麻豆社

The 麻豆社 Trust has today published the 麻豆社's Annual Report & Accounts for 2007/08.

Last year was one of change and many challenges for the 麻豆社, but also a year of considerable achievement. In addition to implementing the new governance arrangements and responding to some serious editorial failings, the six-year investment strategy - Delivering Creative Futures - was agreed and began implementation.

Creative Futures is about the 麻豆社 meeting the digital future by providing quality and distinctive public service programming in ways to suit the needs of all audiences, and created by production bases across the entire UK using new technology to maximise efficiency. The Trust set long-term measurable objectives alongside this strategy to ensure outcomes in line with expectations and these include: increasing quality and distinctiveness in everything the 麻豆社 does; maintaining maximum reach consistent with its purposes and values; improving efficiency – and a new 3% annual target was set. Though early days, these long-term objectives were central themes during the year.

The 麻豆社's overall weekly reach to the UK population was up slightly, from 92.5% to 93%. It is notable that, as well as growing online usage, an increase in television viewing also accounted for this rise, demonstrating that the traditional services and public service content remain important and popular amongst all audiences – young and old. Indeed, viewing and listening amongst 16-34 year-olds held steady across the 麻豆社 portfolio, and there was a notable increase on 麻豆社 Three (23% of 16-34 year-olds watched 麻豆社 Three each week in 2007/08, up from 17% in 2006/07).

Alongside traditional linear broadcasting, the 麻豆社 made a great advance into the video on demand world with the launch of the 麻豆社 iPlayer and the HDTV channel, both having completed public value tests carried out by the Trust. Early data on the iPlayer is encouraging: over 100 million programme requests since its launch, and in April a quarter of consumption was of programmes outside the top 20 television titles, suggesting that programmes not widely watched through traditional broadcasting are reaching a new audience.

Average perceptions of quality held steady year on year, but there was an increase in the number of programmes scoring highly on the 'Appreciation Index' with over half scoring 80 or more in the first quarter of 2008. This is a welcome improvement, for the distinctiveness of the 麻豆社 remains a big issue for licence fee payers. Research gathered by the Trust during the year shows that the explosion of choice offered by multi-channel television is making it harder for audiences to find genuinely alternative offerings and they are looking to the 麻豆社 to provide this alternative.

Over the last three years - before the new 3% annual efficiency targets took effect on 1 April 2008 - the 麻豆社 delivered £347 million in annual savings (around 10% of the original cost base). This was a significant achievement even though it fell short of the target set by some £8m. Greater efficiency of licence fee collection and sustaining the levels of evasion brought the gross cost of collection to 3.6% of the licence fee – the lowest ever.

Over the year, 麻豆社 Worldwide's profits increased to £118 million on increased revenues of £916 million – both ahead of budget and reflecting strong growth, particularly in international markets. Worldwide's acquisition of Lonely Planet and its proposals for bbc.com were both scrutinised by the Trust under the new criteria for commercial activity laid out in the Charter and Agreement. Project Kangaroo – the proposed joint venture with ITV and Channel 4 for a commercial on-demand service – has yet to undergo the same process.

A big theme for last year was and remains rebuilding trust amongst audiences following the editorial failings which came to light in the spring and summer of 2007. Public confidence dipped as a result, but this has now recovered. The 麻豆社's own tracking survey saw a fall from the previous average of around 6 out of 10 to 5.5 in the autumn of last year. Following a sharp increase to 6.25 in January, public opinion has since settled at around the previous average, evidence perhaps of public confidence in the 麻豆社's serious approach to these failings and the actions taken to correct our practice for the future. The Trust commissioned detailed independent examination of these measures and is satisfied that the 麻豆社's editorial controls and compliance processes have been strengthened.

麻豆社 Trust Chairman, Sir Michael Lyons said:

"The job of the 麻豆社 Trust, as the governing body of the 麻豆社, is to speak for the public who own the 麻豆社 in protecting its independence and ensuring that it is focused on the interests of those who pay the licence fee. This annual report reflects our efforts to do just that. We have set challenging targets for quality, cost savings and distinctiveness. Furthermore, we are insistent that the 麻豆社 must serve and reflect all its different audiences. This year's report shows many achievements – not least the extraordinary iPlayer – and considerable progress against those objectives. It also demonstrates that when the 麻豆社 performs strongly the public approves. We take particular strength from the fact that we appear to have restored public trust by determined effort to tackle the editorial lapses of last year. There is still much to be done but we are confident that the 麻豆社 is stronger for its new more challenging governance arrangements which add to its many other strengths."

麻豆社 Director-General, Mark Thompson said:

"Last year was a significant one for the future of the Corporation. We developed and launched the strategy that will create a smaller 麻豆社 focused on delivering high quality content to all licence fee payers, and then put that into action with the phenomenally successful iPlayer. We also faced an episode in which the trust of our audience was seriously tested. But the determined response of all of the 麻豆社 to the problem, and subsequently the rigorous new safeguards that we put in place have resulted in levels of trust returning to normal. Above all, the 麻豆社 is about content that entertains, informs and delights, and last year I believe our output across television, radio and online did more to achieve that than any year as Director-General I can remember."

The 麻豆社's Annual Report & Accounts are available in full at bbc.co.uk/annualreport. Attached below are the headline financial performance data and the audience performance data for 麻豆社 services.

Ends

Notes to editors

1. The 麻豆社's accounting year is 01 April 2007 to 31 March 2008.

2. In line with Charter requirements, the Annual Report is in two parts, with the Trust's commentary on the 麻豆社's performance separate from the detailed analysis and financial accounts prepared by the 麻豆社 Executive Board.

3. The 麻豆社 Trust commissioned a range of research during 2007/08 which informs its assessment of performance and this is available on its website: 麻豆社 Annual Report and Accounts. The following research is published today for the first time.

• 2008 Purpose Remit survey (quantitative research amongst 2,200)
• Annual Report deliberative workshop (qualitative research) (ref page 33 Annual Report)
• Trust in broadcasting (qualitative research) (ref page 11 Annual Report)
• 麻豆社 World Service English language core radio service amongst opinion formers in various countries (qualitative); and 麻豆社 Afghanistan Service (quantitative amongst 1,140 Afghan residents).