ON SCREEN AND ON AIR TALENT AN ASSESSMENT OF THE BBC’S APPROACH AND IMPACT A REPORT FOR THE BBC TRUST APPENDIX XII – CHARTS FOR REPORTRedacted Version BY OLIVER & OHLBAUM ASSOCIATES APRIL 22nd 2008 ON SCREEN AND ON AIR TALENT ..SECTION A –INTRODUCTION AND SCENE SETTING ..SECTION B -THE ECONOMICS OF ON SCREEN AND ON AIR TALENT ..SECTION C -THE UK MARKET FOR ON SCREEN AND ON AIR TALENT ..SECTION D -THE ROLE, POSITIONING AND PERFORMANCE OF THE BBC ..SECTION E -ASSESSMENT OF MARKET IMPACT AND VALUE FOR MONEY FIGURE A.1. – O&O METHODOLOGIES EMPLOYED PROCESS DETAILS BBC INTERVIEWS ..20 INTERVIEWS ..50 PEOPLE EXTERNAL INTERVIEWS ..27 INTERVIEWS ..35 PEOPLE MACRO ECONOMIC TRENDS ..INCOME POLARISATION TRENDS ..TOP TALENT IN OTHER ENTERTAINMENT INDUSTRIES ..IMPACT OF GLOBALISATION AND DIGITISATION VALUE SURVEY ..2,000 ADULTS ..136 STAR NAMES, 14 GENRES TESTED TALENT TRACKING ..TRACKING TV CAREER PATHS OF CURRENT ROSTER OVER 20 YEARS ..170 INDIVIDUALS ACROSS 6 SUB-GENRES BBC SPENDING TRENDS ..SPENDING BY MEDIA AND GENRE SINCE 2004/2005 ..TALENT SPENDING FOR 400 STRANDS ..TALENT INFLATION RATES SINCE 2000/2001 BBC PROCESSES AND STRATEGY DOCUMENTS ..ANALYSIS OF PAYMENTS APPROVAL DOCUMENTATION ..REVIEW OF PROPOSAL, REVIEW AND APPROVAL PROCEDURES MARKET PRICE AND INFLATION BENCHMARKING ..RADIO BENCHMARKING EXERCISE ..INTERVIEWS ON COMMERCIAL TV VALUATION METHODS COMMERCIAL VALUATION MODELLING ..DEVELOPMENT OF COMMERCIAL VALUATION MODEL FOR TOP TALENT ..BASED ON INCREMENTAL ADVERTISING REVENUE SPEND VERSUS AUDIENCE ANALYSIS ..ASSESSMENT OF GENRE, SLOT AND SUB-GENRE COST PER VIEWER AND LISTNER HOUR BENCHMARKS REGRESSION ANALYSIS ..ATTEMPT TO ISOLATE THE LINK BETWEEN TYPE AND LEVEL OF TALENT WITH AUDIENCES BASED ON RATINGS DATA ON SCREEN AND ON AIR TALENT ..SECTION A –INTRODUCTION AND SCENE SETTING ..SECTION B -THE ECONOMICS OF ON SCREEN AND ON AIR TALENT ..SECTION C -THE UK MARKET FOR ON SCREEN AND ON AIR TALENT ..SECTION D -THE ROLE, POSITIONING AND PERFORMANCE OF THE BBC ..SECTION E -ASSESSMENT OF MARKET IMPACT AND VALUE FOR MONEY FIGURE B.1. – EXAMPLE PROGRAMME CHARACTERISTICS BY GENRE DRAMA SPORTS EVENT CHAT SHOW QUIZ SHOW TV COMEDY RADIO CHART SHOW • SCRIPT • HUMOUR • LEVEL OF INSIGHT/ REVELATION • FORMAT • UNCERTAINTY OF OUTCOME • SCRIPT DESIGN/ NARRATIVE • LOCATION • SITUATION • ISSUES DEALT WITH • SUBJECT MATTER • LEVEL OF DIFFICULTY • SITUATION • MUSIC POLICY RELEVANCE • SYMPATHETIC • BELIEVABLE • TEAMS INCLUDED • CONTESTANTS INVOLVED • GUEST INTERPLAY • EMPATHY WITH CONTESTANTS • EMPATHY • INTERPLAY RELATIONSHIPS/ CHARACTERISATION • KEY LIVE EVENT • QUALITY OF ACCESS • PRIZE MONEY ACCESS TO KEY EVENT/ MATERIAL • PACE • SET DESIGN • EDITING • LIGHTING • NUMBER OF CAMERAS • ANALYSIS • DIRECTION • SUPPORT MUSIC • SET DESIGN • SET DESIGN • ACCURACY • TEMPO • DIRECTION • PACE AND TIMING EXECUTION • LEVEL OF DIFFICULTY • VOTING AND POLLING PARTICIPATION • LEAD ACTORS • SUPPORT ACTORS • HOST • PUNDIT • HOST • HOST • ACTORS • SUPPORT ACTORS • DJ LEAD TALENT/ SUPPORT TALENT LANDMARK FACTUAL • SCRIPT • NARRATIVE POSITION/ POLEMIC • FAMILIARITY • CONTEMPORARY AREA OF INTEREST • UNIQUE FOOTAGE • UNIQUE INFORMATION • PRESENTER FIGURE B.2. – TALENT AS AN AUDIENCE AND VALUE DRIVER GENRE PROGRAMME CHARACTERISTICS TIMESLOT CHANNEL BRAND AND DEMOGRAPHICS INHERITANCE/ PROMOTION TALENT DESIGN/NARRATIVE/ FORMAT RELEVANCE RELATIONSHIPS/ CHARACTERISATION ACCESS EXECUTION PARTICIPATION VIEWER VALUE AUDIENCE SIZE AUDIENCE DEMOGRAPHICS PROGRAMME CHARACTERISTICS POSITIONING “ASSET” IMPACT ON VIEWERS/CONSUMERS FIGURE B.3. – IMPORTANCE OF TALENT BY PROGRAMME TYPE IMPORTANCE OF PRESENTER & SUPPORTING TALENT OR GUESTS: MEAN AND STANDARD DEVIATIONS- SELECTED PROGRAMME TYPES MEAN STANDARD DEVIATION MINUS ONE STANDARD DEVIATION 10 20 30 40 50 60 70 80 90 100 CHAT SHOW HOST CHAT SHOW GUEST DRAMA LEAD ACTOR DRAMA SUPPORTINGACTOR SATURDAY