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Introduction
This document sets out the specific arrangements the BBC is implementing to set charges for the goods
and services BBC Worldwide Limited (“BBC Worldwide”) obtains from the BBC Public Service. Many of
these arrangements, and supporting Service Level Agreements, are in place. The BBC expects that all of the
arrangements described in this document will be fully implemented by the 2018-2019 financial year.
Table 1 summarises the goods and services BBC Worldwide may use from the BBC Public Service and for
which there are arrangements in place. BBC Worldwide will not necessarily use all of these services on a
regular basis. Table 2 summarises the goods and services that BBC Worldwide may provide to the BBC
Public Service. Table 3 summarises the commercial agreements BBC Worldwide has with the BBC Public
Service that allow it to exploit intellectual property (IP) owned by the BBC Public Service. This document
describes the methodologies in place where BBC Worldwide either currently pays the BBC Public Service
for these rights, or where BBC Worldwide expects to have the option to invest in new IP developed by the
BBC Public Service.
Tables 1, 2 and 3 also describe the BBC’s approach to charging for these goods and services. The
remainder of this document further describes all goods and services traded between BBC Worldwide and
the BBC Public Service.
The BBC has carried out an internal review to ensure that all services potentially traded between the BBC
Public Service and BBC Worldwide have been covered by this Manual. This included:
A review of activity from both BBC Worldwide and the BBC Public Service;
A review of transfer prices from the prior BBC Trust Fair Trading regime; and
An accounting review from the BBC’s finance accounting team.
The activity, service and finance reviews provide assurance that all significant costs are covered by the
transfer pricing arrangements.
Where any additional or new service activity is identified between the BBC Public Service and BBC
Worldwide or one of its subsidiaries, then an appropriate transfer pricing process will be put in place.
Part of the annual budget process will include a review of the transfer pricing arrangements. This will
identify the need for any changes to these arrangements. This Group Trading Manual will be updated each
year and published via the BBC website. Each year details of any changes to these methodologies and the
impact thereof will also be set out.
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Table 1: Summary of BBC Worldwide transfer pricing from the BBC Public Service
Services Provided Price Basis Rationale Apportionment Methodology
Archives
Archive - including material for
Motion Gallery
Verifiable, comparable
information on market price
Benchmarking data provides a market price
range; the BBC Public Service then uses its
internal cost base to set a transfer price in
line with the market benchmark
Based on usage of archive and associated
services, including staff time
Commercial Rights and Business Affairs (CRBA)
CRBA Central Operations and
Support
Verifiable, comparable
information on market price
Benchmarking data provides a market price
range; the BBC Public Service then uses its
internal cost base to set a transfer price in
line with the market benchmark
Based on usage of CRBA systems, advice, and
support, including staff time
External Communications
External communications Verifiable, comparable
information on market price
Benchmarking data provides a market price
range; the BBC Public Service then uses its
internal cost base to set a transfer price in
line with the market benchmark
Based on usage (staff time)
Press Cutting Service Market price from contract
agreed with external supplier
External supplier appointed using a
competitive open market process. Price paid
to contractor for service is therefore a
market price.
Based on pass through cost of BBC Worldwide
subscribers as a percentage of total users
Finance
Centre of Excellence (COE) Verifiable, comparable
information on market price
Benchmarking data provides a market price
range; the BBC Public Service then uses its
internal cost base to set a transfer price in
Based on usage (staff time)
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line with the market benchmark
Business Process Operations (IBM
Outsourced Processes)
Market price from contract
agreed with external supplier
External supplier appointed using a
competitive open market process. Price paid
to contractor for service is therefore a
market price.
Based on proportion of BBC Worldwide spend
of total BBC spend
Finance staff Verifiable, comparable
information on market price
Benchmarking data provides a market price
range; the BBC Public Service then uses its
internal cost base to set a transfer price in
line with the market benchmark
Based on number and type of FTE allocated to
BBC Worldwide
Tax and Treasury Verifiable, comparable
information on market price
Benchmarking data provides a market price
range; the BBC Public Service then uses its
internal cost base to set a transfer price in
line with the market benchmark
Based on usage (staff time)
HR
HR Admin Verifiable, comparable
information on market price
Benchmarking data provides a market price
range; the BBC Public Service then uses its
internal cost base to set a transfer price in
line with the market benchmark
Based on BBC Worldwide’ dedicated FTEs as a
proportion of total BBC Group’s FTEs
HR Admin Outsourced Market price from contract
agreed with external supplier
External supplier appointed using a
competitive open market process. Price paid
to contractor for service is therefore a
market price.
