this March. Now housed within BBCS’s global media and streaming division, Britbox International has 3.8 million subscribers – a number that’s growing at 25% a year.
UKTV, meanwhile, which has been wholly owned by BBCS since 2019, increased its share of the commercial audience and built its free offering, UKTV Play.
BBCS’s offering of free ad-supported streaming television channels reached 36. The company has also expanded its international production footprint with the acquisition of prodcos in Scandinavia, Spain and Australia.
Last June, BBCS bought Copenhagen-based pan-Scandinavian outfit STV (Big Love), announced the acquisition of Melbourne-headquartered Werner Film Productions (The Newsreader) in March and took control of Spanish prodco Brutal Media (The Academy) the same month.
Tom Fussell
BBCS lists its best-selling content as David Attenborough-fronted nature series Planet Earth III, gameshow The 1% Club, children’s adventure adaptation The Famous Five and animated favourite Bluey.
The company’s live events division also produced ratings winners such as The Eurovision Song Contest and the Coronation of Their Majesties King Charles III and Queen Camilla.
BBC Commercial, the overall business that supports the BBC by generating income for the BBC Group, delivered sales of £1.9bn (2022/23 £2.1bn) and EBITDA of £199m (2022/23 £252m).
Tom Fussell, CEO of BBC Commercial, said: “The last financial year saw good progress against our strategic objectives through record investment – in content, premium digital services and select international production companies.
“Despite the challenging external environment, we saw good underlying growth and our long-term ambition to double the 2022 business remains. We will continue to take advantage of new opportunities as they arise.”
