'Independent Radio Productions Commissioned By The BBC' by Grant Goddard [edited by BBC Trust]
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A detailed analysis of the commissioning of independent radio programme productions by BBC network radio stations in the UK, written by Grant Goddard in July 2010 for the BBC Trust [edited by BBC Trust].
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'Independent Radio Productions Commissioned By The BBC' by Grant Goddard [edited by BBC Trust]
- 7. since 1996 to commission at least 10% of its network programming from independent producers. It has consistently exceeded that target and currently commissions around 13% externally. There are ongoing discussions between BBC radio and the independent production sector with a view to developing the relationship with the sector further. The commercial sector commissions virtually no programming from the independent sector.” 2 Subsequently, the government’s ‘Green Paper’ on Charter Renewal indicated that the BBC would be likely to remain the only significant buyer of independent radio productions: “The BBC’s stated goal was to stimulate the development of a healthy radio production economy outside the BBC across a range of genres in which a number of broadcasters would invest. However, the commercial [radio] sector mainly produces ‘continuous’ programming rather than individual programmes, and the former does not lend itself so readily to the segmenting needed to enable independent production. … The result nevertheless is that, in many areas of radio programming, unlike TV, the BBC remains a monopoly purchaser.” 3 The Green Paper noted a BBC proposal to extend the quota for independent radio productions to additional segments of its output: “The BBC’s recent content supply review concluded that the existing 10% voluntary quota should be extended to cover sport, radio in the Nations and the new digital radio stations. We welcome these proposals, which the BBC estimates will result in it commissioning about an additional 3,000 hours of independent production. The BBC has also recently consulted on new terms of trade, and is proposing a Programme Development Fund to support the development of creative ideas from independent producers.” 4 The Green Paper also set out the government’s policy objectives: “We think the same principle should apply to radio production as in TV – where possible, we want to encourage competition, because it is likely to bring the best programmes to listeners. Given the BBC’s current position as the only significant purchaser of independently produced material, it may not be possible to create a thriving and competitive production market through Government intervention in this area. Nevertheless, as in television, there remains a question as to whether the BBC’s recent moves are sufficient, or whether the quota might instead be increased or made binding.” 5 In its review of the Green Paper, the BBC agreed that greater competition in the supply of radio programmes could benefit listeners and stated: “However, while many of the principles underpinning in‐house television production apply equally to radio, there are considerable differences between the two media which lie behind the different approach taken by BBC Radio and BBC Television. Because of the nature of the radio market and the unique character of much of the BBC’s radio output, many genres are almost entirely supported by the BBC, radio drama being one obvious example. Television relies heavily on recorded ‘built’ programmes, while the vast majority of radio output is live. This in itself does not preclude independent production companies from making live ‘streamed’ programmes for radio (and there are many examples where they do), but these 2 BBC, Building Public Value, June 2004, p.101 Department for Culture, Media & Sport, Review of the BBC’s Royal Charter: A Strong BBC, independent of government, March 2005, p.88, para.7.18 4 ibid., p.88, para.7.19 5 ibid., p.88, para.7.20 3 7
- 8. two factors taken together mean that it is not practical to aim for as high a proportion of independent productions for radio as for television.” 6 The BBC argued that a ‘voluntary target’ remained preferable to a mandatory quota: “The independent radio production industry is still in its infancy. While there are several larger companies which do not rely entirely on the BBC, there are many others which are very small and for which the BBC, and Radio 4 in particular, represents their entire market. During the course of the negotiations for the new terms of trade it has become clear that, as technology and regulation change, the BBC is going to have to work very closely with the industry to ensure that it is able to take advantage of this developing market. In 1991, the BBC announced its intention to reach a voluntary target of 10% by 1996, a target it has always met and generally exceeded. Commissioning currently runs at 13.3% of eligible hours. Because of this, the BBC does not believe that a mandatory quota is an appropriate way of stimulating the independent sector at this time. The voluntary approach that the BBC has taken thus far has helped create the conditions for a stronger sector.” 7 The BBC proposals for independent radio production were, in full: • “New terms of trade will soon be announced, which will be much more beneficial to the independent sector than has historically been the case; • A research and development fund for independents has been launched; • The commissioning process for Radio 4 is under review, with the intention of making it simpler. At the same time Radio 4 has formalised its ‘open slots’ structure which will apply to programmes to be broadcast from 2006/07 onwards; • Radio management will create a central contact point for independents to work with on compliance issues, and join forces with television to extend the online information available to independent companies wishing to work with the BBC.” 8 The House of Lords Select Committee on the BBC’s Charter Review concluded that the BBC’s proposal to maintain a voluntary target was inadequate: “A mandatory quota for television production has strengthened the independent sector and provided stability and security for established and emerging companies. We believe that the BBC should continue to invest in independent radio production, but to secure growth in the sector further reforms are needed. We therefore recommend that the 10 per cent voluntary quota for independent radio production should be made mandatory. The BBC should consider the 10 per cent quota as a floor and not a ceiling and should operate a competitive commissioning process to secure the best programming available.” 9 Consequently, the government ‘White Paper’ proposed: “We will therefore place on the [BBC] Trust an overall duty of ensuring that independent radio producers have the opportunity to contribute fully to the BBC’s provision of the best possible programmes for listeners. 6 BBC, Review of the BBC’s Royal Charter: BBC response to ‘A Strong BBC, independent of government’, May 2005, p.86 ibid., p.86 8 ibid., p.87 9 House of Lords Select Committee on the BBC’s Charter Review, The Review of the BBC’s Royal Charter: Volume 1: Report, HL Paper 50‐1, 1 November 2005, p.68, para.273 7 8