Based on pass through of costs based on BBC
Worldwide’s allocation by headcount of
relevant services
HR Staff Verifiable, comparable
information on market price
Benchmarking data provides a market price
range; the BBC Public Service then uses its
internal cost base to set a transfer price in
line with the market benchmark
Based on number and type of FTE allocated to
BBC Worldwide
Internal Communications &
Engagement (including Diversity &
Verifiable, comparable Benchmarking data provides a market price
range; the BBC Public Service then uses its
Based on allocation by headcount, including
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Inclusion) information on market price internal cost base to set a transfer price in
line with the market benchmark
staff time
Legal
Legal assistance and advice across
the BBC Group
Verifiable, comparable
information on market price
Benchmarking data provides a market price
range; the BBC Public Service then uses its
internal cost base to set a transfer price in
line with the market benchmark
Based on usage (staff time)
Marketing & Audiences
Marketing & Audiences Staff Verifiable, comparable
information on market price
Benchmarking data provides a market price
range; the BBC Public Service then uses its
internal cost base to set a transfer price in
line with the market benchmark
Based on number and type of FTE allocated to
BBC Worldwide
Audience Data – bespoke reports
or research
If commissioned from third
parties: Market price from
contract agreed with external
supplier
External supplier appointed using a
competitive open market process. Price paid
to contractor for service is therefore a
market price.
Based on pass through of third party cost for
BBC Worldwide
If undertaken by BBC Public
Service: Verifiable, comparable
information on market price
Benchmarking data provides a market price
range; the BBC Public Service then uses its
internal cost base to set a transfer price in
line with the market benchmark
Based on reports or research commissioned,
including staff time
Creative Services Verifiable, comparable
information on market price
Benchmarking data provides a market price
range; the BBC Public Service then uses its
internal cost base to set a transfer price in
line with the market benchmark
Based on creative services provided, including
staff time
Pensions
BBC Group pension schemes Verifiable, comparable Benchmarking data provides a market price
range; the BBC Public Service then uses its
Based on cost of pension scheme provided to
BBC Worldwide staff (i.e. number of BBC
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information on market price internal cost base to set a transfer price in
line with the market benchmark
Worldwide staff with pension schemes)
Policy
Policy Verifiable, comparable
information on market price
Benchmarking data provides a market price
range; the BBC Public Service then uses its
internal cost base to set a transfer price in
line with the market benchmark
Based on usage (staff time)
Procurement
Corporate Insurance Market price from contract
agreed with external supplier
External supplier appointed using a
competitive open market process. Price paid
to contractor for service is therefore a
market price.
Based on BBC Worldwide proportion of cover
required from the total market price BBC
group pays for insurances.
Corporate Insurance support costs Verifiable, comparable
information on market price
Benchmarking data provides a market price
Benchmarking data provides a market price
range; the BBC Public Service then uses its
internal cost base to set a transfer price in
line with the market benchmark
Based on usage (staff time)
Procurement and Central Agency Verifiable, comparable
information on market price
Benchmarking data provides a market price
range; the BBC Public Service then uses its
internal cost base to set a transfer price in
line with the market benchmark
Based on usage (staff time)
Procurements via preferred
supplier lists
Market price from contract
agreed with external supplier
External supplier appointed using a
competitive open market process. Price paid
to contractor for service is therefore a
market price.
