MUMBAI: Is BBC Studios set to exit India?
If a report in The Economic Times is to be believed it is strongly considering the possibility. Recently, its general manager Sameer Gogate quit the content production arm.
It is also considering other options like zooming in on a strategic investor who will share some of the challenges that have emerged in the severely tested media and entertainment industry. Another option being toyed with is doing co-productions with Indian producers - something which has not been a huge hit in the Indian scenario as yet.
Sources indicate that consolidation and shrinking budgets from television broadcasters and OTT platforms have intensified competition for limited projects, significantly squeezing producers' profit margins.
Known for popular shows like Criminal Justice, The Office, Out of Love, and Nach Baliye BBC Studios, produces approximately 2,000 hours of content annually and operates in over 20 countries. It also maintains a robust content licensing business in India, licensing British formats such as Dancing with the Stars* and Luther.
Faced with a more selective landscape of OTT platforms and broadcasters, the pressure to maximize output under reduced budgets is prompting a re-evaluation of BBC Studios' production strategy in India. A company spokesperson confirmed to The Economic Times that the management in the UK is currently reviewing its production operating model to enhance efficiency.
The Indian M&E sector has experienced significant consolidation, with recent major mergers like the Star India and Viacom18 deal and discussions involving the acquisition of Tata Play by Bharti Airtel’s DTH arm, Airtel DTH.
Experts suggest that BBC Studios' production arm could be among the first casualties of this trend as margin pressures continue to mount.
This potential shift comes as the BBC Group maintains its presence in India through various digital news platforms and joint ventures, including Sony BBC Earth and the recently launched BBC Player and BBC Kids on Prime Video.
Additionally, BBC itself in the UK is under pressure. An audit report of the BBC by the National Audit Office expressed this in no less words when it said: In 2023-24, BBC Studios’ income fell by £253 million (12 per cent) to £1,837 million and profits fell by £50 million (20 per cent ) to £202 million. This was partly due to challenging market conditions, including a reduction in spend by commissioners, including the BBC and global streamers, on the production of programmes and the ending of some high-value contracts which generated significant income in 2022-23. In addition its profits were reduced by higher costs as BBC Studios invested in its digital services such as BBC.com and BritBox International to support its future growth
The audit report was also critical of BBC Studios and its inability to generate too many new IPs and for being dependent on BBC’s catalogue of shows before the production arm was set up in 2016. The report said: “In our 2020 report, we identified that BBC Studios had been less successful than planned in winning new commissions and generating IP.
Since then, although generation of new IP has grown, BBC Studios has not met its targets in this area and remains reliant on the IP from BBC programmes created before it was first established in 2016. In 2023-24, of the 10 titles from its production business which provided the most profit to the BBC, only one was from new IP
generated by BBC Studios.”
Additionally, the Beeb is on track to lay off close to 500 staff by March 2026 and generate savings of 200 million pounds sterling, according to reports.
