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BBC
BBC
Worldwide Ltd. was the wholly owned commercial subsidiary of the BBC, formed out of a restructuring of its predecessor BBC
BBC
Enterprises in 1995. The company monetises BBC
BBC
brands, selling BBC
BBC
and other British programming for broadcast abroad with the aim of supplementing the income received by the BBC
BBC
through the licence fee. In 2013/14, BBC
BBC
Worldwide generated headline profits of £157.4m and headline sales of £1,042.3m and returned £173.8m to the BBC.[1] In 2012/13 it made a profit of £156.3m on a turnover of £1,115.8m.[2] The company had made a profit of £104m on a turnover of £1,085m in the previous financial year.[3] BBC
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.[4] The company merged with BBC Studios
BBC Studios
on 1 April 2018, to form a new licensing and production company under the BBC Studios
BBC Studios
name.

Contents

1 History

1.1 Origins 1.2 BBC
BBC
Enterprises 1.3 Acquisitions and restructuring

2 BBC
BBC
Worldwide profit and sales 1995–2012 3 Operations 4 Assets and brands 5 See also 6 References 7 External links

History[edit] Origins[edit] In addition to broadcasting, the BBC
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
BBC
income.[5] Prior to 1979, several BBC
BBC
departments dealt with the exploitation and sale of BBC
BBC
brands and programmes. BBC
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.[5] This was rectified however as the economic situation eased and by 1982 BBC
BBC
Publications had a trading profit of £4.7 million.[5] BBC
BBC
Transcription Services licensed BBC
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.[5] This gradually expanded until the establishment of the Television Promotions (later renamed Television Enterprises) department in 1960 under a general manager.[5] In its first year, the department saw the sale of 550 programmes overseas with a turnover of £234,000,[5][6] with a further 1,200 programmes sold the following year.[5] Radio programmes were only exploited on the same level with the creation of the Radio Enterprises department in 1965. However, following the retirement of the Radio Enterprises general manager in 1969, the two departments were merged to form the BBC
BBC
Enterprises department.[citation needed] BBC
BBC
Enterprises[edit] In 1979 the department became BBC
BBC
Enterprises Ltd., a subsidiary company wholly owned by the BBC.[5][6] By 1982, the division were expanding with divisions responsible for home video (under the brand BBC
BBC
Video), recorded audio (under the brands BBC
BBC
Records and BBC Cassettes), film and merchanding. At this point the company had a turnover of £23 million.[5] On 1 April 1986, all commercial activities of the corporation, including BBC
BBC
Publications, was merged into BBC
BBC
Enterprises Ltd.[7] In 1991 BBC
BBC
World Service Television became the first commercially funded BBC
BBC
broadcasting operation after the Foreign Office
Foreign Office
refused to pay for it.[8] BBC
BBC
Enterprises Ltd was subsequently reorganised in 1995 as BBC
BBC
Worldwide Ltd.[9] 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
BBC
programmes or key genres. Acquisitions and restructuring[edit] In 2004, BBC
BBC
Video merged with Video Collection International
International
to form 2 Entertain, which was part owned by BBC
BBC
Worldwide; the following year the company sold Eve magazine to Haymarket Group[10] and in 2006 the company sold a majority stake in BBC
BBC
Books to publisher Random House.[11] In 2007 BBC
BBC
Worldwide purchased a 75% stake in the travel guide publisher Lonely Planet,[12] acquiring the final 25% of the company in 2011.[13] The acquisition was part of the BBC's strategy to grow its online portfolio and to increase its operations in Australia and the USA.[14] In January 2009 it was announced that Ofcom
Ofcom
had put forward the recommendation that Channel 4
Channel 4
merge with either the commercial network Five or BBC
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
BBC
Worldwide at the moment and they're really very exciting."[15] In the same year, the company was awarded the Queen's Award for Enterprise in recognition of the companies growth and success.[16] 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.[17] BBC
BBC
Worldwide sold Lonely Planet
Lonely Planet
in 2013 to Kentucky
Kentucky
billionaire Brad Kelley's NC2 Media for US$75 million (£51.5 million)— significantly less than the £130.2 million the BBC
BBC
had paid for the company, at an £80 million loss.[18] In 2017, under revisions to the BBC
BBC
Charter and subsequent BBC
BBC
Trust approval, the broadcaster formed a second commercial subsidiary known as BBC
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
BBC
to produce programmes for competing broadcasters to fund its public services, the BBC
BBC
agreed to allow BBC Studios
BBC Studios
and third-parties to bid on tenders to produce its in-house non-news programmes over the next 11 years.[19][20][21][22] On 29 November 2017, the BBC
BBC
announced that BBC
BBC
Worldwide would be merged into BBC Studios
BBC Studios
in April 2018, which will give the broadcaster an integrated division involved in both the production and sale of programming.[23][24] BBC
BBC
Worldwide profit and sales 1995–2012[edit]

