BBC's iTunes Rival

BBC is planning an iTunes rival download service. The idea is codenamed ‘Project Barcelona’ in which the programmes will be available to download at £1.89 per show. It is not clear, if the service was to launch, how it would eventually impact the £145.50 annual licence fee – which is currently frozen for the next four years. But Project Barcelona could help the corporation make more money to support itself, as the Government advised as the time of capping the fee in 2010.

On the other hand, independent producers are worried about their revenue share as the idea will harm their DVD sales.The BBC is proposing to give producers a greater share of the episode download price (around 40 pence from £1.89) than Apple currently does (which gives them 28 pence on the same price).

Presently people can watch and listen to new BBC TV and radio shows via iPlayer for up to 30 days after transmission. After that cut off point, the commercial arm of the BBC (BBC Worldwide) or the original producers, can license the rights to iTunes or other download to own services.