Conflict of Interest?

Media Guardian columnist Steve Hewlett highlights some potential conflicts of interest in BBC Worldwide's 25% stake in new British production company Left Bank Pictures:

This deal is unprecedented in the UK. BBC Worldwide has invested in plenty of independent production, destined for the BBC and elsewhere, but it has never taken an equity ownership stake. Helen Jackson, BBC Worldwide's director of independents, is responsible for all its dealings with UK indie producers yet as a director of Left Bank Pictures she will be on the board of one of them. And no matter how straight a bat she plays, it will be hard to shake off the perception amongst the rest of the indie sector that she and Worldwide are favouring that company.

As a director, Jackson will also be party to the company's dealings with all the BBC's (and Worldwide's) competitors. And when it comes to securing the best interests of Left Bank, she will on occasion have to connive in either forcing the BBC to pay more for programmes of potential interest to other broadcasters, or in actually delivering them to the competition….

Then there is the potential impact on the nascent independent distribution marketplace. Independent distributors have long complained of being beaten to deals by BBC Worldwide's largesse. What's more, Worldwide already distributes most BBC production around the world as of right. That leaves other distributors almost wholly dependent on independent production. The prospect of BBC Worldwide buying into companies in order to tie up distribution rights to their programmes - were it to do that systematically - would probably sign the death warrant for many independent distributors. Worldwide says there are no similar deals pending. That may be true, but out in the marketplace it is known to have been in similar discussions with a number of other indies.

And then there are the licence payers. Because we don't know how much Worldwide paid for its 25%, or on what terms it can sell out and realise the value of the stake, we really don't know whether it's good value for us.