Based on pass through of price of items
procured by BBC Worldwide
Property
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Office space in the UK and
Overseas
Verifiable, comparable
information on market price
Benchmarking data provides a market price
range; the BBC Public Service then uses its
internal cost base to set a transfer price in
line with the market benchmark
Based on floor space occupied by BBC
Worldwide (m²)
Quality, Risk & Assurance
Internal Audit and Risk; Safety,
Security and Resilience
Verifiable, comparable
information on market price
Benchmarking data provides a market price
range; the BBC Public Service then uses its
internal cost base to set a transfer price in
line with the market benchmark
Based on usage (staff time) and number and
type of FTE allocated to BBC Worldwide
Simultaneous European Relay
Procurement of SER arrangements
overseas in relation to the BBC
Public Service channels
Verifiable, comparable
information on market price
Benchmarking data provides a market price
range; the BBC Public Service then uses its
internal cost base to set a transfer price in
line with the market benchmark
Based on fees payable to the BBC Public
Service minus gross commission as taken by
BBC Worldwide
Strategy
Subscription Service Market price from contract
agreed with external supplier
External supplier appointed using a
competitive open market process. Price paid
to contractor for service is therefore a
market price.
Based on allocation of third party costs to BBC
Worldwide
Technology
Technology staff Verifiable, comparable
information on market price
Benchmarking data provides a market price
range; the BBC Public Service then uses its
internal cost base to set a transfer price in
line with the market benchmark
Based on usage (staff time)
Core Technology Service and End
User Compute Service (“EUC”)
Market price from contract
agreed with external supplier
External supplier appointed using a
competitive open market process. Price paid
to contractor for service is therefore a
Based on use of relevant service by BBC
Worldwide’s users
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market price.
Non-Core Technology Service
(other non-core)
If commissioned from third
parties: Market price from
contract agreed with external
supplier
External supplier appointed using a
competitive open market process. Price paid
to contractor for service is therefore a
market price.
Based on use of relevant service by BBC
Worldwide’s users
If undertaken by BBC Public
Service: Verifiable, comparable
information on market price
Benchmarking data provides a market price
range; the BBC Public Service then uses its
internal cost base to set a transfer price in
line with the market benchmark
Based on allocated cost to BBC Worldwide
Training – BBC Academy
Face to face and online training
courses
Verifiable, comparable
information on market price
Benchmarking data provides a market price
range; the BBC Public Service then uses its
internal cost base to set a transfer price in
line with the market benchmark
Based on use
Development of new courses;
training courses and events
(Masterclasses)
Verifiable, comparable
information on market price
Benchmarking data provides a market price
range; the BBC Public Service then uses its
internal cost base to set a transfer price in
line with the market benchmark
Based on the price to develop/deliver new
courses for BBC Worldwide, including staff
time
Training Courses and Events:
Informal Events
Verifiable, comparable
information on market price
Benchmarking data provides a market price
range; the BBC Public Service then uses its
internal cost base to set a transfer price in
line with the market benchmark
N/A – no charge – these course/events are
provided free of charge as they are open to
external third parties as well as to BBC
Worldwide
New Talent Schemes Verifiable, comparable
information on market price
Benchmarking data provides a market price
range; the BBC Public Service then uses its
internal cost base to set a transfer price in
line with the market benchmark
Based on use of new talent schemes by BBC
Worldwide, including staff time
Other Verifiable, comparable Benchmarking data provides a market price
range; the BBC Public Service then uses its
Based on use, including staff time where
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information on market price internal cost base to set a transfer price in
line with the market benchmark
relevant
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Table 2: Summary of BBC Worldwide transfer pricing to the BBC Public Service
Services Provided Price Basis Rationale Apportionment Methodology
Content Rights Management
Management of repeat fees Verifiable, comparable
information on market price
Benchmarking data provides a market price
range; BBC Worldwide then uses its internal
cost base to set a transfer price in line with
the market benchmark
Based on usage (staff time)
Finance
Business Process Operations If commissioned from third
parties: Market price from
contract agreed with external
supplier
External supplier appointed using a
competitive open market process. Price paid
to contractor for service is therefore a
market price.
