BBC Studios boss talks “excellent” Doctor Who deal, mergers and acquisitions and international growth

Doctor whoThe latest renewal represents “excellent commercial value”, BBC Studios head Tom Fussell said.

In mid-January, the CEO sat down for an in-depth interview with Deadline, detailing the high-profile deals his team struck with Bad Wolf and Disney+ that reshaped the Doctor’s future ahead of the series’ 60th anniversary. In short, they represent the future of a more aggressively commercial BBC studio.

In 2021, BBC Studios announced that they would co-produce for the first time Doctor who with BadWolf. On the distribution side, BBC Studios has since signed a landmark global streaming deal with Disney+, opting out of existing territorial licensing deals in the process. The transaction is one of the largest in the company’s history.

Both partnerships highlight how the BBC studios, led by Fussell and BBC Chief Executive Tim Davie, have an uncompromising and aggressive focus on generating more revenue for the UK’s largest public broadcaster, even for cherished in-house IP such as BBC Doctor who. In the past, conservatism often led to strategy.

The deal with Disney+ in particular was an important milestone for Fussell and Davie. At last year’s Mipcom, the pair took to the stage to tell delegates that BBC Studios was now a “fully global operation”. The company aims to double in size by 2027 and last year posted a record profit of £226 million ($278.6 million) on sales of £1.6 billion ($2 billion).

“Tim took over his role in September 2020 and from day one set the strategy to grow commercial income – the BBC’s Value for All strategy – and we have them as leaders,” Fussell said. “We are a BBC company with the BBC’s values ​​and a Seal of Excellence on our programs and we can use that to earn it. The BBC’s editorial standards are why people come to us from all over the world.”

The surprising co-production deal for Doctor who of Is dark material Creator Bad Wolf included the return of Russell T. Davies, the showrunner who rebooted the franchise in 2005. Davies will oversee the program’s upcoming 60th anniversary and Sex educationse Ncuti Gatwa is the new doctor.

The intrigue deepened last year when Disney+ was revealed as Doctor who‘s new international home. This deal sees the show remain on the BBC network and iPlayer while moving to the Mouse House streamer internationally (excluding the UK and Ireland). The show has aired for decades on networks such as ABC in Australia (BBC America and HBO Max in the US), but Fussell was clear about the commercial appeal of the new arrangements. (He did not comment directly on the previous deals, but BBC sources say the company “highly values ​​these relationships” and “continues to work closely with them on a range of content”).

BBC Studios could reportedly lose around £40 million ($49.3 million) in production costs as a result of the co-production deal with Bad Wolf. Fussell – who officially took up his role in October 2021 after a transition period as BBC Studios chief executive – said he had “seen a lot of articles written at the time” about the bad wolf deal and is now making a counter-argument.

“I would like to say that both sides of the BBC are very happy. We have a brilliant showrunner in Russell T. Davies and a fantastic producing partner in Bad Wolf who is well known in the script and in Hollywood,” he said. “The royalty payer still gets the show in the UK, it now has a bigger budget and editorial value, and BBC Studios deserves a commercial reward. It meets all the criteria.

In particular, the deal with Disney+ offers “an excellent commercial outcome for the BBC and the BBC Studios”. No financial information was provided, but reading between the lines the distribution deal would offset losses elsewhere. The show’s budget is thought to grow from around £3 million ($3.7 million) per episode to around £10 million ($12.3 million) and Fussell claimed it had “not a single fallout” given by the staff of BBC Studios Drama Productions on Bad Wolf.

Overall, industry watchers we spoke to generally agree with the new order. “It’s progressive and will hopefully give the show a real creative refresh,” said a former BBC executive. “I’m sure the finances are off the charts,” another source added.

A fully global BBC studio

A senior source said BBC Studios had reached out to Doctor WHO was representative of a wider BBC striving for a more commercial future. Fussell, who has been with the company as CFO since 2016, has indeed encouraged his employees to find new business areas to capitalize on.

They are exploring local and international production acquisitions and talent deals, considering launching local production centers under the BBC brand and pushing for more lucrative international licensing deals such as the one for Doctor who and an Australian-made children’s hit Blue, which is released internationally via Disney+, but can also be seen on BBC in the UK and ABC in Australia. More format offers for like Luther, ghosts And Doctor Fosteralong with an unplanned hit Be sure to come dance (aka Dancing with the stars) adds another arrow to the quiver.

With a view to expansion, BBC Studios’ credit limit has been increased from £350m ($430m) to £750m (£925m) in 2021. do it,” Fussell said. “This will include acquisitions and investments in all areas. Our mission is very clear: growth for the long-term future of the BBC.”

BBC Studios also has its third-party commissions on Apple TV+, Warner Bros. Discovery and NBCUniversal. It is still relatively in its infancy in this area and has only been allowed by the government to do shows for competitors since 2017. Time.

Internationally, Scripted managing director Mark Linsey moves from London to LA to strengthen ties with Hollywood. Former Fox television chairman Gary Newman has joined the BBC Studios board headed by Damon Buffini and could also open doors.

BBC Studios will continue to acquire interests in independent producers in the UK and abroad and will explore opening BBC bases in new territories. Last year it invested in Mothership through former Channel 4 content boss Kelly Webb-Lamb and Small Including Ax co-producer Turbine Studios. It also took full control kill Eve Creator Sid Gentle Films, Firebird Pictures and unscripted company Voltage TV – a deal that was the BBC’s first 100% takeover. Among other things, talent agreements have been concluded My octopus teacher Director James Reed.

BBC Studios Productions COO Martha Brass, a former boss of Endemol Shine International, explored the possibilities. “We’re doing our due diligence,” Fussell said. “There are areas we are looking at where we can grow, but also where we can be more successful by running our own business.”

“The most important thing in the acquisition is the cultural fit,” he added. “I learned by working in other companies and this is a value I share [BBC Studios Production CEO] Ralph Lee. When we understand what drives the people who run the business and the value we can bring, then we consider a deal.”

Of course, these ambitious plans come at a bad time. The BBC is under pressure to be both public service to the UK and commercially aggressive in a global market where streamers are tightening their belts and the economy is shrinking. It is no easy task, but sources familiar with Fussell, a former CFO of Shine Group and commercial director at publishers HarperCollins UK and Random House, testify to his business acumen and connections within the company.

“His experience is more business than creative, but that’s perhaps what BBC Studios needs now – someone with a trusted relationship with BBC TV,” said one producer.

For Fussell, the strategy is clear. “The most important thing for us is that the whole team understands our commercial ambitions,” he said. “We are supported at the top by an exceptional chairman in Damon Buffini and the board and we are in a unique position to benefit from that. There will undoubtedly be buying pressure around the world, but we already have a strong unscripted documentary pipeline and a good place in the script.

“We don’t do $30-40 million an hour shows, we do shows that are smaller, less risky and uniquely British, like [upcoming HBO co-pro] rain dogs“, he added. “They attract new subscribers, so streamers want them around the world and with a really good UK broadcaster and a tax credit, a lot of the budget is already in place before you start. That and you get the BBC -seal of approval.”

The ongoing revival of BBC Studios makes for an intriguing story.