BBC chairman Michael Grade and director-general Mark Thompson last month unveiled a vision of on-demand, portable and personalised digital TV services for everyone in the UK.

To fully switch over to digital terrestrial TV by 2012, the corporation faces the tough task of transforming its traditionally craft-based production department into a fully tapeless environment in the next six years.

In response to recent consultations with the Department of Culture, Media and Sport and the renewal of the BBC's charter in 2006, the broadcaster has published its manifesto document - 'Building public value: renewing the BBC for a digital world'.

Grade says the corporation has to digitise to achieve its target of delivering high-quality programming and 'something of value to everyone'.

'The most urgent priority is not further expansion, but completing the challenge of creating a fully digital Britain,' he said.

'That is what will enable the BBC to deliver its vision of universality.'

Plans include an increase in digital and interactive TV, up to four hours of highly local news content for 50 to 60 regions in the UK through digital production, broadband TV services and digital education tools.

Two flagship examples held up by the BBC include its interactive Media Player (iMP), which is being trialled by more than 1,000 people over the next three months, that allows viewers to download encrypted programmes, such as EastEnders and Holby City, and view them on a PC via specialist software.

The BBC's Creative Archive initiative will give licence payers access to more than 10,000 images and 350,000 hours of video, dating back to 1934.

But for the BBC to achieve these ambitious feats it also needs to overhaul its production processes and digitise the way programmes are made, edited, transferred and archived.

'The delivery of many of our service, such as digital and interactive TV, WAP, internet and radio are in digital format,' says Paul Cheesbrough, head of technology for BBC Production.

'The key issue we have is that the production process is all based on physical media such as tapes, CDs and DVDs, but then right at the end we put it into a digital form,' he said.

Cheesborough has set a target to make the entire production process digital by 2010; and to do so he says the BBC will need to introduce more digital cameras, Apple and Avid desktop editing systems and networks capable of securely transferring programmes between the BBC's regional centres.

'We are trying to connect all these things together through one digital fabric,' he said.

By digitising the production process the BBC can also shorten the time it takes to create a programme and cut down on transportation costs.

'Often when different parts of the production process are centred in different parts of the UK we have had to transport tapes around for preview, review and approval,' he said.

'Using digital networks we can do this a lot faster, but it needs to pay for itself.'

But with greater digitising comes the threat of content being pirated or falling into the hands of non-licence fee payers.

'If someone is determined enough they will get what they want, even if it means stealing and copying a tape, but if you look at the majority of our audience all they want to do is consume our programming not pirate it,' he said.

The BBC is looking at ways to securely encrypt its digital content, with the iMP and Creative Archive trials including digital rights management applications.

Rights issues are an area the BBC needs to work out when making independently-produced movies and content, screened by the BBC, available digitally.

'We can only publish what we have the rights to publish; these new services are putting a pressure on us in terms of deciding how we negotiate rights,' said Cheesbrough.

Digital rights aside, by revolutionising its production technology the BBC will be able to make significant financial savings.

'The cost savings will vary for different programmes and genres, but they are going to be more than 10 per cent,' said Cheesbrough.

But the digital technology will only be of real benefit if it can improve creativity in programming.

'We can build an infrastructure, but digital Britain will only come to life if it also becomes a creative space in which the best ideas and the best talent can meet audiences who are hungry for originality and quality,' said Thompson.

'In the end, the future will not be about pathways and platforms but about content.'

Digitising the BBC

*The BBC has eight digital TV channels, 14 radio stations, BBC online web sites and interactive TV, which has been used by more than two million people in the UK

*More than 1,000 people will trial the interactive Media Player service over the next three months, allowing them to watch encrypted BBC programmes over broadband