BBC shifting resources online

The BBC Trust has sanctioned a 27% increase in the corporation's online budget, to more than £145m per year, over the next three years. It has also approved director general Mark Thompson's extra £400m savings package which includes pay freezes and will cut the salaries of some of the corporation's biggest stars.

BBC web ventures will benefit from a £30.7m increase in the BBC Online budget, a 27% increase over its current £114.4m-a-year budget over the next three years subject to conditions set out by the trust chairman, Sir Michael Lyons, to make sure the corporation does not abuse its power in the market.

The approved increase is almost 42% below the £52.7m a year the BBC wanted. Regardless, cash-strapped commercial rivals will balk at the ability the BBC has to ratchet upspending in such economic conditions.