ON SCREEN AND ON AIR TALENT AN ASSESSMENT OF THE BBC’S APPROACH AND IMPACT A REPORT FOR THE BBC TRUST APPENDIX X – GLOBAL TRENDS BY OLIVER & OHLBAUM ASSOCIATES APRIL 2008 GLOBAL TRENDS – income polarisation REAL INCOME GROWTH FOR THE UK RICHEST 10% AND 1%, 1997-2005 2.4 2.5 2.5 2.45 2.3 2.2 2.25 2.4 2.7 3.1 3.1 3.2 3.3 3.4 3.5 3.55 3.6 3.61 3.62 4.0 0 1 2 3 4 5 90 91 92 93 94 95 96 97 98 99 99 99.1 99.2 99.3 99.4 99.5 99.6 99.7 99.8 99.9 PERCENTILE POINT AVERAGE ANNUAL INCOME GAIN (%) SOURCE: IFS GLOBAL TRENDS – income polarisation FTSE 100 CEO TOTAL COMPENSATION (MEDIAN) 2003-2006 1.557 1.837 2.329 2.617 1 2 2003 2004 2005 2006 £M SOURCE: KPMG GLOBAL TRENDS – rising value of scarce media rights EUROPEAN TV SPORTS RIGHTS MARKET, 2000-2010 OTHER EUROPEAN TOP 5 MARKETS 3.8 4.0 4.6 4.0 4.1 4.5 5.2 0.7 0.4 0.5 0.5 0.5 0.7 0.7 1 2 3 4 5 6 7 2000 2001 2002 2003 2004 2005 2006 €BN 4.5 4.4 5.1 5.9 4.5 4.6 5.1 5.4 0.8 2007 6.2 5.8 0.9 2008 (E) 6.7 SOURCE: O&O ANALYSIS GLOBAL TRENDS – FAPL wages bill trend SOURCE: COMPANY ACCOUNTS, O&O ANALYSIS 145 173 218 294 391 471 535 662 761 787 768 821 100 200 300 400 500 600 700 800 900 1994/1995 1995/1996 1996/1997 1997/1998 1998/1999 1999/2000 2000/2001 2001/2002 2002/2003 2003/2004 2004/2005 2005/2006 TOTAL EXPENDITURE ON SALARIES (£M) GLOBAL TRENDS – football league wages bill trend SOURCE: COMPANY ACCOUNTS, O&O ANALYSIS 102 124 143 176 183 238 256 260 307 285 287 315 50 100 150 200 250 300 350 1994/1995 1995/1996 1996/1997 1997/1998 1998/1999 1999/2000 2000/2001 2001/2002 2002/2003 2003/2004 2004/2005 2005/2006 TOTAL EXPENDITURE ON SALARIES (£M) GLOBAL TRENDS – US entertainment talent earnings US FEATURE FILMS – MAJOR STAR EARNINGS SOURCE: MPAA $M 2003 2004 2005 2005 2007 72% 69% 69% 61% 57% 52% FRIENDS SERIES 6 KING OF QUEENS WILL & GRACE EVERYBODY LOVES RAYMOND FRASIER JOEY 3.8% 4.1% 3.1% 3.7% 4.1% % OF ALL FILM SPEND % OF PRODUCTION BUDGET LEAD TALENT FEE AS % OF PRODUCTION COSTS LEAD 398 525 400 446 552