大象传媒

The 大象传媒 Trust publishes today a draft framework setting out the remit and requirements of the 大象传媒鈥檚 commercial services - 大象传媒 Worldwide, 大象传媒 Global News Ltd and 大象传媒 Studios and Post Production.听

This will be the first time the Trust鈥檚 expectations for the 大象传媒鈥檚 commercial services have been set out in a single, public document, and mirrors the service licences already in place for individual 大象传媒 services such as 大象传媒 One and Radio 2.

The commercial services framework stipulates five key principles to ensure that the operations of the 大象传媒鈥檚 commercial services are consistent with the principles of licence fee-funded services, and that the services operate fairly in relation to the wider market.

The Trust will now seek views on the draft from industry stakeholders and interested members of the public, before publishing a final framework later this year.

The five principles are:

• Strategic alignment of commercial services and public service activities 鈥� commercial activity must be consistent with the 大象传媒鈥檚 public purposes; and uphold the good reputation of the 大象传媒.
• How, where and when commercial business can be conducted 鈥揷ommercial activity should principally focus on securing a return from 大象传媒 content and brands. When exceptions are considered the Trust will require a clear rationale. If acquisitions or equity investments are proposed, the Executive Board must be satisfied that they are necessary to meet business objectives and that all other options have been considered. Larger or more significant proposals will be subject to approval from the Trust.
• Generating a return for licence fee payers 鈥搕hrough a mix of upfront investments and dividends for reinvestment in licence fee-funded public services.听
• Commercial efficiency 鈥� the Trust will set a baseline requirement for commercial efficiency which each commercial subsidiary must meet. The 大象传媒 Executive Board must set commercial targets for each business and regularly report on progress to the Trust.听
• Separation between publicly funded 大象传媒 activity and its commercial services 鈥� there must be appropriate financial and operational separation between publicly funded and commercial activities to comply with state aid law and ensure the commercial services do not gain an unfair advantage in the market as a result of their links with the 大象传媒.听

The framework makes clear that the 大象传媒 Executive Board is responsible for setting and reviewing commercial strategies and business plans, although significant commercial proposals remain subject to Trust approval.听 The Executive Board will report quarterly to the Trust on the performance of the commercial services.听 The Trust will review the 大象传媒鈥檚 compliance with the framework at least once every five years.

大象传媒 Trustee and Chair of the Trust鈥檚 Services Committee Suzanna Taverne said:

鈥淭he way that the Trust sets and monitors clear expectations for every 大象传媒 service across TV, radio and online has successfully driven improvements for audiences.听 We want to apply the same principles to the 大象传媒鈥檚 commercial services, which play an important role in both upfront investment and delivering profits back into programmes for UK audiences.听 This will mean there are clear, published requirements that we can review performance against and make sure that commercial activity is always appropriate and doesn鈥檛 damage the 大象传媒 or the wider market.鈥�

The draft commercial framework and public consultation can be found below.听 聽

Currently, the oversight arrangements for the 大象传媒鈥檚 commercial services are set out in the 大象传媒 Agreement, the Trust鈥檚 protocols, the Trust鈥檚 fair trading policy and other policy statements.听

Notes to Editors

1. More information on the joint governance review published in December 2013 which has led to the proposed commercial framework, can be found here.听
2. 大象传媒 Worldwide is the main commercial arm of the 大象传媒.听 大象传媒 Global News Ltd includes the 大象传媒 World News commercial TV channel, and bbc.com/news.听 大象传媒 Studios and Post Production provides TV studios, post production and digital media services to the industry.听
3. In the joint 大象传媒 Trust/大象传媒 Executive review of 大象传媒 governance published in 2013, the Trust committed to clarify its role and priorities in relation to the 大象传媒鈥檚 commercial services.听