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Strategy
For BBC Worldwide, channels represent a growth opportunity. It sees potential both in launching into new territories and building on its presence in existing territories through the launch of specialist services such as children’s or lifestyle channels. To that end the company has reorganised channels into one business to focus on increasing profit and reach. Its relationships with existing partners are strong and it will build on these cornerstone alliances over the year ahead.

Performance
Profits from BBC Worldwide’s channels activities increased from £2.7m to £4.0m. This included the first dividend of £2.1m from UKTV, the joint venture with Flextech. In addition BBC Prime and BBC America both returned profits, and the portfolio of joint-venture channels performed to plan.

 Sales (£m) 04 05  
 UK 68.8 78.2
 Overseas 53.4 62.4
 Television Channels 122.2 140.6
  Sales include wholly owned channels and a 50% share of the UKTV joint venture. Only dividends are included in BBC Worldwide’s profits until such time as the joint ventures are in cumulative profit.  
 
 Profit (£m) 04 05  
 UK - 2.1
 Overseas 2.7 1.9
 Television Channels 2.7 4.0


Joint-venture channels

UKTV
This joint venture with Flextech Television, the content division of Telewest Communications plc, is the UK’s second-biggest non-terrestrial broadcaster - reaching 14 million viewers a week, including the 3.8m Freeview homes that can receive UKTV History and UKTV Bright Ideas.
In the last year, the network added UKTV Style Gardens to a line up of nine channels (plus time-shifted channels for catch-up viewing) that includes UKTV Gold, one of the crucial channels responsible for creating the UK’s secondary TV market, and now one of Britain’s best-loved cable and satellite brands. Each channel represents a distinct opportunity for viewers to see the best of BBC content – and is a valuable commercial opportunity for BBC Worldwide’s TV Sales business. The network currently comprises UKTV Gold, UKTV G2, UKTV Drama, UKTV Style,
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Annual Review 2004/05bbcworldwide.com
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