BBC Annual Report and Accounts 2015/16

1 BBC Annual Report and Accounts 2015 /16 BBC Annual Report and Accounts 2015 /16 The BBC s mission is to inform, educate and entertainAttenborough and the Giant DinosaurBBC Annual Report and Accounts 2015 /16 Presented to Parliament by the Secretary of State for Culture, Media and Sport by command of Her MajestyExtended versions of the financial statements provided in Part Two of this Report were also laid before Parliament on 12 July 2016 and are available online at 1 of 2 BBC Copyright 2016 The text of this document (this excludes, where present, the Royal Arms and all departmental or agency logos) may be reproduced free of charge in any format or medium provided that it is reproduced accurately and not in a misleading context. The material must be acknowledged as BBC copyright and the document title specified.

2 Photographs are used BBC or used under the terms of the PACT agreement except where otherwise identified. Permission from copyright holders must be sought before any photographs are can download this publication from by FleishmanHillard Fishburn pursuant to the BBC Royal Charter 2006 ( ) BBC Annual Report and Accounts 2015 /16 01 Part One: the BBC Trust s review and assessmentThe Trust is the governing body of the BBC and sets the strategic direction, measures performance and holds the BBC Executive to s foreword 08 Charter Review Listening to audiences 11 Setting strategy and assessing performance 17 Delivering the public purposes 18 Setting strategy 20 Reviewing service performance 22 Upholding editorial standards 29 Demonstrating value for money 31 Serving audiences across the UK 35 Wales 35 Scotland 37 Northern Ireland 37 England 39 The BBC and the wider market 40 Overseeing other activities 43 Inside the Trust 45 BBC Trustees 46 Governance 48 Trust finances 51 OverviewThe BBC exists to serve the public, and its mission is to inform.

3 Educate and BBC at a glance 02 Our role and purpose 02 Serving everybody 03 Better value for money 04 The BBC s objectives 05 Additional information 161 Glossary 161 Index 162 Contacts IBCPart Two: the BBC Executive s review and assessment The BBC Executive is responsible for the operational delivery of BBC services and the direction of BBC editorial and creative output in line with the framework set by the s introduction 56 Strategic reportDelivering our strategy 59 Our achievements 60 Delivering our strategy 64 The BBC s objectives for the coming year 71 Performance 75 Performance by content area 76 Performance by reach and genre 87 The BBC in each of the nations 90 Governance and finance reportFinance 99 Review of the Managing Director 10 0 Financial achievements 103 Financial overview 104 Summary financial statement 113 Auditor s Report 114 Operations 115 Our people 116 Developing new talent and skills 121 Outreach 124 Partnerships 126

4 Supporting good causes 128 Environmental sustainability 13 0 Governance 131 Executive Board 133 Report of the Senior Independent Director 134 Governance Report and Nominations Committee 136 Executive Remuneration Report 138 Audit Committee Report 148 Risks and opportunities 153 Fair trading Report 157 Viability statement 16 002 BBC Annual Report and Accounts 2015 /16 Our role and purposeThe BBC serves the public interest through the promotion of its six public purposes. the BBC exists to serve the public and its mission is to inform, educate and entertain. Within the overall public purposes, the Trust sets the strategic framework for the BBC. The Executive, led by the Director-General, delivers the BBC s services and creative outputThe BBC s public purposes.

5 The following pages outline the strategic objectives agreed by the Trust and the Executive and provide some highlights illustrating how the BBC has worked to achieve themSustaining citizenship and civil societyProviding high quality news, current affairs and factual programming to engage its viewers, listeners and users in important current and political education and learningSupporting formal education in schools and colleges and informal knowledge and skills creativity and cultural excellenceEncouraging interest, engagement and participation in cultural, creative and sporting activities across the the UK, its nations, regions and communitiesBBC viewers, listeners and users can rely on the BBC to reflect the many communities that exist in the the UK to the world and the world to the UKBuilding a global understanding of international issues and broaden UK audiences experience of different to the public the benefit of emerging communications, technologies and servicesAssisting UK residents to get the best out of emerging media technologies now and in the BBC at a BBC Annual Report and Accounts 2015 /16 03 Overview 02-05 Serving everybodyWith a range of great content delivered in new year in summaryReaching new audiencesAudience reach Percentage of UK adults who use BBC Television.