Based on proportion of the BBC Public Service
spend of total BBC Worldwide spend or pass
through based on the BBC Public Service’s use
of relevant service
If undertaken by BBC
Worldwide: Verifiable,
comparable information on
market price
Benchmarking data provides a market price
range; BBC Worldwide then uses its internal
cost base to set a transfer price in line with
the market benchmark
Based on usage (staff time)
Pensions
Private pension schemes Market price from contract
agreed with external supplier
BBC Worldwide pays a private pension
provider for this service provided at market
price
Based on cost of pension scheme provided to
BBC Public Service staff (i.e. number of BBC
Public Service staff who are members of
private pension schemes)
Procurement
Procurements via preferred Market price from contract External supplier appointed using a Based on pass through of price of items
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supplier lists agreed with external supplier competitive open market process. Price paid
to contractor for service is therefore a
market price.
procured by BBC Worldwide on behalf of the
BBC Public Service
Property
Office space overseas Market price from contract
agreed with external supplier
BBC Worldwide procure property at a
market rate and pass through cost.
Based on floor space occupied by the BBC
Public Service (m²)
Technology
Non-Core Technology Service
(other non-core)
Market price from contract
agreed with external supplier
External supplier appointed using a
competitive open market process. Price paid
to contractor for service is therefore a
market price.
Based on use of relevant services provided to
the BBC Public Service by BBC Worldwide
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Table 3: Summary of BBC Worldwide’s rights acquisitions from the BBC Public Service
Services Provided Price Basis Rationale Apportionment Methodology
Rights acquisition
Upfront investment (to acquire
rights) in BBC in-house production
Market price derived by
benchmarking for a licence to
exploit IP
The BBC Public Service benchmarks prices
charged to BBC Worldwide against the
prices paid by third parties for equivalent
rights
Based on a separate licensing agreement which
specifies the prices for each title.
Rights archive licensing
Market price derived by
benchmarking for a licence to
exploit IP
The BBC Public Service benchmarks prices
charged to BBC Worldwide against the
prices paid by third parties for equivalent
rights
Based on a separate licensing agreement which
applies pre-agreed commercial terms for the
rights licenced in respect of each title.
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Further description of goods and services the BBC Public Service
may provide to BBC Worldwide
ARCHIVES
The Archives team provides an Archive Library Service which includes the provision of research,
management and loans services to facilitate access to and management of BBC archive content including the
duplication and provision of content which is made available via BBC Motion Gallery and for which BBC
Worldwide pays the BBC Public Service. BBC archive content is any content created during the
production process plus any accompanying business records that meet selection criteria set by BBC
Archives.
BBC Motion Gallery is a footage licensing service provided by BBC Worldwide, offering creative
professionals and clients a collection of stock footage with licensing worldwide. BBC Motion Gallery also
produces and distributes short form programmes for broadcast on television and new media platforms.
The Archive Library Service is charged on a pay-as-you-use basis when required by any production
company, including BBC Worldwide.
BBC archive content can be accessed via a number of different BBC Archive Systems and Nations Archive
systems. The Archives team also manages a number of third party licensing and subscription services. If
BBC Worldwide wants to access Third party licensing and subscription services for non-BBC (i.e.
commercial) purposes, BBC Worldwide will pay the BBC Public Service market rate for these based on the
costs that the BBC Public Service pays for its subscriptions.
COMMERCIAL RIGHTS AND BUSINESS AFFAIRS
CRBA Central Operations and Support
The CRBA Central Operations service provides support services such as ACON, Fast Clear and
Compliance Manager systems, including processing and support in relation to queries relevant to ACON,
and tracking existing rights.
The CRBA Central Support service provides advice and support from the BBC’s central CRBA team, and
includes lobbying and negotiating deals with talent unions and rights owners on behalf of BBC Worldwide
as part of the BBC Group. The Central Support service also includes support and advice provided by
technology lawyers.
Given the nature of these services, appropriate safeguards are put in place (including NDA’s, confidentiality
clauses, Terms of Use) where relevant to ensure that information is kept confidential.
EXTERNAL COMMUNICATIONS
External Communications Service
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The External Communications service includes weekend and out of hours support and advice on issues
regarding public relations, the media and public affairs specific to BBC Worldwide, designed to help
promote BBC Worldwide's services and talent to the global creative industry, and/or defend BBC
Worldwide's reputation when necessary.
