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Sale of BBC Television Centre confirmed by BBC Trust

(October 2007)

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NG
noggin Founding member
phileasfogg posted:
I have a question. If the BBC is supposed to operate as a non-profit organization, how is there to be any long-term savings in outsourcing production activities to profit-motivated private contractors?

Very good question.

Quote:

I'm no expert...but if you are a nonprofit, and you can do something for $100, then I, as a private company, will want to have my margin added on top of the actual $100 cost of the activity if I do it for you. (Or do some of these independent producers try to function as non-profits? I don't know...does anyone?)


In independent production terms there are two arguments :

1. Some indys are small - and thus operate with lower overheads, so they actually make programmes for less money using methods the BBC can't, and in some cases get access and operate in ways that allow them to make shows the BBC couldn't. Not all of course - but some. (Small indies may not provide pension schemes, they may not have the overheads of accommodation, phone systems, personnel departments, senior management etc. that the BBC have and that are folded into programme budgets)

2. Independent production has deemed to be an important industry for the country - both creatively in the public service, and as a revenue generation system for the country (Leading independents sell their programmes and formats overseas - effectively "exporting" - which is good for the country.

When it comes to outsourcing other services - technology, playout, transmission and soon resources, the argument is that the BBC was too small to fully exploit savings made by large scale companies in the same field and thus even though they make a profit, the BBC should still make a saving compared to the cost it would have cost the BBC to do the same things in house. Whether this is ACTUALLY the case for all outsourcing...

Quote:

Alternatively, if you have a unionised workforce and I don't...well....wages are usually one of the largest cost-components of any activity...

... is that really the point? Is all this outsourcing just designed to change the balance of power between the organizations and labour in the media industry in general (and the public service part of it in particular)? Or is it just that the structure of the BBC right now is getting in the way of evolving the corporation into whatever it is intended to evolve into? Part of some long-term plan to turn the BBC into something more like the American PBS or the Canadian CBC?

How many of the people who lose their positions at the BBC will end up joining the production concerns that the BBC will outsource to? What sort of positions, exactly are intended to be eliminated?

TVC is, when you get down to it, just famous real estate. But changing the way that content is produced is changing the way the BBC does its job. What sort of institution will it be after these changes are made?


If it carries on as it currently is - Channel Four (the original publisher/broadcasters) would be a good model.

The irony is that ITV have decided to revert to making as much as possible in-house, after embracing independent production for far more than their 25% quota that the government demands.
GE
thegeek Founding member
noggin posted:
phileasfogg posted:
I have a question. If the BBC is supposed to operate as a non-profit organization, how is there to be any long-term savings in outsourcing production activities to profit-motivated private contractors?

Very good question.

[...]

When it comes to outsourcing other services - technology, playout, transmission and soon resources, the argument is that the BBC was too small to fully exploit savings made by large scale companies in the same field and thus even though they make a profit, the BBC should still make a saving compared to the cost it would have cost the BBC to do the same things in house. Whether this is ACTUALLY the case for all outsourcing...
In the case of Red Bee, two years down the line, I'd say they've been rather effective. They've aggressively pursued new business for playout, spending a lot on new technology in the process - and there's an argument that being part of the BBC (even a commercial part of it) would make it harder to get funding for this, whereas being part of an investment bank makes it easier to get cheap loans. Providing these services for many clients provides economies of scale - pooling staff and resources between clients, for example.

Siemens do IT outsourcing, and project management for other companies, so can presumably share expertise there - but in the field of broadcast engineering, are pretty much limited to the BBC. They're also mostly based in BBC sites (TV Centre, for one), so aren't really making savings there. And the Public Accounts Committee aren't too convinced by the deal, either.
(Call be a big cynic, but the fact that the division which bought BBC Technology is now called Siemens IT Solutions & Services suggests that the suits aren't entirely clear that they do all this broadcasty stuff)
BR
Brekkie
Paul Clark posted:
If I could ask, what has been the justification for a) the heaviest cuts in news and factual specifically as opposed to other areas, and b) the increase in repeats while the already quite repetitive BBC3 and BBC4 remain on-air with what could well be repeat rates increasing to the ridiculous? I know of the decisions made, but not of the reasons.


Noggin covered most of that - to add the issue with news is mainly duplication. The BBC often send out correspondents for the flagship bulletins, News 24, BBC Radio and both local TV and radio to one event. The main aim of these cuts is to cease the duplication and not send out five reporters when one or two would be justified.
GS
Gavin Scott Founding member
Did I read the Metro accurately this morning that "BBC Bosses" soaked up £4.2 BILLION wages/bonuses in 2006?