NIGHTSHOW HOST SATURDAY NIGHTSHOW GUEST COOKERY SHOW CHEF CHART RADIO DJ CHART RADIO GUESTS PANEL GAME PRESENTER PANEL GAME GUEST QUIZ PRESENTER MUSIC & SPEECHRADIO DJ MUSIC & SPEECHRADIO GUEST LIFESTYLE & MAKEOVERPRESENTER SERIOUS FACTUALPRESENTER NEWSREADER NEWS & SPORT RADIOPRESENTER NEWS & SPORT RADIOGUEST SPORTS TV PRESENTER SPORTS TV PUNDIT IMPORTANCE SCORE SOURCE: O&O VALUE SURVEY, JANUARY 2008 MAIN REASON VERY IMPORTANT QUITE IMPORTANT NOT IMPORTANT PLUS ONE FIGURE B.4. – IMPORTANCE OF LEAD TALENT WITHIN ENTERTAINMENT GENRE SOURCE: O&O VALUE SURVEY, JANUARY 2008 IMPORTANCE OF PRESENTER/HOST (SATURDAY NIGHT ENTERTAINMENT, CHAT SHOWS, QUIZ SHOWS, PANEL GAMES) QUIZ SHOWS SATURDAY NIGHT ENTERTAINMENT CHAT SHOWS PANEL GAMES 20 40 60 80 100 120 140 0 1-5 6-10 11-15 16-20 21-25 26-30 31-35 36-40 41-45 46-50 51-55 56-60 61-65 66-70 71-75 76-80 81-85 86-90 91-95 96-100 INTERVALS OF IMPORTANCE SCORES NUMBER OF RESPONDENTS NOT IMPORTANT QUITE IMPORTANT VERY IMPORTANT MAIN REASON FIGURE B.5. – PROPORTION OF RESPONDENTS GIVING HIGH POPULARITY/LIKEABILITY SCORINGS TO NAMED TALENT PROPORTION OF SCORES OVER 75 - INDEXED TO TOP PROPORTION (SATURDAY NIGHT ENTERTAINMENT, CHAT SHOWS, QUIZ SHOWS, PANEL GAMES) SATURDAY NIGHT ENTERTAINMENT CHAT SHOWS QUIZ SHOWS PANEL GAMES 10 20 30 40 50 60 70 80 90 100 1ST 2ND 3RD 4TH 5TH 6TH 7TH 8TH 9TH 10TH 11TH RANKING OF NAMED PRESENTERS/HOSTS BY SUB-GENRE POPULARITY SCORE INDEX (100=TOP SCORE ACROSS ALL 136 NAMES) 5TH RANKED PRESENTER 8TH RANKED PRESENTER SOURCE: O&O VALUE SURVEY, JANUARY 2008 FIGURE B.6. – TIERS OF TALENT WITHIN GENRE AND SUB-GENRE TV RADIO DRAMA/COMEDY NEWS GENRE EXAMPLE SUB-GENRE TIER 1 TIER 2 TIER 3 TIERS WITHIN SUB-GENRE ENTERTAINMENT FACTUAL/ KNOWLEDGE CHILDREN’S SPORT MUSIC LED MUSIC/SPEECH DRAMA/COMEDY SPEECH/MAGAZINE REGULAR DAILY/ WEEKLY SPECIALIST/ EVENING DRAMA RADIO 1 RADIO 3 RADIO 2 RADIO 1 CURRENT AFFAIRS CONTINUOUS NEWS MAIN BULLETIN MINOR LIVE EVENT MAJOR LIVE EVENT HIGHLIGHTS MAGAZINE DRAMA FACTUAL/ MAGAZINE COOKERY LIFESTYLE/ MAKEOVER FACTUAL ENT LANDMARK FACTUAL ENT SHOWS CHAT PANEL QUIZ OTHER COMEDY SITCOMS SOAPS DRAMA SERIES ..LEAD ACTORS IN DRAMA SERIES AND SERIALS ..LEAD COMIC PERFORMERS ..HOSTS/PRESENTERS ON MAJOR NETWORKS ..SERIES “AUTHORS” ..HOUSEHOLD NAME PRESENTERS ..LEAD PRESENTERS IN MAIN MAGAZINE STRANDS ..HOSTS/PRESENTERS FOR MAJOR SPORTS ..LEAD REGULAR PUNDITS FOR MAJOR SPORTS ..SUPPORTING ACTORS IN SERIES AND SERIALS ..LEAD ACTORS IN “SOAPS” ..SUPPORT COMIC PERFORMERS ..LEAD PANELISTS ..CELEBRITY PARTICIPANT ..LEAD MUSIC GUESTS ..HOSTS/PRESENTERS ON MINOR CHANNELS ..SUPPORT PRESENTERS ..LEAD PRESENTERS ON MINOR SERIES/DIGITAL CHANNELS ..NARRATORS/ VOICE OVERS ..SUPPORT PRESENTERS ON MAIN STRANDS ..OCCASIONAL PUNDITS, MAJOR SPORTS ..PRESENTERS AND PUNDITS, MINOR SPORTS ..WALK ON PARTS ..MINOR PARTS ..NEW COMIC PERFORMERS ..OTHER PANELISTS ..MINOR CONTRIBUTORS ..EXPERT CONTRIBUTORS ..INTERVIEWEES ..OTHER CONTRIBUTORS ..MINOR PRESENTERS/PUNDITS ON MINOR SPORTS ..LEAD NEWS PRESENTERS ..LEAD ON-SCREEN EDITORS ..BREAKFAST DJs ..DRIVE TIME DJs ON MAIN NETWORKS ..LEAD NAMES IN REGULAR WEEKLY STRANDS ..LEAD COMEDIANS IN PANEL GAMES ..LEAD PRESENTERS ON NETWORK DAILY/WEEKLY STRANDS ..CORRESPONDENTS ..MINOR EDITORS ..OTHER DAYTIME DJs ON MAIN NETWORKS ..SUPPORT PRESENTER ..LEAD ACTORS IN DRAMA OR COMEDY RADIO ..SUPPORT COMEDIANS IN PANEL GAMES ..PRESENTERS ON SPECIALIST WEEKEND OR EVENING SHOWS ..LEAD PRESENTERS ON REGIONAL LOCAL RADIO ..JUNIOR CORRESPONDENTS ..NIGHTIME DJs ON MAIN NETWORKS ..MUSIC LED DJs ON LOCAL RADIO ..LOCAL RADIO DJs ..NETWORK CONTRIBUTORS ..SUPPORT ACTORS ..OTHER CONTRIBUTORS RADIO 2 RADIO 3 COMEDY PANEL GAME FIGURE B.7. – TALENT LIFECYCLE PERFORMANCE AND FEES FEE RATE PAID VALUE TO VIEWERS FEE RATE/ VIEWER VALUE TIME CAREER PEAK REINVIGORATION SOURCE: O&O INTERVIEWS CAREER LAUNCH CAREER SLUMP/”REST” FIGURE