There are a number of External Communications posts in Press/Media Relations and/or Public Affairs that
are part dedicated to BBC Worldwide on an ongoing basis offering aforementioned support to BBC
Worldwide.
Press Cutting Service
The Press Cutting service includes early bird round ups, BBC daily media news and BBC national press for
BBC Worldwide staff identified by the business.
FINANCE
Centre of Excellence (COE)
The Finance Centre of Excellence (COE) represents Finance and Accounting costs of a team working
exclusively for BBC Worldwide, and consists of activities required to assist production of BBC
Worldwide’s Management and Statutory Accounts. This cost also includes undertaking various month end
accounting processes and GL reconciliations, in addition to responding to queries and maintaining financial
data.
Business Process Operations
The BPO service may comprise the following elements which are outsourced as a commodity service to
IBM such as: Purchase to Pay, Expenses and Advances, Contributor Payments, Order to Cash, Payroll, and
Application and Infrastructure Management.
Tax and Treasury
The Tax team provides stewardship and controllership to all matters relating to corporate and employment
taxes and VAT. The Treasury team provides stewardship and controllership to all matters relating to
Treasury, including cash and liquidity management.
HR
HR Admin
HR Admin is an HR service centre, providing services such as general HR advice, support and guidance, on
boarding, HR helpdesk, benefits and pension information, and freelance management. Other services are
provided by specialist outsourced suppliers.
HR Staff
The HR function plays a business partnering related role, with a focus on forward looking, large scale
and/or high-impact people, talent and Organisational Design (OD).
.
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There are a number of posts within HR that deal exclusively with BBC Worldwide.
Internal Communications & Engagement (including Diversity & Inclusion)
Internal Communications & Engagement manages BBC-wide internal communications channels including:
Ariel, online news for employees, Gateway, the staff intranet, Team Talk, the monthly briefing for
managers, internal campaigns and advice to senior management.
The Diversity & Inclusion service includes the provision of BBC Group diversity and inclusion policies and
strategies, to enable BBC Worldwide to draw on the widest possible range of experiences, talent and ideas.
LEGAL
The Legal department provides legal assistance and advice across the BBC Group. BBC Worldwide is able
to engage and seek counsel from the following legal departments: General Counsel’s office, commercial
legal, litigation, employment law, intellectual property; workplace, and competition legal.
MARKETING AND AUDIENCES
Marketing & Audiences Staff
The Marketing & Audiences team provides analysis and advice on audience data, reporting and insight
requirements for BBC Worldwide, as well as effective and impactful marketing and social media campaigns.
Marketing services include brand strategy and brand management, media planning and buying, reputation
management, and TV social media strategy. Audience services include supplying and reporting audience
data, audience insight and audience planning and creative strategy.
There are a number of posts within Marketing and Audiences that deal exclusively with BBC Worldwide.
Audience Data
BBC Worldwide receives reports on audience data visiting its websites both from the BBC Public Service
via a third party supplier and also commissions bespoke reports or research from the Marketing &
Audiences team. Bespoke reports are charged to BBC Worldwide.
Creative Services
Creative Services involves the provision of show reels, packaged clips, promotional reels, unit stills, iconic
shots, design work (including guidelines and imagery) and copywriting, as requested by BBC Worldwide.
PENSIONS
The BBC’s principal pension scheme offered to all staff is its defined contribution pension scheme, LifePlan.
This scheme offers to match employee’s contributions; the average matched contribution is eight per cent.
In addition to this scheme, the BBC also has a number of legacy defined benefit pension schemes which are
closed to new members but remain open to new accrual by existing members. BBC Worldwide staff
includes members of both schemes. The BBC Public Service staff who work with BBC Worldwide are also
members of both schemes.
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POLICY
The Policy team helps the BBC achieve its aims by: managing the BBC’s relationship with the UK
Government, Ofcom and European Union political institutions; developing positions on public policy issues
affecting the BBC at UK and EU levels; advising on public policy and regulatory developments relevant to
the BBC, including the BBC Charter and Agreement and Ofcom’s Operating Framework; and supporting
the development and regulatory approval of the BBC’s strategic priorities under the Charter and
Agreement framework.
