Sky’s the limit for BBC thrift
BBC director general Mark Thompson’s MacTaggart lecture last Friday at the Edinburgh International Television Festival was defensive and contained few surprises. But that’s understandable.
Last year James Murdoch took the same stage and spent much of his lecture bashing the BBC.
This year Mr Thompson called out Sky for its ”lack of investment in original content” and suggested that the satellite operator pay retransmission fees to other broadcasters. He rounded on critics of the BBC, claiming that it was more popular than ever.
“Systematic press attacks on broadcasters, and especially on the BBC, are nothing new… but the scale and intensity of the current assaults does feel different,” he said.
He’s spot on. It is different. This is why the BBC must change or risk a rising wall of criticism from all-comers, not just other media.
The changes taking place in the UK media are nothing short of a revolution. Meanwhile media owners and hacks look enviously at the BBC with its guaranteed income year-in-year-out.
Everyone must change, including the BBC: it’s not a question of if, it’s a question of by how much and when.
Herein lies one of the fundamental issue that Thompson failed to tackle on Friday. In a multi-channel environment why should consumers pay to negotiate a media paywall when they can access BBC content for free?
Pundits reckon that the BBC will survive the next license fee negotiation. There’s no doubt that the £146.50 fee per household represents extraordinary value, but the business model is an anachronism and leaves the BBC open to attack on all fronts.
Thompson is a moderniser, no doubt, and an incredibly savvy political operator. “Radical and rapid change inside the BBC is… essential,” he said.
The BBC is being trimmed, the pension scheme is under scrutiny and Mr Thompson has suggested that the corporation could forgo planned increases to the licence fee.
But ultimately this isn’t a fight that the BBC can win. Media and technology have evolved too far since the BBC was founded in 1927. And so Thompson puts up a good fight, but inevitably his response last Friday was defensive.
It would be a brave individual that led a discussion about a funding structure beyond the licence fee but maybe that is now inevitable. But for Thompson that’s a taboo he doesn’t seem to want to go near.
Related articles:
- Mark Thompson’s case for the BBC (guardian.co.uk)
- Murdoch and the BBC: They Both Lose (newser.com)
- Stephen Glover: Thompson’s attack is more than it seems (independent.co.uk)
Web traffic to BBC consumer titles impressive but tough to defend
ABCe figures released today for a clutch of BBC consumer web sites almost certainly support the view that says it’s time to cut the BBC down to size.
Top Gear, Radio Times and Good Food websites recorded ABCe figures for June 2010 reporting 108,930, 84,086 and 71,013 daily average unique browsers respectively.
These are huge figures, in relative terms, for what are special interest publications. You’d be very hard pressed to make a case that the BBC brand and television tie-ups didn’t skew the market for consumer magazines and online sites.
According to Speed media-watcher Nick Bishop:
“The BBC’s defensive strategy appears to be to limit how much its reach is cut by demonstrating its scale. Accept they’re going to lose some battles but make sure they win most.”
BBC iPlayer, news and sport iPhone apps back on track; expect launch “later today”
The BBC Trust has given the BBC the go ahead to develop apps. It had previously blocked the development following concerns over public value and competition.
Press Gazette is reporting that “the first of the new apps is expected to be made available today.”
The free BBC apps were set to be launched last April after being shown at Mobile World Congress but were blocked by the BBC’s governing body after complaints from media owners that they would distort the market.
In a statement issued this morning BBC Trustee Diane Coyle said.
“The Apps market is rapidly taking off as more people choose to get their news, sport and other online content while they’re on the move. […]we have concluded that while the Apps market is developing quickly and we will monitor the launch of BBC Apps, a public value test is not required.”
Update: Here’s the BBC News app for the iPhone and iPad.
BBC iPlayer: social extensions not here yet, but they’re coming
The latest version of the BBC’s iPlayer doesn’t incorporate social networking features but they’re coming.
I don’t have a TV in my flat in London and my family has been without a TV at home in Northumberland for 4-months while we renovate our house so I’ve become an ardent user of TV over the internet services such as iPlayer.
Speaking to The Daily Telegraph at The Guardian’s Changing Media Summit in March, Erik Huggers, director, BBC Future Media & Technology said that social extensions would be incorporated in iPlayer 3.0.
“We are close to launching the third version of the iPlayer in beta which will have many more social functions embedded within it,” said Mr Huggers. “People will be able to bring their Facebook friends onto the iPlayer so they can share what they are listening to or watching with each other more easily.”
In the meantime here’s what is new in version 1.5 of iPlayer:
- Radio programmes now in high-quality stereo
- Bigger playback window
- Programmes automatically pick up from where you left off
- Scrolling carousels give fast access to featured programmes
- Your last played programmes will show up here, right after you’ve played your first programme
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BBC Strategy Review: BBC 1 – commercial sector 0
Almost every speaker during the last two days at the FT Digital Media & Broadcast conference has spoken of their plans to grow their digital business.
BBC Director General Mark Thompson was the exception. In his strategy review of the BBC set out yesterday he proposed that the BBC pull back its online effort. The review calls for a 25 per cent reduction in the budget for bbc.co.uk and half the number of sections on the site. Savings will be reinvested in the generation of content elsewhere within the BBC under five new editorial priorities.
