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British Broadcasting Corpora-
tion
Company Profile
Reference Code: DF6A4575-EC99-49A3-8C71-EB552752F3AC
Publication Date: Aug 2007
British Broadcasting Corporation DF6A4575-EC99-49A3-8C71-EB552752F3AC
Datamonitor (Published Aug 2007) Page 2
This profile is a licensed product and is not to be photocopied
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British Broadcasting Corporation
Table of Contents
TABLE OF CONTENTS
Facts & Overview........................................................... 4
Business Description.................................................... 5
History ............................................................................ 6
Major Products & Services ........................................... 9
Key Employees ............................................................ 11
Key Employee Biographies ........................................ 12
Locations & Subsidiaries............................................ 16
Company View ............................................................. 17
SWOT Analysis ............................................................ 19
Company Overview
COMPANY OVERVIEW
British Broadcasting Corporation (BBC) is a UK based broadcasting company. BBC
operates several public TV channels, a 24 hour cable news channel, digital channels,
national and digital radio networks, and an online news service. The group primarily
operates in the UK. It is headquartered in London, UK and employs about 23,100
people.
The group recorded revenues of 4,177.3 million during the fiscal year ended March
2007, an increase of 4.3% over 2006. The operating loss of the group was 176.1
million during fiscal year 2007, as compared to the operating loss of 208.2 million in
2006. The net profit was 60.7 million in fiscal year 2007, as compared to the net
profit of 3.6 million in 2006.
KEY FACTS
Head Office Broadcasting House
Portland Place
London
W1A 1AA
GBR
Phone 44 20 7580 4468
Fax 44 20 7637 1630
Web Address http://www.bbc.co.uk
# Employees 23,037
Turnover ( Mn) 4,177.3
Fi nanci al Year End March
Business Description
BUSINESS DESCRIPTION
British Broadcasting Corporation (BBC) operates several public TV channels, a 24
hour cable news channel, digital channels, national and digital radio networks, and an
online news service. The BBC World Service broadcasts radio programming in more
than 30 languages and is the sole source of news in some parts of the world. The
groups subsidiary BBC Worldwide offers international TV channels (BBC Prime, BBC
America), program distribution, and magazine publishing.
The groups main business services include BBC Worldwide, BBC Resources, BBC
Monitoring, BBC Research Central, BBC Training, BBC International, beeb.net,
bbcshop.com, bbccanadashop.com, and bbcamericashop.com.
The groups subsidiary BBC Worldwide sells programmes and footage, runs
commercial TV channels and joint ventures worldwide and produces magazines,
books, tapes, DVDs, CDs and other merchandise. BBC Worldwide operates 18 wholly
owned and joint venture channels that provide entertainment, learning and children
programmes to around 288 million homes worldwide.
BBC Resources offers creative and technical production solutions which include
studio hire, outside broadcasts, post production, design, and costumes advice. BBC
Monitoring supplies news, information and comment gathered from mass media
around the world. It operates around 3,000 radio, TV, press, internet and news agency
sources, translating from up to 100 languages.
BBC Research Central provides Information, footage, pronunciation, radio and photo
research services. BBC International Unit supplies production and technical
assistance, TV facilities to overseas broadcasters transmitting from the UK.
BBC Training & Development Courses provides tailored training and consultancy
services to help individuals and companies working in broadcasting and related
industries.
The beeb.net provides internet access service from the BBC. The Internet shopping
services provided by BBC Worldwide include bbcshop.com (EU),
bbccanadashop.com, and bbcamericashop.com. These website provide the
customers with media content including DVD/Video, Audio books, downloads, and
gifts.
History
HISTORY
The British Broadcasting Company was formed in 1922 by a group of leading wireless
manufacturers. Daily broadcasting by the BBC began in Marconis London studio,
2LO, in the Strand, and from Birmingham and Manchester.
In 1927, the British Broadcasting Company became the British Broadcasting
Corporation (BBC) when it was granted its first Royal Charter. The BBC left its first
headquarters in 1932, for Broadcasting House in Portland Place.
