The BBC’s commercial arms are reducing their costs by £140M ($172M) over the next year after the coronavirus pandemic took a painful toll on revenue. The BBC’s commercial units primaril…
The BBC’s commercial arms are reducing their costs by £140M over the next year after the, BBC Global News, and studios business BBC Studioworks, with BBC Studios accounting for nearly 90% of their combined £1.34B of revenue last year.
In its annual plan, the BBC said production shutdowns and the “unprecedented” drop in global advertising has had a “significant impact” on income in 2020. As a result, “significant mitigating actions” are being taken to bring costs down. A good chunk of this cost-cutting will be because BBC Studios is not spending as much on making shows during the lockdown, but other savings will be made by “reducing the cost base and reprioritising and phasing planned investments,” the BBC said in its annual plan.
A BBC Studios spokeswoman declined to comment on whether this will involve job cuts, or what was meant by reprioritizing investments. She said: “The mitigations principally reflect delays to cash outflow from productions being in lockdown, as well as deferrals and reductions in cash investment across in-year projects.”and.
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