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HC 82-I
Published on 16 December 2004by authority of the House of CommonsLondon: The Stationery Office Limited
House of CommonsCulture, Media and SportCommittee
A public BBC
First Report of Session 2004–05
Volume I 
Report, together with formal minutes
Ordered by The House of Commonsto be printed 8 December 2004
£14.50
 
 
The Culture, Media and Sport Committee
The Culture, Media and Sport Committee is appointed by the House ofCommons to examine the expenditure, administration, and policy of theDepartment for Culture, Media and Sport and its associated public bodies.
Current membership
Sir Gerald Kaufman MP (
Labour, Manchester Gorton
) (
Chairman
)Mr Chris Bryant MP (
Labour, Rhondda
)Mr Frank Doran MP (
Labour, Aberdeen Central 
)Michael Fabricant MP (
Conservative, Lichfield 
)Mr Adrian Flook MP (
Conservative, Taunton
)Mr Nick Hawkins MP (
Conservative, Surrey Heath
)Alan Keen MP (
Labour, Feltham and Heston
)Rosemary McKenna MP (
Labour, Cumbernauld and Kilsyth)
Ms Debra Shipley
 
MP
(Labour, Stourbridge)
John Thurso MP (
Liberal Democrat, Caithness, Sutherland and Easter Ross
)Derek Wyatt MP (
Labour, Sittingbourne and Sheppey 
)
Powers
The Committee is one of the departmental select committees, the powers ofwhich are set out in House of Commons Standing Orders, principally in SO No152. These are available on the Internet via www.parliament.uk
Publications
The Reports and evidence of the Committee are published by The StationeryOffice by Order of the House. All publications of the Committee (including pressnotices) are on the Internet athttp://www.parliament.uk/parliamentary_committees/culture__media_and_sport.cfm
Committee staff
The current staff of the Committee are Fergus Reid (Clerk), Ian Cameron (SecondClerk), Grahame Danby (Inquiry Manager), Anita Fuki (Committee Assistant) andLouise Thomas (Secretary), Jonathan Coe (Office Support).
Contacts
All correspondence should be addressed to the Clerk of the Culture, Media andSport Committee, House of Commons, 7 Millbank, London SW1P 3JA. Thetelephone number for general enquiries is 020 7219 6188; fax 020 7219 2031; theCommittee’s email address is cmscom@parliament.uk
 
 
1
 
Contents
Report
Page
 
Foreword and summary 3
 
1
 
Introduction 5
 
2
 
Context 6
 
Viewing and listening figures 7
 
BBC programming expenditure 12
 
BBC resources 14
 
3
 
Technological development 15
 
Overview 15
 
Visits 16
 
Technology and the BBC 19
 
Digital switchover 20
 
Creative Archive 22
 
4
 
The BBC’s scope and remit 23
 
Today’s BBC 24
 
Digital services 28
 
Views of the BBC’s portfolio and performance 29
 
Performance of the BBC as a supporter of independent production 31
 
Provision of public service broadcasting 32
 
5
 
BBC funding 34
 
The licence fee 34
 
Funding options 35
 
A financial settlement 37
 
Affordability 38
 
Collecting the licence fee 39
 
6
 
BBC governance and regulation 40
 
Ofcom’s present role 40
 
The Governors’ role 41
 
The BBC’s interaction with the commercial sector 43
 
Competition regulation 43
 
The way forward 44
 
Content regulation 45
 
Accountability 46
 
7
 
Nature and length of settlement 55
 
The Royal Charter 55
 
Length of settlement 57
 
Alternatives to a Charter 58
 
Conclusions and recommendations 61
 
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