  {"id":15916,"date":"2016-11-17T15:51:29","date_gmt":"2016-11-17T20:51:29","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/brave-new-world-in-the-battle-for-eyeballs-does-the-bbc-face-extinction\/"},"modified":"2016-11-20T16:31:12","modified_gmt":"2016-11-20T21:31:12","slug":"battle-for-eyeballs-does-the-bbc-face-extinction","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/battle-for-eyeballs-does-the-bbc-face-extinction\/","title":{"rendered":"Battle for eyeballs: does the BBC face extinction?"},"content":{"rendered":"<p>We are in the midst of a digital revolution. It is no exaggeration to say that the validity of dozens of established media business models is being fundamentally threatened. Music labels, print newspapers and broadcast TV players are in the midst of a fight to remain relevant as consumers\u2019 consumption habits rapidly evolve. The British Broadcast Corporation (BBC) is an organisation at the heart of this flux.<\/p>\n<p>The BBC is the world\u2019s largest public service broadcaster (PSB), commissioning \u00a32.2bn of content for UK audiences every year<a href=\"#_ftn1\" name=\"_ftnref1\">[1]<\/a>, a portion of which is distributed globally. It serves to universally inform, educate and entertain whilst remaining impartial and objective &#8211;\u00a0free from governmental bias and unfettered by commercial agendas.<\/p>\n<p>But the BBC finds itself in an environment of unprecedented change. 56% of UK households had a TV connected to the internet in 2015, with 83% able to receive superfast broadband<a href=\"#_ftn2\" name=\"_ftnref2\">[2]<\/a>. This has vast implications for traditional TV viewing: audiences are increasingly shifting to catch-up and video-on-demand (VOD). Viewing of non-subscription VOD services (such as the BBC\u2019s iPlayer) rose\u00a0by 26% in 2014, and 16% of UK households now have a subscription to Netflix<a href=\"#_ftn3\" name=\"_ftnref3\">[3]<\/a>. This, combined with mobile device proliferation, means that the old world of TV viewing is, if not yet obsolete, under strain:<\/p>\n<p style=\"text-align: center\"><em><strong>Average minutes of viewing per day in UK, total TV: by activity, 2013-14<a href=\"#_ftn4\" name=\"_ftnref4\">[4]<\/a><\/strong><\/em><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOM-4.png\"><br \/>\n<\/a><\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOM-4.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-15892 aligncenter\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOM-4-300x189.png\" alt=\"\" width=\"448\" height=\"282\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOM-4-300x189.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOM-4-768x483.png 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOM-4-600x377.png 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOM-4.png 794w\" sizes=\"auto, (max-width: 448px) 100vw, 448px\" \/><\/a><\/p>\n<p>So what is the scope of the BBC\u2019s role as a PSB in this age of box-set on-demand viewing? Should the BBC be changing its model to remain relevant and adapt to over-the-top<a href=\"#_ftn5\" name=\"_ftnref5\">[5]<\/a> providers?<\/p>\n<p>The corporation has already done a lot of evolve. BBC Online was opened in 1997<a href=\"#_ftn6\" name=\"_ftnref6\">[6]<\/a>, bringing together the BBC\u2019s journalism on a digital platform. They leveraged their archive of premium content assets to launch the iPlayer in 2007<a href=\"#_ftn7\" name=\"_ftnref7\">[7]<\/a>, the first ever VOD service, \u201creally blazing the trail\u201d<a href=\"#_ftn8\" name=\"_ftnref8\">[8]<\/a> for players such as Netflix. In 2015, BBC Store was launched, a download-to-own proposition which allowed audiences to buy their favourite BBC shows online<a href=\"#_ftn9\" name=\"_ftnref9\">[9]<\/a>. Most recently, the corporation unveiled the \u2018BBC as a platform\u2019 vision, which involves the BBC embracing its scale by being the go-to online brand that curates the best content from across the UK creative sector<a href=\"#_ftn10\" name=\"_ftnref10\">[10]<\/a>.