03
Grow the scale
of our TV channels
Why TV channels?
Despite the increasing use of the internet and an explosion in
the range of devices available to access media and communications,
TV remains the dominant platform to enjoy programmes. Today viewers
around the world are watching just over three hours, 10 minutes per
person a day, up six minutes over the last five years. Owning our
own TV channel portfolio means we can capture value at all points
of the chain - programme, affiliate and advertising sales - as well
as brand-building for the long term, and putting ourselves in
control of our future.
Although the Channels business was only set up in 2005,
international channels are now integral to BBC Worldwide. They
underpin our international growth strategy, allowing our total
business to:
How are we doing it?
Our TV channels business is a high growth area, and our largest
business by revenue. This year we grew the number of subscribers
globally to 356m up from 343m, by launching channels onto new
platforms, into new markets, and by growing our subscriber base in
line with the growth of our platform partners.
UKTV, our joint venture partnership with Scripps Networks
Interactive provides an important second window for BBC content in
the UK through a portfolio of 10 channels in both the pay TV and
free-to-air spaces.
The launch of Really on the Freeview platform in August 2011
increased availability and viewership of the portfolio which in
part contributed to a significant year-on-year increase in
advertising sales.
The UKTV channels remain a significant source of income and
profit for BBC Worldwide.
Our biggest channel, BBC America, was one of the fastest growing
networks for ratings and subscriptions in the US and is now in
77.4m homes (up from 68.5m last year), due in part to a new deal
with Cablevision.
Investment in BBC America saw a 29% ratings growth in the fourth
quarter year on year, and the channel is up seven places in the
overall US cable rankings over 2011.
This year, we had 10 launches of our channel brands across three
key regions. BBC Knowledge, BBC Lifestyle and BBC Entertainment
made their first appearance in Taiwan. The same three launched in
Thailand, along with CBeebies, while BBC Lifestyle debuted in
Indonesia. CBeebies launched as a programming block in the Nordics,
in partnership with one of the region's largest commercial
broadcasters. BBC HD launched as a full channel in Spanish-speaking
Latin America. This has been followed in May 2012 by the launch of
our first dedicated BBC channel in Brazil, one of the fastest
growing TV markets in the world.
On air, this was our first year of significant original
commissions - both locally and globally. New titles included
Dripping In Chocolate, a murder mystery for UKTV in Australia and
New Zealand. Its premiere was seen by 3.2% of the subscription TV
audience. Come Dine with Me South Africa, commissioned for BBC
Entertainment in that market, set audience and advertising sales
records, with time slot share up 172%. For BBC Knowledge channels
around the world, we made Year of Adventures, based on the Lonely
Planet book of the same title. BBC America is in the process of
building new BBC franchises with a raft of original shows,
including Would You Rather with Graham Norton. The channel's first
original drama Copper is due to follow in August.
We are also creating unique global viewing experiences for our
viewers by hosting live events with real scale. This new strategy
premiered with the successful broadcast
of the Royal Wedding in April 2011. These synchronised
broadcasts, which also included Sport Relief in early 2012,
leverage the global reach of our channel network and connect with
public service BBC channels in the UK. We have also begun to air
major series, like the latest series of Top Gear and The Graham
Norton Show, within days of their UK broadcast as a way of serving
loyal fans and combating piracy. Post year end, we also broadcast
Planet Earth Live, the BBC's first live global wildlife event in
May. London Calling, a global programming event designed to
showcase the British capital to the world ahead of the Olympics,
began in June with the Queen's Diamond Jubilee celebrations live
from London.
Another development was the launch of the Global BBC iPlayer
pilot to extend our branded services into the digital on-demand
space.
BBC international channels and platforms include:
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Five BBC-branded genre channels which are individually tailored
for each market - BBC Entertainment, BBC Lifestyle, CBeebies, BBC
HD and BBC Knowledge. Two branded programming blocks - BBC Earth
and Lonely Planet - are integrated into our factual channel, BBC
Knowledge.
Our strategic objectives