BBC: Government Support

Lord Londesborough Excerpts

Thursday 2nd December 2021 Lords Chamber

[Lord Londesborough (CB)]

My Lords, I thank the noble Lord, Lord Bragg, for bringing this timely debate to the House. I note particularly his comments in relation to the cuts to the BBC World Service. Perhaps I should declare an interest in that I was rejected by the BBC for its 1982 graduate training scheme. In spite of that, I would like to focus briefly on the subject of wider global audiences, as I believe that it is here that the greatest opportunity lies for the BBC, while raising fundamental questions about the business model of a public service broadcaster. I speak from my own experience as both a journalist and a publisher, having worked as a foreign correspondent in Latin America and the Middle East and, more recently, in setting up and running an online information provider underpinned by paid subscriptions.

In my experience, the BBC’s brand as a trusted, impartial broadcaster is considerably stronger outside the UK than within it. I apply this statement to almost all regions of the world, with the possible exception of Europe. As my noble friends have highlighted, the BBC brand is especially valued in emerging markets that do not benefit from their own world-class impartial broadcasters. I have witnessed this in countries such as Mexico, Brazil, the UAE, Vietnam and Malaysia, to name a few. The receptive audiences in all these markets are not limited to expatriates but include growing sections of national populations that are hungry for objective information on the world around them.

With this in mind, it is no surprise to me that the BBC achieved its highest ever global audience in 2020: an impressive 486 million people per week, as we have heard. That has been achieved in spite of an increasingly crowded market, with streaming services joined by fast-developing social media platforms, which, rather disturbingly, are becoming the first—and, in many cases, the only—source of news for the under-30s. Dig deeper into the data and we can see that BBC News, including of course the World Service, accounts for 438 million of that reach—some 90% of the BBC’s global audience.

As we have heard, this global reach represents an invaluable asset in terms of the UK’s soft power and influence, all the more so as we embark on becoming global Britain. It is hugely helpful to government relations but also, although this is perhaps less known, to UK multinationals and SME exporters, as I discovered in my days as a publisher. Yet this international reach does not translate into significant income. Licence fees account for £3.75 billion of the BBC’s £4 billion in income and reportedly only £200 million in net income is derived from the BBC’s global content.

The BBC does provide value, especially to the wider overseas audience, but with its current restrictions as state broadcaster, it is unable to commercially harness this huge global opportunity. I am arguing not for privatisation but for changes to the business model, particularly in the areas of tiered subscriptions and content licensing for overseas markets.

For the consumer here, the current licence fee of £157 per household is terrific value for money, as the real subscription value of BBC content is probably nearer £400 per annum, as highlighted in the BBC Value for Audiences report. However, the BBC should not remain so reliant on licence fees when BBC News, which I believe merits increased investment rather than cuts, has the potential to generate billions in income and, in time, contribute the greatest share of revenue to the corporation. That could and should be done, without resorting to advertising and sponsorship, which, in my view, would threaten the very thing the BBC is most valued for outside these shores: trusted information.