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| Profit* (£m) |
04 |
05 |
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| DVD/video |
19.7 |
13.0 |
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| Audiobooks |
(0.6) |
0.9 |
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| Books |
(8.9) |
(3.1) |
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| Retail and Direct Marketing |
0.6 |
(0.2) |
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| Learning |
(0.5) |
(1.1) |
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| Home Entertainment |
10.3 |
9.5 |
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* Including share of joint ventures
DVD/video
The new joint venture 2|entertain was established in September 2004. It combined two businesses: VCI - the video, music-publishing and TV/video-production businesses of Woolworths Group plc and BBC Worldwide’s DVD/video-publishing operation. With a catalogue that boasts the best UK TV-tie-in releases, the company now has the scale it needs to compete against the US film studios which are its main rivals. BBC Worldwide has a 60% share of 2|entertain and Woolworths a 40% share. |
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An excellent underlying performance for 2004/05 is not reflected in the bottom line because of transition costs and goodwill charges associated with creating a joint venture and the fact that only 10 months’ trading are reported.
By the end of the financial year the company was operating on one site. Its sales and back-office functions had been amalgamated and the new team was already achieving excellent sales. BBC Worldwide’s share of turnover for the four months to 31 January 2005 was £64m and its share of profits was £15.9m. Sales highlights included the best-selling DVD in Christmas week, the award-winning Little Britain, series one. Other best-sellers included the new Michael Palin series, Himalaya, That Peter Kay Thing and Shameless.
2|entertain has now become the sixth biggest DVD/video distributor in the UK (BBC Worldwide had previously been ninth) and the leading UK-owned DVD/video distributor. It operates as a separate business and has deals with all the major independent production companies. BBC Worldwide sells video and DVD rights for 2|entertain overseas on a commission basis, particularly in the USA and Australia.
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