BBC ventures into technology services

NEWS The BBC yesterday announced plans to create a wholly-owned IT services subsidiary, BBC Technology. The division will launch in October with 1,300 staff and is expected to deliver up to £200m in revenue over the next six years. According to the BBC director general, Greg Dyke, income from the new subsidiary will be ploughed back into programmes and services. In February, the UK government said it hoped the corporation would find new revenue streams of around £1.1bn over the next six years to top up licence fee payments. BBC Technology will provide its parent company with broadcast, telephone, IT, online and communication services. It will also offer a range of desktop support, internet broadcasting, consultancy and project management services to external clients. In a statement, Dyke said: "The aim was to find more money to put into programmes and services. The changes announced today contribute to that objective by generating more commercial revenue, increasing efficiency and reducing the money spent on overheads."