BBC Commercial posted a strong rise in annual earnings for the 2025/26 financial year, driven by the global success of Bluey, continued growth at BritBox and BBC Select, and tighter cost controls despite challenging market conditions.
According to the BBC, the commercial arm of the UK public broadcaster reported a 17 per cent increase in earnings before interest, taxes, depreciation and amortisation (EBITDA) to £267 million, up from £228 million a year earlier. Revenue remained unchanged at a record £2.20 billion, while operating costs fell 3 per cent to £2.02 billion.
BBC Studios, the main driver of BBC Commercial, increased its earnings by 17 per cent to £263 million on revenue of £2.13 billion. The company said stronger profit margins, a comprehensive cost review and continued expansion of its direct-to-consumer business contributed to the improved performance.
BBC Commercial returned £377 million to the BBC during the year, including £154 million in content investment. Although this was lower than the previous year’s £391 million, the company said it remains on course to achieve its five-year target of returning £1.5 billion.
The company credited much of its growth to direct-to-consumer services. BritBox International remained a key contributor after BBC Studios took full ownership of the streaming service in 2024. Revenue from BritBox in North America rose 20 per cent, while new subscription packages performed above expectations. Documentary streaming platform BBC Select also recorded a 61 per cent increase in revenue.
BBC Studios’ Content Studio reported stable revenue but a 42 per cent jump in earnings. The company attributed the improvement to strong consumer products performance, particularly licensing partnerships and commercial deals centred on the globally successful Bluey brand.
BBC Commercial said it continues to operate in a highly competitive global media environment marked by industry consolidation, reduced commissioning by traditional broadcasters and the ongoing shift from linear television to on-demand viewing. In response, it has focused on cost discipline, operational efficiency and investment in high-growth areas, including digital platforms, direct-to-consumer services and global content distribution.
Chief executive Tom Fussell described the financial year as a strong one, saying the company increased profits and delivered substantial returns to the BBC despite market pressures. He added that BBC Commercial’s diversified portfolio had helped offset weaker performances in some areas while supporting overall resilience.
Fussell also stressed the growing importance of expanding the BBC’s commercial operations, saying an appropriate commercial and regulatory framework would be vital as the broadcaster responds to the UK government’s ongoing review of the BBC Royal Charter.
Among its content successes, BBC Commercial highlighted Death Valley, which became the UK’s biggest overnight audience for a new scripted comedy in five years and has now been sold to more than 100 international markets. In the United States, Dancing With the Stars enjoyed a standout season, with its finale securing a 53 per cent audience share among adults aged 18 to 34, the highest for a broadcast entertainment programme since the Friends finale in 2004.
The company also underscored Bluey’s continued worldwide popularity. The animated series became the most-streamed programme in the United States for the second consecutive year, recording more than 45 billion minutes viewed on Disney+. It also became the leading pre-school toy brand in the US market. Other notable titles included The Americas, The Ballad of Wallis Island, Crookhaven, Kingdom and Prehistoric Planet: Ice Age.
BBC Commercial also reported a 23 per cent increase in social video revenue. Annual watch time for BBC Studios content on YouTube nearly doubled to 14.7 billion views, outperforming global streaming platforms and UK broadcasters. The growth follows the landmark partnership announced in January between the BBC and YouTube to produce original content for the video platform.
