These initiatives come under the auspices of MTVi, established in 1999 to create interactive offshoots of the company's 28 channels. The BBC is cutting costs by reusing content where possible, said Katherina Grimme, a senior analyst in Ovum's digital media group. BBC New Media was set up last April as part of Dyke's 'One BBC' restructuring plan, designed to gain internal cost efficiencies and open up commercial revenue generating opportunities. In February, the BBC created BBC Technology, a commercial company offering technical and online services to both the BBC and external clients. BBC Technology has a target of becoming a 185m company in its first year.
Revenue is even more important since the tech downturn began.
Parent company Viacom filed to take MTVi public in February last year. This technology, when triggered, could add strong revenues to the business, believe analysts. A scaled back but more focused MTVi has emerged from the dotcom madness, according to Rothrock. After the fallout, we're still standing, which gives us a lot of opportunity. If the BBC and MTV can succeed in winning new interactive audiences, the rewards could be spectacular.