BT forms broadband entertainment operation.(British Telecommunications PLC)

BT is creating a new division called BT Entertainment whose purpose is to work with content developers. Specifically, BT Entertainment will "develop, license and bring to market content value added services such as on-demand music, gaming, TV and movies." The scope includes entertainment, education and information.

BT Entertainment's first CEO will be Andrew Burke, currently director of value-added services at BT Retail, BT's end-user facing broadband operation. He was previously CEO of media venture capital fund eVerger and before that COO of the eVentures Internet capital fund that's owned by News Corp and Softbank. He was also the founder and CEO of UK ISP LineOne and established News International's initial Internet presence in 1995.

BT Entertainment, which will become operational on the first of January, will operate within BT Retail's consumer business.

Services will include:

--Rich Media--BT's content platform business

--Click & Buy--BT's online payment system

--BT Learning Centre--BT's online learning offering

Dan Marks, currently president of Universal Studios Networks UK, will join BT Entertainment early in 2005 to lead the company's interests in video-over-broadband services. He will report to Burke.

"the natural next step for BT"

Pierre Danon, BT Retail CEO, who is leaving in January to run consulting company Cap Gemini, said, "A focus on entertainment service is the natural next step for BT in driving further value for new and existing broadband customers. This is a truly exciting time for us as we feel that we are about cross the chasm from an early adopter market to one which will fully embrace the full potential of broadband, a fledgling mass market. Our customers are telling us that they want more, that fast access alone is not enough, and they are demanding more entertainment and communications services."

Marks said that setting up the entertainment division showed BT's commitment to being at the leading edge of broadband developments. He said that the new operation would be able to take advantage of the opportunities provided by high-speed broadband to the home.