Shurely shome mishtake?
TR
TROGGLES
Inspector Sands posted:
Paul02 posted:

No, they don't just 'rubber stamp', they have to justify their existence. There's probably now something (else perhaps ?) in the BBC's strategy that isn't useful or necessary.


So what would you suggest then? What mechanism should be in place that protcts the BBC from the Goverment and makes sure the management keep in check.

Quote:
Being a member of the BBC Trust carries with it great responsibility ?
Laughing
Kudos, maybe.


It carries both.

How can being effectively a Director of an organisation employing thousands of people with a budget of billions not be a responsibility? Look what happened a few years back with their predessesors and The Hutton Report.


Apparently the chairs of each audience council are considered as members of the BBC trust.. These are 'specially selected' members of the public Shocked
NG
noggin Founding member
Gavin Scott posted:
Did I read the Metro accurately this morning that "BBC Bosses" soaked up £4.2 BILLION wages/bonuses in 2006?

Shurely shome mishtake?


Quality journalism from the Metro - as usual.
BR
Brekkie
Two interesting points from Media Guardian.

Firstly, the BBC Director General saying that when recently he made the news he had one request for an interview from Sky, one from ITN - and 37 from the BBC.


Secondly, regarding the sale of TV Centre they raise the question "what about the Blue Peter garden?". Though of course, I don't think I'm the only one who thinks Blue Peter's days are numbered.


Also, the Sun claim today that the BBC will only get £150m for TV Centre due to restrictions from Ken Livingstone meaning 50% of the site is for affordable housing.

Now, I think that's bad journalism more than anything - has anything even been said about whether they are selling TV Centre as a going concern, or selling the site for it to be demolished and used for other purposes?
SP
Spencer
Brekkie Boy posted:
Secondly, regarding the sale of TV Centre they raise the question "what about the Blue Peter garden?". Though of course, I don't think I'm the only one who thinks Blue Peter's days are numbered.


Of course the future of the Blue Peter garden was already in question with the programme due to be moving to Salford.
LO
londonlive
It was mentioned yesterday that the BBC World Newsroom (N9) would close, with BBC News 24 moving to N6 (National Studio) and BBC World moving to where News 24 currently comes from...
JC
JCB
Spencer For Hire posted:
Brekkie Boy posted:
Secondly, regarding the sale of TV Centre they raise the question "what about the Blue Peter garden?". Though of course, I don't think I'm the only one who thinks Blue Peter's days are numbered.


Of course the future of the Blue Peter garden was already in question with the programme due to be moving to Salford.


I read a while ago that a new "trendy roof top garden" is already in the early planning stages.

Personally I don't think Blue Peter's days are numbers. The show has been running for nearly 50 years - it's bound to go through the occasional blip. Yeah, the BBC have gotten rid of other institution like Grandstand and TOTP but they weren't relevant anymore and failed to re-invent themselves. BP still relevant and it's only because of this current Kids TV crisis that it is in such a poor state at the minute. Up until last year it was still very much thriving. Even If nothing else survives Blue Peter will somehow.
NG
noggin Founding member
londonlive posted:
It was mentioned yesterday that the BBC World Newsroom (N9) would close, with BBC News 24 moving to N6 (National Studio) and BBC World moving to where News 24 currently comes from...


I don't think anyone has said BBC World is closing their newsroom - i.e. the production teams who make the bulletins for BBC World. (I think you are confusing the studio/gallery elements of BBC World with the production team and their seating)

The BBC World newsroom will move to the second floor newsroom position where BBC News 24 are based, as BBC World will be using the newsroom studio and gallery currently used by BBC News 24. It will be interesting to see how much it merges with the new joint BBC One/News 24 newsroom on the first floor (ensuring licence fee money doesn't fund BBC World etc.)

The current BBC World studio and gallery - which is what I think you inaccurately described as "the newsroom" - is going to be mothballed, not closed. It will remain as a backup and emergency studio apparently, and not be exactly closed, more "unused day-to-day".
BR
Brekkie
JCB posted:
Personally I don't think Blue Peter's days are numbers. The show has been running for nearly 50 years - it's bound to go through the occasional blip. Yeah, the BBC have gotten rid of other institution like Grandstand and TOTP but they weren't relevant anymore and failed to re-invent themselves. BP still relevant and it's only because of this current Kids TV crisis that it is in such a poor state at the minute. Up until last year it was still very much thriving. Even If nothing else survives Blue Peter will somehow.



I wish I could agree - but the next year or so is crucial. I don't see the cut back to two episodes either as a move aimed at protecting the shows future.


TOTP was well overdue the axe, but Grandstand was treated appallingly and should at least have been given one last chance to prove itself - or at the very least a decent fair well, not being axed with just a couple of days notice.

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