The BBC is one of Britain’s proudest institutions, but of late it has been humbled. The state-owned broadcaster’s reputation has taken a public battering.

It has been presented as terminally arrogant and out of touch – whether for overpaying star presenters and top executives; or for its triffid-like expansion into new sectors of the media while its private sector rivals are retrenching. The Jonathan Ross affair and its reluctance to apologise for bogus allegations made about Bob Geldof’s charitable activities have prompted derision about the BBC’s inability to regulate its output.

Collectively, these mis-steps have hurt the BBC, and helped the government to impose a dubious licence fee settlement on it. This not only capped its income – understandable at a time of austerity – but pushed new activities on to it in ways that raised questions about its independence from political control. That the government could get away with this speaks volumes about the BBC’s diminished standing.

The BBC’s problems are often attributed to its governance structure. Because of the need to keep politicians at bay, it enjoys remarkable freedom to run its own affairs – in spite of being funded by a licence fee that is in effect a tax. Although the last government reformed its governance to deal with the conflict – creating a trust within the BBC to police its activities on behalf of licence fee payers – this is not working well. While the trust’s relations with management are prickly (especially between Sir Michael Lyons, its chairman, and Mark Thompson, the BBC’s director-general) it is not an effective cop. On the things that count, management still has too much rein.

But this is only part of the story. Arguably the bigger problem is management itself and its duff priorities. The BBC is still run like the monopoly it once was. This is reflected in the “just do more” mentality that has led it to sprawl across the media landscape.

The BBC has made poor choices in responding to competition in its core business. There is nothing wrong with the BBC striving to make popular programmes, but it should not routinely go toe-to-toe with commercial rivals for the TV mainstream. Such programmes are neither distinctive nor under-served by the private sector.

The BBC has an anachronistic fixation with remaining a vertically integrated broadcaster, and controlling its own distribution. Having developed the iPlayer, it now intends to launch a digital platform – YouView. Spending on distribution has been going up as spending on programmes has fallen. This is a poor use of public resources. There are plenty of private sector distribution platforms. The BBC does not need its own to ensure that its brand is prominently displayed on electronic programme guides (EPGs). It has one of the biggest names in global broadcasting.

The BBC should focus on its primary mission – broadcasting top-quality content. Only this will ensure its prominence on EPGs and the support of the British public. It must regain the confidence to make great programmes rather than just chase ratings. In pursuit of these, it should look beyond its own in-house resources and commission more externally.

The government can encourage change. It could for instance allow other channels to bid for some of the licence fee income to make public service content. That would keep the BBC on its toes. It could exhort the broadcaster to retreat from non-core areas, warning that contraction may otherwise be imposed when its Royal Charter is renewed at the end of 2016.

But the impetus must come from within. The trust should be made to work better – using its power to block initiatives that do not serve the core mission. Executive pay and excessive management must be cut. While this is now happening, it is wrong that Mr Thompson is paid twice what his predecessor was. When Sir Michael leaves next year, someone must be found who is up to running the trust. If performance does not improve, the government should separate the regulatory function from the BBC.

The BBC is not broken. It remains popular with the public and performs a valuable role – setting world-class standards in areas such as news and documentaries that rival broadcasters such as Sky and Channel 4 strive to emulate. But the mentality of management must change. The squeezed licence fee may help; forcing the BBC to shrink rather than always expand. But management needs to make the right choices. If it fails, the BBC’s future as a unique broadcasting venture will be in doubt.

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Media e tv pubblica
di Franco Debenedetti – Il Sole 24 Ore,19 novembre 2010

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