This via Guido:
We know that the BBC lost £100 million on its failed digital media project.
But it’s worse than that.
William Foxton in the Telegraph says:
‘I heard that, over the five years of its life, factoring in staff costs, consulting fees and the money paid to Siemens, the contractors fired for failing to deliver the project by 2009, £150 million had been dumped into DMI. It’s always been the tradition at the BBC to calculate the value of a project in terms of how many licence fees it costs; to put this into context, £150 million is more than a million licence fees wasted.’
He also reveals that an ‘off the shelf” system would have cost around £1 million…plus a bit more to adapt it.
But here’s the funny BBC logic:
The BBC claims it didn’t lose more than £10 million on the Siemens deal – in its accounts, it says it paid the extra costs of the Siemen’s failure by extra “savings” (cuts) across other departments.
It didn’t lose money because it made cuts elsewhere. Well done.
Ahh…but…if you, the BBC, hadn’t lost that money you could have then spent it on programmes and not made those cuts…and sacked all those people.
No digital media system and no extra production…lose/lose all round.
Bit like saying I’ve lost a shoe..but it’s OK…because I’ve cut off one of my legs so I now only need one shoe.
Still, lots of archive material to keep the constant repeats going on the Beeb…if only you can find them now and get them delivered…hope there’s no Tube strikes.