BBCS eyes investments as $760m debt facility secured for 2024

Doctor Who (Source: BBC Studios)

BBC Studios (BBCS) has ramped up its borrowing capability to almost £600m ($760m) this year as the UK broadcaster’s commercial arm looks to increase investment in UK and international programming.

It comes after BBCS secured a shock acquisition of ITV Studios’ stake in streaming service Britbox for £255m last week, marking the company’s largest acquisition deal to date.

The company’s borrowing facility had stood at just £350m in 2022 but is set to surge over the next few years, with government approval granted in 2021 to push the ceiling to $750m by 2027.

Tom Fussell (Source: BBC Studios)

Tom Fussell, BBCS CEO, told the Financial Times he is now looking to spend “tens of millions” of pounds to uncover new kids and family shows, replicating the success of the ABC’s Bluey, as well as “investing heavily in the content and marketing” of UKTV Play.

The BBCS-owned streamer is being rebranded this year in a bid to secure bigger UK audiences, while BBCS is also spending on shows for UKTV’s pay TV channels such as Gold and Alibi.

Fussell told the FT that he is also looking to secure IP from novels to bolster its production slate and increase its work with streamers, although the investment is set to reduce profitability in 2024.

BBCS struck a far-reaching deal with Disney for Doctor Who in 2022 – handing the Mouse House global rights outside of the UK – and Fussell admitted both companies had invested “a hell of a lot of money” into the new-look show.

“The editorial ambition has gone up a big notch with an amazing cast and amazing writer. It’s got new talent and it’s got Disney behind it. You can never call it but it’s got everything behind it. That should work.”

Fussell outlined a headline-grabbing plan at MIPCOM in 2022 to double revenues and profits within five years and told TBI in early 2023 that the company was considering a range of investment opportunities.