The first foreign language service was in Arabic and was introduced in 1938. On the
eve of the Second World War, the BBC launched services to Europe in French,
German, Italian, Portuguese, Spanish and English.
The BBC opened the worlds first regular service of high definition television from
Alexandra Palace in North London, in 1936. The transmissions reached only the
20,000 homes with a television within a 35 mile range of Alexandra Palace. Like radio,
the worlds first regular high definition television service developed rapidly between
1936 and 1939.
BBC Television Centre in West London opened in 1960 and in 1964 BBC2 was
launched with the remit of offering an alternative and more experimental style of
television broadcasting. Radio 1 began in 1967 following the banning of the pirate
radio stations. The Light, Third and Home services were renamed Radios 2, 3 and 4.
In 1967, the first BBC local radio station opened in Leicester and within a few years
there were 20 local stations. In the same year color television broadcasts began on
BBC2, followed by BBC1 in 1969.
CEEFAX teletext was introduced in 1972 and used the television screen to offer
viewers up-to-the-minute news and information. BBC Radio faced competition for the
first time when the first commercial stations, LBC and Capital, opened in London in
1973 and in 1979 the BBC began subtitling of programs on CEEFAX.
The end of the decade saw the BBC bring together all its commercial activities under
a single organization, BBC Enterprises. This was the forerunner of BBC Worldwide
which, by selling BBC programs around the world as well as videos, records, books
and magazines, returned significant funds back to the BBC to invest in new programs.
The 1990s was a decade of innovation and transformation for the BBC; the arrival of
the digital technology and the Internet during the decade marked a new era for
broadcasting. BBC Radio went from strength to strength and the BBC launched Radio
History
5 in 1990. It was designed to broadcast a mixture of education, youth and sports
programs, with a selection of World Service output.
BBC researchers registered the address of bbc.co.uk in 1991 with the Academic
Name Registration Service and between 1993 and 1994 the BBC Networking Club
was set up. Radio 5 was replaced by Radio Five Live in 1994 which was devoted to
live news and sport. In the late nineties the BBCs new digital services brought
exciting opportunities to television and radio. These created a completely new way for
the BBC to communicate with its audiences.
BBC radio programs from different networks were streamed for the first time in 1996
on the net and 1997 marked the official launch of BBC Online. BBC News 24 was
launched in 1997 as a round the clock, 24 hour news channel. It provided a
continuous news service available to viewers on all digital platforms.
BBC Radio pioneered the worlds first national digital radio service in 1995 and by
1999, the five UK networks, the World Service, the Asian Network and the BBCs
national radio services in Scotland, Wales and Ireland are also available through
digital satellite and web.
In 2002 the BBCs digital developments took a major step forward and launched two
new childrens services: CBeebies aimed at children under five and CBBC, aimed at
6-13-year-olds. BBC Knowledge was also replaced in 2002 by BBC FOUR, a new arts
and culture channel.
Following the collapse of the ITV Digital terrestrial service, a consortium made up of
the BBC, BSkyB and Crown Castle, the transmitter company was awarded the DTT
license by the Independent Television Commission. Free view, the new digital
network, was launched in 2002. There were initially 24 free TV channels available on
the Freeview platform, eight from the BBC (plus other interactive and radio services
from the BBC).
Three new radio stations were also launched in 2002: 5 Live Sports Extra, which
provided uninterrupted sports coverage; 6 Music, which offered a mix of classic rock
music from the past, as well as contemporary music and 1Xtra, a station for fans of
cutting edge urban music such as rap, hip hop and R&B. In 2003, BBC Choice was
replaced with a new BBC Three channel, aimed at 16 to 34 year-olds.
The corporation launched a new text service for BBC Local Radio in 2004. The
service provided the latest news, sport, travel and weather headlines to listeners with
digital radios. In 2005, the BBC welcomed the British Governments proposal for a
new 10 year Charter from 2007 and continued secured funding through the license
History
fee, as detailed in the Green Paper a report published by the Secretary of State for
Culture, Media and Sport.