Whether or not this will be sufficient to pacify critics in the commercial media sector only time will tell. John Ridding, CEO, Financial Times, said that the BBC web site hadn’t helped publishers in their bid to build revenue around news online.
James Murdoch has traditionally gone further. He has been fiercely critical of the scale of the BBC’s free-to-access new web site.
Speaking at the conference yesterday Thomson said that the proposed strategy review will “create spaces for others to fill”.
The proposal also calls for the closure of the BBC Asian Network and BBC 6. Both measures have already resulted in fierce opposition from the audience with a variety of forums, Facebook groups and petitions already in circulation.
By attempting to pacify the commercial sector with its proposals yet also keep its audience onside the BBC has created a smart leadership platform for the ensuing three-month consultation period.
The Financial Times chief media correspondent Ben Fenton has suggested yesterday that the timing of Thompson’s review is incredibly shrewd.
The three-month period of consultation on the proposal means that it has been kicked out beyond the date of the UK election meaning that the BBC charter is unlikely to be an election issue.
Related stories
- BBC To Make Deep Cuts In Internet Services (news.slashdot.org)
- 10,000 sign petition against BBC cuts in 48 hrs (liberalconspiracy.org)
- BBC confirms 6 Music and Asian Network closure (current.com)
- FT.com: BBC review confirms plans to cut website and digital stations (blogs.journalism.co.uk)
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Hornby and the James May effect: stock up 17 per cent in two weeks
There are opportunities to create value in a market whatever the macro conditions.
James May’s BBC programme Toy Stories featuring Airfix, Scalextric and Hornby has been a shot in the arm for parent company Hornby.
Two weeks ago I tweeted the following.
The shares have risen steadily from 145p to a recent high of 170p, a climb of 17 per cent. Today they are at 161p.
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Cassetteboy BNP remix
The BNP’s leader Nick Griffin used the platform of BBC Question Time last night to lay bare his views. The remix genius that is Casetteboy has provided an excellent summary. Democracy is alive and well on the internet.
MacTaggart lecture: BBC vs News Corporation in the war for online news
James Murdoch set out the battle lines for the future of online news in his MacTaggart lecture at the Edinburgh International Television Festival 2009 last night.
“As Orwell foretold, to let the state enjoy a near-monopoly of information is to guarantee manipulation and distortion,” he said. The next 18 months will almost certainly see the closure of a number of major national and regional titles close. Circulation and ad revenues are falling.
Newspapers need to start charging for their content on the web. But in the short term this could hasten their demise driving traffic to sites that don’t charge notably the BBC.
“Dumping free, state-sponsored news on the market makes it incredibly difficult for journalism to flourish on the internet. Yet it is essential for the future of independent digital journalism that a fair price can be charged for news to people who value it,” said Murdoch.
The BBC is distorting the market for online news as it will never charge for its content because of its funding structure.
The full text of the MacTaggart lecture is posted on Broadcast’s web site.
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Trouble ahead for the TV Licensing Authority as media and distribution channels fragment
You must have a TV Licence costing £142.50 to watch TV in the UK. But the fragmentation of media and distribution channels is leading to some interesting situations:
- To stream a programme via the internet using BBC iPlayer or YouTube, you don’t need a TV Licence (providing that it isn’t being broadcast simulataneously).
- But to watch live content via satellite (Freesat or Sky), or to download it onto a PVR for playback, you need a TV Licence.
- To download content via the Internet for playback using a service such as 4oD Catch-Up or iTunes, you do not need a TV Licence (providing that it isn’t being broadcast simulataneously).
- But to stream a programme via the internet using the BBC iPlayer or BBC web site live services, at the same time as it is being broadcast, you need a TV Licence.
Confused? I was until I checked out the TV Licensing web site. Here’s what it says:
“[...] if you use any device to watch or record television programmes at the same time (or virtually the same time) as they’re being shown on TV, the law requires you to be covered by a TV Licence.”
There is almost certainly trouble ahead for the TV Licensing Authority as viewers increasingly download programmes from content providers after they have been broadcast. Don’t you think?
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Measuring the National Work from Home Day digital communications campaign
Matt Watson’s Google Map mash-up acted as a focus for National Work from Home Day on Friday. People working from home were asked to mark the day by tweeting a tag (#NWFHD) and their postcode.
150 home workers added themselves to the National Work from Home Day map during a six hour period. Matt has generated a final Google map that shows everyone’s location. The project generated more than 270 tweets attracting the attention of Sky News’ Ruth Barnett, the BBC’s Maggie Philbin and Rory Cellan-Jones, Oranges’ Matthew Horton and the Independent’s Alex Johnson.
More than 1,000 unique visitors sought out the mashup map on the Speed web site (verified via web analytics and the use of a bit.ly link). It also attracted more than ten pieces of editorial content ranging from the BBC and the Independent, through to independent bloggers.
