Sky driving up stars' pay, says BBC boss

http://www.guardian.co.uk/media/2012/jul/16/sky-driving-stars-pay-bbc

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Outgoing BBC director general Mark Thompson has blamed Sky for escalating talent costs as the satellite broadcaster has looked to take on the corporation in homegrown comedy and drama.

Thompson, who called on Sky to invest more in UK production in his MacTaggart lecture in Edinburgh two years ago, said an "unintended consequence" was that the cost of talent both behind and in front of the camera had gone up.

Both Thompson and BBC Trust chairman Lord Patten used the publication of the BBC's annual report today to highlight Sky's financial muscle in attracting executives and on-screen stars.

At a time when the BBC has been looking to drive down the cost of talent and executive pay, BSkyB said it would double its investment in homegrown production to £600m by 2015.

Thompson said Sky's extra investment was "very welcome".

"In 2010 I said Sky should be investing more in original production. It is very gratifying to see them doing exactly that," he said.

"One unintended consequence was that in certain key areas on camera and behind the camera the cost of programmes and key stars is going up."

But he said the BBC did not face as much competition for its journalists as it did for its entertainment talent.

"Elsewhere it is a different story. We are not currently seeing as much competition in journalism broadly as we are in television entertainment."

Highlighting the increasing competition for executive talent posed by Sky, Patten said: "Sky is being run to a considerable extent by former BBC employees who I would guess are doing the job for more money," said the BBC Trust chairman. "Maybe they have taken Franciscan vows."

Patten added: "Sky is competing in drama as well as sport and news. Ditto ITV and Channel 4."

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