article: BBC programmes are set to move online as part of a new 'internet first' strategy designed to compete with web services such as Netflix and Amazon. Corporation bosses fear they could be losing younger viewers who are used to watching video online rather than through their TVs, and are promoting digital services in a bid to tackle the problem. But the revelation could spark controversy over the future of the licence fee, because viewers are currently able to use the BBC's online services without paying for them. Going digital: Popular TV shows such as Poldark could one day be migrating to the web as part of BBC plans to become an 'internet first' broadcaster . Matthew Postgate, the BBC's chief technology officer, said in an interview that the corporation needs to remain 'relevant' to a new generation of viewers. 'It's my job over the next five years to put in place the production foundations to be internet first,' he told the Financial Times. He added that traditional media groups such as the BBC would have to 'learn lessons' if they want to 'compete with organisations that were born in the digital age', which are not tied to the methods used to produce broadcast TV. Online services such as Netflix and Amazon have increasingly been producing their own programmes in a bid to take on major broadcasters, while catch-up services including BBC iPlayer have been growing in popularity. Netflix has won plaudits for shows such as House of Cards and Orange Is the New Black, which can only be watched by subscribers who access the service through their computer, tablet or internet-enabled TV. Hit: Strictly Come Dancing is another popular BBC show which could be affected by the 'internet first' plan . Popular: But shows such as Eastenders, pictured, have lost viewers thanks to the rise of the internet . The rise of catch-up TV, as well as the proliferation of digital services, has caused audiences to shrink dramatically - for example, the remake of Poldark starring Aidan Turner attracted 6.9million viewers for its first episode, less than half the number who tuned in to the original series 40 years ago. While other programmes such as Eastenders and Strictly Come Dancing remain popular, primetime audiences are still much smaller than the highs they reached before the advent of the internet. Matthew Postgate was appointed the BBC's chief technology officer on a salary of £225,000 - more than the Prime Minister - in July last year. He was previously head of BBC research and development, working on digital projects including high-definition internet broadcasts. Mr Postgate was also involved with developing the BBC iPlayer, and was at one point in charge of the corporation's mobile services. He was educated at Bristol University, and worked as a telecommunications consultant before joining the BBC in 2003. Mr Postgate was appointed last year on a salary of £225,000 to pick up the pieces after the failure of the £100million Digital Media Initiative, which was scrapped by director-general Tony Hall. The strategy was designed to streamline all the BBC's online services and give its staff access to the corporation's whole archive at once, but it collapsed in 2013. Technology chief John Linwood was sacked over the fiasco, but last year he successfully sued the BBC for unfair dismissal. Mr Postgate told the FT: 'Rather than trying to deliver one large project, we've been taking off the different components and moving forward.' Last year it was announced that BBC Three, the youth-oriented digital TV channel, will be taken off the air and become internet-only. The move could herald a new wave of services moving to the internet - but Mr Postgate insisted that other channels will remain on broadcast TV for the time being, saying: 'BBC Three was a brand that you could move from one platform to another relatively easily.' Mr Postgate also predicted that more and more BBC services will be consumed via mobile phones and tablet computers rather than on traditional channels. He wrote in a blog post last night: 'We will increasingly use the internet to deliver programmes and services to you in the future - whether that's to the big screen in the living room or the smartphones and tablets scattered over the house.' Radio 1, which is also aimed primarily at young people, has expanded its online offerings via sites such as YouTube - controller Ben Cooper said last month that it was 'no longer a music station' but a 'multi-platform youth music brand'. Future: The BBC has increasingly been promoting its services on digital platforms such as iPlayer . Figures released in November showed that children spend half as much time as adults watching ordinary broadcast TV, but much more time watching online video. If the trend continues, the television licence fee could be under threat as viewers opt out of the £145.50 payment and watch online instead. It is thought that around 500,000 people take advantage of the so-called 'iPlayer loophole', but that figure is likely to rise if more BBC services become online-only. MPs recently called for the licence fee to be amended so that viewers who only use catch-up services will have to pay it. Mr Postgate said in a statement today: 'I'm not talking about the BBC only putting its content online. My role is to make sure that the BBC’s technologies that underpin everything we do - from our newsroom infrastructure and new in-the-field production and editing tools, to how we keep the BBC on air and online - are set up in the best possible way, and take advantage of new internet-based technologies.' When the Digital Media Initiative (DMI) was launched in 2008, it was hailed by BBC chiefs as 'the single most important initiative we are working on'. But before a year had elapsed, it was floundering so badly insiders referred to it as 'Don't Mention It.' The BBC originally appointed IT firm Siemens to implement the scheme. But it ditched the company in 2009 as the project floundered and took it back in-house. By then, £26million had already been wasted but it is understood the BBC later recouped the cost from Siemens. In February 2011, the National Audit Office condemned the corporation over its handling of the DMI after it ran 21 months behind schedule. The public spending watchdog found the expected gains had been overstated and the difficulty of delivering it was underestimated. The Public Accounts Committee criticised the BBC for awarding the contract to Siemens without putting it out to open tender. The project was meant to allow production staff to access all video and audio material on their computers. As hundreds of staff moved to the corporation's new headquarters in Salford, this would prevent them having to transport tapes of archive material by road from London, reducing production costs. But the costs of the project continued to spiral to £98.4million until it was finally halted in May 2013.
highlights: BBC is aiming to compete with internet services which have captured younger generation of viewers .
  New technology boss vows to make the corporation 'internet first'
  But the move will raise questions over the future of the TV licence fee .
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