- Speed develops Twitter map for National Work From Home Day, Loewy
- Twitter mashup created for National Work from Home Day, Pocket-lint
- Work from home on Google Maps, Google Maps Mania
- Are you working from home today?, BBC dot.life
- National Work from Home Day, Independent
- National Work from Home Day, Shed Working
- Work from home on Google maps, trevor.org
- Are you working from home today?, Computers & Electronics
- Work from home on Google Maps, geo2web.com
- Are you working from home today?, Social Median
- Working from home today?, Webconferencing Council
- Are you working from home today?, Fivve Marketing
- Are you working from home today?, Cash Bandit
The project was inspired by the #UKSNOW mashup devised by software programmer Ben Marsh earlier this year. Ben’s map allowed Twitter users to plot areas of snowfall across the UK in real time during periods of heavy snow.
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BBC in web IPTV service first
The BBC has started broadcasting live feeds via the internet from its major terrestrial channels (BBC1 and BBC2). The service is currently in beta.
The BBC also quietly unveiled a web IPTV application around a TV programme last night. Viewers of the Apprentice were able to watch the programme via the web, predict which candidate would be fired, and participate in a live discussion.
It’s a shame that the Apprentice chat widget wasn’t a live Twitter feed using the #apprentice hash tag but then a moderated channel hosted by the BBC is probably a lot safer than an open Twitter channel.
The Telegraph came a cropper earlier in the week when Twitter users spotted the opportunity to deface The Telegraph web site via its like #budget Twitter stream.
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Lessons from The Apprentice, Week 4: research key to product design and integrity
Week 4 of the Apprentice (available of iPlayer) saw the teams tasked with designing two natural body products to sell to the public. Again Sir Alan mixed the teams up. Paula leading Empire designed a sea weed based soap and shower gel while Noorul led Ignite which designed a honeycomb based soap and shower gel. Here’s what we learnt.
Research
Again we learn that research and integrity is critical to the success of a product. Neither team gave any consideration to the health benefits or ingredients in the products that they were developing. Clare English in our consumer team has already blogged about this; she recently led the team that won Skinfood so knows her stuff when it comes to marketing beauty products.
Product design
Neither team tested its products until they were about to head out to flog their wares. Ignite would surely have seen significant numbers of product returns and would never have secured repeat business because the honey in its soap melted into a goo as soon as it came into contact with water. Despite this Ignite won the task captilising on Empire’s financial miscalculations.
Team work
Never underestimate the ability of an individual to screw up under pressure. Paula, Yasmina and Ben screwed up in spades by confusing the decimal point when calculating the cost of her ingredients and confused cedar wood with sandal wood. This basic error lost Empire a task that it otherwise would have won. Paula as leader was deemed culpable and was fired. Always double check your numbers. And then check them again.
Business models
Beauty is a high margin business. Products cost pennies to make but with smart gift wrap and good marketing they sell for pounds. Match product integrity with brand and you’ve got a cracking business model.
Management
Managers should lead from the front. Noorul spent his time as team leader five paces behind his team which won despite his poor leadership and inability to sell. Had his team lost then he surely would have been for the chop.
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Lessons from The Apprentice, Week 3: management and team working
I’m late with commentary on Week 3’s Apprentice challenge (available on iPlayer) but I’m posting this for the sake of completeness.
Week 3 was the design task. The teams were mixed up and the challenge was to create an original piece of personal exercise equipment and flog it to retailers. Debra led Ignite which designed a version of a traditional exercise ball. James led Empire which developed a gym-in-a-box. Here’s what we learnt.
Delegation
James delegated the design of Empire’s product to Ben and had no input in the project until a prototype arrived from the product design company. Delegation is fine, but for a team leader to have no involvement in the key activity of the task is poor. Ignite won the task despite fiddling and meddling from team leader Debora. She’s a strong assertive leader who delegates tasks, but not authority or responsibility.
Team motivation
When James was given the opportunity in the boardroom he voiced reservations about the design claiming that he kept quiet during the task as he didn’t want to demotivate the team. There’s never a good time to share bad news and human nature is to focus on the positive, but good communication is key to motivation and a good leader would have been able to rally a team despite misgivings.
Demonstrating value
Majid was fired because he wasn’t visible enough. In a team task make sure you’ve got a clearly defined role, that you complete what’s expected of you and that you make sure your boss recognises your work. This is applies in almost all aspects of business and is an excellent lesson for anyone in a client service business.
Product design
Maybe it was harsh editing or maybe the teams really did fail to take full advantage of insights provided by retail stores and personal trainers. Both teams arrived at their chosen product routes by luck rather than rational judgment. Research must lie at the core of the design process. Its why Loewy’s product design gurus Seymour Powell have a team dedicated to ethnographic research.
Selling
Lorraine stepped right outside her comfort zone in a bid to sell and did an okay job once she ditched the script and told a story. Debra would almost certainly have had her in the boardroom had Ignite failed the task. Instead she should have been congratulated for her efforts. Selling is a tough skill to learn if it doesn’t come naturally.
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Bogel Bros produces lego animation of The Apprentice
Shout out to Bogel Bros which is again producing a lego animation of each edition of the Apprentice. If you don’t have time to watch the programme, catch-up each week on YouTube with lego versions of Sir Alan, Nick and Margaret and the candidates of 2009.
