This is taken from Broadcast Online:

Extra £220m for BBC new media...
Geoff White and Maria Esposito
02 June 2005 07:50


The BBC is planning to spend around £220m a year, well over half of the money saved by its proposals to cut 3,780 jobs, on new media projects and digital services.

The move will come as a shock to BBC programme-makers fighting for their jobs - BBC staff had been assured by director general Mark Thompson when he announced the job cuts in March that the money would be invested in core programme-making.

But a BBC spokesman this week confirmed to /Broadcast/ that the lion's share of the BBC's annual £355m savings - over 60% of the total - will be invested in "transformational projects". These include digital switchover, new media platforms and navigation, the digital curriculum, the creative archive and services in news and radio for nations and regions, which are all seen as vital to the broadcaster's future.

According to the BBC's director of new media and technology, Ashley Highfield, the fresh investment will be spread across jobs, rights, hardware, software and distribution from 2008 onwards. External providers in areas such as software are also likely to see some of the money.

"All parts of the BBC are transforming themselves and we are not ring-fencing the investment or giving it to one division," said Highfield. "We need to meet the changing needs of our audience and they expect us to provide services on their terms. Over half of Britain is online and 50% of people online use bbc.co.uk."

One such service is the inter­active Media Player (iMP), which allows broadband computer users to download TV and radio programmes and watch or listen to them for up to seven days from the original transmission date. Consumer trials for iMP will begin in September.

Mark Thompson said in March: "This is all money we plan to spend on programmes and content, both to improve the services we deliver to audiences right now and to build strong BBC services in the future."

While broadcasting union Bectu said that in principle it supported the BBC's new media investment, Bectu assistant general secretary Gerry Morrissey added: "While we believe that the BBC has an obligation to provide these services, there is concern among our members that money is being taken out of core programming to do this."

Source:broadcastnow.co.uk