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)
|