<\/p>\n<p><strong>But the BBC can do more<\/strong><\/p>\n<p><em>C<\/em>ontent is still king. Digital hasn\u2019t changed that. However, the commissioning budgets of commercial VOD players are growing exponentially: Netflix and Amazon are forecasted to spend $5bn and $2bn respectively on original content next year<a href=\"#_ftn11\" name=\"_ftnref11\">[11]<\/a>. This means that the BBC is increasingly unable to compete in premium genres. By <strong>increasing co-productions<\/strong> with Netflix et al, the BBC can put less money on the table but still gain access to this high-end content<a href=\"#_ftn12\" name=\"_ftnref12\">[12]<\/a>.<\/p>\n<p>The ability to <strong>leverage data<\/strong> will also be crucial. Despite efforts with the \u2018myBBC\u2019 initiative<a href=\"#_ftn13\" name=\"_ftnref13\">[13]<\/a>, the BBC still lags behind here. It is essential\u00a0they embrace data to connect with audiences and help them make sense of the wealth of online BBC content. This can involve content recommendations via a dedicated service personalised for each user. Data could also be used internally to drive commissioning decisions, as well as inform development teams on ancillary online content that can sit around TV programmes.<\/p>\n<p>More controversially, there have also long been calls for the BBC to <strong>evolve its funding model<\/strong>. Abolishing the Licence Fee, the BBC\u2019s current source of funding which takes the form of a fixed annual rate paid by all UK citizens who own a TV, would be radical. However, a move to subscription, whereby audiences are charged on what they consume, is arguably more appropriate in an on-demand world. Critics argue that such a move places into jeopardy the very essence of the BBC \u2013 a universal service that should not need to cater to individual interests, instead serving a greater good. Subscription would necessarily force the BBC to migrate towards more commercially viable content.<\/p>\n<p><strong>A hybrid future?<\/strong><\/p>\n<p>The future of future of TV lies \u201cnot with either linear\u00a0<em>or<\/em>\u00a0on-demand, but a creative and visual integration of the two worlds, blending the strengths of both into a single brand<a href=\"#_ftn14\" name=\"_ftnref14\">[14]<\/a>\u201d. To avoid extinction, the BBC must embrace this ethos. TV in the internet age for the world\u2019s largest PSB means live broadcast programming offered within the same interface as VOD and interactive content. The two do not have to compete; they can be interdependent and complimentary.<\/p>\n<p>As our society increasingly fragments and our social media pages become echo chambers that reflect our own opinions back at us, the need for the UK to have a unified, impartial, binding and <em>trusted<\/em>\u00a0voice to bring the nation together is more important than ever. It is crucial that the BBC continues to evolve so that it remains to be that voice.<\/p>\n<p><em>Word count: 789<\/em><\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"#_ftnref1\" name=\"_ftn1\">[1]<\/a> Various authors, \u201cBBC Annual Reports and Account 2016\/16\u201d, <em>BBC, <\/em>2016 http:\/\/downloads.bbc.co.uk\/aboutthebbc\/insidethebbc\/reports\/pdf\/bbc-annualreport-201516.pdf<\/p>\n<p><a href=\"#_ftnref2\" name=\"_ftn2\">[2]<\/a> Various authors, \u201cThe Communications Market Report\u201d, <em>Ofcom<\/em>, 2016, https:\/\/www.ofcom.org.uk\/__data\/assets\/pdf_file\/0022\/20668\/cmr_uk_2015.pdf<\/p>\n<p><a href=\"#_ftnref3\" name=\"_ftn3\">[3]<\/a> C. Johnson, \u201cNot Linear or On-Demand: Television in the Internet Age\u201d, <em>Antenna<\/em>, 2015, <a href=\"http:\/\/blog.commarts.wisc.edu\/2015\/12\/03\/television-in-the-internet-age\/\">http:\/\/blog.commarts.wisc.edu\/2015\/12\/03\/television-in-the-internet-age\/<\/a><\/p>\n<p><a href=\"#_ftnref4\" name=\"_ftn4\">[4]<\/a> Various authors, \u201cThe Communications Market Report\u201d, <em>Ofcom<\/em>, 2016, https:\/\/www.ofcom.org.uk\/__data\/assets\/pdf_file\/0022\/20668\/cmr_uk_2015.pdf<\/p>\n<p><a href=\"#_ftnref5\" name=\"_ftn5\">[5]<\/a> Over-the-top content is the delivery of audio, video, and other media over the