BBC Global Channels Asia announced the launch of BBC Entertainment on Astro,
Malaysias direct to home (DTH) satellite television services provider in J anuary 2007.
Four months later, the group shifted five offices from London to mediacity, UK at
Salford Quays, an internationally significant hub for the media and creative industries
with the UKs leading broadcast, media and technology companies in it. In J uly 2007,
BBC launched iPlayer, the service which enabled the computer users to download the
programs broadcasted by BBC over the past seven days.
Major Products & Services
MAJOR PRODUCTS & SERVICES
British Broadcasting Corporation (BBC) is a UK based broadcasting company. The
groups key products and services include the following:
Television Channels:
BBC One
BBC Two
BBC Three
BBC Four
CBBC
CBeebies
J am BBC
J ournalism:
BBC News
BBC News 24
BBC World services
BBC World
BBC Parliament
BBC Sport
Interactive TV
iPlayer
Audio and music:
Radio 1
Radio 2
Radio 3
Radio 4
Radio Five Live
Five Live Sports Extra
1Xtra BBC
BBC 6 Music
BBC 7
Asian Network
England local television and radio
Scotland local television and radio
Wales/Cymru local television and radio
Major Products & Services
Northern Ireland local television and radio
BBC Orchestras
BBC Singers
BBCi websites
BBC learning and education
Digital curriculum
BBC World Service
BBC America
BBC Canada
BBC Food
BBC Kids (Canada)
BBC Prime
BBC World
Animal Planet
People+Arts
UKTV
UKTV (Australia)
BBC websites:
bbcshop.com
bbccanadashop.com
bbcamericashop.com
Key Employees
KEY EMPLOYEES
Name Job Title Board Total Annual Comp.
Mark Thompson Director General
(Since: 2004)
Executive Board -
Mark Byford Deputy Director General
(Since: 2004)
Executive Board -
J enny Abramsky Director of Audio and Music
(Since: 2006)
Executive Board -
J ana Bennett Director of Vision
(Since: 2006)
Executive Board -
Tim Davie Director of Marketing, Communica-
tions and Audiences
(Since: 2005)
Executive Board -
Ashley Highfield Director of BBC Future Media and
Technology
(Since: 2006)
Executive Board -
Stephen Kelly Director of BBC People
(Since: 2006)
Executive Board -
Zarin Patel Group Finance Director
(Since: 2005)
Executive Board -
J ohn Smith Chief Executive of BBC Worldwide
(Since: 2004)
Executive Board -
Caroline Thomson Chief Operating Officer
(Since: 2006)
Executive Board -
Marcus Agius Director
(Since: 2006)
Non Executive Board -
Mike Lynch Director
(Since: 2007)
David Robbie Director
(Since: 2007)
Samir Shah Director
(Since: 2007)
Robert Webb Director
(Since: 2007)
Key Employee Biographies
KEY EMPLOYEE BIOGRAPHIES
Mark Thompson
Board: Executive Board
J ob Title: Director General
Since: 2004
Mr. Thompson has been Director General of British Broadcasting Corporation (BBC)
since 2004. He is the Chairman of the Executive Board and the BBC Direction Group,
made up of all the BBCs divisional Directors. Prior to his current position, he has
served as Director of Television; Director of National and Regional Broadcasting;
Controller BBC Two; Head of Factual; Head of Features; Editor, Panorama, and
Editor, Nine OClock News. Previously, he served as the Chief Executive of Channel 4
from 2002 to 2004.
Mark Byford
J ob Title: Deputy Director General
Since: 2004
Mr. Byford has been Deputy Director General of BBC since 2004. He is Chairman of
the J ournalism Board which brings together all the BBCs journalism at an
international, UK, national, regional and local level. He is also a Trustee of the BBC
Pension Scheme. Prior to the current position, he has served as Director, Global
News and World Service; Director of Regional Broadcasting; Head of Centre, Leeds,
and Home Editor, Television News.
