Video on demand and streaming services continue to rise in demand as more and more people begin to switch over to Digital TV rather than staying with Traditional TV. With the likes of Netflix and Amazon steadily gaining popularity by the day, these companies are sure to boom this 2018.
Alongside this though, the increasing demand has also spelled the doom for BBC’s commercial activities as it reaches an all-time low for the major broadcasting company. Now, the total revenue of all its commercial branches from 2012-13 to 2016-17 only sum up to around $1.4 billion.
Members of the Parliament warn BBC that their commercial performance has become “flat” within the past five years of Netflix and Amazon’s streaming services in the spotlight.
In addition to this, their BBC store has also failed to compete against the digital download service giants like Netflix and Amazon Prime, just after two years of being launched. This caused BBC worldwide to incur over a $94 million loss.
The Public Accounts Committee also gave their comment, saying that BBC needs to learn from their past endeavors to have a better chance of becoming successful.
“We recognise the need for the BBC to take risks but it must be responsible, not reckless, in doing so” Committee Chairwoman Meg Hiller stated. “It should learn appropriate lessons from past failings, including BBC Store.”
In response to this, BBC has been trying their best to take the risk to become commercially successful. In an effort to stay alive, they have merged BBC studios and BBC worldwide to make any more risks or actions taken to be more profitable.
A BBC spokesman told the public that they were aware of the situation and is optimistic with their decisions.
“‘We’re expecting positive results from all our commercial subsidiaries,” he said. “Demonstrating a strong commercial performance across the group.”