The BBC has announced its intention to sell its wholly owned commercial subsidiary BBC Technology, a division specializing in media asset management, and will now seek a buyer. The move was initiated, the company said, after an internal review carried out by BBC Technology concluded that for it to be competitive, “further rationalization would be needed, which would have resulted in substantial job losses.”
The internal review identified potential annual savings for the BBC of between $35 million and $50 million if its technology services were outsourced. BBC Technology currently employs about 1400 people around the world.
Any sale is subject to the approval of the Secretary of State for Culture, Media and Sport.
BBC Technology was created in 2001 to provide technology services to the BBC, including desktop support, and to generate third-party revenues. The company has won contracts in the UK and abroad with companies such as ESPN, DirecTV and National Public Radio. Last year, BBC Technology delivered approximately $30 million in profits and price reductions back to the BBC.
BBC Technology demonstrated its Colledia Workflow product suite at the SMPTE exhibit in New York City last month. Products designed to produce, manage and distribute television content are Colledia for Production, with a newly enhanced AAF plug-in for Windows Media 9 Series; Colledia for News; and Colledia for Sports. In addition, the company showed its control and monitoring software, Colledia Control.
For more information, visit: www.bbctechnology.com.