BBC Worldwide is a wholly-owned subsidiary of the BBC, formed in 1994 to develop a co-ordinated approach to the BBC's commercial activities and to ensure that the BBC continues to develop into a leading player in the world media market. BBC Worldwide is fully accountable to the Director-General of the BBC (who in turn is answerable to the Board of Governors), and operates at arm's length from the rest of the BBC. This means for example: it does not use, or put at risk, licence payers' funds; it pays for the commercial rights to BBC programmes at market rates; and it does not borrow more money from the BBC than the value of BBC Worldwide's own net assets.

During this financial year, BBC Worldwide returned £81m cash - a record amount - to the BBC. The lion's share went directly into BBC programme making, and the BBC's Fair Trading Commitment ensures that BBC Worldwide pays the BBC the full market rate for the rights and assets it acquires. BBC Worldwide's contribution is set to grow fast; we have set it the ambitious target of generating over £200m a year for the BBC by 2006.

While BBC Worldwide continues to inject additional money into public service broadcasting, it remains committed to maintaining the editorial and production standards on which the BBC prides itself. Its many television channels around the world provide an international shop window for UK creativity. The record number of industry awards won by BBC Worldwide this year demonstrates its continuing creative record.

This report shows how BBC Worldwide is moving towards its strategic goals - bringing BBC Television programmes to millions of homes around the world, maintaining its position as a leading publisher in all media formats (including magazines, books, video, audio, online and CD-ROM), creating successful commercial television channels and promoting the BBC name across the globe.

Because BBC Worldwide is a wholly-owned subsidiary of the BBC, it means that all the profit it earns goes directly back to the BBC. It also means that the responsibility for developing and protecting the BBC brand can be effectively discharged both at home and abroad for the sole benefit of the licence payer.

Sir Christopher Bland

Chairman of the BBC

This has been a year of exciting developments for BBC Worldwide. It has made determined progress with its strategic aims, building strong foundations for its future as a major force in global media.

Reinforcing its pre-eminence as Europe's biggest exporter of television programmes, BBC Worldwide has established an impressive family of television channels, wholly-owned and joint venture, in the UK and globally.

Reaching 230 million homes around the world, such channels offer an international showcase for the best of BBC programmes. In particular, our 24-hour global television news channel, BBC WORLD, is playing a crucial part in the BBC's overall role as the world's leading news provider. It has shown considerable growth in distribution over the past year, and now reaches 135 million homes.

Through its activities, BBC Worldwide brings the best of UK talent to new audiences around the world - as demonstrated by the success of our new channel, BBC AMERICA, which already reaches nine million homes in the world's most competitive television environment.

BBC Worldwide is highlighting the values of BBC programming throughout the world, across a wide range of genres and formats. No other UK media organisation has developed the full potential of its programmes in such an innovative way. When considered in conjunction with our other international directorate, BBC World Service, one can see that the BBC is truly the UK's major force in the global media world.

With sales of over £400m and cash flow contribution of £81m this year, BBC Worldwide continues to make an effective financial return to the BBC as a whole. By generating revenue to reinvest in BBC programme making, BBC Worldwide helps the BBC to increase the range and quality of programming available to the licence payer in the digital age.

Sir John Birt
Director-General of the BBC