BBC investigated over ‘anti-competitive behaviour’
The BBC and leading studios are being investigated over concerns that it may have engineered fixed fees for freelancers amid TV sector budget cuts.
The Competition and Markets Authority (CMA) is looking into concerns that companies have been working together to set fixed rates for workers in the TV industry in “suspected anti-competitive behaviour”.
BBC Studios and ITV Studios are among those being examined by the CMA, which has the power to levy millions of pounds in fines if any wrongdoing can be proved.
Industry experts have raised concerns that TV companies slashing budgets to cope with funding drying up, including the BBC, which is seeking to plug a nearly £400 million licence fee shortfall, could create an incentive to cut back on labour costs.
ITV advertising revenues have also been falling, with losses of £96 million recorded at the end of 2023.
One source said the issue was “yet another storm for freelancers after last year’s strikes, and Covid before that”, adding: “Companies are competing with one another, and when budgets get cut there is less to go around.”
The CMA has said it is in the early stages of its investigation and there is no suggestion that any law has been broken, but experts are concerned about suggestions that freelancers’ fees might be kept down.
The competition authority confirmed that it would be looking into “the purchase of freelance services and the employment of staff supporting the production, creation and/or broadcasting of television content in the UK”, excluding programmes covering sports.
Industry insiders have said the issue of price-fixing relates to companies deciding among themselves which rates to pay for workers to keep costs uniformly down when hiring designers, lightning technicians, actors and other freelancers.
This would theoretically prevent an actor or technician from taking their talents elsewhere and commanding a higher fee with another production company.
Sources told The Telegraph that decision-makers at independent production companies are frequently in touch at industry forums and on Whatsapp groups, when prices for freelancers could become a topic of conversation.
It is understood this could happen on a casual basis, with producers simply seeking advice on what is a standard going rate for a particular role, such as a set designer, on a project with a particular budget.
These independent production companies make the bulk of programming in the UK, with larger studios like the BBC’s commercial outfit BBC Studios providing the funding and commissioning projects from these companies.
Some experts have suggested that tightening budgets could make independent companies which can work for less an attractive prospect, in turn creating an incentive for these companies to cut costs where they can, including fees paid to freelancers.
The investigation comes as freelancers in the TV industry face growing uncertainty, and Bectu, the union for freelance workers in the media and entertainment industries, has warned that many are seeking to leave the industry for more stable work.
Philippa Childs, the head of Bectu, said the union “wants to see collectively agreed rates of pay for film and TV freelancers across all grades. This would negate the need for such investigations and prevent speculation, protect production companies from claims of price fixing, and most importantly, give freelancers more confidence that they are being paid fairly for their work”.
She added: “The film and TV industry can be a very challenging environment to navigate as a freelancer. Agreed rates covering all grades of work would bring much needed stability and uniformity to the sector.”
A BBC spokesman said: “The BBC continues to cooperate fully with the CMA investigation.”