- 10. 3. THE RADIO BROADCASTING MARKET The BBC has the greatest share of the United Kingdom radio marketplace, in terms of both listening and expenditure. Commercial radio has existed since 1973, most significantly in local markets where it has proven popular. Compared to some traditional media, radio’s performance in maintaining its audience in recent years has remained relatively robust, though the economic model for commercial radio is presently under stress from both structural and cyclical economic factors. Figure 1: shares of radio listening (% of total adult hours listened) 1993 Q4 BBC Radio BBC Network Radio 1995 Q4 1997 Q4 1999 Q4 2001 Q4 2003 Q4 2005 Q4 2007 Q4 2009 Q4 54.9 44.0 47.2 37.1 47.9 38.3 51.3 40.5 53.4 42.0 52.9 42.0 55.1 44.0 55.4 45.4 55.2 46.7 analogue stations digital stations 44.0 37.1 38.3 40.5 42.0 41.0 1.0 42.4 1.6 43.6 1.8 44.4 2.3 BBC Local/Regional Commercial Radio National Commercial 10.9 42.6 8.0 10.1 49.7 10.7 9.6 49.5 10.0 10.8 46.7 8.3 11.3 44.6 7.8 10.9 45.3 9.6 11.1 42.8 10.1 10.0 42.4 11.3 8.5 42.6 10.4 8.0 10.7 10.0 8.3 7.8 7.2 2.4 7.7 2.4 7.7 3.6 6.7 3.7 34.7 2.5 39.1 3.1 39.5 2.6 38.4 2.0 36.8 2.1 35.7 1.9 32.7 2.1 31.1 2.2 analogue stations digital stations Local Commercial Other 11 source: RAJAR 32.2 2.2 In terms of audiences, the BBC presently accounts for 55% of all radio listening, of which the greater part is attributed to the BBC’s five analogue national Networks (44% of all radio listening). Commercial radio accounts for 43% of all radio listening, of which local radio is the most significant part (32% of all radio listening). 12 Consequently, the BBC has the greatest share of listening to national radio stations, whilst commercial radio has the greatest share of listening to local radio stations. Figure 2: radio industry funding (£m per annum) year 2003 2004 2005 2006 2007 2008 BBC radio expenditure (£m) 585 607 626 614 653 643 Commercial radio revenues (£m) 543 551 530 512 522 505 1,128 1,158 1,156 1,126 1,175 1,148 TOTAL (£m) 13 source: Ofcom In 2008, the BBC accounted for 56% of UK radio industry funding, a proportion that has increased steadily as a result of the decline in commercial radio sector revenues from a peak in 2004. 14 In 2009, commercial radio revenues fell by 10% year‐on‐year, which is likely to have further widened the difference in funding between the two sectors. 15 Although the revenues of the BBC and commercial radio sectors are relatively balanced, their operational structures are very different, resulting in very different flows of funds. The BBC dominates the market in national radio with its five analogue Networks, whereas commercial radio dominates the local radio market with more than 300 locally licensed stations. The cost structures of radio broadcasting stations comprise mostly ‘fixed costs’ 11 RAJAR RAJAR, Q4 2009 13 Ofcom, The Communications Market 2009, August 2009, p.149, para. 3.1.1 14 ibid. 15 Radio Advertising Bureau 12 10
- 11. (which vary little by audience size or market size), resulting in very different expenditure allocations as a result of commercial radio’s considerably larger number of station operations compared to the BBC. Figure 3: key flows of radio sector value (£m in 2007/8) BBC radio production (£m) transmission (£m) general & administrative (£m) rights (£m) sales & marketing (£m) EBITDA (£m) 16 source: Value Partners 405 47 91 ? ? 0 commercial radio 98 61 190 46 114 42 In 2007/8, the greatest proportion (68%) of the BBC’s funding for radio was allocated to programme production, whereas the greatest proportion of the commercial sector’s revenues (55%) was allocated to administrative, marketing and sales costs. 17 As a result, the BBC’s total expenditure on radio production was four times greater than that of the commercial sector, despite commercial radio being required by the terms of its licenses to produce approximately seven times more hours of output than BBC radio. 18 Figure 4: average costs of radio programme production (2007/8) BBC radio commercial radio programme costs (£m per annum) 405 75 number of radio stations 54 315 total hours output per annum 369,189 2,759,400 production costs per hour (£) 1,097 27 19 source: Grant Goddard [commercial radio hours output are estimated] Of commercial radio’s £97.5m per annum expenditure on production, £22.9m was allocated to the production of radio advertisements, leaving the remaining £74.6m per annum estimated as commercial radio’s expenditure on programmes. 20 BBC expenditure on programmes was estimated to be £405m, demonstrating the significant difference that exists between the BBC and commercial radio sectors in terms of programme production budgets. On an average hourly basis, it was estimated that the BBC spent 40 times more (£1,097 per hour) than commercial radio (£27 per hour) on programme production in 2007/8. This substantial gap between the average radio production costs per hour of the BBC and commercial radio helps explain their markedly differing approaches to programme production. Much of commercial radio output comprises music recordings interspersed with live talk from a presenter, whereas much of the BBC’s output (particularly on its national Networks) consists of pre‐recorded, crafted programmes produced by a production team over a period of days or weeks. 16 Value Partners, UK Radio – Flow of Funds, 4 March 2009, pp.8‐9 [although BBC radio ‘cost of content’ was cited as £351m for 2007/8 in: National Audit Office, The Efficiency Of Radio Production At The BBC, 13 January 2009, p.12, Figure 3] 17 ibid. 18 Ofcom issues licenses for the commercial radio sector that mandate each station’s broadcast hours (most require 24 hours a day) 19 Data sources: Value Partners, BBC Annual Report, Ofcom [The £405m BBC production cost figure used here was cited by Value Partners, although the BBC Annual Report 2007/8 cited £459.9m] 20 Value Partners, UK Radio – Flow of Funds, 4 March 2009, p.73 11
- 12. 172 143 126 122 106 150 107 200 50 231 206 218 271 432 317 1,000 300 315 288 272 268 255 248 242 746 677 682 548 388 100 205 177 250 226 300 261 350 310 Figure 5: number of analogue commercial radio stations and total commercial radio sector revenues (£m at 2009 prices) 750 712 734 683 628 619 600 557 480 500 506 326 250 0 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 0 num ber of analogue local com m ercial radio stations [left axis] com m ercial radio revenues (£m @ 2009 prices) [right axis] 21 source: Ofcom, Radio Advertising Bureau During the last decade, the gap in the funds available for expenditure on programme content between the BBC and the commercial radio sector has been widened. This was the result of continuing expansion in the number of operational commercial radio stations, combined with a decline in aggregate sector revenues since 2004 in real terms. Although some local commercial stations have closed as a result of financial difficulties, the sector as a whole remains relatively large and is dependent upon diminishing revenues. Figure 6: number of analogue local commercial radio stations and commercial radio volume of radio listening (million adult hours per annum) by year 172 177 205 226 242 248 255 261 268 272 288 310 315 317 300 350 300 250 106 107 122 126 143 200 100 50 40,000 30,000 20,000 9 16 19 19 19 19 26 33 38 42 48 49 49 50 60 76 150 50,000 10,000 0 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 0 num ber of analogue local com m ercial radio stations [left axis] volum e of listening to com m ercial radio (m illion hrs/annum ) [right axis] 22 source: JICRAR/RAJAR, Ofcom In commercial radio, there exists an almost direct relationship between the volume of listening a station attracts and the amount of revenues generated. Even before the current advertising downturn impacted the sector, commercial radio’s listening had already demonstrated slow decline for almost a decade. Consequently, it was inevitable that revenues would also decline. 21 John Myers, An Independent Review of the Rules Governing Local Content on Commercial Radio, April 2009, p.23, Figure 4 [updated, 2009 number of stations estimated] 22 Ofcom & JICRAR/RAJAR [2009 number of stations estimated] 12