Internet without the involvement of a multiple-system operator in the control or distribution of the content<\/p>\n<p><a href=\"#_ftnref6\" name=\"_ftn6\">[6]<\/a> R. Rivera, \u201cFifteen years of BBC Online\u201d, <em>BBC Internet Blog<\/em>, 2012, http:\/\/www.bbc.co.uk\/blogs\/internet\/entries\/bed6ccbc-2511-3cfe-a22d-40b9c64efa11<\/p>\n<p><a href=\"#_ftnref7\" name=\"_ftn7\">[7]<\/a> Various authors, \u201cBBC announces iPlayer launch date\u201d, <em>Digital Trends, <\/em>2007, http:\/\/www.digitaltrends.com\/home\/bbc-announces-iplayer-launch-date\/<\/p>\n<p><a href=\"#_ftnref8\" name=\"_ftn8\">[8]<\/a> C. Williams, \u201cNetflix chief Reed Hastings takes on telcos, cinemas and global expansion\u201d, <em>Telegraph<\/em>, 2014, <a href=\"http:\/\/www.telegraph.co.uk\/finance\/newsbysector\/mediatechnologyandtelecoms\/media\/11141864\/Netflix-chief-Reed-Hastings-takes-on-telcos-cinemas-and-global-expansion.html\">http:\/\/www.telegraph.co.uk\/finance\/newsbysector\/mediatechnologyandtelecoms\/media\/11141864\/Netflix-chief-Reed-Hastings-takes-on-telcos-cinemas-and-global-expansion.html<\/a><\/p>\n<p><a href=\"#_ftnref9\" name=\"_ftn9\">[9]<\/a> M. Rundle, \u201cBBC launches a paid downloads store built into iPlayer\u201d, <em>Wired<\/em>, 2015, <a href=\"http:\/\/www.wired.co.uk\/article\/bbc-store\">http:\/\/www.wired.co.uk\/article\/bbc-store<\/a><\/p>\n<p><a href=\"#_ftnref10\" name=\"_ftn10\">[10]<\/a> This proposition aims to help the BBC become more than the sum of its constitution parts &#8211; increasing the relevance of not only itself, but other content-creators facing similar challenges<\/p>\n<p><a href=\"#_ftnref11\" name=\"_ftn11\">[11]<\/a> R. Morrison, \u201cHuge rise in Netflix original spend\u201d, <em>Up Your Ego, <\/em>2016 http:\/\/upyourego.com\/2016\/01\/huge-rise-in-netflix-original-spend-for-2016\/<\/p>\n<p><a href=\"#_ftnref12\" name=\"_ftn12\">[12]<\/a> T. Hall, \u201cThe BBC in an internet era\u201d, <em>BBC Media <\/em>Centre, 2016, <a href=\"http:\/\/www.bbc.co.uk\/mediacentre\/speeches\/2015\/tony-hall-bbc-internet-era\">http:\/\/www.bbc.co.uk\/mediacentre\/speeches\/2015\/tony-hall-bbc-internet-era<\/a> (the BBC now funds less than 70% of the budget for a typical drama title)<\/p>\n<p><a href=\"#_ftnref13\" name=\"_ftn13\">[13]<\/a> \u2018myBBC\u2019 is an initiative to use data in order to link up the BBC\u2019s content online to help serve audiences better<\/p>\n<p><a href=\"#_ftnref14\" name=\"_ftn14\">[14]<\/a> D. Wyatt, \u201cChannel 4 to scrap 4OD in favour of new online hub All 4\u201d, <em>Independent<\/em>, 2014, http:\/\/www.independent.co.uk\/arts-entertainment\/tv\/news\/channel-4-to-scrap-4od-in-favour-of-new-online-hub-all-4-9725776.html<\/p>\n","protected":false},"excerpt":{"rendered":"<p>With the UK finding itself in deeply uncertain political times, the importance of the BBC\u2019s role as an impartial source of information that holds those in power to account only increases. However, its very existence is thrown into doubt by the internet and the rise of new digital players. <\/p>\n","protected":false},"author":2119,"featured_media":15927,"comment_status":"open","ping_status":"closed","template":"","categories":[2249,2250,145,283],"class_list":["post-15916","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-bbc","category-broadcast","category-media","category-tv"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/digitization-challenge-2016\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Battle for eyeballs: does the BBC face extinction? - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/battle-for-eyeballs-does-the-bbc-face-extinction\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Battle for eyeballs: does the BBC face extinction? - Technology and Operations Management\" \/>\n<meta property=\"og:description\" content=\"With the UK finding itself in deeply uncertain political times, the importance of the BBC\u2019s role as an impartial source of information that holds those in power to account only increases. 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