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The benefits of external commissioning in delivery of PSB

• Channel 4’s unique model of public service broadcastingPublicly-owned broadcaster operating in the UKFinanced entirely by advertising and sponsorship

• Since its launch in 1982, Channel 4 has been required to source all original programming from external production companies, ie no in-house production

• The creation of Channel 4 led to the development of an independent production sector for the first time in the UK

• UK “indie” sector was further strengthened by subsequent introduction of 25% quota

• Channel 4 works with over 300 suppliers each year

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In-house and external commissioning by main UK networks

• BBC. Majority in-house productionHas historically struggled to meet 25% quotaRecently committed to increase in external commissioning (“WOCC”)

• ITV. Majority in-house production across former regional licenseesRecent consolidation into single ITV (less regional diversity)Main long-running series (soaps etc) mostly produced in-house

• Channel 4. All original programming required to be sourced externally

• Five. All original programming sourced externallySmallest UK network but owned by pan-European operator RTL

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Benefits of in-house production

• Editorial controlGuaranteed supply of programmingCan build centres of expertise geared towards fulfilling PSB remitAbility to invest in R&D and internal training structures

• Financial controlControl over cost baseFull ownership of rights, including new mediaAbility to reap benefits of success, e.g. merchandising and international

sales (programmes and formats)

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Benefits of external commissioning

• Promotion of plurality and diversityProgrammes sourced from wide range of companiesAccess to widest range of ideas and points of view

–Includes people not “suited” to working in large bureaucratic structuresIndependent producers have to fight harder to get a commission

– Incentives to be more creative and innovativeBroadcasters with in-house production need to “feed” their departments

–May favour in-house commissions even if external ones are better–Limits sources of ideas and can encourage over-reliance on status quo

(ever more episodes of Coronation Street)

• Financial benefitsAvoids need for bureaucracy and infrastructure – though still need to invest in

sector/talent developmentCompetitive pricing can help keep down costs

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Final thoughts

• Impact of consolidation of UK production sectorStill delivers wide range of high-quality programmingGreater professionalismArguably less diversityPSB genres can be at risk

• Major concern for broadcasters: access to rights (new media)

• Question for production companies – do they still need broadcasters?