- 13. Many local commercial radio stations face the challenge of having to cover their largely fixed costs with smaller ‘slices’ from the sector’s diminishing revenue ‘cake’. The overall profitability of the commercial radio sector has been reduced so significantly that “current estimates suggest the industry as a whole is now loss‐making,” according to a report in January 2009 commissioned by the sector trade body, RadioCentre. 23 The current financial pressures on commercial radio make it very unlikely that the sector will consider increasing its expenditure on externally produced content. A report commissioned by Ofcom identified several reasons for the commercial radio sector’s limited use of externally produced content: • Commissioned programming is more expensive • Most commercial radio output is live, DJ‐led music programming • Few peak‐time opportunities exist for radio stations to share output • Station format requirements or the need to identify with the audience on a local level. 24 The report estimated that the commercial radio sector had spent £6.9m per annum on the production of syndicated programming in 2007/8, some of which was made in‐house for networking across a radio group’s stations, and some of which was independently sourced. 25 This content included the ‘Hit40UK’ and ‘Fresh40’ chart shows, news bulletins provided by IRN and Sky News, and entertainment news provided by UBC. Figure 7: volume of listening to all radio (15+ adults, ‘000 hours per week) Q4 2007 Q4 2008 1,000,000 987,585 Q4 2006 1,013,107 Q4 2005 1,017,842 1,057,127 Q4 2003 1,060,070 Q4 2002 1,051,075 1,075,871 1,092,034 1,072,417 1,006,329 1,100,000 1,039,901 1,200,000 900,000 Q4 1999 Q4 2000 Q4 2001 Q4 2004 26 source: RAJAR Q4 2009 Turning from the economics of the radio sector to its audiences, the medium’s listenership has weathered the arrival of the internet, electronic games and ‘smart phones’ relatively well. 91% of the adult population listens to radio every week, for an average 3 hours per day. 27 However, although the total UK adult population has been growing by around 1% per annum, total hours listened to all radio have been declining year‐on‐year since 2001. This is because, although the same high proportion of the adult population continues to use radio at least once a week, they are spending considerably less time listening. As a result, in Q4 2009, total hours listened to radio fell below 1bn per week, a phenomenon last recorded in 1999 when the adult population was 4m less than it is now. 23 Ingenious, Commercial Radio: The Drive To Digital, January 2009, p.2 Value Partners, UK Radio – Flow of Funds, 4 March 2009, p.75 25 ibid., p.77 26 RAJAR 27 RAJAR, Q1 2010 24 13
- 14. 90.3 91.3 91.3 90.9 92.4 93.1 92.5 92.6 91.2 92.6 84.1 86.0 85.8 86.2 85.2 86.2 87.0 91.3 90.3 86.5 88.8 87.9 90 90.7 90.7 91.6 90.6 89.5 89.8 92.0 92.0 91.7 95 93.4 92.6 91.2 91.9 91.4 Figure 8: weekly reach of all radio by age group (% of age group) 85 80 15-24 25-34 Q4 1999 35-44 Q4 2001 45-54 55-64 Q4 2005 Q4 2003 Q4 2007 65+ Q4 2009 28 source: RAJAR Audience data demonstrate that the weekly reach of the radio medium is declining significantly amongst the 15‐24 year old age group, and that two age groups – 15‐24 and 25‐ 34 year olds – have fallen below 90% during the last decade. Figure 9: average hours listened to all radio per listener by age group (hours per week within age group) 25.7 26.9 26.9 26.1 25.2 24.9 27.5 27.2 26.6 25.8 25.0 25.6 18.2 20.0 20.9 22.3 22.0 22.5 21.7 21.7 16.1 20 20.6 21.8 21.5 19.6 18.3 25 23.8 23.1 23.7 23.9 23.2 22.5 25.3 26.0 25.7 25.5 30 15 15-24 Q4 1999 25-34 Q4 2001 35-44 Q4 2003 45-54 Q4 2005 55-64 Q4 2007 29 source: RAJAR 65+ Q4 2009 Audience data also show that, within all adult age groups, the time spent listening to radio has been in decline, most noticeably in the 15‐24 and 25‐34 year old age groups. From this evidence, one might conclude that the radio medium is beginning to lose traction amongst the younger adult age groups. However, it should be noted that the RAJAR data cited here exclude: • ‘Listen again’ on‐demand usage delivered via IP • Time‐shifted listening accessed by ‘podcast’ download • Listening to non‐broadcast ‘radio’ services such as Last.fm and Spotify. 28 RAJAR RAJAR 29 14
- 15. Figure 10: total audio consumption by platform and age group (% of total audio consumed) 100 2 75 3 14 12 81 20 4 16 4 5 6 82 85 82 45-54 55-64 65+ 7 11 34 38 50 76 60 55 25 0 15-18 live radio 15-24 25-34 non-radio 35-44 catch-up radio podcasts unclassified radio 30 source: BBC Audio & Music The 15‐24 and 25‐34 year old demographics are the most likely sections of the adult population to be consuming traditional radio in non‐linear ways, and to be consuming non‐ broadcast ‘radio’ services via the internet. This was confirmed by BBC research which took a wider definition than RAJAR of ‘radio listening’. It found that, amongst 15‐18 year olds, traditional live radio now accounts for only 55% of their total audio consumption, whilst 38% of listening is sourced from ‘non‐radio.’ 31 However, podcasts and ‘listen again’ (or ‘catch‐up’) consumption remain only a very small proportion of total audio usage across all age groups. Figure 11: total audio consumption by age group and gender (average hours consumed per day per head) 5 15-18 3.8 4.1 4.2 4.1 3.7 3.6 3.7 3.7 4.4 3.9 3.9 3.5 3.7 3.8 Female 25-34 3.6 3.7 4.0 Female 15-18 3.6 Women 4 3.8 4.0 3.8 3.4 3.3 3.6 3 2 1 Female 65+ Female 55-64 Female 45-54 Female 35-44 Female 15-24 Male 65+ Male 55-64 Male 45-54 Male 35-44 Male 25-34 Male 15-24 Male 15-18 65+ 55-64 45-54 35-44 25-34 15-24 Men Total 0 32 source: BBC Audio & Music Once all sources of audio consumption are measured, as opposed to only traditional live broadcast radio (as in the RAJAR survey), it is evident that the time spent listening to all ‘audio’ remains robust and the volumes are remarkably similar between adult age groups and genders. 30 Margo Swadley, BBC Audio & Music, Is radio dead? Share of Ear Research, April 2009, p.18 ibid., p.18 ibid., p.11 31 32 15
- 16. These BBC data should be very encouraging for the radio sector because they demonstrate that ‘audio’, in the widest sense, remains a very significant part of the population’s leisure time, across all demographics. The challenge for the traditional radio sector is to maintain the audience’s interest in ‘radio’ audio, particularly for young people, and to offer sufficiently compelling content to convince them not to migrate to non‐traditional audio sources such as personal audio players or online music applications. Although these data offer evidence that demand for the radio medium as a whole is likely to be strong, the commercial radio sector continues to face a combination of structural and cyclical challenges that has damaged its short‐term viability. Additionally, a significant proportion of commercial radio sector’s profits have been diverted into expenditure on DAB digital radio infrastructure during the last decade. At present, there is no indication that the growing gap between the BBC and the commercial sector’s levels of expenditure on programme content will be halted or reversed. An analyst report on the commercial radio sector, commissioned by Ofcom in 2009, concluded that: • “Programming costs, spent mainly on bringing on board high quality talent, are extremely important to maintain the listener base of the station • Most [commercial radio] stations are already running extremely lean and there are few opportunities to reduce costs • The impact of lower revenues could be severe on stations which are either loss‐making or currently operating with low margins.”33 As a result, it is likely that the independent radio production sector will continue to be largely reliant on the BBC for commissions, outside of the few networked chart shows already broadcast on commercial radio. However, the long‐term audience prospects for the audio medium as a whole would appear to remain robust. 33 Value Partners, UK Radio – Flow of Funds, 4 March 2009, p.90 16
