BBC Studios Considers New Paths for Streaming Growth with Microdramas and Family-Friendly Deals Like ‘Bluey’

BBC Studios CEO Highlights Growth Opportunities in International Streaming

At the recent BBC Studios Showcase, CEO Tom Fussell expressed optimism regarding potential growth opportunities within the international streaming landscape, hinting at forthcoming acquisitions. He emphasized that the company is poised to explore "inorganic growth" initiatives similar to its prior acquisition of BritBox International from ITV Studios two years ago.

In a discussion with the press, Fussell, alongside BBC Studios Global Content Chief Zai Bennett, articulated their forward-looking strategy amidst current industry dynamics, including recent merger and acquisition trends among major networks such as Netflix and Warner Bros.

"There are opportunities for inorganic growth in streaming across genres," Fussell stated. "I think we have a right as the home of British streaming to grow that even further. You [the press] will be the first to read about it and get briefed on it when it does happen, although these opportunities do take time."

Fussell noted that the previous BritBox acquisition and the purchase of channel group UKTV were significant steps, suggesting that the time may be ripe for further expansion.

“We have a very good, high-powered board of directors who advise us on these things,” he said, commending BBC Studios Chairman Damon Buffini for his expertise in mergers and acquisitions, even as Buffini’s term nears its conclusion. "The opportunities are there, whether you can always find a willing buyer and seller at the same time, well, that’s the trick."

Currently, BBC Studios operates BritBox in North America and other regions, as well as documentary streamer BBC Select. The emphasis on streaming and direct-to-consumer models has become increasingly crucial, especially as financial returns to the BBC are prioritized.

Commenting on the industry’s recent merger between Netflix and Warner Bros, Fussell noted that this type of consolidation indicates a shift in market conditions. "Market growth going forward is not going to be anything like the five years prior to peak TV," he explained. "When you start seeing rumors about takeovers and consolidation, that normally indicates there isn’t huge amounts of growth in the market, because everyone’s looking for synergies."

Fussell described this "new normal" as particularly significant, given new leadership at Channel 4 and Paramount-owned Channel 5. He characterized public service broadcasters as vital contributors to the UK economy, acting as "venture capital" for creators and producers.

Calls for enhancements in tax credits were reiterated, resonating with ongoing discussions in the entertainment sector.

Distribution strategies, particularly through YouTube, emerged as a key topic at the Showcase, where BBC Studios recently secured a landmark agreement with the platform. “Everyone needs a strategy to be on ad-funded platforms and YouTube is the biggest,” Fussell remarked, asserting that the organization has a clear direction in this domain.

He dismissed concerns that expanding content on YouTube would deter producers from maximizing their rights. "We’ve always been windowing content, geoblocking if we need to," Fussell clarified. "That’s in the DNA of this organization. You work out all those different windows and where things are best monetized."

BBC Studios has been utilizing YouTube strategically, with popular properties such as Bluey amassing over 20 million followers across platforms. Fussell recently visited Australia to oversee the shooting of the Bluey movie and indicated interest in exploring intellectual property opportunities for other BBC Studios properties, although specifics were not disclosed.

At the Showcase, Fussell and Bennett showcased upcoming projects, including Blue Planet III, Channel 4’s Deadpoint, and the new format Secret Genius. Bennett also expressed enthusiasm for the microdrama genre, highlighting the storytelling prowess of the BBC Studios continuing drama team, known for productions like EastEnders and Casualty.

“We are definitely investigating,” Bennett added, revealing ongoing explorations into integrating AI technologies for drama documentary reconstructions. Further developments in microdramas are expected to be discussed in the coming months.