BBC plan to sell off part of £1bn-a-year Worldwide arm

Review: Mark Thompson says partial sell-off is under consideration
12 April 2012

The BBC is considering selling a portion of its lucrative commercial division as part of a review into the corporation's activities, it emerged today.

Director-general Mark Thompson revealed that a part-privatisation of BBC Worldwide, which sells the international rights to shows such as Life On Mars, Top Gear and Strictly Come Dancing, was an option as the corporation faces growing pressure over its market dominance.

Mr Thompson said: "One of the things we should look at over this period is whether 100 per cent ownership of Worldwide is essential." If the move went ahead, investors would be able to buy shares in BBC Worldwide which last year made more than £1 billion.

Mr Thompson stressed that the corporation was looking at a "whole range of things", including offering a stake to a rival broadcaster or an international partner.

His comments came after the BBC Trust last week ordered a review of all BBC activities in 2012 when the corporation will complete its digital switchover.

The BBC is under fire from senior politicians and commercial rivals to reduce its market dominance and share a slice of the £3.7 billion annual licence fee with rival broadcasters.

James Murdoch, head of News Corporation UK, described the BBC as "Orwellian" last month.

He said the BBC's network of websites, which are free to access, made it difficult for other news providers to turn online news into a commercially-viable product.

Mr Thompson hit back today, describing the corporation's free online news as "utterly non-negotiable". He told Media Guardian: "I would rather the BBC was abolished than we started encrypting news to stop people seeing it. The absolute first building block keystone of the BBC is delivering impartial, unbiased news."

The BBC has also come under scrutiny over executive pay after it emerged that both Mr Thompson and BBC Trust chairman Sir Michael Lyons earned more money last year despite salary and job cuts across the broadcaster.

The Conservatives have said they would cut the pay of the director-general from £834,000 to no higher than the Prime Minister's £192,250, should they win the next election.

Mr Thompson defended his salary saying: "Let's be clear, we're not paying competitive salaries. We're paying salaries that have very significant discounts to the labour market we operate in. If you want to be director-general of the BBC, you've got to recognise that you'll earn a hell of a lot less than if you're running BSkyB, ITV or even Channel 4."

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