Public service broadcas/ng: An interna/onal comparison of funding - PowerPoint PPT Presentation

Public service broadcas/ng: An interna/onal comparison of funding models and performance 22 June 2011 Prepared for Westminster Media Forum Prepared by Nordicity

Table of contents 1. Overview 2. Public funding and value for money 3. PSB funding models and audience performance 4. Government‐contract tenures 5. Summary 6. Notes on data 2

Overview  Public service broadcasters (PSBs) in many Western countries have come under increasing financial pressures in recent years.  Fiscal retrenchment  Pressures to invest in new plaPorm content and distribu/on  Abrupt and severe ad recession  Migra/on of audiences and ad spending to Internet and mobile plaPorms  Examine the interna/onal posi/on of UK PSBs in terms of public‐funding levels and value for money in terms of audience performance.  Review PSB funding models in Western countries and their impact on audience performance.  Consider the effect that the tenure of government‐funding contracts has on overall public funding levels and value‐for‐money outcomes.  Benchmark UK PSBs’ level of investment in online and mul/‐plaPorm services. 3

Public funding per capita Amongst Western countries, the UK displays one of the highest rates of public investment in public broadcas;ng Public funding per capita, 2009 (£ )  In 2009, licence fees and other government funding of public broadcas/ng in the UK was equal to £57 per capita .  Public funding for UK PSBs was 40% higher than the 18‐country average of £41 per capita. Source: Nordicity compila/on based on public reports * Includes es/mates for autonomous region broadcasters 4

Trends in public funding per capita Most PSBs have experienced real decreases in their public funding since 2004 Real change in public funding per capita, 2004‐2009  UK PSBs were amongst a minority of PSBs that experienced a real‐ currency increase in per‐ capita public funding between 2004 and 2009.  The real‐funding increase for UK PSBs was only 1.7%, however. Source: Nordicity compila/on based on public reports 5

Value for money: audience performance UK PSBs are near the top of the table in terms of delivering audiences in rela;on to public funding Audience share points per £ of Number of naHonal viewers per per‐capita public funding, 2009 £m of public funding, 2009 Source: Nordicity compila/on based on public reports and audience data from EurodataTV Worldwide 6 * Includes es/mates for autonomous region broadcasters

Value for money: overall audience producHvity UK PSBs also display above‐average value for money in terms of overall audience produc;vity Number of naHonal viewers per £m of total turnover (public funding + commercial revenues**), 2009  In 2009, UK PSBs (BBC + C4 + S4C) generated 6,642 viewers per million pounds of total turnover – including public and commercial revenues. Source: Nordicity compila/on based on public reports and audience data from EurodataTV Worldwide * Includes es/mates for autonomous region broadcasters 7 ** Excludes BBC’s revenues outside of UK public services expenditures

PSB funding models PSBs’ reliance on commercial revenue sources ranges from nil to as much as two‐thirds of total turnover AdverHsing revenues as a share Commercial revenues as a share of total broadcasHng turnover, 2009 of total broadcasHng turnover, 2009 Source: Nordicity compila/on based on public reports * Includes es/mates for autonomous region broadcasters 8

PSB funding models Countries with higher levels of per‐capita public funding tend to rely less on ad revenue Share of total turnover from adverHsing revenues vs. public funding per capita, 2009  UK PSBs’ level of public funding is commensurate with the share of total turnover they derive from ad revenue. Source: Nordicity compila/on based on public reports * Includes es/mates for autonomous region broadcasters 9

PSB funding models and audience performance No evidence that countries with commercially oriented PSBs have beIer audience performance Audience share vs. ad‐revenue intensity, 2009  There is no correla/on between a PSB’s reliance on ad revenues (ad‐revenue intensity) and its audience share. Source: Nordicity compila/on based on public reports and audience data from EurodataTV Worldwide * Includes es/mates for autonomous region broadcasters 10

Government contracts and public funding PSBs with mul;‐year funding seIlements are more likely to receive more public funding on a per‐capita basis Public funding per capita and tenure of funding seRlement  Two‐thirds of PSBs in the top half of the funding table are on mul/‐year seglements.  PSBs with mul/‐year funding seglements obtained 17% more public funding per capita (£45 vs. £38) than PSBs on annual funding seglements. Source: Nordicity compila/on based on public reports * Includes es/mates for autonomous region broadcasters 11

Government contracts and value for money However, mul;‐year funding does not appear to lead to beIer rates of audience produc;vity Number of naHonal viewers per £m of total turnover, 2009  PSBs with mul/‐year funding seglements are no more likely to be in the top half of the value‐for‐ money table in terms of overall audience produc/vity. Source: Nordicity compila/on based on public reports and audience data from EurodataTV Worldwide * Includes es/mates for autonomous region broadcasters 12

Online and mulH‐plaSorm services UK PSBs display one of the highest rates of investment in online and mul;‐plaLorm services Online and mulH‐plaSorm expenditures per viewer, 2009 (£)  UK PSBs invested a total of £226m in opera/ng expenditures in online and mul/‐plaPorm services in 2009 – the equivalent of £7.71 per viewer. Source: Nordicity compila/on based on public reports and audience data from EurodataTV Worldwide 13

Summary  The UK has one of the highest rates of PSB funding per capita; and has, up un/l recently, maintained the real value of this funding.  UK PSBs display strong value‐for‐money, in terms of audience performance in rela/on to public funding, and overall audience produc,vity .  The public funding of UK PSBs is consistent with their capacity for accessing ad revenues.  PSBs with access to ad revenues do not realise higher audience performance.  PSBs with mul/‐year funding are able to secure more funding per capita, but do not necessarily deliver beger audience produc/vity.  UK PSBs are amongst the largest investors in online and mul/‐ plaPorm services. 14

Notes on data  PSBs are defined as broadcasters owned by a na/onal or regional government or elected assembly, regardless of revenue sources.  All financial and opera/ng data sourced from public financial reports published by public broadcasters on their websites. Audience data sourced from EurodataTV Worldwide, One Television Year in the World 2010 .  All financial data converted to Pounds Sterling based on purchasing power parity (PPP) exchange rates.  Sta/s/cs for UK include BBC (domes/c opera/ons), Channel 4 and S4C. BBC World Service and the interna/onal services in other countries (e.g., Radio‐France Interna/onale and Deutsche Welle) are excluded.  Public funding includes TV/radio licence fees and other government funding.  UK sta/s/cs for 2009 correspond to 2009‐10 fiscal year (ending April 2010). 15

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