- 18. Although this Directive referred generically to ‘broadcasters’, it was never subsequently applied to the radio medium. In 2005, when an extension of the Directive was being considered by the European Union, an impact assessment commissioned by Ofcom had noted: “The European Commission has stated that radio will not be covered by the extension, but it is possible that the European Parliament will argue that radio services, and especially those provided over TV sets, DAB receivers and mobile handsets where radio is linked to visual images, should be included within the scope of the new Directive.” 36 However, to date, radio has continued to remain outside of the scope of the Directive. As a result, the commitment by the BBC to independent radio productions in its current Agreement is unilateral and does not apply to the commercial radio sector. There appears to be no more robust a definition of an ‘independent production’ than that contained within the BBC Agreement: “material made by producers external to the BBC.” 37 Similarly, the trade group for independent radio producers, the Radio Independents Group [RIG], stated on its web site: “If you produce radio programming for a UK‐based broadcaster or platform on an independent basis, then RIG is for you!” 38 However, the definition of an independent producer in the radio sector is muddied considerably by several factors: • Unlike the television medium, in radio it is common practice (in commercial radio more so than in the BBC) for programmes to be produced and presented by a single person • The services of radio presenters are sometimes contracted to a radio station by a production company that is established as a conduit for the presenter’s revenues, even though the presenter may work alone on their radio show • A significant proportion of the workforce in commercial radio is employed on a freelance or casual basis. In this respect, data from the Skillset Workforce Census have demonstrated the differences in working practices between BBC radio and commercial radio. Only 19% of the BBC radio workforce was recorded as freelance, compared to 38% in commercial radio. In the occupational groups of ‘radio broadcasting’ and ‘radio production’, across the entire radio sector, 37% and 32% respectively of workers were recorded as freelance. Skillset noted that its results probably underestimated the true picture, as a result of the data collection methodology, so that, in fact, “freelancers will make up an even higher proportion of the overall labour pool.” 39 In its early days, commercial radio in the United Kingdom had been organised internally much along the lines of existing BBC radio structures, with each programme produced by a team of dedicated staff, most of whom were likely to be station employees. However, as a 36 Indepen, Extension of the Television Without Frontiers Directive: An Impact Assessment: Final Report For Ofcom, September 2005, p.34 37 Department For Culture, Media & Sport, Broadcasting: An Agreement Between Her Majesty’s Secretary of State for Culture, Media and Sport and the British Broadcasting Corporation, Cm 6872, July 2006, p.30 38 http://www.radioindependentsgroup.org/about%20rig.htm 39 Skillset, Radio Sector Profile, [undated], [not paginated] 18
- 20. “a global social and professional network of 750 producers – both independent and those employed by media organizations – representing an extensive range of disciplines, from National Public Radio news journalists and reporters, to sound artists, station station‐based producers, podcasters, gearheads, media activists, and more.” 42 In the Republic of Ireland, the situation is the opposite, with the commercial radio sector being the main buyer of independent radio productions. According to the Association of Independent Radio Producers of Ireland [AIRPI] trade association: “The commercial radio sector makes up the bulk of the potential individual outlets for [independent radio] productions. Local commercial stations targeting a broad‐based listenership in their local franchise area are probably most open to taking work from independent producers….. “ 43 In Ireland, the overwhelming majority of independent radio producers are sole traders for whom radio work is a part‐time occupation, according to an AIRPI analysis of its membership. 44 It found that the independent radio production sector in Ireland only supported seven full‐time equivalent posts. As in the United States, the independent radio production sector in Ireland was populated mostly by self‐employed individuals, rather than by companies. In the United Kingdom, our rather vague definition of ‘independent radio production’ does not seem to bother the sector itself. Because the BBC is such a significant part of the market for the commissioning of independent radio productions, the sector defines itself largely as those who supply the BBC. Skillset, the industry skills and training body for the creative media industries, only recently started to consider ‘independent radio production’ as a distinct sector in its workforce census. Its latest survey estimated that 1,000 persons were employed in independent radio production in 2009, up from 400 in 2006. It found that, in 2009, 62% of the sector’s workforce was freelance, 30% was female, 3.5% was from ethnic minorities and 0% was disabled. However, interpretation of these data must be tempered by the fact that the estimates were extrapolated from only five completed questionnaires returned from sector participants in 2009.45 As a result, Skillset noted: “This is one area of intelligence gathering that needs to be addressed to build a clearer picture of the size of this community in future.” 46 The Radio Independents Group has conducted two surveys of its membership to date, one mostly quantitative and the other mostly qualitative. Its 2008 survey (with returns from 54% of its members) found that: • 73% were located in London • 67% were constituted as limited companies • The average trading period was 10 years • 54% of staff were employed full‐time 42 http://www.airmedia.org/PageInfo.php?PageID=1&LayOut=1 Maria Gibbons, An Analysis of the Independent Radio Production Sector In Ireland, The Association of Independent Radio Producers of Ireland, 10 August 2009, p.36 44 ibid., p.17 45 Skillset, 2009 Employment Census, December 2009, pp.7, 10, 14, 16, 19 & 22 46 Skillset, Radio Sector Profile, [undated], [not paginated] 43 20
