BBC investigated by competition regulator

CMA probing allegations the corporation and other leading TV studios are fixing freelancers’ pay rates

‘Agreed rates covering all grades of work would bring much needed stability to the sector’

THE BBC and leading studios are being investigated over concerns they 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 pay 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.

The regulator has the power to levy millions of pounds in fines if any wrongdoing can be proved.

Concerns have been raised by industry experts that TV companies slashing budgets to cope with funding drying up could create an incentive to cut back on labour costs.

One source said the issue was “yet another storm for freelancers, after last year’s strikes, and Covid before that”.

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 freelancer’s 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 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, where prices for freelancers could become a topic of conversation.

It is understood that 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.

It is these independent production companies which make the bulk of programming in the UK, with larger studios, like the BBC’S commercial outfit BBC Studios, simply providing the funding and commissioning projects from these companies.

With the BBC facing a £400 million shortfall after a freeze on the licence fee, and a further £90 million gap after the fee did not rise in line with inflation, the corporation is looking to make cuts.

ITV advertising revenues have also been falling, with losses of £96 million recorded at the end of 2023.

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, head of Bectu, said: “Bectu wants to see collectively agreed rates of pay for film and TV freelancers across all grades. This would negate the need for such investigations.

“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.”