The body representing the independent TV production community has raised “serious concerns” about the regulation and transparency of a proposed spin-off of the BBC’s studio business.
Director general Tony Hall’s plan would see BBC Studios allowed to compete to make shows for rival broadcasters for the first time, while also scrapping in-house production guarantees which would allow independent producers to compete for all of the corporation’s own TV programme budget.
However, the BBC has said that it will at least initially keep the contracts to make its big series, such as EastEnders and Strictly Come Dancing, made in-house despite the pledge to allow open competition.
Pact, which had initially welcomed the plans as a “historic moment”, has had a change of heart, raising a string of issues in its submission to the government’s green paper on BBC charter renewal.
Laura Mansfield, the chair of Pact, said that for BBC Studios to be “truly competitive” the corporation must make at least some of its big, long-running in-house productions out to tender to independent production companies “from day one” if the spin-off gains approval.
Pact chief executive John McVay said he was “extremely concerned” about the lack of detail on regulation and an arms-length relationship with the BBC after being spun off to ensure there is no breach of state aid rules.
“Pact believes that it is crucial BBC Studios is treated in exactly the same way as all of its commercial competitors by the BBC,” said McVay. “Any difference in terms of preferential commissioning terms or information would constitute a breach of state aid, and could have serious effects on the market.”
In its submission Pact is calling for “full transparency and regulatory oversight” including assurances that BBC Studios would not have an exclusive output deal with BBC Worldwide, the commercial arm of the corporation.
It also urges “regular independent oversight” of the relationship between the BBC commissioning teams and BBC Studios and BBC Worldwide.
“The potential for market distorting behaviours to develop, underpinned by the security of the publicly-funded licence fee should concern everyone, and the BBC should be responding in detail to the legitimate concerns of the market,” said Pact in its submission.
