Q. What just happened?

The BBC has outlined strategic plans aimed at future proofing the public service media group. This includes a commitment to ensuring its future sustainability amid uncertainty over the future of its TV licence funding, as the UK government considers long term plans for its funding model. Central to the strategy is an ambitious agenda to rebuild online platforms, adjust content spending strategies and boost commercial revenues. A key aspect involves actively seeking partnerships with third parties, such as the recent collaboration with Disney for the latest season of Doctor Who.

Q. What is the model for the BBC’s deal with Disney and how can both parties benefit?

The BBC struck a co-production deal with Disney in late 2022 for the latest season of Doctor Who, set to premiere in May 2024. Under this agreement, the show will find a new home on Disney+ outside of the UK, extending the show’s reach to over 150 countries. Crucially, the partnership also brings increased investment for the BBC to direct towards the show’s production, a welcome relief from the constraints imposed by the two-year freeze on the BBC’s licence fee impacting commissioning budgets. Such constraints have arguably hindered the show’s ability to compete with the high-budget Sci-Fi productions such as Netflix’s Stranger Things.

In the evolving streaming market, intellectual property has emerged as the new prime commodity. Recognisable franchise content has been key to the rapid expansion of SVoD platforms, offering established brands with built-in fanbases, driving subscriber acquisition and retention. By securing distribution rights to Doctor Who, Disney+ adds another franchise to its roster, which already includes Star Wars, Marvel, and Pixar.

For studios and  streaming platforms, the appeal of striking such deals with local broadcasters lies not only in acquiring well-established brands but also in tapping into international audiences. The international popularity of Doctor Who, cultivated over years of distribution via a range of local deals established by the BBC, positions it as a prized asset in the competitive streaming market. 

Q. Is this model a better long term solution than traditional licensing of shows internationally?

While partnering with global streamers can elevate flagship shows and reach new audiences, it often involves surrendering exclusive rights to a single global player, potentially impacting long-standing partnerships with other international broadcasters. The success of these new partnerships will depend on the specific goals and priorities of broadcasters. While increased production investment during a time of budget cuts may be appealing, it comes with the trade-off of potentially straining long-term relationships with other partners. Traditional broadcasters and production companies will be closely observing the outcomes of this deal, particularly as the BBC explores more co-funding opportunities. However, traditional licensing agreements are likely to continue in the short term due to the limited pool of internationally marketable broadcaster titles with broad global appeal.

Q.  Can other national broadcasters adopt a similar model, partnering with global streamers to boost funding while maintaining national rights for flagship shows?

The recent deal with Disney, as with the announcement that the BBC plans to expand its commercial interests, signifies a potential shift towards more collaboration between local broadcasters and global platforms. Significant examples in Europe include the BBC's partnership with Amazon Prime Video for Good Omens and Atresmedia's collaboration with Netflix for Money Heist, though such partnerships remain scarce.

European public broadcasters have traditionally prioritised collaborations with neighbouring public broadcasters, with recent initiatives like the European Alliance between ZDF, France Télévisions, and RAI having generated mixed results. Yet, as broadcasters grapple with dwindling audience engagement and pressure on content budgets, partnering with deep-pocketed global content giants may become increasingly appealing.

Ampere expects global streaming services to invest more than $9bn in original content sourced from markets outside the US in 2024, cementing their strong foothold in international content markets. From a broadcaster's standpoint, this presents an opportunity: instead of solely focusing on contending with global streamers domestically, they could leverage these platforms to extend the international footprint of their content and bolster their domestic content budgets. While teaming up with other broadcasters might seem like the obvious choice, the potential benefits of partnering with global content platforms are too significant to ignore.

Clients can read more about the BBC’s commissioning strategy here.