- 21. • The majority of businesses generated revenues of less than £500,000 per annum • 83% of radio programme sales derived from the BBC • BBC Radio 4 alone generated 45% of commissioning revenues. 47 The second survey by the Radio Independents Group focused more on qualitative responses to questions about the commissioning processes and it found, amongst other things, that: • 9 out of 10 members had pitched programme ideas to BBC Radio 4, the majority in every commissioning round • Around a quarter of members had pitched ideas regularly to commercial radio. 48 In 2008, a report commissioned by the BBC from PriceWaterhouse Coopers concluded that: • In the absence of BBC commissioning, the size of the independent radio production sector would be negligible • There is little commissioning by commercial radio stations from the independent radio production sector • Expenditure by the BBC on independent radio productions accrues an economic benefit to these producers. 49 The dependence of independent radio producers upon the BBC for commissions is starkly different from the situation in the television medium, where the BBC generates only about 20% of the independent television production sector’s revenues. 50 In 2007, an expansion in the demand for independent radio productions had been anticipated, following the award by Ofcom of the licence for a second national digital radio multiplex to 4 Digital Group, whose majority shareholder was Channel 4 television. The group’s plans included the launch of eight new national radio stations, and its prospectus stated: “Channel 4's biggest ambition is to do for radio what it has done for TV. If the commissioning structure of radio can be changed in line with these ambitions, then the radio audience will grow as new talent and creativity is encouraged in the medium.” 51 The 4 Digital Group licence application promised: "Currently, commercial radio offers few opportunities for independents; producers must rely on the BBC as the sole commissioner for many genres. Channel 4 Radio Limited intends to change that by commissioning independents to produce many of the distinctive elements within key day‐parts and built‐programmes across its three new services. Over 25 years, Channel 4 Television has built a remarkable relationship with the independent television production sector – nurturing and developing companies in every region and nation of the UK and providing a platform for a genuine diversity of voices. That approach and experience will inform Channel 4 Radio Limited’s relationship with independent radio producers. Channel 4 Radio Limited’s presence in the independent commissioning market will be at least as great as the BBC’s, creating a more open, competitive and creative environment for producers." 52 47 Radio Independents Group, RIG Membership Survey: Analysis & Report, January 2009 Radio Independents Group, Survey of Radio Commissioning Procedures, 2008 49 PriceWaterhouse Coopers, The Economic Impact Of The BBC On The UK Creative Economy, Main Report, July 2008, p.116, para 11.3.2 50 Deloitte, The Economic Impact Of The BBC: 2008/09, 2010, p.58, para. 6.3 51 http://www.channel4.com/culture/microsites/W/wtc4/scheduling/4radio.html 52 ibid. 48 21
- 22. However, in 2008, Channel 4 informed Ofcom of its withdrawal from the 4 Digital Group and, as a result, neither the digital radio multiplex, the eight new radio channels nor the proposed content materialised. Ofcom decided not to re‐advertise the licence. Another potential boost to independent radio production occurred in 2007 when the Guardian Media Group announced a fund of £1m for new programme commissions for broadcast on its commercial radio stations. It said the fund would be “the biggest single investment in content in commercial radio” and would “encourage new programme makers to the sector.” 53 However, having announced its initial wave of programme commissions in 2008, no further announcements were made about subsequent acquisitions of independent radio productions. These two initiatives created expectations within the independent radio production sector that additional sources of commissioning would finally come on‐stream alongside the BBC. The loss of the opportunities promised by Channel 4 remains a continuing topic of conversation amongst independent production companies and within the BBC, where the entry of a new public service radio broadcaster might have alleviated the pressure on the BBC as the only significant commissioner of independent radio programmes. The BBC’s own analysis of the structure of independent radio production sector concluded that: • “The industry is comprised of a small number of relatively large players (turnover of £1m or more) and a long tail of very small businesses • Two‐thirds of indies received an income of less than £50,000 from the BBC in 2008/9 • The three largest players accounted for 25% of the BBC’s spend on the sector • This [25%] figure will be significantly higher in 2009/10, as one indie fared particularly well in the Spring commissioning rounds • 40% of contracts issued [are] worth less than £8,000.”54 Figure 12: BBC Network Radio expenditure on independently produced programmes by year (£ ‘000 per annum) 16,202 2007/8 17,204 16,517 2006/7 14,211 12,363 11,603 12,762 13,608 10,000 13,814 15,000 15,412 20,000 5,000 actual (£ '000) RPI indexed (£ '000 at 2008/9 prices) 55 source: BBC Audio & Music & Grant Goddard 2008/9 2005/6 2004/5 2003/4 2002/3 2001/2 2000/1 1999/2000 0 53 http://www.gmgradiosales.co.uk/?section=news&page=archive&id=59 BBC Audio & Music, Radio Supply Review – Independent Supply, 2 December 2009, pp.5‐6 55 BBC Audio & Music, data supplied to the author [the reduction in spend in 2002/3 was due to the voluntary liquidation of Wise Buddah] & Office for National Statistics, Retail Price Index RP02 54 22
- 23. BBC Network Radio spent £17.2m on commissioning programmes from the independent production sector in 2008/9. 56 Additionally, smaller sums were spent on independent radio productions by BBC English Regions and BBC Nations radio stations. The value of Network Radio independent radio commissions has increased over the last five years. However, after adjustment for price inflation, Network Radio expenditure on independently commissioned radio content in 2008/9 was £0.7m less in real terms than it had been in 1999/2000. 57 Figure 13: volume of independently produced radio programmes commissioned by BBC Network Radio by year (hours per annum) 8,000 6,634 7,000 6,974 6,000 3,550 3,308 3,520 3,732 3,744 2006/7 3,640 2005/6 3,744 2004/5 4,000 2003/4 5,000 2,551 3,000 2,000 1,000 2008/9 2007/8 2002/3 2001/2 2000/1 1999/2000 0 58 source: BBC Audio & Music The volume of programmes commissioned by Network Radio has increased significantly during the last two years, largely as a result of the extension of independently produced programmes to the BBC’s digital‐only Network stations. The number of hours commissioned externally increased by 86% between 1999/2000 and 2008/9 to 6,974 hours. 59 Figure 14: average cost per hour of independently produced radio output commissioned by BBC Network Radio by year (£ per hour) 3,690 3,738 3,737 3,595 4,037 4,130 4,411 3,000 2,442 2,467 2008/9 4,000 4,548 2007/8 5,000 2,000 1,000 60 source: BBC Audio & Music 56 2006/7 2005/6 2004/5 2003/4 2002/3 2001/2 2000/1 1999/ 2000 0 BBC Audio & Music, data supplied to the author Office for National Statistics, Retail Price Index RP02 58 BBC Audio & Music, data supplied to the author [the reduction in volume in 2002/3 was due to the voluntary liquidation of Wise Buddah] 59 ibid. 60 BBC Audio & Music, data supplied to the author [the reduction in spend in 2002/3 was due to the voluntary liquidation of Wise Buddah] 57 23
- 24. The substantial increase in the volume of the BBC’s independent radio commissions during the last two years, combined with the almost static total value of commissions over the same period, has resulted in a dramatic fall in the average ‘cost per hour’ of externally commissioned radio content from £4,411 in 2006/7 to £2,467 per hour in 2008/9. 61 Figure 15: percentage of ‘eligible hours’ attributed to independent radio productions broadcast on BBC Network Radio by year (%) 16 14 13.9 13.8 13.4 13.3 14.2 13.5 12.4 13.7 12.8 12 9.6 10 8 6 4 2 2008/9 2007/8 2006/7 2005/6 2004/5 2003/4 2002/3 2001/2 2000/1 1999/2000 0 62 source: BBC Audio & Music In 2008/9, independent productions accounted for 13.7% of BBC Network Radio ‘eligible output’, a proportion that has remained relatively constant since 1999/2000, the earliest year for which data was made available. 63 Figure 16: percentage of total broadcast hours attributed to independent radio productions broadcast on BBC Network Radio by year (%) 10 8.4 8.9 8 4.8 4.8 2006/7 4.5 2005/6 4.3 2004/5 4.0 2003/4 6 4 2 2008/9 2007/8 2002/3 2001/2 2000/1 1999/2000 0 64 source: BBC Audio & Music As a proportion of BBC Network Radio total broadcast hours, independent productions accounted for 8.9% in 2008/9, a significant increase from 4.0% in 2002/3. 65 61 ibid. BBC Audio & Music, data supplied to the author [the reduction in volume in 2002/3 was due to the voluntary liquidation of Wise Buddah] 63 ibid. 64 BBC Audio & Music, data supplied to the author 62 24