B.8. - BBC VALUE AND PRICE SETTING – 3 examples 20 40 60 80 100 120 140 OPPORTUNITY COST TO TALENT VALUE TO BBC RIVAL BROADCASTER VALUE TO BBC VALUE OF REPLACMENT PRESENTER TO BBC EXAMPLE A EXAMPLE B EXAMPLE C VALUE INDEX 80 100 120 90 110 80 120 90 120 120 60 110 BBC PRICE = 105 BBC PRICE = 115 BBC PRICE = 95 (FOR REPLACEMENT PRESENTER) OPPORTUNITY COST TO TALENT VALUE TO BBC RIVAL BROADCASTER VALUE TO BBC VALUE OF REPLACMENT PRESENTER TO BBC OPPORTUNITY COST TO TALENT VALUE TO BBC RIVAL BROADCASTER VALUE TO BBC VALUE OF REPLACMENT PRESENTER TO BBC (WITH OPPORTUNITY COST OF 90) ON SCREEN AND ON AIR TALENT ..SECTION A –INTRODUCTION AND SCENE SETTING ..SECTION B -THE ECONOMICS OF ON SCREEN AND ON AIR TALENT ..SECTION C -THE UK MARKET FOR ON SCREEN AND ON AIR TALENT ..SECTION D -THE ROLE, POSITIONING AND PERFORMANCE OF THE BBC ..SECTION E -ASSESSMENT OF MARKET IMPACT AND VALUE FOR MONEY FIGURE C.1. – THE UK ON SCREEN AND ON AIR TALENT MARKET – estimated value 2006/2007 620 388 450 46 220 50 1050 100 310 340 345 500 1000 1500 2000 2500 3000 3500 4000 TOTAL PROGRAMME PRODUCTION PRIMARY PAYMENTS TO ON- SCREEN AND ON-AIR TALENT REPEAT, SECONDARY AND ANCILLARY PAYMENTS TO ON- SCREEN AND ON-AIR TALENT TOTAL INCOME TO ON-SCREEN AND ON-AIR TALENT FROM UK TV AND RADIO £2,390M NETWORK TV PRODUCTION (INC SPORT & MUSIC) NEWS PRODUCTION REGIONAL OUTPUT PRODUCTION RADIO PRODUCTION OTHER (FREMANTLE, IN- HOUSE SATELLITE TV ETC) ITV BBC TV IN- HOUSE TV NEWS REGIONAL £3,385M £584M £172M £757M ESTIMATED UK ON-SCREEN AND ON-AIR TALENT SPENDING-2006/2007 £M INDEPENDENT PRODUCERS SOURCE: BBC, COMPANY ACCOUNTS, O&O ANALYSIS RADIO FIGURE C.2. – COMPETITION FOR AUDIENCES OVER TIME – audience share by main channel UK CHANNEL AUDIENCE SHARES, 1998-2006 29.5 28.4 27.2 26.9 26.2 25.6 24.7 23.3 22.8 22.0 11.3 10.8 10.8 11.1 11.4 11.0 10.0 9.4 8.8 8.5 1.2 1.7 2.1 2.5 2.9 3.4 31.7 31.2 29.3 26.8 24.1 23.7 22.8 21.5 19.7 19.2 0.6 0.9 1.2 2.3 3.2 3.9 10.3 10.3 10.5 10.0 9.8 9.4 9.6 9.6 9.6 8.6 0.8 0.7 0.8 1.3 2.4 3.2 4.3 5.4 5.7 5.8 6.3 6.5 6.6 6.4 5.7 5.2 0.8 12.9 13.9 16.5 19.0 19.7 20.6 22.3 23.6 24.7 25.3 10 20 30 40 50 60 70 80 90 100 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 AUDIENCE SHARE (%) OTHER THEMATICS FIVE C4 SPINOFFS C4 ITV SPIN-OFFS ITV1 BBC SPIN-OFFS BBC 2 BBC 1 FIVE SPINOFFS SOURCE: OBS, BARB % SHARE CHANGE 12.4% 1.7% 1.5% -8.6% -6.9% FIGURE C.3. – COMPETITION FOR AUDIENCES – demographic differentiation DEMOGRAPHIC POSITIONING OF MAIN NETWORKS AND THEMATIC CHANNELS, 2006 % ABC1 SOURCE: BARB, O&O ANALYSIS BBC2 BBC3 BBC4 ITV1 ITV2 ITV3 FIVE E4 FIVE US BBC1 ITV4 CHANNEL 4 MORE4 FILM4 FIVE LIFE SKY SKY ONE LIVING 30 35 40 45 50 55 60 65 30 35 40 45 50 55 60 AVERAGE AGE OLDER - UPMARKET YOUNGER - UPMARKET YOUNGER - DOWNMARKET OLDER - DOWNMARKET FEMALE MALE FIGURE C.4. – COMPETITION FOR AUDIENCES – demographic positioning by genre DEMOGRAPHIC POSITIONING OF MAIN GENRES – ITV1, C4 AND BBC1 SOURCE: BARB, O&O ANALYSIS ARTS CHILDRENS ARTS CHILDRENS MUSIC RELIGIOUS SPORT CURRENT AFFAIRS DOCUMENTARIES DRAMA: SERIES & SERIALS DRAMA: SINGLE PLAYS DRAMA: SOAPS ENTERTAINMENT FILMS: CINEMA HOBBIES & LEISURE MUSIC NEWS/ WEATHER RELIGIOUS SPORT CURRENT AFFAIRS DOCUMENTARIES DRAMA: SERIES & SERIALS DRAMA: SINGLE PLAYS DRAMA: SOAPS ENTERTAINMENT FILMS: CINEMA HOBBIES & LEISURE MUSIC NEWS/ WEATHER RELIGIOUS SPORT ARTS CURRENT AFFAIRS DOCUMENTARIES DRAMA: SERIES & SERIALS DRAMA: SINGLE PLAYS DRAMA: SOAPS ENTERTAINMENT FILMS: CINEMA HOBBIES & LEISURE NEWS WEATHER 28 33 38 43 48 53 8 18 28 38 48 58 %OF AUDIENCE <35 % ABC1 YOUNGER - DOWNMARKET YOUNGER - UPMARKET OLDER - UPMARKET OLDER - DOWNMARKET FEMALE MALE C4 ITV1 BBC1 C4 ZONE BBC1 ZONE ITV ZONE FIVE ZONE MAIN BATTLEGROUND FIGURE C.5. – OVERALL LEVEL AND SCALE OF COMPETITION TO THE BBC FOR TALENT LEVEL AND SCALE OF DIRECT COMPETITION TO BBC OVERALL ITV C4 FIVE OTHER TV DRAMA