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March 02, 2007
YouTube Pens Deal with BBC

Expanding its reach into the United Kingdom, YouTube has entered a non-exclusive deal with the BBC to launch several BBC-branded channels on the popular video-sharing site.

According to YouTube Chief Chad Huley, the agreement with the BBC will provide an entirely new audience demographic for the 85-year-old news organization, while at the same time deepening its relationship with existing viewers.

Under the terms of the deal, the BBC will debut two entertainment channels and one news channels, with limited advertising beginning with banner ads and gradually expanding to include other options.

The Wall Street Journal reports that the BBC's plans to profit from online advertising has already caught the ire of several media rivals because of its status as a publicly-funded business entity.

The BBC is funded through a universal license fee, and according to the WSJ, that agreement separates its commercial ventures from its domestic, license and fee-funded services.
 
The news channels and one of the entertainment channels will be called "BBC Worldwide," and will feature clips from U.K. shows such as "Top Gear," "The Catherine Tate Show" and "Spooks."

The other BBC-branded entertainment channel, the name of which has not yet been announced, will feature specially commissioned content from shows such as "Doctor Who" and "Life on Mars."

Financial terms of the deal have not been disclosed.

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