- 25. 12.0 11.8 12.5 14 12.8 Figure 17: percentage of programme expenditure attributed to independent radio productions broadcast on BBC Network Radio by year (%) 12 10 6.0 5.9 6 6.2 5.8 8 4 2 % of eligible ouput % of total broadcast output 66 source: BBC Audio & Music 2008/9 2007/8 2006/7 2005/6 2004/5 2003/4 2002/3 2001/2 2000/1 1999/2000 0 Although the proportion by volume of independent radio productions on BBC Network Radio has increased, the proportion by expenditure has remained static, measured both in terms of eligible output and total broadcast output. These data provide an outline of the structure of the independent radio production sector. In order to build up a more detailed picture, a quantitative survey of the businesses operating in independent radio production was conducted for this report. 65 Ibid. ibid. 66 25
- 26. 5. THE PRESENT BBC SYSTEMS FOR COMMISSIONING INDEPENDENT RADIO PRODUCTIONS The present systems within BBC Network Radio for commissioning independent radio content would appear to be largely a product of the separate development of each Network over time. As a result, the independent radio production sector is required to respond to the demands of individual commissioners in each Network. The BBC has acknowledged that “the [independent radio production] sector’s structure is, in part, the result of the fractured nature of BBC commissions.” 67 Having been created as the first of the National Networks, Radio 4’s internal structures remain the cornerstone of BBC Network Radio. Whole departments continue to service what might seem to some outside of the BBC to be remarkably esoteric programme purposes in the multi‐tasking 21st century. Radio 4 remains organised as a group of in‐house production departments, such as ‘General Factual’ and ‘Specialist Factual’, the former supplying programmes only to the World Service , whilst the latter supplies programmes to several stations, including Radios 3 and 4. The BBC’s popular music stations are organised into what the BBC calls ‘integrated networks.’ As a result of the BBC National Networks having been organised into competing silos that have been mostly housed in separate buildings since the post‐War period, duplication of functions has continued to exist across much of the structures. 68 For example, the commissioning of comedy programmes for Radio 2 remains discreet from the commissioning of comedy programmes for Radio 4. This is not to suggest that attempts have not been made within the BBC to modernise and rationalise such duplications. A proposal was made internally in 2005 to create a ‘BBC Network Radio Comedy Strategy’. Its aim was to ensure that: • “There is complimentary scheduling • Similar formats are not being commissioned across the networks • Major talent does not appear on more than one network at a time • Talent is developed and looked after by Radio so they have a long term relationship with us • Talent costs do not spiral by one network inflating costs for another • Relationships with TV are developed and co‐orientated • Issues to do with talent, producers, production, independents, rights etc can be shared • Good ideas not suitable for one network are not lost • With potentially four networks all commissioning more comedy, we are approaching major and ‘new’ talent and their relationships in a planned fashion.” 69 This strategy to adopt a holistic approach to comedy commissioning on BBC Network Radio was apparently rejected at the time. However, in recent months, a similar proposal to adopt 67 BBC Audio & Music, Radio Supply Review – Independent Supply, 2 December 2009, p.6 Sean Street, Crossing The Ether: British Public Service Radio And Commercial Competition 1922‐1945, John Libbey Publishing, 2006, p.192 69 Caroline Raphael, BBC Network Radio Comedy Strategy, BBC, January 2005, p.5 68 26
- 27. a broader strategy for the comedy genre has re‐surfaced, this time in the form of a cross‐ media BBC ‘Comedy Network’ that would provide a co‐ordinated approach to commissioning across all television and radio channels. 70 [ ] In the present commissioning systems for independent productions, each Network has produced its own set of explanatory documents, available publicly from the BBC Commissioning website, that describe the individual systems and programme needs, from which the following narrative is summarised. 71 Additionally, a ‘Statement of Operations for Radio’ has set out an overview of the BBC commissioning system for radio programmes. It includes the following explanations: Eligible hours: • “Not all types of output constitute ‘eligible hours’. News programmes, repeats and continuity announcements, for example, are currently excluded … • From April 2006, the 10% Quota Requirement was extended to eligible hours on the five Nations networks and also to live sports programming • From 1st April 2007, eligible hours on the five national digital networks will also be subject to and included in the calculation of the 10% Quota Requirement • The Quota Requirement may be met from anywhere within the eligible hours of the radio portfolio. In practice, each network is generally asked to meet or exceed the target percentage.” 72 Principles Underpinning Commissioning: • “Commissions seek to bring audiences and the Licence Fee payer great programmes which represent the best possible value for money • The BBC believes this is best achieved by a combination of in‐house productions and Independent Productions, with an element of competition between the two sectors • In some cases, the BBC will commission directly from its in‐house production base • The BBC is committed to a fair and equal treatment of all potential bidders and a transparent commissioning process • All eligible suppliers will be treated equally and provided with equivalent information, so none gains an unfair advantage • Commissioning decisions will be based solely on creative merit of the proposal and the value for money offered to the audience and the Licence Fee payer.” 73 Statement of Operation: • “Networks may operate a list of registered suppliers from whom all Independent Productions are commissioned • Some programmes may be commissioned through an invitation to tender to a number of suppliers selected by objective criteria • The aim is always to find the most efficient, effective and fair way to identify and commission the best ideas 70 BBC Trust, Service Review: BBC Radio 2 and BBC 6 Music, February 2010, p.31, para.85 http://www.bbc.co.uk/commissioning/ 72 BBC Audio & Music, Commissioning: Statement of Operation for Radio, [undated], pp.1‐2 73 ibid., p.3 71 27
