The story
History
Origins
In addition to broadcasting, the BBC has for much of its life also produced additional materials for sale, the profits of which would be returned to the corporation to aid in the financing of these services. The highest profile of these early products was the listings magazine Radio Times, but the net revenue gained from this in 1928 (£93,686, 10s, 1d) only equated to 10% of total BBC income.
Prior to 1979, several BBC departments dealt with the exploitation and sale of BBC brands and programmes. BBC Publications, which produced magazines, books and other supplementary materials, had expanded rapidly in the late 1960s but still had difficulties with finances. In 1974, the division made a loss of £14,000. This was rectified however as the economic situation eased and by 1982, BBC Publications had a trading profit of £4.7 million. BBC Transcription Services licensed BBC Radio material to overseas broadcasters.
The selling of television programmes was at first handled in 1958 with the establishment of a business manager post. This gradually expanded until the establishment of the Television Promotions (later renamed Television Enterprises) department in 1960 under a general manager. In its first year, the department saw the sale of 550 programmes overseas with a turnover of £234,000, with a further 1,200 programmes sold the following year. Radio programmes were only exploited on the same level with the creation of the Radio Enterprises department in 1966. The two departments were merged to form the BBC Enterprises department in October 1968.
BBC Enterprises
On 15 May 1979, the department became BBC Enterprises Ltd., a subsidiary company wholly owned by the BBC. By 1982, the division were expanding with divisions responsible for home video (under the brand BBC Video), recorded audio (under the brands BBC Records and BBC Cassettes), film and merchandising. At this point the company had a turnover of £23 million. On 1 April 1986, all commercial activities of the corporation, including BBC Publications, was merged into BBC Enterprises Ltd.
In 1991, BBC World Service Television became the first commercially funded BBC broadcasting operation after the Foreign Office refused to pay for it. BBC Enterprises Ltd was subsequently reorganised on 1 January 1995 as BBC Worldwide Ltd. A review of the BBC's commercial activities took place in 2004 and concluded that the sell off of BBC Worldwide's assets would not be as advantageous as keeping the business and driving it harder. Instead, some changes to its remit, focus, structure and governance were made, e.g. that it would only publish titles in the UK linked to BBC programmes or key genres.
Acquisitions and restructuring
On 12 July 2004, BBC Worldwide and Woolworths Group plc announced they had entered into a joint venture to form 2 Entertain (stylized as 2 | entertain), which would combine BBC Worldwide's video publishing unit (BBC Video) with Woolworths Group's video publishing, music publishing and video production unit (Video Collection International). BBC Worldwide would hold 60%, while the Woolworths Group would hold 40%, additionally, both BBC Worldwide and Woolworths Group wanted 2 Entertain to better compete with the major studios. The deal was completed on 27 September with Video Collection International being renamed 2 Entertain Video Ltd. in October.
In 2005, the company sold Eve magazine to Haymarket Group and in 2006 the company sold a majority stake in BBC Books to publisher Random House.
In 2006, Ragdoll Productions & BBC Worldwide made a joint venture together named Ragdoll Worldwide.
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In 2007, BBC Worldwide purchased a 75% stake in the travel guide publisher Lonely Planet, acquiring the final 25% of the company in 2011. The acquisition was part of the BBC's strategy to grow its online portfolio and to increase its operations in Australia and the USA.
In January 2009, it was announced that Ofcom had put forward the recommendation that Channel 4 merge with either the commercial network Five or BBC Worldwide. Channel 4's preferred option of a partnership with the latter was confirmed by chief executive Andy Duncan, who added: "We're in discussions with BBC Worldwide at the moment and they're really very exciting." In the same year, the company was awarded the Queen's Award for Enterprise in recognition of the companies growth and success.
In 2012, the company began to reorganise their divisions from a product based system to a location-based system, resulting in Jana Bennett leaving the company.
In 2013, BBC Worldwide sold Lonely Planet to Kentucky billionaire Brad Kelley's NC2 Media for US$75 million (£51.5 million)— significantly less than the £130.2 million the BBC had paid for the company, at an £80 million loss.
In December 2016, BBC Worldwide and ITV plc announced BritBox, an international subscription streaming brand focusing on British television. The service was planned to launch first in the United States in 2017, with AMC Networks as a local partner.
In 2017, under revisions to the BBC Charter and subsequent BBC Trust approval, the broadcaster formed a second commercial subsidiary known as BBC Studios, to hold most of the broadcaster's in-house production units (including Factual, Entertainment, Scripted, and Music & Events). In return for the restructuring, which also allows the BBC to produce programmes for competing broadcasters to fund its public services, the BBC agreed to allow BBC Studios and third-parties to bid on tenders to produce its in-house non-news programmes over the next 11 years. On 29 November 2017, the BBC announced that BBC Worldwide would be merged into BBC Studios in April 2018, which gave the broadcaster an integrated division involved in both the production and sale of programming.
Profit and sales (1995–2012)
In 2013/14, BBC Worldwide generated headline profits of £157.4m and headline sales of £1,042.3m and returned £173.8m to the BBC.
In 2012/13, it made a profit of £156.3m on a turnover of £1,115.8m. The company had made a profit of £104m on a turnover of £1,085m in the previous financial year.
BBC Worldwide's profit rate was 11.2% in 2011/2012, up slightly from 9.6% the previous year, down from a peak of 21.5% in 2002/2003, contrasting with 7.8% in 2003/2004.
Historical price conversion as per RPI figures from "Office for National Statistics – Dataset selector". Retrieved 24 August 2013.
From Wikipedia’s article on BBC Worldwide, shared under CC BY-SA 4.0.5