Media Forum: Is Worldwide out of control?

Is the BBC's commercial arm operating unfairly, Jane Bainbridge asks.

BBC executives were not exactly made to feel welcome at the recent Edinburgh International Television Festival, as BBC Worldwide came under fire from delegates who accused it of abusing its remit.

Alex Graham, the chief executive of the independent production company Wall to Wall, slammed the BBC's commercial arm for being 'out of control' and said fundamental questions had to be asked about its strategy. While his criticisms were levelled at its TV production and distribution activities, Tony Elliott, the Time Out owner, hit out at its recent moves in the magazine and online arena.

BBC Worldwide secured a reputed pounds 75 million deal for a 75 per cent stake in Lonely Planet in October last year. It will launch a Lonely Planet magazine later this year and is also planning a website.

Elliott claimed the Lonely Planet deal did not fit with the BBC's core business and has complained to the Office of Fair Trading. The BBC has defended itself, arguing that it is a good brand fit and can leverage the BBC's travel content.

It has also emerged that the organisation will offer an online music service to exploit its archive of audio and video music. Subject to Competition Commission clearance, Kangaroo, its video-on-demand joint venture with ITV and Channel 4, is expected to launch. So, once again, the hot industry topic has been how much money the BBC can make and whether its commercial dealings are fair.

BBC Worldwide's core businesses include magazines and digital media, as well as sales and distribution, and with a turnover of more than pounds 900 million and profits in excess of pounds 110 million, it is a very successful business. Its aim is to make pounds 200 million for the BBC by 2012.