Mar 29, 2024
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Cuts to the BBC would threaten the whole TV industry, says Pact chair

Cuts to the BBC would threaten the rest of the TV ecosystem and the UK’s entire creative sector, according to the chair of the trade body representing independent TV producers.

“There is a very real concern that if the licence fee is reduced, frozen or there are huge other areas of spend put in, that’s a very, very real concern, not just to producers, but to the entire creative sector in this country,” said Pact chair Laura Mansfield.

Culture secretary John Whittingdale outlined a package of proposals on Monday that are expected to lead to a reduction in the BBC’s budget, including handing the corporation responsibility for the £650m cost of providing free TV licences to over 75s from the next parliament.

Speaking before Whittingdale’s statement, Mansfield added: “When we’ve looked at the numbers before, it is the BBC that is the real pillar of the public service broadcast system. If you reduce the BBC spend it has a mirror effect across the other broadcasters and you see not just a reduction of spending, but you see a potential reduction of quality. We very much would want a limited reduction, and actually we’ve been campaigning for increase.”

New figures from Pact’s latest census of members show the BBC increased its spending with indie producers, with turnover under £25m from 20% to 37% between 2013 and 2014. The corporation has also increased the proportion of its external commissioning budget it spent on new commissions from 34% to 46%.

In contrast, Channel 4’s spend with smaller producers has fallen from 28% to 20%, though new commissions have risen from 21% of spending to 33% as the channel refreshes its schedules.

Pact chief executive John McVay said Channel 4’s spending was at odds with its claims it nurtures smaller independent production companies.

“The BBC are commissioning more suppliers, which is a good thing, they have actually reduced the number of commissions they take from the larger groups,” he said.

“By contrast if you look at Channel 4, [which says it is] a greenhouse to grow small indies, actually their share of the commissions from large groups has increased. Channel 4 looks a lot more dependent on larger companies. The BBC looks more like a greenhouse than Channel 4 does.”

He said the deficit between what broadcasters pay for shows and the actual cost of production had jumped to between £230 and £260m, up from £185m to £215m in 2012 and 2013, leaving indie producers to make up the difference via other deals such as co-productions and selling on rights.

McVay urged the BBC to focus any cuts on areas other than content budgets to avoid piling further pressure on production companies which the corporation has already pressed for efficiencies.

“We see continued downward pressure on programme spend,” he said. “We are very close to the bone now, where the BBC seldom if ever goes near paying the full cost of the programme, which places more risk on the supplier.”

He said children’s TV was an area of particular concern, as the BBC is the only broadcaster spending any significant amount on commissioning children’s shows from UK producers.

Mansfield added: “[The BBC] have expressed concern about salami slicing and recognising there comes a point which you just can’t go below. I think we are all united in that.”

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Front Page, Headline, Industry News

Cuts to the BBC would threaten the whole TV industry, says Pact chair

Cuts to the BBC would threaten the rest of the TV ecosystem and the UK’s entire creative sector, according to the chair of the trade body representing independent TV producers.

“There is a very real concern that if the licence fee is reduced, frozen or there are huge other areas of spend put in, that’s a very, very real concern, not just to producers, but to the entire creative sector in this country,” said Pact chair Laura Mansfield.

Culture secretary John Whittingdale outlined a package of proposals on Monday that are expected to lead to a reduction in the BBC’s budget, including handing the corporation responsibility for the £650m cost of providing free TV licences to over 75s from the next parliament.

Speaking before Whittingdale’s statement, Mansfield added: “When we’ve looked at the numbers before, it is the BBC that is the real pillar of the public service broadcast system. If you reduce the BBC spend it has a mirror effect across the other broadcasters and you see not just a reduction of spending, but you see a potential reduction of quality. We very much would want a limited reduction, and actually we’ve been campaigning for increase.”

New figures from Pact’s latest census of members show the BBC increased its spending with indie producers, with turnover under £25m from 20% to 37% between 2013 and 2014. The corporation has also increased the proportion of its external commissioning budget it spent on new commissions from 34% to 46%.

In contrast, Channel 4’s spend with smaller producers has fallen from 28% to 20%, though new commissions have risen from 21% of spending to 33% as the channel refreshes its schedules.

