The National Audit Office has published a review of the BBC's commercial operations, and offers a view of the risks and challenges ahead. I offer this section on BBC Global News, which includes the tv news channel BBC World and the news bits of bbc.com, in profit (£400k after tax) for the first time in five years. (Global News borrowing from BBC Commercial Holdings has increased by 54% over the same five years....)
BBC Global News
3.24 In line with other commercial providers of international news, Global News faces
a significant challenge to achieve sustainable profitability in the coming years. It expects
that structural changes to the TV advertising and distribution sales markets will continue
to exert downward pressure on its revenue (paragraph 3.3). Also, from 2017-18, it is fully
incorporating the BBC’s TV and digital advertising sales operations. Previously, Worldwide
sold such advertising on behalf of the World News channel, in return for a commission.
Given the decline in sales in recent years, this commission no longer fully covered
Worldwide’s costs. Assuming direct responsibility for TV and digital advertising sales will
require Global News to make economies, but the subsidiary also believes that it will allow
for closer cooperation between editorial and advertising teams.
3.25 In response to these challenges, Global News plans to reduce costs or increase
revenue across its operations by over £12 million a year by 2019-20. The BBC has
also approached the government to discuss alternative sources of income for some
of Global News’ operations.
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