The move will mean that advertising could be introduced on to the iPlayer unless BBC Worldwide decides to charge viewers to use the service.
Executives have yet to decide which option will be introduced, but they said the Trust's decision will enable them to raise funds needed after the Government's decision to freeze the licence fee.
It is estimated that global audiences would pay up to $10 for an episode of its most popular shows.
Mr Smith said: "Not only will that mean international fans of, for example, Doctor Who can get their fix legitimately [rather than downloading programmes illegally], but it has the potential of opening up a new revenue stream for the entire UK production industry, alongside sales to traditional broadcasters.
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