BBC Policy generally provides a service for the BBC group, not for BBC Worldwide.
PROCUREMENT
Corporate Insurance, including support costs
Corporate Insurance and Support provides specialist insurance advice on insurance coverage, management
and payment of claims falling within the corporate insurance arrangement; and ensures global compliance
statutory and contractual insurance requirements in the UK and abroad.
Procurement and Central Agency & Preferred Supplier Lists
The Procurement Agency service involves provision of procurement advice, support and contract
management regarding high volume/low value procurements using preferred supplier lists and internal BBC
systems. Central Agency provides services including authorising procurement requests, advice and support
over the best routes to buy, engaging with suppliers and ensuring preferred suppliers are used where
possible.
PROPERTY
BBC Worldwide uses office space in the UK and overseas under licence from the BBC Public Service.
A charge for each location is determined, based on a market benchmark on the price of equivalent class of
office space in the same geographical location (e.g. a cost per m²). It is also cross checked against the total
cost for the building, including relevant overheads like maintenance costs based on the most recent
information. This price is then broken down based on the Net Internal Area (NIA) for that building to
arrive at a cost per m². BBC Worldwide is then charged based on the proportion of the NIA it uses.
QUALITY, RISK & ASSURANCE (QRA)
Internal Audit and Risk
The Internal Audit department is an independent, objective assurance and advisory function. It involves the
assessment of the effectiveness of BBC’s internal controls, management of financial risk and compliance
with regulation and policy.
Safety, Security & Resilience (SSR) Group
The SSR Group is a corporate function that routinely provides professional, technical and operational
support to BBC Worldwide, and is available 24/7, including duty officers.
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SIMULTANEOUS EUROPEAN RELAY AGREEMENT
BBC Worldwide acts as an agent for the BBC Public Service in relation to the exploitation of the BBC
Public Service’s rights to transmit and authorise the transmission of the BBC Public Service channels and
programmes included in those television services by means of simultaneous European relay. BBC
Worldwide takes a commission for this service and passes the remainder of the fee back to the BBC Public
Service.
STRATEGY
Subscription Service
The Strategy team subscribes to a number of external subscription services, of which BBC Worldwide pays
for access to a small number.
TECHNOLOGY
Technology Staff
The Technology team sits within the Design & Engineering division of the BBC. Design & Engineering
delivers products, platforms and services globally, supporting the BBC's digital products and services.
Technology Staff are employed by the BBC Public Service and provide technology expertise and direction
to BBC Worldwide to ensure the effective delivery of all technology services that drive BBC Worldwide’s
operations.
There are a number of posts within Technology that deal exclusively with BBC Worldwide.
Core Technology Service and End User Compute (EUC) Service
The Core Technology Service consists of technology governance, information security, telephony service,
circuits and networks, supported applications, specialist change support, infrastructure storage, core and
technology support.
The EUC Service relates to system access and software licensing for each user within BBC Worldwide.
Non-Core Technology Service
The Non-Core Technology service involves providing digital products and/or services, such as software
development, software licensing, software tools, content management services, publishing infrastructure,
operational services, hosting and distribution services, and Research & Development (R&D) products and
services.
TRAINING – BBC ACADEMY
Training Courses and Events
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BBC Academy is the BBC’s in house training department, which provides a number of training services pan-
BBC, including training courses and events.
New Talent Schemes
The New Talent department is responsible for the overall management of apprenticeships, trainee schemes
and other pre-entry programmes in the BBC. The service involves talent attraction, recruitment, sourcing
and management placements, induction, financial management, training and pastoral care.
19
Further description of goods and services BBC Worldwide may
provide to the BBC Public Service
CONTENT RIGHTS MANAGEMENT
BBC Worldwide manages the administration of royalty and repeat fees to actors and writers for the
content it distributes. As part of this service, BBC Worldwide administers fees for repeats and other uses
payable by the BBC Public Service and charges them for the costs of this service. There are NDAs in place
to protect sensitive and confidential information handled in this process.
