BBC Online: BBC Trust approves cuts

The BBC's move today to redefine the scope of its online operations comes after the approval of the BBC Trust - read the trust's full statement here.

Sir Michael Lyons: BBC Trust Chairman
Sir Michael Lyons: BBC Trust Chairman
The BBC Trust has today announced its approval of a new strategy for the BBC's online output. The strategy will involve a reduction in the budget of 25%, clearer editorial boundaries and more distinctive content.

It will simplify the navigation around five main product groupings:

  • News, sport and weather
  • iPlayer and TV
  • Radio and music
  • Children's
  • Learning and knowledge

The Trust has tested the Executive's proposals for Online against the BBC's overall new strategy, Putting Quality First, the final conclusions of which were published last December.

It is satisfied that the proposals deliver on the four strategic objectives of increasing distinctiveness and quality, improving value for money, setting new standards of openness and transparency and doing more to serve all audiences.

Following a commitment made in 2008, the Trust will now look again at the management controls for Online, specifically the effectiveness of the strategic, editorial and financial leadership of the service.

It will report on its findings before the end of the 2011/12 financial year.

The Trust has also asked the Executive to gain a better understanding of the market in which Online operates and any potential areas of sensitivity. The findings of this will be published to the same timescale.

Sir Michael Lyons, BBC Trust Chairman, said: "We are clear about the continuing importance of the BBC's Online service. But we want strengthened editorial vision and a more selective approach in the interests of both public value and market impact. This strategy is about doing fewer things better, and clearer boundaries."

BBC Trustee Diane Coyle, who led the review, said: "The Trust is clear that the BBC must manage the service and its impact on the market in a way that holds true to the new strategy. We will monitor this closely, particularly the strengthened arrangements for editorial leadership and control. We are also going to continue our dialogue with users and industry."

The Trust has concluded that the Executive's proposed changes do not meet the criteria for a significant change which would trigger a public value test (PVT), and has today published this assessment, as well as the final online strategy itself.

The changes to the service will be reflected in a new service licence for Online which will be published shortly.

The Trust's Clause 25 assessment

Under the terms of the BBC's Royal Charter, the Trust is charged with carrying out a PVT before approving a significant change to the BBC's UK public services.

Clause 25 of the Charter includes a presumption that a PVT will be carried out where a change to a key characteristic of a service licence is proposed.

When deciding whether a change is significant, the Agreement provides four criteria for the Trust to consider when making its decision: the potential impact, the financial implications, whether it would involve the BBC in a new area of untested activity, and the duration.

Trustees concluded:

  • On impact, for users the majority of the changes concern those sites with lower reach or approval, while the simplification of the site will make it easier for users to navigate. In terms of online markets, these changes will make the site more distinctive and its boundaries clearer
  • On financial implications, the budget cuts are spread across genres, and are not focused on any one area
  • On novelty, there are no proposed new areas of activity
  •  On duration, these changes are permanent.

Taking these four criteria, the Trust's assessment was that overall the changes are not significant.

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