funding in the creative media sector

Funding in the creative media sector

What is the main income of the BBC?

 The main income is from the licence fee the total licence fee income collected increased by £16million from £3,706million to £3,722million as a result of modest household growth. Effective financial management is a key part of the BBC’s unique relationship with its audiences. This includes spending the licence fee efficiently and collecting a television licence fee from everyone who is required to buy one. Another source of income is the United Nations which provide a large amount of money. The national lottery is another source of income for the BBC.
how creative digital media industries are funded can have an impact on their production output. some smaller industries may not have the resources to produce output.

What type of products do they produce?

They produce documentaries and factual programmes and educational programmes also they produce commercials and TV programmes such as East Enders and The voice. They have produced BBC NEWS, BBC player and BBC television. They produce broadcasting, radio and portals.

How do they prioritise their expenditure?

2013/14 was the final year of Foreign & Commonwealth Office (FCO) funding for the World Service prior to becoming licence fee funded. As well as delivering planned savings of £12million in the year a further reduction in Grant-in-Aid income of £2million on £240million from the FCO was mitigated by savings in restructuring costs and accommodation spend.

After its move to New Broadcasting House last year and its co-location with BBC News teams, the organisation will continue to pursue building synergies and therefore savings with the wider BBC.

Focusing spend

The BBC concentrates its expenditure on the production of programmes and other content and its delivery to audiences and users, and the essential infrastructure to support this. Year-to-year spend can vary significantly because of the cycle of major sports events, and total content spend reduced by 4.9% to £2,406million (2012/13: £2,530million) this year which was largely due to additional investment in our coverage of the London Olympics last year.

No service licences spent above the regulated baseline threshold during 2013/14. BBC Parliament service licence was the only service to underspend by more than 10% as it delivered additional efficiency savings, especially in its overheads, without compromising editorial performance.

The BBC must invest in technology and property infrastructure to enable new ways of working which will deliver both enhanced content and financial efficiency savings to fund the BBC’s DQF strategy. Last year the write down of DMI increased our expenditure for these two areas to £357million, and expenditure this year is lower at £271million. This is to be expected given the historical spend on technical infrastructure in Media City UK and in New Broadcasting House, the financial benefits of which continue to be seen. Our expenditure on all infrastructure and support costs reduced by nearly 13% this year, as it fell from £675million to £589million. An analysis of these costs are set out in the table below.

Expenditure: UK Public Service Broadcasting (UK PSB) group expenditure

Why do you think they carry out their production activities in this way?

So they can produce as much content as possible and also so they don’t go broke or get in debt.