主播大秀

The review has found that the 主播大秀’s three wholly-owned commercial businesses - 主播大秀 Studios, 主播大秀 Studioworks and 主播大秀 Global News - exhibit commercial efficiency in line with their peer groups and the wider market, fit with the 主播大秀’s mission and public purposes, do not jeopardise the corporation’s reputation, and there are policies and processes in place to ensure that they do not distort the market.

This review, which the 主播大秀 Board commissioned EY to undertake on its behalf, fulfils a requirement set by the UK Government in the 主播大秀’s Framework Agreement that the Board must assess whether the 主播大秀’s commercial activities comply with the four “commercial criteria” established in the 主播大秀’s governing documents.

These criteria state that all commercial activity undertaken by the 主播大秀 must:

• Fit with the 主播大秀’s Mission and the Public Purposes;
• Exhibit commercial efficiency;
• Not jeopardise the good reputation of the 主播大秀 or the value of the 主播大秀 brand; and
• Not, as a result of the relationship of the activity with the UK Public Services, trading activities or non-service activities, distort the market or create an unfair competitive advantage.

The 主播大秀’s commercial subsidiaries are:

• 主播大秀 Studios - the 主播大秀’s content production, sales and distribution arm.
• 主播大秀 Global News - operates the 主播大秀’s two commercially-funded international news services: 主播大秀 World News, the 24-hour global news television channel, and the digital platform bbc.com (and its apps).
• 主播大秀 Studioworks - provides studio and post production facilities and services to broadcasters and independent production companies.

The commercial subsidiaries are an important part of the 主播大秀 and create extra value for licence fee payers through profits that help fund the 主播大秀’s UK Public Services and reduce the burden on licence fee payers.

The Board has accepted the conclusions and recommendations provided by EY, and has .

The Board has also , as required by the Framework Agreement. These targets give a long-range view on what the Board expects each of the commercial subsidiaries to achieve over a three to five year period. The new profit targets are informed by benchmarking analysis carried out as part of the review and are published with background information on how the Board arrived at its decision for these.

Separately to this review, the 主播大秀 Board has also reviewed the governance and oversight of the 主播大秀’s commercial subsidiaries, including valuable input from Chris Saul’s review of commercial transparency at the 主播大秀, which has been considered by the Board and will be published in the New Year. As a result, the Board has agreed changes to the membership and composition of the 主播大秀’s Commercial Holdings Board, which is the governance body with responsibility for oversight of the commercial subsidiaries.

The Commercial Holdings Board will now be chaired by a non-executive director from the 主播大秀 Board, our Welsh member Elan Closs Stephens. Other changes to the membership of this board will also be made, with the new directors joining on 1 April 2019.

Sir David Clementi, 主播大秀 Chairman, says: “I am pleased that this review finds that our commercial subsidiaries are doing what they should. They exhibit commercial efficiency in line with their peer groups and the wider market, fit with the 主播大秀’s mission and public purposes, and we have policies and processes in place to ensure they do not distort the market.

“I am immensely proud of the work undertaken by the 主播大秀’s commercial businesses. They are a vital part of the overall 主播大秀, creating even more value for licence fee payers and providing impartial news around the globe.”

主播大秀 Press Office

Notes to editors

Under the 主播大秀’s Royal Charter, the 主播大秀 is able to undertake commercial activities alongside its public service broadcasting activities as long as it is compliant with four “commercial criteria”.

The Corporation’s Framework Agreement with the UK Government states that the 主播大秀 must carry out and publish two or more detailed reviews throughout the current Charter period on whether its commercial activities meet the commercial criteria. This report marks the conclusion of the first of these reviews by the 主播大秀 Board.

Commercial Governance

Following the governance changes agreed by the Board the revised Commercial Holdings Board will consist of ten directors, constituted as follows:

1. Chair: Non-executive Director from the 主播大秀 Board
2. Non-executive Director from the 主播大秀 Board (and also member of the Board’s Fair Trading Committee)
3. 主播大秀 Director-General
4. 主播大秀 Deputy Director-General
5. CEO of 主播大秀 Studios
6. Non-executive Director
7. Non-executive Director
8. 主播大秀 Group Staff Director (who is not on the Board or Executive Committee)
9. 主播大秀 Group Staff Director (who is not on the Board or Executive Committee)
10. Staff director from a commercial subsidiary

Elan Closs Stephens CBE - incoming Chair of the Commercial Holdings Board

The incoming Chair of the Commercial Holdings Board is 主播大秀 non-executive director Elan Closs Stephens.

Elan is an experienced media director who has spent a career in broadcasting, governance and academia. A former chair of the Welsh-language broadcaster S4C, Elan also spent six years as a member of the 主播大秀 Trust. She has a strong background in cultural and broadcasting regulation policy. She is a former chair of the British Council in Wales, the Broadcasting Council for Wales and a former governor of the British Film Institute. She recently stepped down from a second term on the S4C Authority.

Elan is a distinguished expert in corporate governance. She is the Chair of Public Leaders Forum - a forum of Chairs and CEOs of all Welsh Assembly arms-length bodies. Until April 2018, she served nine years as Chair of Corporate Governance for the Wales Permanent Secretary’s Board. She currently serves as the Electoral Commissioner for Wales.

Elan is also Non-Executive Director on the board of the IMAX in Waterloo (Big Screen Ltd), which is a wholly owned subsidiary of the BFI.

Elan is Emeritus Professor of Communications and Creative Industries at Aberystwyth University and was awarded a CBE in the Queen’s Birthday Honours in 2001 for services to broadcasting and the Welsh language.