Growth of BBC talent fees could decrease

Graham Norton

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The BBC Trust has warned there could be a slow down in the growth of talent fees, and even a decline for lesser-known talent.

A proliferation of new distribution platforms is fragmenting revenue and "putting downward pressure" on programme budgets, which is in turn affecting talent fees, the Trust said. It made the claims its report into BBC talent costs, put together by Oliver and Ohlbaum Associates and published yesterday.

The review predicted a "dampening" of inflation at the top end of the market and even "significant deflationary effects" towards the bottom end.

"The greater levels of uncertainty and risk faced by broadcasters, studios and recording companies used to operating in traditionally more stable and concentrated markets put a particular premium on performers and actors who can reduce the risk of ever more expensive failure," it said.

"While on balance digitisation and globalisation could lead to increasing fees at the top end of the market they might also depress fees at the bottom end of the market…The promise of high rewards and fame at the top end of the talent market can draw in new recruits by the thousand to the bottom end, reinforcing polarisation of earnings between the bottom, the middle and the top."

The report gave away very little information about the fees the BBC pays to its own top talent but it did claim that there are 40 TV stars in Britain earning over £1m a year for their on-screen work, including ten who bring home over £2m.

"Many of these, especially comedians, top dramatic actors and leading lifestyle and cookery presenters, can earn as much again from repeats, tie-in publishing deals, sales to UK and overseas broadcasters and DVD royalties," it added.

But the BBC Trust is this morning facing widespread criticism that the report did not make more salary details public. One senior source close to the BBC told Broadcast that the report was a deliberate "whitewash".

Critics also argued that it did not address the right issues, and that the real question is not whether the BBC is paying the going rate for big name stars, but whether it should be chasing those stars at all.