ENTERTAINMENT COMEDY LANDMARK FACTUAL SPECIALIST FACTUAL LIFESTYLE/MAKEOVER CURRENT AFFAIRS CHILDREN SPORTS JOURNALISM DAYTIME/TEATIME TV FIGURE C.6. – COMPETITION FOR AUDIENCES – channel 4 changing programme mix CHANNEL 4 OUTPUT BY GENRE - 5PM TO 11PM, 2001-2006 32.45 124 193 280 192 150 161 112 136 88 85 130 28 38 36 148 124 94 169 232 261 289 245 88 129 135 172 150 126 217 153 89 106 105 105 26 13 33 36 33 30 99 152 83 88 93 109 266 243 247 251 257 250 531 275 526 202 168 193 22 54 31 35 55 52 35 27 33 32 38 36 196 172 178 194 194 244 21 31 15 10 20 30 40 50 60 70 80 90 100 2001 2002 2003 2004 2005 2006 FAMILY SHOWS CHAT/QUIZ OTHER ENT. FACTUAL ENT HOBBIES & LEISURE SOAPS DRAMA SERIES & ONE-OFFS IMPORTED DRAMA NEWS DOCUMENTARIES CURRENT AFFAIRS ARTS & RELIGION SPORT FILMS COMEDY CHILDRENS ENTERTAINMENT DRAMA FACTUAL 30.7% 37.1% 39.2% 45.8% 46.5% 45.2% 16.7% 17.9% 10.1% 13.1% 13.0% 13.1% 46.1% 33.6% 41.2% 29.8% 29.1% 28.6% SOURCE: BARB, O&O ANALYSIS % 258 135 FIGURE C.7. – COMPETITION FOR AUDIENCES – key demographic battlegrounds - entertainment DEMOGRAPHIC POSITIONING OF MAIN GENRES – ITV1, C4 AND BBC1 – ENTERTAINMENT AND SUB-GENRES SOURCE: BARB, O&O ANALYSIS %<35 VARIETY ANIMATION CARTOONS ANIMATION PUPPET CHAT SHOWS AUDIENCE PART CHAT SHOWS INTERVIEWS FAMILY SHOWS LOTTERY SHOWS UPDATES OTHER COMEDY QUIZ SHOWS PANEL GAMES SITCOM UK SPECIAL EVENTS VARIETY ANIMATION CARTOONS ANIMATION PUPPET CHAT SHOWS AUDIENCE PART CHAT SHOWS GENERAL CHAT SHOWS INTERVIEW FAMILY SHOWS OTHER COMEDY QUIZ SHOWS PANEL GAMES SITCOM UK SPECIAL EVENTS VARIETY ANIMATION CARTOONS CHAT SHOWS GENERAL FAMILY SHOWS OTHER COMEDY QUIZ SHOWS PANEL GAMES SITCOM UK SPECIAL EVENTS 25 30 35 40 45 50 55 15 25 35 45 55 % ABC1 YOUNGER - UPMARKET OLDER - UPMARKET YOUNGER - DOWNMARKET OLDER - DOWNMARKET C4 IN ITV1 ZONE ITV1 IN C4 ZONE FEMALE MALE C4 ITV1 BBC1 FIGURE C.8. – UK TV REVENUE GROWTH RATES – all TV versus main network players UK TELEVISION INDUSTRY REVENUE TRENDS, 1998-2006 TOTAL GROSS TV REVENUE (INC PAY TV) BBC/COMMERCIAL NETWORK REVENUES (INC SPIN OFF CHANNELS) CAGR 1998-2002 8.0% 4.3% CAGR 2002-2006 4.4% 1.4% 2,000 4,000 6,000 8,000 10,000 12,000 1998 1999 2000 2001 2002 2003 2004 2005 2006 £M -PAY TV GROWT - COMMERCIAL RECESSION - LICENCE FEE UPLIFT - PAY TV GROWTH - COMMERCIAL TV STAGNATION - LICENCE FEE GROWTH - PAY TV GROWTH - COMMERCIAL TV GROWTH SOURCE: OFCOM, BBC ANNUAL REPORT, O&O ANALYSIS FIGURE C.9. – UK TV REVENUE GROWTH RATES – BBC versus commercial networks CAGR 1998-2006 0.2% 4.6% CAGR 2002-2006 0.2% 2.8% UK BROADCASTERS, REVENUES, 1998-2006 500 1,000 1,500 2,000 2,500 3,000 3,500 1998 1999 2000 2001 2002 2003 2004 2005 2006 £M BBC TV LICENCE FEE REVENUE* ITV PLUS C4 (INCL. SPIN OFFS) ITV, C4 AND FIVE -0.5% -0.3% - COMMERCIAL BOOM - COMMERCIAL RECESSION - LICENCE FEE UPLIFT - COMMERCIAL NETWORK STAGNATION - LICENCE FEE GROWTH SOURCE: OFCOM, BBC ANNUAL REPORT, O&O ANALYSIS *TV PROPORTION OF LICENCE FEE INCOME AS CALCULATED BY OFCOM FIGURE C.10. – YEAR ON YEAR REVENUE GROWTH RATES – BBC versus commercial TV UK BROADCASTER REVENUE GROWTH RATES, 1999-2006 7% -1% 6% 15% 4% 1% 2% 5% 6% -11% 3% -2% 4% 7% -7% 5% -15 -10 -5 5 10 15 20 1999 2000 2001 2002 2003 2004 2005 2006 ANNUAL GROWTH RATE % BBC LICENCE FEE REVENUE ITV, C4 (INC SPIN-OFFS) - COMMERCIAL RECESSION - LICENCE FEE UPLIFT - COMMERCIAL NETWORK STAGNATION - LICENCE FEE GROWTH - COMMERCIAL BOOM COMMERCIAL NETWORK (INC SPIN-OFFS) ADVERTISING REVENUE 3% 6% -12% 1% -3% 4% 6% -8% FIGURE C.11. – UK NEW PROGRAMMING SPEND TRENDS – by commissioning outlet UK SPENDING ON UK TV ORIGINATIONS, 2001-2006 1189 1359 1311 1044 1312 1281 1424 1397 1394 1337 1322 1419 68 70 98 117 161 182 2001 2002 2003 2004 2005 2006 £M CAGR 2001-2003 20.1% 2.3% CAGR 2003-2006 22.9% 0.9% -1.1% 0.6% 5.0% -0.8% COMMERCIAL NETWORKS (INCL. SPIN OFFS AND REGIONAL OUTPUT) BBC NETWORK ORIGINATIONS (INCL. SPIN OFFS AND REGIONAL OUTPUT) OTHER THEMATIC CHANNELS 2681 2826 2803 2798 2795 2882 SOURCE: OFCOM, O&O ANALYSIS FIGURE C.12. – ITV ENTERTAINMENT TALENT TRACKING – current talent roster 22 9 8 6 3 6 6 7 7 2 3 1 2 1 2 1 1 2 8 11 ENTERTAINMENT TALENT VINTAGE: ITV1, 2007 “WHERE WERE THEY BACK THEN?” 5 10 15 20 25 2007 PREVIOUS SHOW 5 YEARS AGO 10 YEARS AGO 20 YEARS AGO NUMBER OF MAIN PRESENTERS NOT ON TV VARIOUS CHANNELS (minor roles) THEMATICS FIVE CHANNEL 4 BBC ITV1 22 22 22 22 22 SOURCE: IMDB, SPOTLIGHT, O&O ANALYSIS TIME/CAREER TODAY 1 ON RADIO 1 FIGURE C.13. – CHANNEL 4 ENTERTAINMENT TALENT TRACKING – current talent roster 8 2 1 1 3 4 1 5 1 2 2 1 1 1 2 5 ENTERTAINMENT TALENT VINTAGE: CHANNEL 4, 2007 “WHERE WERE THEY BACK THEN?” 1 2 3 4 5 6 7 8 9 2007 PREVIOUS SHOW 5 YEARS AGO 10 YEARS AGO 20 YEARS AGO NUMBER OF MAIN PRESENTERS NOT ON TV C4 SPIN OFFS THEMATICS ITV1 BBC CHANNEL 4 8 8 8 8 8 SOURCE: IMDB, SPOTLIGHT, O&O ANALYSIS TIME/CAREER TODAY FIGURE C.14. – CHANNEL 4 COMEDY TALENT TRACKING – Current talent roster SOURCE: IMDB, SPOTLIGHT, O&O ANALYSIS 16 7 5 1 2 3 1 3 1 3 2 1 2 3 1 1 4 9 14 COMEDY TALENT VINTAGE: CHANNEL 4, 2007 “WHERE WERE THEY BACK THEN?” 2 4 6 8 10 12 14 16 2007 PREVIOUS SHOW 5 YEARS AGO 10 YEARS AGO 20 YEARS AGO NUMBER OF ACTORS/ PERFORMERS NOT ON TV VARIOUS THEMATICS ITV1 BBC2 BBC1 CHANNEL 4 16 16 16 16 16 1 ON RADIO TIME/CAREER TODAY FIGURE C.15. – TV BATTLES AND TALENT POACHING – 2004 to 2008 TALENT/CONTENT TIME LINE 2004-2008 ITV extend Who Wants to be a Millionaire? deal to 2009 Alan Titchmarsh starts ITV show Tim Lovejoy joins BBC BBC buy terrestrial rights to Heroes Five wins rights to Neighbours Des O'Connor joins C4 Zoe Ball moves to ITV Gabby Logan quits ITV for BBC David Dickinson joins ITV from BBC Launch of Five Life Launch of Five US Nicholas Owen switches ITN for BBC News Sky One win rights for series 3 and 4 of Lost Simon Amstell moves to BBC from C4 Graham Norton signs new 3 year contract at BBC Jonathan Ross signs 3 year extension with BBC Launch of BBC HD Nigella Lawson joins BBC Paul O'Grady leaves ITV for C4 Steve Rider leaves BBC for ITV Eamonn Holmes joins Sky News from GMTV Launch of More 4 Des Lynam joins C4 Daisy McAndrew joins ITV from BBC Nick Robinson leaves ITV for BBC Trinny and Susannah move to ITV from BBC Graham Norton moves to BBC Launch of UKTV Gardens Launch of UKTV People Launch of FX channel Sky buys series 3 and 4 of 24 Trisha Goddard leaves ITV for Five Michael Parkinson leaves BBC for ITV C4 acquires rights to The Simpsons Launch of Living 2 Launch of ITV3 & ITV4 Launch of UKTV Documentary John Suchet joins Five Tess Daly moves to BBC Launch of CITV channel Launch of Bravo 2 BBC talent salaries leak Five acquires rights to Fireman Sam Ruth Watson moves to C4 from Five Natasha Kaplinsky moves to Five from BBC Five to air Neighbours OCT-03 JAN-04 APR-04 AUG-04 NOV-04 FEB-05 MAY-05 SEP-05 DEC-05 MAR-06 JUL-06 OCT-06 JAN-07 APR-07 AUG-07 NOV-07 FEB-08 JUN-08 RED NODE - MOVEMENT OF TALENT AMBER NODE - CHANNEL LAUNCH GREEN NODE - MOVEMENT OF CONTENT MOTD returns to BBC Fiona Bruce to host Antiques Roadshow Launch of Virgin 1 Dermot O'Leary presents X Factor Dermot Murnaghan joins Sky News from BBC Kirsty Young to host Crimewatch from 2008 Richard & Judy to leave C4 In June 2008 FIGURE C.16. – RADIO MARKET DIFFERENTIATION – market positioning in London – 2006/07 VIRGIN talk SPORT CLASSIC FM BBC RADIO FIVE LIVE BBC RADIO 4 BBC RADIO 3 BBC RADIO 2 BBC RADIO 1 CHOICE FM CAPITAL GOLD HEART LBC 97.3 SMOOTH FM MAGIC KISS FM XFM CAPITAL FM FEMALE MALE 20% 30% 40% 50% 80% 90% 100% 10 15 20 25 30 40 45 50 55 60 AVERAGE AGE OF LISTENING % ABC1 LISTENING LONDON RADIO STATION COMPETITIVE POSITIONING- (LEADING SERVICES ONLY - LISTENING AMONG 10 TO 65 YEAR OLDS ONLY) BBC LONDON 94.9 60% 70% LONDON POPULATION AVERAGE YOUNG CURRENT COMMERCIAL