6 Radio or online each week. Total time spentLength of time UK audiences spend with the BBC each week. General impression (mean average)Audience s general impression of the : 97% : 18 . 3h r s7/102014/15: 7/10 Leading the way with digital contentiPlayer Radio appThere were over one million downloads of radio programmes via the BBC iPlayer Radio app in less than a month after its launch, with Radio 4 drama proving the most ElectionMobile was the preferred screen to access BBC News Online during the election. Over unique browsers globally used BBC News Online and in the UK, the BBC s coverage across all platforms reached 89% of all adults and 84% of 18 to 34s in results million individual stories have been downloaded to the CBeebies Storytime app so highlightsBiggest non-sport programmeThe final of The Great British Bake Off reached more than 15 million people, making it the most watched programme in news analysisWe re now giving audiences even more news analysis and explanation of the day s biggest local, national and international stories.

7 By extending the BBC s News at Ten by an extra 15 minutes from Monday to music audienceA clip from the world-exclusive Adele at the BBC has become the most watched clip on the BBC YouTube Channel with over 48 million BBC Annual Report and Accounts 2015 /16 Value for moneyThis year in summaryCost per householdA six-year licence fee settlement was agreed in 2010 which has frozen the licence fee at until day40p 2014/15: 4 0 pHow your monthly licence fee is spent 2015 /16 per household 1. Television (2014/15: )1234562. Radio (2014/15: )3. BBC World Service (2014/15: )4. Other services and production costs (2014/15: )5. Online (2014/15: )6. Licence fee collection and pension deficit costs (2014/15: ) 2015 /162014/15 Spend per year m% of licence feeSpend per year m% of licence feeTelevision Nine channels2,201582,36660 Radio 15 network stations and Local Radio6421765216 Online BBC Online and BBC iPlayer23862015 BBC World Service26172536 Other services and production costs24762486 Licence fee collection and pension deficit costs21062907 The above analysis corresponds to UK PSB Group content expenditure on page 108.

8 Although the costs incurred to generate other income are excluded as they are not funded from the licence BBC has reviewed its analysis of PSB Group expenditure support costs during the year and consequently restated to make the prior year classification consistent with the current cumulative impact and spending power of over 20 million television licences can deliver more than content alone. As well as in-house staff, we are able to provide work for many freelance individuals and thousands of large and small businesses across the UK delivering sustainable benefits to digital and creative industries, as well as the wider British external spend is in addition to the c. billion internal spend the BBC makes within the creative industries.* The prior year balance has been updated following an adjustment to the data that has allowed a more accurate spend in the external creative economy 2015 /16 Total of 1.

9 Independent programmes transmitted 460m (2014/15: 455m*)1234562. Artists, contributors and copyright 272m (2014/15: 280m)3. External programme facilities and resources 203m(2014/15: 216m*)4. Acquired programmes transmitted 67m (2014/15: 66m)5. External online expenditure 33m(2014/15: 22m)6. BBC performing groups 24m (2014/15: 25m)Ongoing savings2015/16 was the penultimate year of the Delivering Quality First (DQF) savings programme, which has delivered 621m sustainable savings by 31 March 16. The programme remains on track to deliver a total of 700m in Annual recurrent savings by 31 March 17. 621m2014/15: 48 4 BBC Annual Report and Accounts 2015 /16 05 Overview 02-05 The BBC s objectivesThe BBC has an enduring mission: to inform, educate and entertain.

10 We provide high quality, distinctive programmes and services to audiences across the UK. This year we have aimed to deliver four strategic objectives:The BBC at a glanceMake distinctive, world-class content developing our portfolio of programmes, services and partnerships to bring the most BBC content to the most people ensuring services deliver a range of creative highlights, engaging all audiences with high quality programmes and services better reflecting the diversity of the UK across our programmes and servicesTransform our offer for younger audiences transforming mainstream services to better appeal to younger audiences further develop existing services for younger audiences innovating online to respond to the changing media worldDevelop a more personal BBC developing more personal.