BBC Studios, the commercial arm of the BBC, has announced a turnover of £2.09 billion ($2.7 billion) and increased profits to £240 million, according to its annual report for 2022/2023.
The company’s channels and BBC streaming business has experienced a significant decline due to an advertising downturn. The report comes amidst an ongoing presenter scandal that has attracted national attention.
According to Variety, the Content Studio, BBC Studios’ production and distribution arm, played a key role in driving the record turnover, aided by long-term partnership deals for popular brands like “Bluey” and “Dancing With the Stars.” The company’s profits (EBITDA) rose to £240 million, reflecting a 6% increase from the previous year. Returns to the BBC totaled £362 million, with £177 million invested in content.
BBC Studios’ global Content Studio, responsible for production, content sales, and licensing, showed remarkable growth, with sales rising by 40% and EBITDA increasing by £46 million. Over 75% of studio revenues now come from third parties, including major players like Amazon, Apple, and Netflix.
On the other hand, the Channels & Streaming division faced challenges, reporting a slight decrease in turnover to £535 million, along with a significant profit decline to £102 million, attributed to inflation, a volatile advertising market, and pressure on pay TV subscriptions.
BBC Studios highlighted the success of its FAST channels division, which operates 22 channels worldwide, and the growth of its joint streaming service with ITV, BritBox International, which now boasts 3 million subscribers across multiple markets.
Looking ahead, BBC Studios aims to double the size of its business by March 2028. The company plans to achieve this by expanding its owned IPs, sustaining the performance of linear channels, investing in direct-to-consumer digital services, and forging major customer partnerships. However, the company warns that these expansion efforts may impact future profits.