HEARTLAND KEY BATTLE GROUND BBC HEARTLAND YOUNGER UPMARKET OLDER UPMARKET OLDER DOWNMARKET YOUNGER DOWNMARKET SOURCE: RAJAR, O&O ANALYSIS SIZE OF CIRCLE = AUDIENCE SHARE FIGURE C.17. – COMMERCIAL RADIO REVENUE GROWTH VERSUS BBC RADIO SPENDING GROWTH – 2001 to 2006 UK RADIO REVENUE GROWTH RATES, 2001-2006 -7% 4% 9% 3% -2% -1% -16% 14% 0% 4% -1% -3% -7% 13% 2% 7% -1% 5% -20 -15 -10 -5 5 10 15 20 2001 2002 2003 2004 2005 2006 ANNUAL GROWTH RATE (%) COMMERCIAL RADIO BBC NETWORK SPEND BBC LOCAL/NATIONAL SPEND SOURCE: BBC ANNUAL REPORTS, OFCOM, O&O ANALYSIS FIGURE C.18. – TV BATTLES AND TALENT POACHING – 2000 to 2008 RADIO TALENT (BREAKFAST AND DRIVETIME) TIME LINE 2000-2008 R1 Bfast - Sara Cox replaces Zoe Ball Virgin Drivetime - Nick Jackson replaces Nick Abbot Virgin Drivetime – Pete & Geoff replace Nick Jackson Virgin Drivetime - Daryl Denham replaces Pete & Geoff Virgin Drivetime – Kelly-Anne Smith replaces Daryl Denham R1 Bfast - Chris Moyles replaces Sara Cox R1 Drivetime - Sara Cox replaces Chris Moyles R1 Drivetime - Scott Mills replaces Sara Cox Capital Bfast - Johnny Vaughan replaces Chris Tarrant XFM Drivetime - Lucio joins XFM from Kerrang Capital Drivetime - Richard Bacon replaces Dr Fox Magic Bfast - Dr Fox replaces Graham Dene Magic Drivetime - Graham Dene moves to Drivetime XFM Bfast - Lauren Laverne replaces Christian O'Connell Virgin Bfast - Christian O'Connell replaces Pete & Geoff Virgin Drivetime - Martin Collins replaces Kelly-Anne Smith R2 Drivetime - Chris Evans replaces Johnny Walker Capital Drivetime - Lucio replaces Richard Bacon XFM Drivetime - Richard Bacon replaces Lucio Smooth Drivetime - Martin Collins joins Smooth Virgin Drivetime - Ben Jones replaces Martin Collins XFM Drivetime - Paul Tonkinson replaces Richard Bacon Smooth Bfast - Russell Pockett joins XFM Bfast - Alex Zane replaces Lauren Laverne XFM Drivetime - Ian Camfield replaces Paul Tonkinson Virgin Drivetime - Neil Francis replaces Ben Jones XFM Drivetime - Rick Shaw from Kerrang replaces Ian Camfield Virgin Drivetime - Nick Jackson replaces Neil Francis Smooth Bfast - Graham Dene to join Smooth (replacing Russell Pockett) Heart Bfast - Jamie Theakston replaces Jono Coleman 12/99 03/00 06/00 10/00 01/01 04/01 07/01 11/01 02/02 05/02 09/02 12/02 03/03 06/03 10/03 01/04 04/04 08/04 11/04 02/05 05/05 09/05 12/05 03/06 07/06 10/06 01/07 04/07 08/07 11/07 02/08 06/08 FIGURE C.19. – HOW COMMERCIAL TV SETS TALENT FEES – by exception NO SPECIFIC ACTION SUB-GENRE “TARIFF” RANGE PROGRAMME COST PER VIEWER HOUR BENCHMARKS EDITORIAL SPECIFICATION VERSUS COST (format, location, key artists etc) RETURNING SERIES INFLATION TALENT COSTS BECOMES AN ISSUE MORE DETAILED COST PER VIEWER HOUR ANALYSIS DEMOGRAPHICS AND CHANNEL BRAND BENEFITS TALENT COST - BENEFIT i.e. COMMERCIAL VALUATION INCREMENTAL AUDIENCE REVENUE IMPACT “PROFIT” IMPACT TARGET KEY TALENT PROGRAMME COMMISSION COMMISSION ASSESMENT SPECIFIC TALENT VALUE ASSESMENT DIRECT TALENT CONTRACT WITHIN RANGE ABOVE RANGE IN EXPECTED RANGE ABOVE EXPECTED LEVEL RIGHT BALANCE TOO RELIANT ON TALENT WITHIN EXPECTED LEVEL HIGHER THAN AVERAGE STRATEGIC BENEFITS IDENTIFIED PRODUCTION PARTNER IDENTIFIED ON SCREEN AND ON AIR TALENT ..SECTION A –INTRODUCTION AND SCENE SETTING ..SECTION B -THE ECONOMICS OF ON SCREEN AND ON AIR TALENT ..SECTION C -THE UK MARKET FOR ON SCREEN AND ON AIR TALENT ..SECTION D -THE ROLE, POSITIONING AND PERFORMANCE OF THE BBC ..SECTION E -ASSESSMENT OF MARKET IMPACT AND VALUE FOR MONEY FIGURE D.1. – BBC’S RECENT TALENT SPENDING TRENDS – total spending (in-house production) SOURCE: BBC BUSINESS AFFAIRS AND RIGHTS, O&O ANALYSIS 100 200 300 400 500 TOTAL PROG SPEND TALENT SPEND TOTAL PROG SPEND TALENT SPEND TOTAL PROG SPEND TALENT SPEND IN-HOUSE TV (EXCL NEWS, SPORT AND MUSIC) NEWS NETWORK RADIO (EXCL NEWS) BBC PROGRAMME AND TALENT SPEND BY ACTIVITY 2006/07 % OF ALL