Jenny Abramsky
J ob Title: Director of Audio and Music
Since: 2006
Ms. Abramsky has been Director of Audio and Music since 2006. Prior to the current
position, she served as Director of Continuous News; Controller, BBC Radio Five
Live; Editor, Radio News and Current Affairs, and Editor, Today.
Jana Bennett
J ob Title: Director of Vision
Since: 2006
Ms. Bennett has been Director of Vision since 2006. She is also a Director of BBC
Worldwide. Previously, she served as General Manager and Executive Vice President
at Discovery Communications in the US, Director of Production at the BBC, Head of
BBC Science, Editor of Horizon, and Senior Producer on News-night and Panorama.
Tim Davie
J ob Title: Director of Marketing, Communications and Audiences
Since: 2005
Mr. Tim Davie has been Director of Marketing, Communications and Audiences since
2005. He is also a Director of Freesat (UK) and Digital UK. Previously, he served at
Pepsi from 1993 as Vice President, Marketing and Franchise, Europe. He served in
the Procter & Gambles marketing department in 1991.
Ashley Highfield
J ob Title: Director of BBC Future Media and Technology
Since: 2006
Mr. Highfield has been Director of BBC Future Media and Technology since 2006.
Previously, he served as Managing Director of Flextech Interactive, the pay television
groups new media division and as Head of IT and New Media for NBCs European
channels.
Stephen Kelly
J ob Title: Director of BBC People
Since: 2006
Mr. Kelly has been Director of BBC People since 2006. He is Trustee of the BBC
Pension Scheme. Previously, he served as Chief HR Officer at BT Global Services,
BTs global networked IT services business.
Before joining BT, he led HR functions in British Rail, National Provident Institution
and Balfour Beatty.
Zarin Patel
J ob Title: Group Finance Director
Since: 2005
Ms. Patel has been Group Finance Director since 2005. She is a Director of BBC
Worldwide. Earlier she has served as Head of Revenue Management and Group
Financial Controller. She was trained as a chartered accountant with KPMG, where
she spent 15 years before joining the BBC in 1998. She is also a Governor, University
of the Arts London, and member of their Audit Committee.
John Smith
J ob Title: Chief Executive of BBC Worldwide
Since: 2004
Mr. Smith has been Chief Executive of BBC Worldwide since 2004. He has formerly
served as BBC Chief Operating Officer and Director of Finance. Currently he is
Director at Severn Trent and Chairman of their Audit Committee. Earlier he has
served as Director of Vickers and as a member of the advisory board of Zurich
Financial Services UK and was a Director of the Royal Television Society and Member
of the Accounting Standards Board until 2004.
Caroline Thomson
J ob Title: Chief Operating Officer
Since: 2006
Ms. Thomson has been Chief Operating Officer of BBC since 2006. Earlier, she has
served as Director of Strategy since 2004 and Director, Policy and Legal (formerly
Public Policy) since 2000. She has been a Lead Director of the Charter Renewal Task
Force since 2004. She is also a Director of Digital UK and of The Pensions Regulator.
Previously, she has served as Deputy Chief Executive, BBC World Service;
Commissioning Editor, Science and Business at Channel 4, and political assistant to
Roy J enkins.
Marcus Agius
Board: Non Executive Board
J ob Title: Director
Since: 2006
Mr. Agius has been Director of BBC since 2006. He is Chairman of the BBC Executive
Boards Remuneration Committee. He is also Chairman of Barclays. He is a Trustee
of the Royal Botanic Gardens, Kew and Chairman of the Foundation and Friends of
the Royal Botanic Gardens, Kew. Previously, he served Chairman of Lazard London
and Deputy Chairman of Lazard and Chairman of BAA.
Mike Lynch
Since: 2007
Mr. Lynch has been Director of BBC since 2007. He is a technology entrepreneur and
founder and Chief Executive Officer of Autonomy.
David Robbie
Since: 2007
Mr. Robbie has been Director of BBC since 2007. He is Chairman of the BBC
Executive Boards Audit Committee. Previously, he served as Group Finance Director
at CMG, then Chief Financial Officer at Royal P&O Nedlloyd before joining Rexam as
Group Finance Director in 2005.
