With the aim to create a set top box that will let the TV viewers to view programs on demand, the BBC is all set to join forces with ITV.

The users have been allowed to watch programs on their computers till now via the BBC's successful iPlayer. However, under the new scheme, one can see films, shows and interactive content from a range of other providers.  

The BBC's director general, Mark Thompson, while announcing the initiative said, “It is an important step in bringing on-demand services to television. It would be open to all public service broadcasters, device developers and other internet service providers to get involved, and would include a wider group of partners by launch.”

He added, “Audiences tell us that they want more services through their television set. I am pleased the BBC is working with industry partners such as device manufacturers, ISPs and other content providers on proposals that will bring real benefits for consumers.”

The proposals came during the Ofcom's review into how to plug the Public Service Broadcasting (PSB) gap. An analysis has been set by the Ofcom that suggests that by 2012, Channel 4 could need extra funding of up to £100m to deliver its existing remit.

It has been argued by the regulator that one funding source for Channel 4 could be for it to take control of some or all of BBC Worldwide. However, while speaking in London yesterday, the BBC chairman, Sir Michael Lyons, reported, “The proposition that BBC Worldwide might be taken away from license-fee payers was pretty extraordinary.”

“BBC Worldwide is not a portable cash machine for the Government, the regulator or anyone else to wheel around,” he added.

In fact, a series of other ideas to extend public service broadcasting has been put forward by the BBC, which includes:

   1. Opening up access to regional audio-visual content and broadcasting facilities.
   2. Exploring options for sharing regional news footage and premises where appropriate to support provisions beyond the BBC.
   3. Sharing digital production technology to allow a common industry approach to producing, sharing and editing digital content.
   4. Discussions are under way to explore a series of commercial areas of co-operation between BBC Worldwide and Channel 4.
   5. Broadband – using the popularity of the BBC's website bbc.co.uk to drive usage and reach of other public service content across the internet.
   6. Sharing research and innovation, training and audience research with the rest of the industry.