BBC Worldwide under fire from rivals

The activities of the BBC's commercial arm, BBC Worldwide, came in for criticism from rival media companies today, with one executive branding it an "out-of-control juggernaut".

MPs on the House of Commons culture, media and sport select committee heard executives from the BBC's commercial rivals claim BBC Worldwide was moving into areas not covered by its remit and calling for it to come under closer scrutiny.

Lyn Hughes, the editor and publisher of independent travel magazine Wanderlust, questioned BBC Worldwide's plans to launch a Lonely Planet travel magazines in a time of economic downturn when travel companies are going to the wall.

The BBC bought a stake in Lonely Planet last year for an undisclosed sum and plans to launch a travel magazine in the coming weeks.

Hughes also accused the corporation of deliberately targeting her advertisers and said that BBC Worldwide was an "out-of-control juggernaut".

"Why is the BBC launching one at the worst possible time? I can only think they're smug. They don't need to make money," she added.

The Time Out chairman, Tony Elliott, criticised moves by BBC Worldwide into areas that he believed fell outside its public service remit.

"When they take quantum leaps into areas which have nothing to do with the BBC as a broadcasting entity, you have to ask yourself what's going on here," he told MPs.

"They are the co-publishers of Hello magazine, which they license in India. I just do not understand what that has to do with the BBC."

Tony Cohen, the chief executive of FremantleMedia, which makes shows including The X Factor, told the committee that joint ventures by BBC Worldwide to launch overseas production operations would jeopardise editorial standards.

Cohen added that he wanted to see a more clearly defined remit for the BBC division's commercial activities.

He also said he wanted to see bidding for the right to exploit BBC programmes commercially across the globe opened up so that BBC Worldwide no longer had a guaranteed first look at the corporation's output.

The Guardian Media Group chief executive, Carolyn McCall, told the committee that she also wanted to see activities of BBC Worldwide reined in.

"We're used to competition with the BBC. The issue for us is Worldwide's boundaries have got so blurred," McCall said.

John McVay, the chief executive of independent producers' trade body Pact, said he did not want to limit the activities of BBC Worldwide.

But McVay added that he had a "fundamental concern" over the way BBC Worldwide operates and called for greater clarity in showing how programmes created with licence-fee payers' money were exploited globally.

The corporation is expected to give evidence to the culture, media and sport select committee's inquiry into BBC Worldwide and its commercial activities in the next few weeks.

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