Pact chief executive John McVay said Channel 4’s spending was at odds with its claims it nurtures smaller independent production companies.

“The BBC are commissioning more suppliers, which is a good thing, they have actually reduced the number of commissions they take from the larger groups,” he said.

“By contrast if you look at Channel 4, [which says it is] a greenhouse to grow small indies, actually their share of the commissions from large groups has increased. Channel 4 looks a lot more dependent on larger companies. The BBC looks more like a greenhouse than Channel 4 does.”

He said the deficit between what broadcasters pay for shows and the actual cost of production had jumped to between £230 and £260m, up from £185m to £215m in 2012 and 2013, leaving indie producers to make up the difference via other deals such as co-productions and selling on rights.

McVay urged the BBC to focus any cuts on areas other than content budgets to avoid piling further pressure on production companies which the corporation has already pressed for efficiencies.

“We see continued downward pressure on programme spend,” he said. “We are very close to the bone now, where the BBC seldom if ever goes near paying the full cost of the programme, which places more risk on the supplier.”

He said children’s TV was an area of particular concern, as the BBC is the only broadcaster spending any significant amount on commissioning children’s shows from UK producers.

Mansfield added: “[The BBC] have expressed concern about salami slicing and recognising there comes a point which you just can’t go below. I think we are all united in that.”

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Your email address will not be published. Required fields are marked *

Front Page, Headline, Industry News

Cuts to the BBC would threaten the whole TV industry, says Pact chair

Cuts to the BBC would threaten the rest of the TV ecosystem and the UK’s entire creative sector, according to the chair of the trade body representing independent TV producers.

“There is a very real concern that if the licence fee is reduced, frozen or there are huge other areas of spend put in, that’s a very, very real concern, not just to producers, but to the entire creative sector in this country,” said Pact chair Laura Mansfield.

Culture secretary John Whittingdale outlined a package of proposals on Monday that are expected to lead to a reduction in the BBC’s budget, including handing the corporation responsibility for the £650m cost of providing free TV licences to over 75s from the next parliament.

Speaking before Whittingdale’s statement, Mansfield added: “When we’ve looked at the numbers before, it is the BBC that is the real pillar of the public service broadcast system. If you reduce the BBC spend it has a mirror effect across the other broadcasters and you see not just a reduction of spending, but you see a potential reduction of quality. We very much would want a limited reduction, and actually we’ve been campaigning for increase.”

New figures from Pact’s latest census of members show the BBC increased its spending with indie producers, with turnover under £25m from 20% to 37% between 2013 and 2014. The corporation has also increased the proportion of its external commissioning budget it spent on new commissions from 34% to 46%.

In contrast, Channel 4’s spend with smaller producers has fallen from 28% to 20%, though new commissions have risen from 21% of spending to 33% as the channel refreshes its schedules.

Pact chief executive John McVay said Channel 4’s spending was at odds with its claims it nurtures smaller independent production companies.

“The BBC are commissioning more suppliers, which is a good thing, they have actually reduced the number of commissions they take from the larger groups,” he said.

“By contrast if you look at Channel 4, [which says it is] a greenhouse to grow small indies, actually their share of the commissions from large groups has increased. Channel 4 looks a lot more dependent on larger companies. The BBC looks more like a greenhouse than Channel 4 does.”

He said the deficit between what broadcasters pay for shows and the actual cost of production had jumped to between £230 and £260m, up from £185m to £215m in 2012 and 2013, leaving indie producers to make up the difference via other deals such as co-productions and selling on rights.

McVay urged the BBC to focus any cuts on areas other than content budgets to avoid piling further pressure on production companies which the corporation has already pressed for efficiencies.

“We see continued downward pressure on programme spend,” he said. “We are very close to the bone now, where the BBC seldom if ever goes near paying the full cost of the programme, which places more risk on the supplier.”

He said children’s TV was an area of particular concern, as the BBC is the only broadcaster spending any significant amount on commissioning children’s shows from UK producers.

Mansfield added: “[The BBC] have expressed concern about salami slicing and recognising there comes a point which you just can’t go below. I think we are all united in that.”

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