At a glance: BBC annual report

The BBC's annual report has been published for the financial year of 2006/7.

This year, executives and the new BBC Trust - which is designed to represent the public - have written separate reports. Here are some key points from both.

BBC SERVICES

BBC management report says: There has been a "resurgence" of TV drama, with Doctor Who, Life on Mars, Jane Eyre, Waterloo Road and Robin Hood all mentioned. Entertainment shows were also a success, particularly on Saturday night. But Castaway failed to make the expected impact. On BBC One, peak time repeats declined slightly but increased at all other times. On BBC Two, the situation was reversed. BBC Two has broadened its appeal, while BBC Radio has strengthened its reputation for creativity and excellence. Increased competition has challenged children's services. In response, more money is being spent and CBBC will be relaunched this autumn. BBC News had a strong year marked by outstanding coverage from Iraq and Afghanistan. Much of the web offering will be overhauled under the banner BBC 2.0.

BBC Trust report says: BBC TV is doing well - viewers still regard BBC One as the highest quality mixed genre service. The concern is whether this has been achieved at the cost of creative and cultural ambition. The public wants to see more BBC programmes that demonstrate this ambition. A big part of the Trust's job is to find ways to enable the BBC to raise its game - but not at the expense of value for money. There is a risk of occasional failures - but it is worth it as long as the BBC is not wasting money. BBC Three has a role in catering for the young audience, but there should be a debate about some of its programme titles. BBC Four faces a challenge to build its appeal without losing its original vision for high quality. BBC Radio is strong and successful overall. BBC journalism continues to be strong. BBC online services are a great success story but need to be reviewed to ensure they are properly positioned to respond to rapidly changing audience expectations.

AUDIENCES

BBC management report says: Some 92.5% of the UK population watch or listen to some BBC output every week. The reach of the audience for BBC One and Two have declined, but digital channels have increased. Record numbers are listening to BBC Radio. The year has seen record growth for on-demand services. Users of bbc.co.uk reached 16 million, while 14 million people used the red button to access interactive TV. Global news audiences have now reached 233 million.

BBC Trust report says: The BBC's approval scores have remained steady over the last few years, but the BBC's total TV and radio market share is in gentle decline. Traditional TV broadcasters are under great pressure. Audiences are shrinking, as viewers - particularly the young - go elsewhere. BBC One and Two have been unable to escape the long-term decline, but still appeal to very large numbers. Soaps like EastEnders have fallen 10% in the last three years. BBC Radio continues to attract a high share of listeners, although, as with television, reach to younger audiences is in long-term decline. Radio 2 is the most popular station. Radio 1's reach to 15-29-year-olds has declined for a second year. Digital platforms may counter this decline over time.

PHONE-IN SCANDALS

BBC management report says: The editorial mistakes surrounding phone-ins on Blue Peter and Saturday Kitchen were serious and the BBC is taking every step to minimise the chances of them happening again. The BBC is trying to become more open and willing to learn from its mistakes.

BBC Trust report says: We were disappointed with the serious breaches concerning telephony lines on programmes that came to light and initiated a policy review of this area to report later in 2007.

STAR SALARIES

BBC management report says: Most of the on-air talent the BBC employs is modestly rewarded and the handful of exceptions represents some of the best-loved faces and voices in UK broadcasting. Licence fee payers expect the best from the BBC even if that means a significant outlay.

BBC Trust report says: Talent costs are a concern to the public and commercial operators. We will carry out a study into the BBC's role in the talent market to ensure the BBC is generating the greatest value for audiences.

FUTURE

BBC management report says: The evolution of the BBC has begun. It must embrace the opportunities of digital, such as the new iPlayer, an online catch-up service. The BBC has been restructured to make it a more simple organisation. The licence fee settlement was considerably less than requested, meaning real challenges, hard decisions and further evolution lie ahead.

BBC Trust report says: Technology is changing and audiences expect to decide where, when and how they consume their media. This is not a world in which the BBC can stand still. In the coming year, the Trust will carry out value-for-money studies into the BBC use of radio spectrum, in-house commissioning, procurement and preparations for digital switchover.

FINANCES

BBC management report says:

Spending on BBC services was up 5% to £3bn, with more money going into original drama and entertainment.

BBC Three is the most expensive TV channel, costing £178,700 per hour of original programming. Radio 4 is the most expensive radio station at £10,500 per hour of original programming.

The BBC achieved the objective of finishing the year with income and expenditure broadly in balance, and with nil borrowings.

Efficiencies and increased revenues from the BBC's commercial businesses meant the corporation beat the government's target for creating extra funding to reinvest in content.

Efficiency savings have amounted to £228m a year over the last two years and are on track to meet the target of £335m by the end of the current financial year.

BBC Worldwide's profits have tripled over three years to £111m.

Director general Mark Thompson's total pay and benefits totalled £788,000 in the last financial year.