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BBC.COM

BBC Worldwide proposes to use the current BBC website, bbc.co.uk, and its existing international traffic, as the basis for developing a global consumer-facing destination site that will make a wealth of BBC content, both text and video, available to international audiences. bbc.co.uk currently has more than 1.2 billion page impressions a month from outside the UK, accessing without charge the same content as UK users, who pay a licence fee that funds the service. The plan is for bbc.com to be developed in two phases. In the first phase advertising will be introduced on selected high-traffic pages, such as news, sport and weather. UK users' experience of the site will be unaffected as the proposed site will use advanced geo-IP software to prevent them seeing the advertising. In the second phase, the site will offer a rich range of audio, video and other content, some paid-for and some free. BBC Worldwide plans to reinvest revenues generated from the site into developing great content and services for all users, as well as building the reach of the BBC brand around the world. In addition, it will help fund new services which will unlock the BBC's television archive to users, offering for the first time a wealth of video content from genres such as factual and natural history online.

COMMERCIAL MEDIA PLAYER

A key part of Digital Media's growth strategy is the development of the commercial media player, a web-streaming and download service, enabling UK audiences to watch content via the internet after the free seven-day catch-up service offered by the BBC's public service iPlayer. The website will generate revenues from a mix of advertising supported and pay funded content. In addition, Digital Media is investigating potential opportunities to take this service to other key markets, such as USA, Australia and Germany, potentially through joint ventures with local content companies in those territories.

OTHER WEB ACTIVITY

Digital Media's strategy for growth also includes internet sites that focus on consumers' special interests. Throughout 2006/07 the Digital Media team worked closely with Content & Production to develop loveearth.com, a natural history website that will support the launch of the Earth movie in 2007/08. Work has also started on developing a site built around an online audio and video editing service.

BBC MOTION GALLERY

BBC Motion Gallery, BBC Worldwide's TV clip sales business, grew sales by 17% year on year. However, profits were impacted by investment into news content, international staff to drive growth overseas and the cost of entering new markets.

BBC Motion Gallery sells short-form TV content to a diverse and growing list of customers around the world. To further expand its customer base, Digital Media developed the Motion Gallery website and redesigned it in April 2007. Among other enhancements, the improved site incorporates a more sophisticated search engine as well as e-commerce features that allow visitors to download production-ready, royalty-free clips immediately.

BBC Motion Gallery has extended its list of global partners through clip distribution deals with content owners from around the world including China's state broadcaster CCTV and surfing specialist Rip Curl. The quality and quantity of its content has made it an increasingly popular destination among production houses and advertising agencies worldwide. Clips from the archive featured in two Oscar-winning films, The Queen and The Departed.

OUTLOOK

Digital Media will continue to invest heavily in the bbc.com and commercial media player propositions in 2007/08 which will be reflected in the year's financial performance.

	07	06
Internet / VOD / Mobile*	1.2	1.2
BBC Motion Gallery	12.7	10.8
Multimedia	--	0.2
BDS	--	1.1
Total	13.9	13.3

	07	06
Internet / VOD / Mobile*	(3.7)	(1.4)
BBC Motion Gallery	--	1.3
Multimedia	(0.2)	(0.4)
BDS	--	(1.1)
Total	3.9	1.6