FINANCE
The BPO service comprises the following elements which are outsourced such as: Purchase to Pay,
Expenses and Advances, Contributor Payments, Order to Cash, Payroll, and Application and Infrastructure
Management. BBC Worldwide administers local currency payroll for the BBC Group’s overseas office(s),
including for staff employed by the BBC Public Service, for which a charge is made to the BBC Public
Service.
In addition BBC Worldwide administers some central Finance functions overseas, including payroll,
processing supplier invoices, reimbursing staff expense, issuing recharge invoices and posting journals.
PENSIONS
BBC Worldwide provides and administers private pension schemes for BBC Public Service employees in
certain overseas offices for which the BBC Public Service pays BBC Worldwide.
PROCUREMENT
As part of its ongoing business activity, BBC Worldwide sends staff members to trade shows such as
MIPCOM, MIPTV etc. Additionally, staff members of the BBC Public Service will attend. From time to time,
BBC Worldwide will administer bookings for such events (including the BBC Public Service) and recharge
costs to the BBC Public Service for costs incurred by their attendees.
PROPERTY
The BBC Public Service uses office space in a number of overseas offices under licence from BBC
Worldwide.
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TECHNOLOGY
The Non-Core Technology service involves providing digital products and/or services, such as software
development, software licensing, software tools, content management services, publishing infrastructure,
operational services, hosting and distribution services, and Research & Development (R&D) products and
services.
21
Further description of BBC Worldwide’s content acquisitions
from the BBC Public Service
Upfront investment (to acquire rights) in BBC in-house production
BBC Worldwide has historically invested upfront in the rights to BBC in-house productions, to which the
BBC Public Service owns the IP to share the costs of production. In certain exceptional cases BBC
Worldwide will also pay a share of profits back to the BBC Public Service.
Each piece of content has its own licence agreement, which specifies the rights BBC Worldwide has to
exploit the IP, as well as the investment paid to the BBC Public Service. The majority of licences are based
on standard terms agreed between BBC Worldwide and the BBC Public Service; all investments are made
on market terms.
BBC Worldwide will continue to have the option to provide upfront investment to the BBC Public Service
in-house production, such as Radio/Audio, Children’s, Current Affairs and potentially Nations commissions.
Under this arrangement BBC Worldwide would make a one-off investment in the cost of producing a
particular programme, to obtain a licence to exploit the IP for a specified period of time.
The BBC Public Service has used, and will continue to be able to use, the open offer benchmarking process
to ensure that the price BBC Worldwide pays is in line with the market price for BBC commissioned
content.
BBC Worldwide will also have the option to re-invest in the BBC Public Service content when existing
licences expire. This would also be based on standard terms.
Rights archive licensing
Rights archive licensing involves BBC Worldwide contracting with the BBC Public Service to licence
specified rights to exploit the BBC Public Service’s IP for a defined period of time. BBC Worldwide pays an
ongoing return to the BBC Public Service (e.g. a royalty or share of the net profits BBC Worldwide makes
from exploiting the rights acquired under a specific rights archive licence).
Rights archive licensing relates specifically to programmes that have already been commissioned (i.e. no
distributor licenced the rights before production or otherwise has licensed the distribution rights). BBC
Worldwide has licences in place to exploit the BBC Public service IP across a range of genres from BBC in-
house production, reflecting the range of BBC in-house productions’ historical output.
Each piece of content has its own licence, which specifies the rights BBC Worldwide has to exploit the IP,
as well as the payment to the BBC Public Service. The majority of licences are based on standard terms
agreed between BBC Worldwide and the BBC Public Service and were made on market terms (at the time
such terms were entered into).
BBC Worldwide will also have the option to relicense BBC Public Service IP when rights archive licences
expire. This would also be based on standard terms.
Returning series
For returning series, spin offs, or recommissions BBC Worldwide may have already licenced the rights (in
line with the approach described above) to distribute BBC Public Service IP, but BBC Studios or a third
party producer may now be responsible for producing a programme. Any new licensing agreement
between the BBC Public Service and BBC Worldwide in respect of the returning series or spin-off will be
on similar standard terms by separate individual licence.