Tangible results from Discovery

This joint venture deal generated revenues of $46m in its first year and represents a major shift in our approach in the region. It provides guaranteed co-production revenues to BBC Worldwide each year, in exchange for which Discovery has 'first look' at BBC factual programmes in North America.

BBC programmes shown on BBC AMERICA - BBC Worldwide's wholly-owned channel, which is marketed and distributed by Discovery - have been exceptionally well received. For example, the UK comedy hit The Fast Show (re-titled Brilliant in the USA) and This Life both attracted extensive press acclaim.

Further television sales successes

Our business with non-BBC channels (co-production activities as well as programme sales) has also had an excellent year:

- A record year for sales to US public broadcasters. Sales of BBC programmes to PBS (Public Service Broadcasting) stations brought in about $4.5 million. We have sold BBC programmes via PBS stations into 130 out of 160 TV markets in the USA.

- A drama deal signed with Boston broadcaster WGBH on behalf of US public television. WGBH will take a minimum of two BBC drama series during the first year of the agreement.

- Continuing relationship with A&E (America's Arts & Entertainment channel), which co-produced several episodes of Inside Story, and continued its commitment to the Timewatch strand and Reputations.

- BBC series for America's Bravo channel. Bravo co-funded the series on 20th century popular song, Soundtrack, produced by BBC Bristol.

Creation of BBC Sales Company

Much of the credit for these results is due to the BBC Sales Company, a television sales and co-production business created this year, which represents BBC and Discovery programmes and co-productions in the Americas.

A new approach to sales and marketing

We have made further improvements to sales and marketing strategy - reflecting a departure from our traditional position as a pure licensing business:

- Building brand recognition for the BBC across media formats. For example, all programmes syndicated to PBS stations now carry BBC AMERICA branding.

- We engaged in extensive negotiations during the year to develop joint venture publishing companies. We also placed BBC Music Magazine on a more solid footing in the US and expect it to bring in increased advertising revenue as a result.

- Major investment in people and management. We now have a strong local management team in place.

Canada

BBC programmes continue to do well here. For example, Antiques Roadshow is still one of the highest-rated shows on CBC Newsworld. CBC has co-produced a number of series, including Our Mutual Friend.

Latin America

Our presence has received a great boost from the Discovery partnership. Five million Latin American homes gained access to Animal Planet (already a successful channel in the US), while People & Arts became available to 8.9m homes.

We sold more than 1,000 hours of programming to Latin America this year.

The BBC branded block, Los Espectaculares de la BBC, launched in Argentina on ATC, sponsored by Ambito Financiero.