BBCS explores UK second window opportunity

BBC Studios is working with parent broadcaster the BBC to “look seriously” at the opportunities around second window licensing with streamers.

Broadcaster-streamer partnerships have become prevalent across Europe and beyond over the past 12 months, with Disney+ and Netflix among those sharing domestic rights.

In France, commercial broadcaster TF1 struck a far-reaching pact with Netflix, while public broadcaster France Télévisions’ content and selected channels are also available via Amazon.

Similar deals have not yet been seen in the UK, although ITVX and Disney+ agreed a pact that sees a handful of shows being offered via each other’s services each month - although Broadcast International understands no money changes hands in that arrangement.

BBCS chief exec Tom Fussell suggested further partnerships could be sought on shows that it holds rights to, with the company “looking seriously” at opportunities.

Talking to Broadcast International following the company’s annual results earlier today, Fussell pointed to the existing arrangement between the BBC and BBCS-owned UKTV that has long-seen shows such as Top Gear appearing on the channels.

Producers typically retain second window rights in the UK as per the country’s terms of trade, but Fussell said BBCS and the BBC are exploring “whether we can better monetise that second window in other areas, whether that’s with local SVoD’s or global players”.

“The opportunity is there to window more content,” he added.

Streamer ambitions

Fussell’s comments came after BBC Commercial – whose results are dominated by BBCS – reported static revenues year-on-year but a 17% profit rise, driven partly by streamer growth in North America.

BritBox saw revenues rise more than 20% while doc-focused BBC Select increased by more than 60%, and Fussell reiterated his ambitions to invest in the services to allow organic growth and explore acquisitions.

However, BBC Commercial has been constrained by its borrowing cap, Fussell said. That cap will hit £750m in 2027 – up from £350m in 2021 – but the chief exec said further headroom was needed.

“We’re capital constrained at the moment and we’re making a pitch to government to increase our borrowing because at the moment we don’t have normal levels.

“Each week we’re still exploring opportunities though and if the right thing comes up in streaming we’ll look at it,” he said.

Fussell also dismissed any fear that the increasing competition prompted by the Banijay-All3Media merger would impact his business, suggesting the planned €50m synergy savings could provide opportunities to BBCS, despite Banjay execs dismissing cuts to creative.

“They’ve gone public on making some efficiences, that can have impact on some people’s jobs and there will be talented people in the market. That may provide something for us.

“And when these mergers happen, there will inevitably be some people who don’t want to be part of a bigger organisation, so again there may be opportunities to work with them.”

Fussell dismissed any major production label acquisitions in the UK, preferring to “set talented people up”, but said “inorganic growth” outside of the country was being explored, pointing to Australia as a growth opportunity.