Flagship show and parts of current affairs could be moved out of corporation into commercial subsidiary

The BBC is considering moving flagship show Panorama and some of its current affairs out of the corporation into a commercial subsidiary.

In the week that Panorama hit the headlines after its eagerly-awaited exposé of Mazher Mahmood was postponed for a second time, it has emerged that the weekly programme may not be protected from the proposal aired by director general Tony Hall earlier this year to shakeup in-house TV production. It will come as a surprise to media observers that the production of Panorama and parts of current affairs are being looked at as contenders for the new stand-alone subsidiary – dubbed NewCo internally at the BBC. BBC News, which produces the daily bulletins, is exempt from the changes.

Under Hall’s ‘compete or compare’ plan, BBC strategists are looking at how parts of the corporation could be spun off into a separate company that is allowed to make shows for rivals. The proposals are likely to need a change in the BBC’s charter.

BBC director of television, Danny Cohen, has been visiting staff in Bristol, Manchester and Northern Ireland to talk to them about the idea but basic details such as the timing of the switch are still unclear.

Staff in the drama and natural history departments are understood to be keenest to move out of the publicly-funded wing of the BBC. Their programmes are likely to be best placed to compete in the open market.

However, some other departments are lobbying hard to stay within the corporation and this includes current affairs. Learning, children’s, and sport are also understood to be on the potential must-keep list along with news. Cohen said in August that the BBC would carry on producing some shows such as EastEnders, Strictly Come Dancing and Top Gear, despite Hall’s proposals – which also open up BBC schedules to independent producers.

Although it was criticised recently in a BBC Trust report, Panorama’s ratings have held up well. Its audiences between 2011 and 2012 were its highest since 2001, although they dipped in 2013 when a series of hour-long specials was introduced and episode numbers cut.

The press attention over the delayed Fake Sheikh: Exposed is also likely to add viewers when it is finally aired.

Among its recent achievements are John Sweeney’s undercover exploration of North Korea in 2013, which drew an audience of 5.1m; a Bafta for its undercover investigation into abuse of vulnerable young patients at a private hospital near Bristol; Tory MP Patrick Mercer resigning his commons seat following a Panorama investigation and an exposé of care homes in Essex.

However, the programme is to lose its in-house reporters and insiders claim that if it is moved out into NewCo it will suffer as it will not be able to commit resources to long-term investigations, plus it will miss the current exchange of ideas between the producer and broadcaster.

But there is some good news for the programme as it is understood one of its deputies, the experienced Karen Wightman – who was due to leave to head al-Jazeera’s investigative team in Washington DC – has had a change of heart and is to stay.

Meanwhile, some staff in Manchester are concerned, following their talk with Cohen, that there may be redundancies as a result of the move to ‘compete or compare’.

Two sources also say that if the proposal goes ahead in television, then radio is expected to be next.

Currently it is expected NewCo will be a wholly-owned subsidiary, similar to BBC Worldwide.

“There was the big announcement and few details since. Has it been thought through – has the cart been put before the horse?” asked one insider.

BBC director general, Tony Hall, has been warned by technicians’ union Bectu’s general secretary Gerry Morrissey that when detailed proposals are tabled, Bectu will campaign against them and ballot for strike action.

Morrissey said: “We’re not convinced it’s a good idea. We think it will raise big questions in the future about justification of the licence fee.”

“The BBC have a very sorry track record when it comes to wholly-owned subsidiaries [such as BBC Resources]. They’ve done this twice already and in both cases it’s been a prelude to privatisation.”

Part of the issue for the BBC is that it is fighting to retain talent that can be paid more by commercial rivals. In addition the consolidation in the independent production sector – with US giants such as Discovery and Liberty Global snapping up UK companies such as All3Media – means the BBC is expected to miss its quota of programmes from independents again this year.

Producers’ alliance Pact chief executive, John McVay, said: “Our position has always been to find a way to make sure the licence fee payer gets the best programmes regardless of who makes them.

“We will defend the licence fee but not necessarily the people who spend it.”

The BBC declined to comment on the plans.