- 28. • • Encouraging producers to devise and submit more proposals than can be reasonably considered is a waste of time and money, both for them and the BBC It is also pointless to invite proposals from individuals or organisations unable to demonstrate the ability to deliver what the BBC requires.” 74 Categories of Commissions: • “Universal or ‘Open’ slots: … open to all and enable the commissioner to seek proposals from the widest range of potential producers • Open to External Suppliers Only: … in‐house departments are excluded. In addition, some stations may limit these slots to suppliers on a registered supplier list or to selected suppliers (where appropriate due to the specific needs/experience of a production) • Limited to Selected Suppliers: … it may be desirable to limit bids to suppliers who have experience of a particular genre, access to key talent and/or other specialist skills. Proposals will then be invited from a suitable range of producers who meet the requirements • Topical Commissions: Networks involved in current affairs programming routinely leave some slots unfilled until close to transmission, against the need to transmit topical programmes at short notice. … Networks may approach suppliers with a known capacity or expertise in order to meet programme requirements which arise at short notice.” 75 The commissioning procedures for each Network are summarised in turn: Radio 4 According to the BBC, “Radio 4 is the network with the most pre‐recorded ‘built’ programmes and provides a significant opportunity for the development of creativity and best value through competition.” 76 Radio 4 only commissions programmes from independent producers that are included on its ‘Registered Supplier List’. The four‐page application form to be considered for inclusion on this List explains: “Please note that only companies with significant experience in production at network level can be considered for registration.” 77 In fact, the List is not a single list, but a set of seven Lists delineated by programme genre: ‘general features’, ‘documentaries’, ‘science and natural history’, ‘drama’, ‘comedy’, ‘single voice readings’ and ‘political talks.’ The application form advises: “Within the supplier list, we also operate an eligibility list, restricting specialist genres to suppliers with relevant expertise.” 78 As a result, an independent radio producer can be eligible for inclusion on one Radio 4 Supplier List, but not on another, dependent upon whether Radio 4 considers that, within a specific genre, an independent producer has demonstrated: • “Relevant expertise 74 ibid., pp.3‐4 ibid., pp.4‐5 76 ibid., p.5 77 BBC Radio 4, Application Form For The Radio 4 Supplier List, 22 February 2010, p.1 78 ibid. 75 28
- 29. • Significant experience in production at network level.” 79 Furthermore, acceptance of a supplier onto a specific List is time limited: “If a supplier fails to win a commission in 3 successive rounds, Radio 4 reserves the right to drop them from the list.” 80 According to Radio 4, existing suppliers and new applicants are assessed against the following set of criteria that have been agreed with the Office of Fair Trading: • “Our editorial and schedule requirements • Our editorial judgement on quality • Proven ability to deliver the desired genre • A degree of innovation • A company’s ability to meet the BBC’s regulations, such as on Rights and Health and Safety • Risk appraisal • Track record in budget management and meeting delivery deadlines • The appeal of talent.” 81 It is understood that the involvement of the Office of Fair Trading derived from a supplier complaint during the 1990s. However, it is self‐evident that the criteria and the ability to be accepted onto and to remain on a Supplier List continue to be based upon considerably subjective criteria, exemplified by the use of phrases such as ‘relevant expertise’, ‘significant experience’, ‘proven ability’, a ‘track record’ and, most notably, ‘our editorial judgement on quality’. Furthermore, the requirement that an applicant must have “significant experience of production at network [radio] level” could appear akin to a ‘Catch 22’ condition. As long as Radio 4 continues to be the only BBC Network broadcasting some programme genres, how would it be possible for a new independent supplier to offer previous production experience in that genre at Network Radio level … unless they have experience as a former Radio 4 producer? Some stakeholders in the independent radio production sector suggested, during the course of consultations, that Radio 4’s use of Supplier Lists demonstrates that considerable effort is exercised in this ‘gatekeeper’ role, which they believed could be more productively redirected towards attracting the UK’s best and creative ideas for on‐air execution. Inevitably, because the BBC is the only broadcaster of some radio programme genres, it is not competing with other broadcasters to attract potential suppliers. As a result, it is understandable that much effort could become focused on limiting the inflow of creative ideas, rather than on the potential ‘opportunity cost’ of not having commissioned programme ideas that, if they were not made for BBC radio, might be unlikely to be made at all. Radio 4 also offers additional opportunities for external programme commissions: 79 ibid. ibid. ibid. 80 81 29
- 30. “Unlike other networks, Radio 4 has a formal commitment to a minimum of 10% independent production, coupled to a 10% Window of Creative Competition (WoCC) which is open to both independent and in‐house producers.” 82 In total, 118 suppliers are currently listed in Radio 4’s ‘Register of Independent Production Companies’, of which 71 received commissions in 2008/9. 83 Geographically, 58% of the companies on the Register are based in London, with a further 16% based in Southern England, 12% in the remainder of England, 7% in Scotland, 6% in Wales and 1% in Ireland. 84 Within Radio 4, decisions to commission external producers are made by four commissioners, each working across a group of genres, who also have responsibilities for commissioning in‐house productions. Thus, there is no single external commissioning ‘touch point’ for Radio 4, and independent producers whose work crosses several genres are required to deal with separate departments. Registered suppliers are sent copies of the guidelines for each commissioning round, held in Spring and Autumn. 85 Batch Commissioning From April 2009, Radio 4 introduced a ‘batch commissioning’ initiative which represented a significant change for independent producers. According to Radio 4, ‘batch commissioning’ is the process of “tendering volumes of business in some slots (batching), rather than commissioning numerous individual programmes on a piecemeal basis.” In its proposal document, Radio 4 argued that ‘batch commissioning’ is “not a new idea”, but rather “a familiar and tested system in the commissioning of Radio 4 [book] readings.” 86 Part of the BBC rationale for ‘batch commissioning’ appeared to be an attempt to reduce the number of suppliers who pitch ideas to Radio 4 and who are subsequently commissioned. Radio 4 noted: • “As the number of suppliers rises and available business is progressively subdivided, even fewer suppliers can hope to win a significant share of commissions • We expect batching will generate more effective editorial focus by encouraging more creative relationships with key suppliers • Reduce transaction effort.” 87 However, Radio 4 was sensitive to the outcome of a reduction in its number of suppliers: • “There is a risk of losing diversity of output • There will still be large areas of output open to normal competition through commissioning rounds • We do not see batching as a way of concentrating all our business in a few super indies.” 88 Another part of the rationale was to reduce the costs of external commissions, at a time when Radio 4 programme budgets are evidently being reduced year‐on‐year: 82 BBC Audio & Music, Commissioning: Statement of Operation for Radio, [undated], p.5 BBC Audio & Music, data supplied to the author 84 BBC Audio & Music, Register of Independent Production Companies, 9 February 2010, pp.1‐8 85 http://www.bbc.co.uk/commissioning/radio/network/radio4.shtml 86 BBC Radio 4, Radio 4 batch commissioning plan, presentation for BBC Fair Trading, 13 March 2009, pp.1‐2 87 ibid., p.1 88 ibid., p.2 83 30