Samir Shah
Since: 2007
Mr. Shah has been Director of BBC since 2007. He is also the Chief Executive Officer
of J uniper Communications and former Head of Political Programmes and Head of
Current Affairs at the BBC. He is Chairman of the Runnymede Trust, a trustee of the
Victoria and Albert Museum and Special Professor in Post-Conflict Studies in the
School of Modern Languages and Cultures, University of Nottingham.
Robert Webb
Since: 2007
Mr. Webb has been Director of BBC since 2007. He is the chairman of the BBC
Executive Boards Fair Trading Committee. Previously, he served as Head of
Chambers, 5 Bell Yard and a Recorder of the Crown Court between 1993 and 1998.
He became General Counsel for British Airways in 1998. He is also a Director of the
London Stock Exchange, Hakluyt and a Board Member of London First.
Locations & Subsidiaries
LOCATIONS & SUBSIDIARIES
BBC Films
1 Mortimer Street
London
W1T3J A
GBR
T: 44 20 7765 0251
F: 44 02 7765 0278
BBC Northern Ireland
Broadcasting House
Ormeau Avenue
Belfast
BT2 8HQ
GBR
T: 44 87 0010 0222
F: 44 28 9032 6453
BBC Breakfast
Room 1605
BBC Television Centre
Wood Lane
London
W12 7RJ
GBR
BBC Panorama
Room 1127
BBC White City
201 Wood Lane
London
W12 7TS
GBR
beeb.net Customer
Services
21 Tyndrum Street
Glasgow
G4 0J Y
GBR
BBC Ceefax
Room 7540
BBC Television Centre
Wood Lane
London
W12 7RJ
GBR
Company View
COMPANY VIEW
A statement by Mark Thompson, Director General of British Broadcasting Corporation
is given below. The statement has been taken from the companys 2007 annual
report.
As I write this, our friend and colleague Alan J ohnston remains missing in Gaza.
Perhaps by the time you read it, the situation will have changed. For now though,
Alans family and those who know him at the BBC are trapped in a suspended state of
anxiety and uncertainty.
In photos and on camera - unsurprisingly given the stories he covers - Alan has a
serious look, the very picture of a formidable BBC foreign correspondent. Off camera
he has a different side - fiercely intelligent and engaged in the debate, but with a
mischievous twinkle in his eye.
More than anything else the BBC is built on the talent, courage and integrity of the
men and women who work for it. These qualities matter in everything we do, but
nowhere more than in our journalism. In Iraq, Afghanistan, Gaza and in many other
countries and regions, BBC journalists remain when other news organisations have
left. They know that agency copy and pictures - no matter how good - are no
substitute for the immediacy, integrity, accuracy and human empathy of eyewitness
reportage.
We take the safety of our journalists and everyone else who works for and with the
BBC, incredibly seriously. We also have to recognize there are assignments and vital
stories to report that can never be made risk-free.
It has been a momentous year for the BBC in other ways - a strong new Charter, a
challenging license fee settlement and Creative Future, our vision of what the BBC
could become if it achieves its full creative potential in the new digital environment.
With The Street, Life On Mars and How Do You Solve A Problem Like Maria? It was a
fine year for TV drama and entertainment, while Planet Earth combined extraordinary
technical innovation with awe-inspiring artistry. Two years ago, perception of quality
was a significant concern for the BBC Governors; in 2006/2007, many of the key
measures in this area went up. BBC Radio proved its possible to grow audiences
while strengthening a reputation for creativity and excellence. Our online and
interactive services broke one record after another.
But there were bumps along the way as well. The editorial mistakes on Blue Peter and
Saturday Kitchen were so serious because, despite being unintentional, they went
Company View
right to the heart of our contract with our audiences - a contract based on trust. We are
taking every step we can to minimize the chances of such mistakes happening again.
Our response to the telephony controversy was part of a broader effort by the BBC to
become more open and more willing to learn from its mistakes. The new BBC Trust
has begun a broad and searching debate about the impartiality, quality and
distinctiveness of the BBCs services. It is a debate we welcome. We believe that a
more open BBC will be a stronger BBC and one which serves the public better.