PROGRAMME SPEND 15.5% 14.9% 15.1% £490M £76M £194M £29M £205M £31M BBC ON-SCREEN AND ON-AIR TALENT SPEND, 2004/05 TO 2006/07 (CAGR = 3.6%) 73.7 75.9 24.0 28.0 29.3 16.2 15.6 16.8 28.9 28.9 28.6 31.3 27.8 25.9 33.2 14.6 13.6 14.4 190.0 186.2 204.0 50 100 150 200 250 2004/5 2005/6 2006/7 £M FIGURE D.2. – TALENT SPENDING – importance by genre TALENT SPEND AS A PROPORTION OF TOTAL PROGRAMME COSTS BY GENRE, 2004/05 TO 2006/07 (BBC IN HOUSE SHOWS ONLY) 5 10 15 20 25 SOAPS, SERIES & SERIALS QUIZ SHOWS/ PANEL GAMES COMEDY SINGLE PLAYS POLITICAL/ SOCIAL ARTS* NEWS FAMILY SHOWS RELIGION* HOBBIES & LEISURE CONSUMER CHAT SHOWS* DOCS CHILDREN'S SPORT TALENT COST AS PROPORTION OF PROGRAMME COST (%) 2004/05 2005/06 2006/07 2006/07 AVERAGE 15.5% 2004/05 AVERAGE 13.1% *SMALL SAMPLE SOURCE: BBC FIGURE D.3. – BBC TV NUMBER OF CONTRACTS BY SIZE OF CONTRACT - 2007 BBC VOLUME OF TALENT CONTRACTS BY RANGE OF PAYMENTS, 2006/07 TOTAL = £171M* 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 £0 - £1,000 £1,001 - £5,000 £5,001 - £10,000 £10,001 - £50,000 £50,001 - £100,000 £100,000+ NUMBER OF TALENT CONTRACTS VOLUME OF CONTRACTS * DOES NOT INCLUDE ALL TOP CONTRACTS (E.G. CENTRAL CONTRACTS) SOURCE: BBC CONTENT DATABASE LOW VALUE/STANDARD AGREEMENTS MIDRANGE TOP 150 EXCLUDES TALENT ON STAFF CONTRACTS AND SHORT TALKS FIGURE D.7. – BBC TV TALENT PAYMENTS – distribution of spending by range band BBC TALENT: VALUE OF CONTRACTS, 2004/05 TO 2006/07 33 14 8 6 3 2 38 16 7 5 6 4 5 10 15 20 25 30 35 40 £10,000-50,000 £50,000-100,000 £100,000-150,000 £150,000-200,000 £200,000-250,000 £250,000-300,000 VALUE OF CONTRACTS (£M) 2004/05 2006/07 SOURCE: BBC BUSINESS AFFAIRS AND FINANCE, O&O ANALYSIS CONTRACT VALUE RANGE FIGURE D.8. – BBC TV HISTORIC TOP TALENT FEES PER HOUR INFLATION SOURCE: BBC TALENT INFLATION SURVEY 2006/2007, O&O ANALYSIS % YEAR ON YEAR INFLATION 2000/2001 2001/2002 2002/2003 2003/2004 2004/2005 2005/2006 2006/2007 - COMMERCIAL TV RECESSION - LICENCE FEE UPLIFT - COMMERCIAL NETWORK STAGNATION - LICENCE FEE GROWTH -COMMERCIAL BOOM BBC TV TALENT INFLATION (KEY AND LEAD TALENT) - FEES PER HOUR – RETURNING STRANDS ONLY 2001/02 TO 2006/07 FIGURE D.9. – BBC TV KEY VERSUS LEAD TALENT FEES PER HOUR INFLATION SOURCE: BBC TALENT INFLATION SURVEY, O&O ANALYSIS BBC TV TALENT INFLATION (KEY AND LEAD TALENT) - FEES PER HOUR – RETURNING STRANDS ONLY % YEAR ON YEAR INFLATION LEAD TALENT KEY TALENT 2001/2002 2002/2003 2003/2004 2004/2005 2005/2006 2006/2007 - COMMERCIAL TV RECESSION - LICENCE FEE UPLIFT - COMMERCIAL NETWORK STAGNATION - LICENCE FEE GROWTH FIGURE D.12. – BBC MAIN NETWORKS CURRENT ROSTER OF TALENT BY VENUE – channel with previous show SOURCE: IMDB, SPOTLIGHT, O&O ANALYSIS 67 85 62 65 19 3 5 12 7 3 4 3 5 9 4 5 5 24 15 CURRENT BBC 1&2 ROSTER - PREVIOUS SHOW 10 20 30 40 50 60 70 80 90 100 ENTERTAINMENT FACTUAL COOKING/LIFESTYLE COMEDY NOT ON TV THEMATICS BBC SPIN OFFS CHANNEL 4 ITV1 BBC1 & 2 27 33 21 34 % 1 ON RADIO NUMBER OF PRESENTERS IN 2007 FIGURE D.13. – BBC MAIN NETWORKS CURRENT ROSTER OF TALENT BY GENRE – where they were five years ago? SOURCE: IMDB, SPOTLIGHT, O&O ANALYSIS 48 65 38 56 11 5 9 11 3 5 3 4 3 4 5 3 5 6 4 21 19 8 43 3 CURRENT BBC 1&2 ROSTER: 5 YEARS AGO 10 20 30 40 50 60 70 80 90 100 ENTERTAINMENT FACTUAL COOKING/LIFESTYLE COMEDY NOT ON TV VARIOUS CHANNELS THEMATICS FIVE BBC SPIN OFFS CHANNEL 4 ITV1 BBC1 & 2 27 33 21 34 % 1 ON RADIO NUMBER OF PRESENTERS IN 2007 FIGURE D.14. – BBC MAIN NETWORK CURRENT ROSTER OF TALENT BY GENRE – where they were 10 years ago? SOURCE: IMDB, SPOTLIGHT, O&O ANALYSIS 48 58 19 26 15 5 6 4 3 9 3 7 3 35 26 36 76 21 CURRENT BBC ROSTER 1&2 : 10 YEARS AGO 10 20 30 40 50 60 70 80 90 100 ENTERTAINMENT FACTUAL COOKING/LIFESTYLE COMEDY NOT ON TV VARIOUS CHANNELS THEMATICS FIVE CHANNEL 4 ITV1 BBC1 AND BBC2 27 33 21 34 % NUMBER OF PRESENTERS IN 2007 CONTRACT THROUGH FAST FEE WITHIN