Since BBC Three is a core part of the BBC's digital strategy, it's not that surprising to learn that a lot of money has been invested in the channel's programmes in an attempt to establish the channel as an attraction which in turn will assist the adoption of digital TV. This is a high risk strategy in the medium term since if BBC Three fails as a channel then the BBC's whole digital strategy may fail as a consequence.
Building BBC Three as a unique brand was (and still is) never going to be easy, and it doesn't help that the self-chosen target audience happens to be discerning as well as well served by existing commercial channels. The situation isn't helped by a tough channel remit and a constrained budget, but this might be offset if the channel in turn offers something which is totally unique in a crowded marketplace.
Justifying the licence fee to the fickle 18-35(ish) demographic seems to be a major reason for the provision of a channel like BBC Three, though it would help if BBC Three actually had a larger audience and fewer repeats. It's no good having a few expensive flagship programmes if most of the time is spent showing repeats since the target audience is in turn less likely to watch the channel regularly.