Behind the scenes, BBC Worldwide delivered triple the profits of three years ago back
to the public services. The transformation of the BBC gathered pace, releasing money
and resources for new investment but without audiences reporting any loss of quality
in existing services.
Our present task is to develop detailed plans for the future which we can place before
the BBC Trust. Some - like the BBC iPlayer and high definition television - will rely on
new digital technologies. But we know that success for the BBC ultimately depends
not on technology but on the creativity and professionalism of our people. As the
public have always known, they are our most precious resource.
Which is why the story of Alan J ohnston matters so much.
SWOT Analysis
SWOT ANALYSIS
British Broadcasting Corporation (BBC) is a UK based broadcasting company. BBC
operates several public TV channels, a 24 hour cable news channel, digital channels,
national and digital radio networks, and an online news service. The group has strong
news segment, capturing around 11% of the global news audience. Strong news
segment provides a base for the group to capture the market share in other media
segment. However, increasing competition threatens to erode the market share of the
group.
Strengths
Strong news segment
BBC has strong news segment supported by global correspondent network. BBC
Global News includes BBC World Service radio, BBC World television, the BBCs
international online news services, BBC Monitoring, and BBC World Service Trust.
BBC news provides extensive coverage across variety of issues including hostilities,
war, sports, politics and various national and international happenings. BBCs global
news coverage capabilities have enabled strong market position in UK and
international markets. Around 80% of the adults in the UK and 11% of global news
audience accounting to around 233 million people access to various kinds of news
across radio, TV and internet. The group has 44,000 hours of news productions over
the BBC. Strong news segment provides a base for the group to capture the market
share in other media segment.
Wide product portfolio
The group has wide product portfolio which includes programs that entertain, provide
learning and information for various age groups across the globe. The groups TV
channels include BBC One, BBC Two, BBC Three, BBC Four, CBBC, CBeebies, J am
BBC among others. While BBC One, BBC Two, BBC Four provide broad range of
Strengths Weaknesses
Strong news segment
Wide product portfolio
Strong performance of BBC Worldwide
Weak operating performance
Opportunities Threats
iPlayer
Efficiency improvement initiatives
ArabicTV
Intense competition
Controversies harming reputation
Technological changes
SWOT Analysis
programs on factual and specialty subjects, comedy, drama, documentaries,
performance, music, film and topical features, BBC Three, CBBC, CBeebies, J am
BBC provide content for learning and development of youth and younger children.
Other TV channels that provide local content to other programs include BBC English
regions, BBC Northern Ireland, BBC Cymru Wales and BBC Scotland.
The groups news channels include BBC News, BBC News 24, BBC World services,
BBC World, BBC Parliament, and BBC Sport. BBC provide music, live concert
programs, festival and other studio sessions over Radio through its Audio and Music
segment which includes Radio 1, Radio 2, Radio 3, Radio 4, Radio Five Live, Five
Live Sports Extra, 1Xtra BBC, BBC 6 Music, BBC 7, and Asian Network channels. The
content of the Audio and Music is made available after the broadcast fro seven days
over various other platforms. BBC Radio monthly downloads has grown at 57%,
increasing to 3.2 million in March 2007. As of March 2007, BBC Radio had 33.5
million adult listeners accounting to 56% of UK radio listeners. The other channels of
the group include BBC America, BBC Canada, BBC Food, BBC Kids (Canada), BBC
Prime, BBC World, and Animal Planet. The group also operates website like
bbcshop.com, bbccanadashop.com, and bbcamericashop.com. Wide product
portfolio enables the group to optimize its product mix by offsetting losses from one
set of products with the profits from other set.
Strong performance of BBC Worldwide
BBC Worldwide, the groups commercial activities segment operates global channels,
sells TV programs, involves in content production, magazines and digital media. This
segment is also focused on the future content creation. This segment has recorded
strong performance in the last year. The segment recorded profits of 111 million in
March 2007, 24% increase over 2006 and achieved a threefold increase over three
years. The group invests its profits on the new content generation and funding future
programme making. Continued focus on the new content generation and future
programmes would provide the group to gain an edge over competitors.
