LONDON (Brand Republic) 鈥 The BBC is considering a controversial plan to spin off a number of its best-known brands, including the Radio Times, in a move designed to cut costs and pay for new services.
The proposal includes the sale of its consumer magazine division and its UK TV cable and satellite TV joint venture with Telewest, which includes the UK Gold channel.
The money raised from the flotations would be expected to contribute to the £1bn the BBC has been told by the government to save over seven years in return for a licence fee increase.
The corporation has so far stopped a morning croissant allowance and cut the number of chauffeur-driven cars. Last week, it closed its football magazine Match of the Day.
Critics of the BBC are concerned that the proceeds of the sales would be wasted. Peter Ainsworth, the shadow culture secretary, said that the public would expect to see the BBC spend the money on 鈥渜uality programming and reducing the licence fee鈥.
BBC Worldwide, the BBC鈥檚 commercial arm, publishes 37 magazines including Top Gear, Top of the Pops, BBC Good Food and Gardener鈥檚 World. It is expected to fetch around £500m.
UK TV, which produces six TV channels including UK Drama and Play UK, could raise as much as £450m which would be split between both partners.
The BBC has also talked about a possible flotation of its commercial internet operations. Last summer, it formed Beeb Ventures in a deal with US-based internet investment firm TH Lee Global. It incorporates beeb.com and freebeeb.net, the free internet access service.