- 31. • “Internal BBC pressure to maximise efficiency also requires us to ask whether our commissioning process could not be getting better value for money from reduced resources It will save significant management time, making better use of limited resources Less time filtering dross, more for refining gold Better deals through bigger contracts.” 89 • • • Radio 4 was also keen to stress the advantages of ‘batch commissioning’ for suppliers: • “More mature independent [production] sector • More secure business planning • Ability to commit to staff and training • More constructive, creative editorial relationship with Radio 4 • All editor‐supplier conversations will be focused and creative • Suppliers will save very substantial time currently spent in fruitless development.” 90 Radio 4’s argument for ‘batch commissioning’ was supported by the citation of selected data: • The growth of its approved supplier list from 71 companies in 2001/2 to 125 in 2008/9 • The growth in independent commissioning from 10% of eligible hours in 2001/2 to 13% on 2008/9. 91 Figure 18: value of BBC Radio 4 commissions from independent producers (£ ‘000 per annum) and number of companies on Radio 4 Supplier List by year 8,000 120 120 6,000 95 100 125 135 140 80 4,000 71 60 40 2,000 20 2008/9 2007/8 2006/7 2005/6 2004/5 2003/4 2002/3 2001/2 2000/1 0 1999/ 2000 0 num ber of Radio 4 approved suppliers [left axis] Radio 4 value of independent com m issions (£ '000) [right axis] 92 source: BBC Audio & Music Radio 4 argued that “this expansion [in supplier numbers] is disproportionate to the growth in indie commissioning.” 93 However, as demonstrated in Figure 18, it appears that the annual value of Radio 4 independent commissions has increased roughly in line with the number of suppliers on the Radio 4 Supplier Lists. There appears to be little evidence of a disproportionate growth in supplier numbers. Additionally, Radio 4’s proposal document noted that a small number of companies had received a significant proportion of its commissions in 2007/8: 89 ibid., p.1 ibid., pp.1 & 6 91 ibid., p.3 92 BBC Audio & Music, data supplied to the author 93 BBC Radio 4, Radio 4 batch commissioning plan, presentation for BBC Fair Trading, 13 March 2009, p.3 90 31
- 32. • “68 indies got 328 commissions = c. £7m • Top 10 by number = 48% of total value • 48 got 5 or fewer • 21 companies got just 1 • 10 got less than £10k.” 94 Inevitably, the introduction of ‘batch commissioning’ will concentrate an even greater proportion of these commissions in the hands of fewer suppliers, which seemed to be one of the policy objectives. The initial proposal was to apply ‘batch commissioning’ only to 14% of Radio 4’s independent programme commissions by value (11% by hours). 95 However, in future, if the initiative were to be extended to a greater proportion of the Network’s output, it would be likely to further reduce the number of external suppliers to Radio 4. At present, of the National Networks, Radio 4 exhibits the greatest diversity of suppliers of independently commissioned programmes. Radio 3 Radio 3 operates two commissioning rounds annually, one for drama (plus the series ‘The Wire’) and the other for its remaining genres. There is no Supplier List in operation, and independent producers register to be sent commissioning round information and editorial briefs. 96 Radio 2 Radio 2 stated that: “The majority of programmes – the core output – are long‐running strands which are produced either by Radio 2 producers or a small group of Independent companies. When the strands produced by Independents come up for renewal, they are put out for tender using the process described below. Commissioning rounds take place twice a year to complement the core output. It is within these rounds that ideas are sought for a wide range of documentaries, specialist music, comedy, event and other programming. Readings are commissioned alongside special events or seasons.” 97 Commissioning rounds are held in Spring and early Autumn, for which information is sent to prospective producers who ask to be added to the mailing list. In addition to its regular commissions, Radio 2 has introduced a scheme called ‘Ideas Welcome’ which, it explained: “[is] designed to allow for ideas that carry an ambition that works beyond the traditional commissioning brief format [and] continues to evolve, [so] we look forward to receiving ideas that will work beyond the traditional commissioning parameters, whether it be a new season, a live music event, or a pan‐BBC or BBC Audio & Music initiative.” 98 94 ibid., p.3 ibid., p.3 96 http://www.bbc.co.uk/commissioning/radio/network/radio3.shtml 97 http://www.bbc.co.uk/commissioning/radio/network/radio2.shtml 98 BBC Radio 2, Commissioning Details: Commissioning Year 2010/2011: Main Round, p.4 95 32
- 33. Radio 1 Radio 1 explained: “The majority of programmes – the core output – are long‐running strands which are produced either by Radio 1 producers or a small group of Independent companies chosen through competitive tender when required. … The network also commissions weekly documentaries from a range of independent producers – usually through an annual commissioning round. Radio 1 also welcomes ad hoc proposals from established programme makers. The network operates an annual commissioning round for the production of documentaries.” 99 Commissioning briefs are made available to interested parties. Ad hoc proposals can be submitted to the executive producer, accompanied by a short synopsis of the idea and treatment. Radio 5 Live Radio 5 Live (and 5 Live Sports Extra) commission a combination of long‐term strands and ad hoc ideas. Additionally, it sometimes offers a small, ‘quick fire’ commissioning round in reaction to a specific event or a late schedule change. According to the station, “this would follow the same structure, but would move at a faster pace, on a 'restricted supplier' basis (limited to independents who already produce for 5 Live).” 100 Digital radio stations The commissioning processes of the remaining BBC digital radio stations follow the systems of their sister stations or, in the case of the Asian Network, offer limited commissions. Business Affairs Independent producers are provided with passwords to access the BBC online system ‘Proteus’ in order to enter the details of their proposals and production budgets. 101 Once a programme has been commissioned by one of the National Networks, the contract and budgets are negotiated with the Business Affairs team within BBC Audio & Music. 102 At present, the budget for each externally commissioned production is scrutinised on a line‐by‐ line basis. The Terms of Trade for independent radio productions were negotiated collectively in 2005 and are implemented in the form of a standard nine‐page agreement. 103 Additionally, there is a 41‐page document that sets out the General Terms, a 20‐page supply contract and a five‐page compliance form. 104 99 http://www.bbc.co.uk/commissioning/radio/network/radio1.shtml http://www.bbc.co.uk/commissioning/radio/network/5live.shtml 101 http://www.bbc.co.uk/commissioning/radio/network/docs/proteus.pdf 102 http://www.bbc.co.uk/commissioning/radio/network/busaffairs.shtml 103 http://www.bbc.co.uk/commissioning/radio/network/docs/radio_terms_trade.pdf 104 http://www.bbc.co.uk/commissioning/radio/network/busaffairs.shtml 100 33