Weaknesses
Weak operating performance
The group has recorded weak operating performance over the past few years. BBCs
has incurred operating losses fro the past five years 2003-2007. Operating loss of
BBC reached 176.1 million in 2007, as compared to operating loss of 406.6 million
in 2003. Though the operating loss is declining over the mentioned period it remains
significant in the fiscal year 2007. The groups cash flows have declined from 216.1
million in 2006 to 133.6 million in 2007. Continued losses from the operations would
SWOT Analysis
adversely affect the financial position and the groups ability to invest in the future
production ventures.
Opportunities
iPlayer
The group has launched iplayer, a service that enables the computer users to
download the programmes broadcasted on the television for the past seven days.
This service allows free downloading of 450 hours of programs on to the computers.
Initially this service is made available for all the customers using Microsoft products.
This service is likely to increase the availability of BBCs content and add more
broadband and 3G mobile users to the subscriber base. Development of iPlayer
compatible with other software platforms would increase the subscriber base of the
group, enabling it to strengthen its revenue streams.
Efficiency improvement initiatives
The group has been implementing few initiatives for improvement of its efficiency in
the last two years. In 2005, the group has initiated Three year Value for Money
efficiency program to make 355 million annual recurring cost savings across the
BBC. Until March 2007, the group has saved 228 million through automation of
business and programme making processes; contracts with suppliers and outsourcing
of more activities, and rationalizing its property. In line with its strategy, the group has
closed its services in ten languages.
Currently, the group is planning to focus on the quality of its TV and radio hours and
Web pages rather than the volume of the content. As part of its efficiency
improvement initiatives the group is planning to cut around 6,000 jobs by the end of
current financial year. Effective implementation of these initiatives would provide the
group with necessary saving and over a period improve its financial position.
ArabicTV
BBC is about to launch ArabicTV in 2007. ArabicTV service is expected to be the
major international news provider in the Middle East offering a service in Arabic
across television, radio and online, sharing views and perspectives across the region.
This service would provide 12 hours of broadcasting in the Middle East and would be
available free via satellite or cable connection. ArabicTV expands the global foot print
of the group in to the Middle East and provides better content regarding Arabic
countries for global broadcasting.
Threats
SWOT Analysis
Intense competition
The group faces intense competition from other broadcasting, production and media
companies. Depending on the broadcasting medium viz. radio, TV and internet the
group competes with other radio stations, television channels and other website that
provide similar content. Some of the competitors of the group include British Sky
Broadcasting Group, Channel Four Television Corporation, FremantleMedia, ITN,
Granada International, Cinesite, and You Tube. In acquiring subscribers for its new on
demand service, iPlayer, the group competes with new entrants like You Tube and
established players like Channel 4 which provide similar content. Intense competition
threatens to affect the market share of the group.
Controversies harming reputation
The group had faced contrivances alleging misuse of license fee to poach talent from
competitors. The salaries of top BBCs presenters in TV and radio were leaked to
newspapers, many of which were inaccurate. The market rates for key talent, paid as
salaries to the BBC artists were compared with those paid by the competitors. BBC
payments were considered high and the group was accused of disrupting markets by
paying higher salaries. Involvement in such controversies would adversely affect the
reputation of the group.
Technological changes
The groups businesses operate in the highly competitive and rapidly changing media
and entertainment industries. Several of its businesses are dependent to a large
extent on their ability to acquire, develop, adopt, and exploit new and existing
technologies to distinguish their products and services from those of their competitors.
Technological development, application and exploitation can take long periods of time
and require significant capital investments. If the group chooses technologies or
equipment that do not become the prevailing standard or that are less effective, cost-
efficient or attractive to its customers than those chosen by its competitors, or if it
offers products or services that fail to appeal to consumers, are not available at
competitive prices or do not function as expected, the groups competitive position
could deteriorate, and its operations, business or financial results could be adversely
affected.

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