BT will work with film and TV production companies to produce programmes that will be broadcast to PCs through its high-speed internet lines.
The telco said it is in preliminary discussions with major studios and independent production houses about investing in film projects with a view to broadcasting them online through its BTopenworld broadband ADSL (asymmetric digital subscriber line) service.
BT would retain a share of the rights to the programmes and will have a share of potential future profit if a programme is used in other media, such as TV or cinema. A BT spokesman said discussions are "very much in the early stages".
"Content is expensive to buy and this is one way of getting around it. BT could potentially invest in a project and secure exclusive rights to the programme and syndicate it to other territories. If the programme catches on, BT would have a share of any earnings," he added.
Separately, BTopenworld said it will spend $15m (£10m) on a 17 per cent stake in wcities, a location-based information service provider, to provide content and services across all BT internet platforms.
Under the deal, customers of BTopenworld's mobile internet, narrowband and broadband services will have access to globally and locally relevant information and services on more than 230 cities. The service will be expanded to 400 cities by spring next year.
Ben Andradi, president and chief operating officer of BTopenworld, said: "This deal presents BTopenworld with a huge opportunity. More than 60 per cent of people online currently look for travel information and goods, and more than 70 per cent of mobile users want city guides delivered to their handsets."
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