Select Committee on Culture, Media and Sport Third Report


ANNEX

EVIDENCE FROM THE BBC ON THE COSTS OF DIGITAL PROMOTION

Excerpt from oral evidence from the BBC on 25 November 1999

"Mrs Golding: I was looking at the work you have been doing on a campaign in order to generate interest and awareness for the launch of digital ... How much money have you spent on this campaign?

(Ms Patricia Hodgson) We can provide you with the costs separately, although it is a low cost." (QQ 303, 305).

Excerpt from supplementary memorandum submitted by the BBC

1 December 1999

"The Committee asked for a statement of the costs to and budget for the promotion of digital broadcasting. Over the last 3 years the BBC has spent £11,141k on promoting digital services. In addition, some £400,000 has been spent on researching the market and the most appropriate communication methods. In this Financial Year, there is an anticipated total BBC digital marketing spend of £6,395k which represents an increase from last year's figure of £4,316k." (Evidence, p 181)

Excerpt from oral evidence from the BBC on 7 December

"Chairman: I have studied this supplementary memorandum which you sent us and I find it bewildering. To begin with, I find the presentation of the figures bewildering. It may be it is just me but I see the very first statistic you have on page 1, the BBC has spent £11,141 K. I take it that means £11,141,000?

(Sir Christopher Bland)Yes.

Chairman: I find it slightly bewildering that you do not say so. Next you have that 11,141 K over the last three years, then in the next sentence but one you have 6,395 K, i.e. £6,395,000, and then £4,316,000. I do not know whether some of these figures are subsumed in other figures or are separate from them. So is that 4,316 subsumed in the 11,141 or is it additional to it?

(Mr Smith)  It is subsumed within it.

Chairman: Is it subsumed within it or is it additional to it?

(Sir John Birt)  Subsumed within it.

(Mr Smith)  Subsumed within it.

(Sir John Birt)  We think it is subsumed within it. If that is not right we will write and tell you so.

Chairman: Sir John, we asked you for these figures before. You have now presented us with figures which I do not understand and, so far as I can see, you do not understand them either, so I think it is a reasonable question to ask.

(Sir Christopher Bland) We have answered it, subsumed within it.

Chairman: The 4 is definitely subsumed within the 11?

(Sir Christopher Bland) Yes, definitely.

Chairman: Is the 6 subsumed within the 11 as well?

(Mr Smith) No.

Chairman: Is the 6 additional?

(Mr Smith) The 6 million is extra.

Chairman: So we have got 11,141 and we have 6,395, which is 17,536. Am I right on that?

(Sir Christopher Bland)Yes, rounded down to £17 million, that is it.

Chairman: 17½ million, 17,536 is 17½ million. If you add this 400,000 that is in the intervening sentence, research in the market, 17,536 plus 400,000, you can round that up to 18 million, can you not?

(Sir Christopher Bland)Yes, Chairman." (QQ 756-764).

Excerpt from further supplementary memorandum submitted by the BBC

13 December 1999

"Clarification of BBC's digital marketing spend referred to in oral evidence. To be strictly accurate the figures are as follows:

Overall, for the 3 year period to the end of March 2000, we will have spent £11,541,000 which includes £400,000 of research costs. The year by year figures are as follows:

Digital Marketing Promotional Spend £'000s



1997-8

1998-9

1999-2000

  Budget

  submission


1997-8

to

  1999-2000


Core Digital budget

  830

  4,316

  2,200

  7,346

Service brands



  4,195

  4,195






Total Digital Spend

  830

  4,316

  6,395

  11,541






Research costs

  40

  13

  347

  400






Total excluding research costs

  790

  4,303

  6,048

  11,141


In the exchanges which are recorded, you will have noted a misunderstanding based on these figures. As illustrated, the accurate 3 year spend is £11,500,000 and not £17,500,000." (Evidence, p 280)


 
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Prepared 20 December 1999