BBC Trust

The BBC has reduced spending on pay for top-earning BBC talent by 29 per cent in five years, and overall spending on talent by 15 per cent, the BBC Trust Chairman Rona Fairhead will highlight in a speech to the Oxford Media Convention today. 

The savings are set out in an independent review commissioned by the Trust on the BBC’s arrangements for managing on-screen and on-air talent, also published today.  

The review by Oliver & Ohlbaum Associates, also found that there was no evidence that the BBC was overpaying its presenters and performers in comparison to the wider commercial market, that the BBC had made “vast improvements” to its processes for managing talent pay, and that the corporation compares well with other broadcasters in its level of scrutiny of talent pay.

The reduction in spend comes against a backdrop of increasing competition in the talent market, which has led to top talent costs increasing across the industry. 

In her speech today Rona Fairhead will say:

"The Trust recognises that the outstanding people on-screen and on-air are at the heart of the BBC; at the same time we are clear that the BBC has a responsibility to spend public money wisely in its approach to talent pay.  Today's report shows that the BBC has made great strides in reducing talent costs, and it's clear this has been achieved without affecting quality.  

"The report also points to increasing competitive and inflationary pressures in the market.  To counter that pressure, the BBC needs to build on its progress – so that it does more to develop new talent, can demonstrate optimum value in its deals and knows when to walk away."

A crucial reason behind the savings, according to today’s report, has been "a considerable cultural shift" in the BBC’s approach to controlling talent costs, "the impact of which should not be underestimated."  This has included a more relaxed approach to exclusivity, learning to let top talent leave, and detailed scrutiny of talent deals as standard. 

However, Oliver & Ohlbaum has made a number of recommendations for further improvements to ensure that the BBC can meet the twin challenges of increased competition in the talent market, and being able to continue to live within its means.  These include:

• Further improving the BBC’s use of data on talent deals, so that there is a clear understanding of what the BBC gets for the money it spends;
• Further improving clarity around the use of ‘walkaway’ prices, with a clear distinction between the expected price and the maximum price the BBC will pay;
• Further improving the monitoring of diversity of talent; and
• Further improving the approach to succession planning and talent development.  

Today’s report also highlights the BBC’s role in nurturing and developing talent; 67 per cent of the BBC’s current talent in factual, lifestyle, entertainment and comedy genres were given their first break at the BBC, 89 per cent had their previous programme at the BBC, and 49 per cent of ITV’s current talent roster started their careers at the BBC. 

In April 2014 the BBC introduced a new strategy for talent spend in response to increasing competition in the market, which aims to ensure that spend on talent will be no more than 16 per cent of in-house content production spend.

The full report can be found below.