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Section_16_External_Relationships_including_Commercial_Relationships_and_Financing.txt
16.1 Introduction The quina 1894BBC can extend the impact and value of its output by working collaboratively with other organisations. It can reach new and more diverse audiences and explore new creative opportunities. In doing this it can also maximise public value.[1] The BBC's commitment to partnerships is set out in the BBC Charter which has a requirement to enter partnerships with other organisations, particularly in the creative economy, where it would be in the public interest. These partnerships must be with a wide range of organisations of all sizes, both commercial and non-commercial, throughout the United Kingdom, on television, radio and online. The BBC encourages people to engage with new subjects and activities through partnerships, for example with educational, sporting and cultural organisations, appropriate charities and new technologies. For the purposes of this section, a partnership is defined as a relationship between the BBC and one or more third-party organisations which aims to deliver mutually beneficial outcomes in the form of: contributions, albeit often of different types from all those involved creation of designated partnership activities shared responsibility and accountability. Financing Partnerships and other external relationships can involve the use of third-party funds for broadcasting content on BBC services. Financing for UK Public Services UK Public Services are funded by the licence fee, and the extent to which additional sources of funding can be used is set by Clause 49 of the BBC Framework Agreement.[2] These provisions allow, for example, the use of funding from the BBC's commercial activities and co-production finance. This framework is complemented by the BBC's principles which are set out in the Statement of Policy on Use of Alternative Finance in BBC content[3] and the Policy Statement on Ticketing for BBC Public Service events.[4] Financing for the BBC World Service The BBC World Service is licence fee funded. In addition, the BBC may by mutual agreement accept UK Government funding for the World Service. Specific forms of alternative finance are also set out in the BBC World Service Statement of Policy for Sources of Finance Other Than the Licence Fee.[5] Commercial Services The BBC is permitted to carry out commercial activities through separate commercial subsidiaries, which operate to make a profit to supplement the licence fee. They are not funded by licence fee revenue, directly or indirectly, and are undertaken with a view to generating a profit. The BBC's commercial activities must not jeopardise its good reputation or the value of its brand and must meet the guidelines on advertising and sponsorship. (See Advertising and Sponsorship Guidelines for BBC Commercial Services) The Statement of Policy on use of Alternative Finance in BBC Content[6], the Policy Statement on Ticketing for BBC Public Service Events[7], the BBC World Service Statement of Policy for Sources of Finance Other Than the Licence Fee[8] and the Advertising and Sponsorship Guidelines for BBC Commercial Services all set editorial content standards in their relevant areas. (See Advertising and Sponsorship Guidelines for BBC Commercial Services)