Date Headline Sales (2014) Profit (2014) Sales (Cash) Profit (Cash) Profit rate

1995/1996 £527m £84m £332m £53m 15.9%[25]

1996/1997 £630m £115m £409m £75m 18.3%[4]

1997/1998 £640m £120m £430m £81m 18.8%

1998/1999 £726m £120m £495m £82m 16.5%

1999/2000 £798m £136m £560m £96m 17.1%

2000/2001 £885m £148m £632m £106m 16.7%

2001/2002 £881m £169m £640m £123m 19.2%

2002/2003 £879m £188m £657m £141m 21.4%

2003/2004 £917m £71m £706m £55m 7.7%

2004/2005 £991m £112m £784m £89m 11.3%

2005/2006 £992m £135m £810m £111m 13.7%

2006/2007 £1,076m £138m £916m £118m 12.8%

2007/2008 £1,134m £116m £1,004m £103m 10.2%

2008/2009 £1,219m £164m £1,074m £145m 13.5%

2009/2010 £1,256m £204m £1,158m £188m 16.2%

2010/2011 £1,119m £107m £1,085m £104m 9.5%

2011/2012 £1,115m £125m £1,115m £125m 11.2%

Historical price conversion as per RPI figures from "Office for National Statistics – Dataset selector". Retrieved 24 August 2013.  Operations[edit]

BBC
BBC
Worldwide's current headquarters

BBC
BBC
Worldwide's London
London
headquarters until 2008.

In 2013, BBC
BBC
Worldwide reorganised the company along geographical, rather than divisional, lines to better serve its audiences around the world and to position itself to take advantage of opportunities in high growth markets. The seven geographic markets are grouped into three regions: North America; UK, Australia and New Zealand; and Global Markets (Asia, CEMA, Latin America and Western Europe). The two global business areas - Content and Brands - set the strategic framework and parameters for activities within the regions and keep a close connection into BBC
BBC
Worldwide's parent, the BBC. Digital is embedded throughout the business.[26] BBC
BBC
Worldwide was responsible for a wide range of commercial activities, primarily connected in some way with the output and public purposes of the main BBC. In the past, the business was divided into five operating businesses which covered the entire operations of the company: Channels; Content and Production; Brands, Consumers and New Ventures, Consumer Products and Sales and Distributions.[citation needed] The Channels division was formed in 2005[27] and is the company's largest generator of revenue and growth. It operates the broadcasting of several international channels and domestic networks:[27]

BBC
BBC
America – 50.1% with AMC Networks BBC
BBC
Canada
Canada
– 80% with Corus Entertainment BBC
BBC
Entertainment BBC
BBC
First BBC
BBC
Brit BBC
BBC
Earth BBC
BBC
HD BBC
BBC
Kids – 80% with Knowledge Network
Knowledge Network
Corporation BBC
BBC
Knowledge BBC
BBC
Lifestyle CBeebies CBBC British UKTV
UKTV
network of 10 channels – 50% with Discovery Inc. BBC
BBC
UKTV
UKTV
in Australia and New Zealand

The Content and Production division was formed in 2006 and invests the company's money into new productions by both the BBC
BBC
and other independent productions.[28] It also exploits the formats of BBC programmes and alters them to be suitable for an international audience – an example is the exploitation of the Strictly Come Dancing brand to become Dancing with the Stars
Dancing with the Stars
– maximising revenues by receiving a production fee from the local broadcaster as well as a sum from selling the initial re-versioning rights.[28] The division works alongside the Sales and Distribution division, which sells the broadcasting rights to completed programmes made by the BBC
BBC
and other producers – an example being the Red Production Company drama Mine All Mine for the ITV network in 2004. It includes the selling of individual clips through the BBC
BBC
Motion Gallery to other broadcasters. In the financial year 2010/11, this division sold the rights to over 74,000 hours worth of television content.[29] The other two divisions of the company deal with the individual programme brands: Global Brands focuses on the international recognition of the brands[30] while the Consumer Products division produces a variety of goods based around these brands. The work of the former includes expanding the brands into new areas – the Top Gear Live tour is a key example of this.[30] The latter creates and sells a variety of consumer products, occasionally as a stake or partnership in another company, including VHS and DVD releases, spoken word and music audio products, CD-ROMs, videogames, books and magazines.[31] Assets and brands[edit]

