Our JV channels with Discovery now reach more than 70m households, a 55% increase on last year. The Flextech JV, now two years old, launched a fifth channel, UK PLAY.

By establishing channels together with partners, BBC Worldwide generates revenue without any financial risk either to itself or to the licence payer. Through programme licensing agreements, our partners provide us with a constant income stream - now accounting for 33% of our total programme licensing revenues (up from 24% a year ago). We also benefit from an equity share in the channels and, once they have broken even, a share of profits.

Joint venture with Flextech: UKTV

This now includes five channels, covering many of our genre strengths. This year, we secured digital satellite distribution for all channels and extended analogue cable distribution for three. Three channels launched on the DTT platform, ONdigital, substantially increasing the number of households reached.

- UK GOLD reaches 6.8m homes and offers the best in comedy and drama. Audience share was up 10% on last year.

- UK HORIZONS - the best in factual entertainment, which now reaches 4.5m homes (up from one million last year).

- UK ARENA is the UK's premier arts entertainment channel. It now reaches 1.9m homes.

- UK STYLE offers leisure and lifestyle television to 1.9m homes. It combines new programmes with existing favourites.

- UK PLAY is the UK's only music and comedy channel, available in 1.2m homes. A key element in its launch was its inclusion in Sky Digital's package.

Joint venture (JV) with Discovery

Our global joint venture with Discovery, now one year old, is already producing tangible results. The partnership consists of three elements:

- JV Network (the joint venture channels)

- JV Programmes (the BBC Sales Company)

- BBC AMERICA.

The new sales organisation within the JV, the BBC Sales Company, has guaranteed to invest a minimum of $175m in BBC factual programming over five years. This year, the company has performed exceptionally well, and is on track to meet its targets.

BBC AMERICA

Our first wholly-owned channel in America, funded by Discovery, launched in March 1998, offering US viewers the best of British television.

The US press reception has been enthusiastic: 'One of the most eagerly anticipated new cable networks of the 1990s' (Boston Globe).

Animal Planet - natural history and animal entertainment programming for all ages. It launched in Latin America and Asia in conjunction with BBC Worldwide, and in March 1999 the channel also launched in India.

People & Arts - the leading channel of its kind in Latin America, bringing together the best documentary output with classic drama, and available to 8.9m homes. It launched into half a million homes in Portugal in March 1999.

UK•TV

UK•TV is our joint venture with Foxtel and Pearson in Australia. The channel is now available via satellite as well as cable and as a result it can now be received in almost all multichannel Australian homes.