The BBC is to move the production unit responsible for hit children’s shows such as Blue Peter into its commercial operation to allow it to make programmes for rival broadcasters and streaming services such as Netflix for the first time. By moving BBC Children’s production, which makes shows that air on CBeebies and CBBC, the corporation is aiming to tap into the booming market for children’s content, which has become a battleground for Netflix, Amazon and Disney+ as they seek to attract and keep families as subscribers. “Moving Children’s production into BBC Studios will safeguard our specialism within a producer of scale,” said Patricia Hidalgo Reina, the director of BBC Children’s and Education. “It will enable them to make world-class public service content for our UK audiences, and increase their potential of taking British children’s content to the wider global market.” Other shows made by the unit range from Crackerjack, JoJo & Gran Gran and My Mum Tracy Beaker, to Something Special and Ferne and Rory’s Vet Tales. BBC Three’s in-house production team, which makes Hot Property, will also become part of BBC Studios from April. BBC Studios, formerly BBC Worldwide, produces Strictly Come Dancing and Countryfile. It was formed five years ago as part of a plan to spin off the bulk of the corporation’s in-house programme-makers, to allow them to compete for commissions from other broadcasters. BBC Studios has also made shows such as The Surgeon’s Cut for Netflix, Trying for Apple TV+ and Ocean Xplorers for National Geographic. BBC Studios funnels significant income to the licence-fee-funded BBC, a total of £1.2bn in the five years to the end of this month, to support its finances. The BBC is in the process of making significant budget cuts – about 520 jobs are going at its news operation to save £80m annually – as it absorbs the cost of covering the licence fee for millions of over-75s. On Wednesday, BBC Studios said it would increase returns to the corporation by 30% to £1.5bn over the next five years to the end of March 2027. “We are actively building commercial income with ambitious commercial plans for high quality programmes,” said Tim Davie, the director general of the BBC. “The BBC’s commercial activity will become even more important in the future as we expand commercial disciplines to new areas, such as children’s. “Despite a challenging market, we seek to achieve the highest possible return from all our assets. This enhances value for licence fee payers and boosts the wider creative economy.” The BBC’s finances have been stretched further during the pandemic. The broadcaster said its income took a £125m hit last year as people stopped paying the licence fee during the health crisis and revenue dropped at BBC Studios.