Owns video publishing company 2 Entertain
2 Entertain
with products dual branded 2 Entertain and BBC. Owns Demon Music Group. The BBC
BBC
Shops closed in 2016, although Worldwide retain Doctor Who and Top Gear-branded online shops. Operates the BBC
BBC
Motion Gallery. Operated the BBC
BBC
Store until its closure in November 2017. 12.2% stake in production company Left Bank Pictures.[32] 25% stake in Cliffhanger Productions independent production company.[33] 25% stake in BBC
BBC
Children's Books, an imprint of Penguin Group
Penguin Group
who hold a 75% stake.[34] Licences the publishing of magazine titles to the Immediate Media Company. The titles were formerly published in-house by BBC
BBC
Magazines. Licences audio content to Penguin Random House UK for global sales and distribution.[35][36] Titles were previously published in-house by BBC Radio Collection and BBC
BBC
Audiobooks and later by AudioGO, in which BBC Worldwide held a 15% stake.[37][38] Minority share in BBC
BBC
Books, with Random House Group taking majority share.[11] Books published using BBC
BBC
Books brand. Minority stake in BBC
BBC
Active, with Pearson PLC
Pearson PLC
taking the majority share.[39] The brand publishes educational material. In partnership with ITV, launched a US SVOD service BritBox in March 2017.[40][41]

These commercial activities allow BBC
BBC
Worldwide to return profits and dividends to the BBC
BBC
to re-invest in its broadcasting operations. In 2007/08 BBC
BBC
Worldwide invested £75.1m in in-house and independent programmes commissioned by the BBC. However, the BBC
BBC
has often been criticised for the amount of money it makes from BBC
BBC
Worldwide. Some commercial rivals protest at the advantage the company has from being associated with and being able to exploit the programme catalogue and resources of the BBC
BBC
to provide its goods and services.[42] See also[edit]

BBC
BBC
portal

International
International
BBC
BBC
television channels

References[edit]

