Director-General’s introduction

Across the UK, virtually everyone gets something from theBBC each and every week. This report sets out how we aredelivering our programmes and services to audiences, our vision
for the future, and how we spend the licence fee. It sets out ourachievements, and highlights some of the challenges we face incontinuing to deliver for everyone.
This year there is a lot to be proud of.
On BBC One, Britain’s favourite channel, we have brought thenation together to celebrate, to commemorate, and to shareamazing television moments. We saw history being made on
Centre Court last summer; Sherlock’s unforgettable return toour screens; and, more recently, Sarah Lancashire’s unmatchedperformance in Happy Valley.

At the core of the BBC’s role issomething very simple, very democratic
and very important – to bring the best
to everyone. Wherever you are –whoever you are – whether you arerich or poor, old or young, that’s what
we do… Everybody deserves the best.
Tony Hall, Director-General

With BBC News I believe that Britain has the best news
organisation in the world. It offers a unique service: a networkthat is local, regional, national and global. This year I havebeen particularly pleased at the way our local radio stations
responded to the terrible weather this winter; and our journalism
in Syria, and in covering the conflict in Ukraine has been first-rate.
The BBC is by far the most trusted news service in the UK, andthe most retweeted source of news the world over – these areachievements to be rightly proud of.
It has been a year in which we celebrated half a century ofBBC Two, with some great comedy and brilliant new dramain Line of Duty, The Fall and Golden Globe winning performancesin Dancing on the Edge and Top of the Lake.

Helena Bonham Carter and Dominic West in BBC Four’s Burton and Taylor46

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The crowd enjoying the Asian Network’s London Mela Event

BBC Annual Report and Accounts 2013/14

BBC Introducing brings together all of the BBC’s supporters of undiscovered and unsigned music

And, the BBC also has the power to present extraordinaryinternational events. Last November millions of people joined
together across six continents to mark 50 years of Doctor Who
in The Day of the Doctor.
But I want us to do even better.
The BBC has always been an innovator. We are the radio
company that pioneered television; the broadcaster thatembraced the internet. And, with expectations now changing
fast, I want us to innovate again; to bring the wonders of digitaltechnology to everyone. To inform, educate and entertain in
new and surprising ways.
That is why I set out some big creative ambitions for the BBC
last October – shaping new ideas, new partnerships, and a newkind of relationship with our audiences.
We are starting to see the results. This year has seen record
audiences for BBC News online. Our vision for the iPlayer isstarting to take shape, with a new version launched in March andmore to come. We also launched Playlister, a new digital service
BBC Annual Report and Accounts 2013/14

for music fans. And across the UK we are offering everyone newways to enjoy some of our country’s greatest events: Glastonbury,Glyndebourne, Hay, the Edinburgh Festivals, the Proms,Wimbledon, Glasgow 2014. All of these events, and more, arebeing brought to you live, wherever you are. In addition, we haveseen the launch of the BBC Weather app; a new app for CBeebies;
and new digital guides, bringing learning to internet connected
devices. In 2015, we plan a major series to inspire the nation withcoding and computing.
We have started along the road of changing the way we interact
with our audiences. We want not just to listen but to actively
engage with them. That relationship should no longer simply
be about the BBC, but my BBC – and work is underway foraudiences to become their own schedulers, our next creators,
our future innovators.
As we look to the future, I believe that the BBC should reflect
Britain’s strengths. As part of this, I want us to bring the best toeveryone in science, natural history, comedy and drama. I alsoknow from personal experience that the UK is world class inmusic and arts. That is why, last October, I announced that
we would be putting music and arts at the very heart of theschedules. I have appointed single Directors for BBC Music andBBC Arts and I believe that we are already beginning to see adifference. The BBC is working in partnership with some of
Britain’s great institutions and some of our finest creative talent;joining up across television, radio, iPlayer and online to showcase
Britain’s artists, performers, writers and composers. This issomething only the BBC can do, and we are proud to do it.

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Part Two: Director-General’s introduction

I am also pleased that I can report another exceptional year
for BBC Radio. In this, the oldest part of the Corporation, weare seeing record-breaking audiences and distinctive talent –from Chris Evans, on Radio 2 every morning, to the Today teamon Radio 4. Highlights for me include Sir Kenneth Branagh’s
magnificent performance in Antony & Cleopatra and GraysonPerry’s exuberant Reith Lectures. I have also been impressedby BBC Introducing – a scheme that gives talented musicians,
all across the country, a chance to shine, supported by BBC local
radio, and across the UK on Radio 1.

Director-General’s introduction

I also want us to do more to nurture and support new talent –from all backgrounds; all around the UK. Last year, I set new
targets for apprenticeships and we are meeting them two years
early. I also set new ambitions for women in local radio and wehave made significant progress on this objective. Diversity willbe a really important part of my agenda in the coming year.
As this report sets out, we face significant challenges ahead.
The BBC is operating with a flat licence fee settlement and new
financial responsibilities. As a result, the amount of funding we havefor public service in the UK will be 26% less in real terms by 2016/17.
At the same time, we are working in an increasingly competitivemarket. The revenues of other media organisations are much larger
than the BBC in the UK, and even they are dwarfed by some of theglobal giants that operate in the same market as we do.

We are also looking hard at every aspect of what we do andat every pound we’re spending. We are benchmarking ourcosts against the rest of the industry and looking in detail at
our staff base.
The challenges are significant, but I am confident that we willmeet them.
The BBC is an organisation brimful of talent. Every week, I meetteams who share a passion for the BBC and what it stands for.
Very often, they are achieving above and beyond what you’dexpect: our local news teams producing a vital service duringmonths of flooding in places like Cornwall, Somerset and Sussex;
serious entertainment in the Strictly ballroom; or BBC Sciencelaunching a new Longitude prize that will change our world
fundamentally. I’d like to say thank you to all our teams and all
the people outside the BBC who work with us.

In response, we are making savings to live within our means.
We have now delivered £374million p.a. through our current
savings programme, and we are on course to deliver the£700million p.a. savings we said we would make by 2016/17.
I have also set the organisation a target to find an extra £100million
p.a. of savings to fund our new ambitions. We are achieving all thisby taking advantage of the latest technologies, introducing newways of working, getting the best value for money whenever werenew our contracts, increasing our commercial income, andaddressing talent costs and top management pay.

But most importantly I’d like to thank our audience. Throughout
this year – my first full year in post as Director-General – thestatistic that most impressed me was how much money theBBC has helped raise through charity appeals supported acrossour services. Through our own charity Children in Need, or inpartnership with others like Comic Relief; through big televisionnights and via regular appeals on radio, this year we helped raiseover £84million for good causes. That’s broadcasting at its mostpowerful. The BBC at its best.

I believe the iPlayer is a key part of our future, and with ourproposal to the BBC Trust to move BBC Three fully online weaim to keep the best from the linear world but also bring newformats, different durations, and more individualised content toan audience most ready for an online world. At the same time,
we help meet the challenge of delivering high quality content for
all our audiences at a time of financial constraint.

Tony Hall
Director-General
19 June 2014

Last Night of the Proms 201348

BBC Annual Report and Accounts 2013/14