BBC To Peddle Internet Know-How To Boost Revenue

Q: Why would a satellite broadcaster owned by the two largest ITV groups use BBC Resources to help design its internet-TV service? (see ONdigital Teams With BBC For Internet On TV)

A: When was the last time you heard someone say that www.granada.co.uk or www.carlton.co.uk was their favourite website? Meanwhile www.bbc.co.uk enjoys worldwide popularity and is the only non-portal to regularly make it into the UK’s top ten sites (see North/South Divide Even Exists In Cyberspace).

The BBC may not be too hot when it comes to keeping sports rights, but when it comes to websites it’s more than on the ball. The powers that be have evidently decided that this asset is too good to waste and are now planning to share the Corporation’s “technological and distribution expertise” with the rest of the world by creating a new, wholly owned subsidiary called BBC Technology Limited.

Like BBC Resources Limited, the new subsidiary will be out to gain maximum commercial revenue. It will employ around 1,300 staff, providing the BBC with broadcast, telephone, IT, online and communications services. Operation will be “at arms length”, with services promised at “competitive prices”. Outside of the BBC, services including desktop support, internet broadcasting, consultancy and project management, and broadcast communications will be available to companies like ONDigital.

At the same time BBC Resources is to become a “slimmer, more focused production facilities company”. The two projects are expected to deliver between £150m and £200m cumulatively over the next six years. The new company is due to launch in October this year, subject to formal approval from the Department of Culture, Media and Sport.

When the licence fee settlement came through in February (see

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