BT has created a new division called BT Entertainment. The aim of the division will be to drive broadband by offering such services as on-demand music, gaming, TV and movies.

The new division will sit within BT Retail. It will be headed up by CEO Andrew Burke, currently director of value added services at BT Retail.

Dan Marks, president of Universal Studios Networks UK, will join BT Entertainment in the New Year. He will focus on video-over-broadband services. Marks was previously head of programming at Video Networks Limited and has also worked as a film producer.

BT Retail chief executive Pierre Danon, who recently resigned from his post, said: "A focus on Entertainment Service is the natural next step for BT in driving further value for new and existing broadband customers. We feel that we are about to cross the chasm from an early adopter market to one which will fully embrace the full potential of broadband, a fledgling mass market.

"Our customers are telling us that they want more, that fast access alone is not enough, and they are demanding more entertainment and communications services. The purpose of BT’s Entertainment Division is to meet those customer demands by developing, licensing and bringing to market, content value added services such as on-demand music, gaming, television and movies."

Marks added: "The setting up of this division shows BT's commitment to being at the leading edge of broadband developments in the UK and maximising the opportunities enabled within the home."