PRODUCTION BUDGET ANNUAL FEE INCREASE** ABSOLUTE VALUE OF FEE* TALENT COST BECOMES AN ISSUE ASSESSMENT OF TALENT’S CURRENT STATUS MARKET KNOWLEDGE CURRENT/ PREVIOUS FEE HISTORY ENGAGEMENT TYPE, TERMS AND VOLUME STANDARD FEE RATES DECISION MAKING VISION BUSINESS INVESTMENT GROUP STAGE ONE STAGE TWO WITHIN RANGE ABOVE RANGE >3% <£1K <3% DESIGNATED PRODUCTION STAFF RIGHTS TEAMS NOTE: FOR BBC SPORT THE THRESHOLD IS A 2% INCREASE AND PERSONNEL WILL VARY I.E. EARLIER DIRECTOR/CONTROLLER INVOLVEMENT CONTRACT OFFER/ REJECTION <£500K >£500K DG FINANCE COMMITTEE <£3M >£3M CONTRACT OFFER/ REJECTION STAGE THREE PERSONNEL PRODUCTION TEAMS RIGHTS NEGOTIATOR PRODUCTION EVECUTIVES SENIOR PRODUCTION STAFF PERSONNEL CHANNEL CONTROLLER GENRE COMMISSIONER SENIOR BUSINESS AFFAIRS MANAGER TRG RIGHTS MANAGER HEAD OF RIGHTS & BUSINESS AFFAIRS DIRECTOR GENERAL PRODUCTION HEAD PERSONNEL >£1K ** TYPICALLY THIS PROCESS FOLLOWED FOR RENEWING MID RANGE, HIGH LEVEL & LONG TERM CONTRACTS TRG INVOLVEMENT NEGOTIATION CONTRACT OFFER/ REJECTION REJECTION * THESE ARE TYPICALLY STANDARDISED PAYMENTS TO PANELLISTS, MUSICIANS OR PRESENTERS. ANYTHING BELOW £1K IS DEALT WITH BY PRODUCTION TEAMS USING THE ‘FAST FEE SERVICE’ FIGURE D.15. – BBC TALENT FEE REFERRALS PROCESS ON SCREEN AND ON AIR TALENT ..SECTION A –INTRODUCTION AND SCENE SETTING ..SECTION B -THE ECONOMICS OF ON SCREEN AND ON AIR TALENT ..SECTION C -THE UK MARKET FOR ON SCREEN AND ON AIR TALENT ..SECTION D -THE ROLE, POSITIONING AND PERFORMANCE OF THE BBC ..SECTION E -ASSESSMENT OF MARKET IMPACT AND VALUE FOR MONEY FIGURE E.4. – COMMERCIAL VALUATION METHODOLOGY STEP BY STEP VALUATION PROCESS VALUE SURVEY PROGRAMME BY PROGRAMME AUDIENCE DATABASE NET % RESPONDENTS WHO WOULD WATCH LESS IF NAMED TALENT NOT INVOLVED RELEVANT STRAND AUDIENCE DEMOGRAPHIC SKEW TOTAL REVENUE UPLIFT TARGET PROFIT MARGIN c25% TO 30% COMMERCIAL VALUE PER HOUR CPT PREMIUM OR DISCOUNT DEMOGRAPHIC REVENUE ADJUSTMENT AUDIENCE UPLIFT @ 50% RELEVANT NETWORK CPT AND AD SLOTS AUDIENCE REVENUE UPLIFT X = = X X +/- = = LESS FIGURE E.6. – NET IMPACT ON AUDIENCE – value survey/replacement scores 58.6 58.5 57.0 50.8 50.7 47.6 47.3 46.7 44.8 43.9 23.1 21.5 21.6 25.3 19.8 23.8 24.2 22.7 25.9 21.9 18.3 20.0 21.4 23.8 29.5 28.7 28.5 30.6 29.3 34.2 LIKELIHOOD TO CONTINUE WATCHING IF HOST/PRESENTER REPLACED 10 20 30 40 50 60 70 80 90 100 NAME 1 C4 NAME 2 C4 NAME 3 C4 NAME 4 BBC NAME 5 BBC NAME 6 BBC NAME 7 FIVE NAME 8 C4 NAME 9 ITV NAME 10 FIVE % LIKELY TO WATCH MORE ABOUT THE SAME LIKELY TO WATCH LESS SOURCE: O&O VALUE SURVEY, 2,500 RESPONDENTS, JAN/FEB 2008 FIGURE E.7. – DEMOGRAPHIC APPEAL OF NAMED TALENT – value survey – entertainment sub-genres GROUP A: DEMOGRAPHIC POSITIONING (SATURDAY NIGHT ENTERTAINMENT, CHAT SHOWS, QUIZ SHOWS AND PANEL GAMES) 0.8 0.9 0.9 1.0 1.0 1.1 1.1 1.2 0.8 0.9 0.9 1.0 1.0 1.1 1.1 1.2 1.2 APPEAL TO RESPONDENTS <35 APPEAL TO ABC1 RESPONDENTS PANEL GAMES BBC ITV C4 FIVE SOURCE: O&O VALUE SURVEY AND ANALYSIS QUIZ SHOW CHAT SHOW SATURDAY NIGHT FIGURE E.8. – COST PER VIEWER HOUR VERSUS TALENTS COSTS PER HOUR INDEX – BBC1 entertainment BBC 1 ENTERTAINMENT PROGRAMMES: TOTAL PROGRAMME COST PER VIEWER HOUR AND TALENT COST PER OUTPUT HOUR, 2006/07 20 40 60 80 100 5 10 15 20 25 30 PROGRAMME COST PER VIEWER HOUR (PENCE) TALENT COST PER OUTPUT HOUR INDEX SITCOM OTHER COMEDY ENTERTAINMENT CHAT SHOW PANEL/QUIZ FEE INCREASES JUSTIFIED? FIGURE E.9. – BBC TV STRANDS – index of talent cost hour and total cost per viewer hour BBC TV STRANDS: INDEX TO GENRE AVERAGE OF TALENT COST PER VIEWER HOUR AND TALENT COST PER OUTPUT HOUR, 2006/07 (sample of 156 strands / 8 major TV programme genres) 100 200 300 400 500 600 100 200 300 400 500 600 700 800 900 1000 INDEX TO GENRE AVERAGE OF TALENT COST PER VIEWER HOUR INDEX TO GENRE AVERAGE OF TALENT COST PER OUTPUT HOUR 39 STRANDS 20 STRANDS 19 STRANDS 78 STRANDS GENRE AVERAGE = 100