BBC Strengthens Commercial Unit With Venture Capital Arm

The BBC has announced plans to strengthen its commercial operations with the launch of a new venture capital unit, called BBC Vecta.

In a move likely to anger the Corporation’s commercial rivals, the new division will develop and market products from the BBC’s research and development team for the global media and entertainment markets. The Corporation claims that Vecta will create fresh revenues, which will be reinvested into programming.

Roger Flynn, chief executive officer of BBC Ventures, commented: “The Government set us a challenge to find creative ways to raise commercial revenues. For us, BBC Vecta is part of our response and seeks to capture more of the value that is inherent in innovations within the BBC.”

The new unit’s first project will be the launch of a wireless broadcast unit, which will provide specialist wireless broadcast products to the media and entertainment arena.

Meanwhile, the BBC has also revealed plans to scale back its campaign of promotional trailers for its range of new digital channels (see BBC Pushes Digital Portfolio With Extended Ad Campaign), following a host of complaints from viewers and rival broadcasters.

According to a report in The Observer, ITV’s marketing director, Jim Hytner, criticised the BBC’s self-promotional campaign, saying: “At a time when commercial TV, especially ITV, is trying to clean up its act, particularly at programme junctions, the BBC is going in the opposite direction.”

The BBC has faced a tough month, with revelations that director general, Greg Dyke, has kept stock options in Pearson and assertions from the Conservative Party that a proposal to reduce or abolish the licence fee will be part of its election manifesto.

BBC: 020 8743 8000 www.bbc.co.uk

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