Written evidence from BBC on BBC Monitoring (BBC0001)

Background briefing

Context

1. BBC Monitoring provides news and information based on open source media – TV, radio, press, social media, the public internet – from around the world. Teams monitor, translate, review and analyse these sources in 100 languages and 150 countries.
2. BBC Monitoring is provided in the public interest and for the benefit of users, including:
1. The BBC’s news services; and
2. The UK Government and other public authorities.

Monitoring also supplies a range of customers on a commercial basis.

3. From 2006/07 BBC Monitoring was funded directly by a ring-fenced grant from HM Treasury through the Cabinet Office. Prior to this, funding was received separately from four stakeholders: Cabinet Office, Ministry of Defence, Foreign and Commonwealth Office and BBC World Service.
4. Since 1 April 2013 BBC Monitoring has been operating under a funding and governance regime set out in an amendment to the BBC Agreement, in which it is funded by the licence fee. This is governed by the Monitoring Scheme. The regime includes regular reviews by users of the service both in government and within the BBC, which are then reported to the BBC Trust.
5. Total annual expenditure for BBC Monitoring over this period is set out below.

6. In line with other BBC services, support costs such as HR, accommodation, technology and capital spending were centralised following integration with licence fee funding in 2013. These costs account for around half of BBC Monitoring’s total expenditure, an increasing proportion of which has been spent on capital and technology in recent years given their importance in a digital world.
7. Like other areas of the BBC, Monitoring must respond to the challenging financial climate. The funding of BBC Monitoring is therefore expected to be £4m lower in 2017/18. This reflects a reduction in licence fee funding for BBC Monitoring of £2.5m per annum, plus a residual shortfall in commercial income since the transfer from Government funding.
8. The 2017/18 budget will be balanced by savings made from the restructure of BBC Monitoring, a reduction in headcount and with additional funding coming from increased commercial activity.  In total, Monitoring’s plans are expected to result in an annual saving of £3.3m with commercial growth expected to meet the gap of £0.7m.
9. Alongside a reduction in capital spending following the completion of the change programme below, total operating costs for BBC Monitoring are budgeted to be £20m in 2017/18. 

BBC Monitoring change programme

10. BBC Monitoring offers unique insight gained by 75 years’ experience of keeping a constant watch on global media, but this media is now changing at an unprecedented rate. The explosion of digital and social sources onto the monitoring landscape has put pressure on an operation built around fixed time, broadcast output.
11. In July 2016 BBC Monitoring announced an extensive restructuring programme. The programme will deliver a leaner, simpler management structure and invest in new technology to handle the new products and volume of data now required to scan the world’s media. Where separate, bespoke areas worked to one user we will create integrated, multidisciplinary teams, with the relevant researchers and analysts embedded within them; and we will build a single, central News Desk to replace the current two operational hubs and to maintain quality across output. As part of this work, we are consulting with Government departments to better understand their priorities in terms of formats and products.
12. To date, the BBC has invested £10m in new delivery and production systems and a Change Programme that is leading the transformation of the service. Further spend is committed through to the end of the FY16/17.
13. As part of this process, it is expected that 98 posts will close, with the larger proportion coming from UK based teams. This places greater emphasis on leveraging the local expertise of international teams which make up more than half of Monitoring’s staff. This is a unique aspect of BBC Monitoring’s work which users really value and which gives a more flexible approach to covering the expanding range of sources.
14. The key areas of focus remain FSU, Middle East and East Africa. Other services – such as coverage of European languages – were closed in two successive rounds of Government cuts to funding in 2006 and 2011. In the new structure bases in Istanbul and Jerusalem will be introduced which will benefit official users and strengthen the BBCM/OSE partnership.
15. The new structure seeks to reinforce the tier of digital journalists who source and create content to ensure current levels of output are broadly maintained for all users. Digital working will be a driving force to the future success of Monitoring, giving the ability to include data, stills, graphics and video, wherever relevant, as part of the core offering to consumers.
16. Since the announcement in July, BBC management has been working closely with staff and the joint unions. Through consultation, the first tier of selection and new appointments has been agreed and there has been support for the proposed approach. The BBC will continue to meet regularly at a local and divisional level with the union representatives and is optimistic about finding mutually agreeable outcomes with our colleagues.  It is important to the ongoing future of BBC Monitoring that the programme of change continues.
17. Alongside structural and content changes, BBC News is seeking a suitable location for the Monitoring teams in the UK. The Caversham Park site is extensive and only partially occupied. The new structure seeks closer integration with BBC News and options are therefore being considered for co-location in London.

BBC Monitoring Agreement

18. Negotiations are ongoing with the Cabinet Office and Government group of departments who are leading on requirements to deliver a new Monitoring Agreement. This will replace the current Scheme in January 2017.
19. The negotiations involve detailed discussions on the “core services” that BBC Monitoring will provide, and cover future requirements, regional priorities and review cycles. While the programme of change is challenging, BBC Monitoring retains the editorial capabilities to deliver these services and to respond to changing priorities.
20. There is also provision in the new Agreement for BBC Monitoring to provide “additional services” funded by stakeholders. BBC Monitoring stands ready to discuss additional dedicated funding from the Government to deliver enhanced services or products, if they assess these would be beneficial.

September 2016