^ " BBC
BBC
Worldwide – Annual Review 2013/14 – Annual Review 2014". Archived from the original on 14 August 2014. Retrieved 14 August 2014.  ^ " BBC
BBC
Worldwide – Annual Review 2012/13 – Annual Review 2013". Archived from the original on 7 July 2014. Retrieved 14 August 2014.  ^ " BBC
BBC
Worldwide – Annual Review 2011/12 – Annual Review 2012". Archived from the original on 5 September 2013. Retrieved 6 September 2013.  ^ a b "Annual Review". Retrieved 6 September 2013.  ^ a b c d e f g h i Cain, John (1992). The BBC: 70 years of broadcasting. London: British Broadcasting Corporation. pp. 116–119. ISBN 0-563-36750-4.  ^ a b "1970s" (PDF). The BBC
BBC
Story. BBC. Retrieved 5 June 2012.  ^ Cain, John (1992). The BBC: 70 years of broadcasting. London: British Broadcasting Corporation. p. 150. ISBN 0-563-36750-4.  ^ Crisell, Andrew (1997). An Introductory History of British Broadcasting. Routledge. p. 24. ISBN 0-415-12802-1.  ^ Webmaster. "British Broadcasting Corporation (BBC) - Public Opinions International". www.pubopinions.org. Retrieved 10 October 2017.  ^ " BBC
BBC
Worldwide announces sale of eve magazine to Haymarket". BBC Press Office. 11 January 2005. Retrieved 22 June 2012.  ^ a b "The Random House Group acquires majority shareholding in BBC Books". BBC
BBC
Press Office. 22 June 2006. Retrieved 22 June 2012.  ^ " BBC
BBC
buys Lonely Planet". The Age. 1 October 2007. Retrieved 1 October 2007.  ^ " BBC
BBC
takes last slice of Planet". The Sydney Morning Herald. 20 February 2011. Retrieved 5 March 2011.  ^ " BBC
BBC
Worldwide acquires Lonely Planet". BBC
BBC
Worldwide Press Release. BBC
BBC
Press Office. 1 October 2007. Retrieved 19 March 2013.  ^ " Channel 4
Channel 4
'must form partnership'". BBC
BBC
News. 21 January 2009. Retrieved 29 March 2009. Channel 4
Channel 4
should become part of a bigger organisation through a merger or partnerships, Ofcom
Ofcom
has recommended.  ^ Shearman, Sarah (21 April 2009). " BBC
BBC
Worldwide wins Queen's Enterprise award". MediaWeek. Retrieved 9 February 2015.  ^ " Jana Bennett
Jana Bennett
to leave BBC
BBC
Worldwide". BBC
BBC
News. 22 June 2012. Retrieved 22 June 2012.  ^ " BBC
BBC
Worldwide sells Lonely Planet
Lonely Planet
business at £80m loss". BBC News. 19 March 2013. Retrieved 19 March 2013.  ^ " BBC
BBC
to begin making programmes for other broadcasters". Radio Times. Retrieved 29 November 2017.  ^ Williams, Christopher (20 December 2016). " BBC Studios
BBC Studios
wins go-ahead for commercial production push". Daily Telegraph.  ^ " BBC Studios
BBC Studios
approved to launch commercially". Realscreen. Retrieved 29 November 2017.  ^ Gannagé-Stewart, Hannah (7 January 2016). " BBC Studios
BBC Studios
takes shape". Broadcast.  ^ Chu, Henry (29 November 2017). " BBC
BBC
Worldwide, BBC Studios
BBC Studios
to Merge into Single Operation". Variety. Retrieved 29 November 2017.  ^ White, Peter (29 November 2017). " BBC
BBC
To Merge BBC
BBC
Worldwide & BBC Studios
BBC Studios
Into $1.9B Company". Deadline. Retrieved 29 November 2017.  ^ " BBC
BBC
Worldwide Annual Report and Accounts". Archived from the original on 18 August 2000. Retrieved 6 September 2013.  ^ "About Us". BBC
BBC
Worldwide. Retrieved 14 August 2014.  ^ a b "Channels". BBC
BBC
Worldwide. Retrieved 22 June 2012.  ^ a b "Content & Production". BBC
BBC
Worldwide. Archived from the original on 4 July 2012. Retrieved 22 June 2012.  ^ "Sales & Distribution". BBC
BBC
Worldwide. Archived from the original on 4 July 2012. Retrieved 22 June 2012.  ^ a b "Global Brands". BBC
BBC
Worldwide. Archived from the original on 3 October 2012. Retrieved 11 October 2012.  ^ "Consumer Products". BBC
BBC
Worldwide. Archived from the original on 9 June 2012. Retrieved 22 June 2012.  ^ "The Telegraph" Sony takes stake in Left Bank telegraph.co.uk. Retrieved 7 September 2012 ^ " BBC
BBC
Worldwide buys into Cliffhanger". BBC
BBC
Press Office. 22 November 2007. Retrieved 22 June 2012.  ^ "Penguin Books and BBC
BBC
Worldwide form new venture for BBC
BBC
Children's Books". BBC
BBC
Press Office. 30 April 2004. Retrieved 22 June 2012.  ^ " BBC
BBC
Worldwide partners with Random House Audio for new publishing and distribution deal". BBC
BBC
Media Centre. 20 December 2013. Retrieved 31 March 2014.  ^ "Penguin Random House UK extends relationship with BBC
BBC
Worldwide to become the global publisher and distributor of BBC
BBC
Audio content" (Press release). The Random House Group. 20 May 2015. Retrieved 9 December 2015.  ^ " BBC
BBC
Worldwide announces sale of majority shareholding in BBC Audiobooks". BBC
BBC
Press Office. 14 July 2010. Retrieved 22 June 2012.  ^ Sweney, Mark (14 July 2010). " BBC
BBC
Audiobooks sold". Guardian. Retrieved 22 June 2012.  ^ " BBC
BBC
Active signals new partnership for BBC
BBC
Worldwide and Pearson Education". BBC
BBC
Press Office. 13 October 2005. Retrieved 22 June 2012.  ^ " BBC
BBC
- BBC
BBC
Worldwide and ITV partner to bring new SVOD service BRITBOX to the US - Media Centre". www.bbc.co.uk. Retrieved 2 April 2017.  ^ "BBC, ITV launch BritBox video streaming service in U.S." Reuters. 7 March 2017. Retrieved 2 April 2017.  ^ "About BBC
BBC
Worldwide". BBC
BBC
Worldwide. 2008/09. Archived from the original on 6 October 2009. Retrieved 10 September 2009.  Check date values in: date= (help)

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