The Royal Shakespeare Company is drawing up new plans for its commercial development, which could see it expanding into publishing, film and television.

The troubled RSC, which is �1.3m in debt, may now endorse texts of Shakespeare classics for the first time.

It may also back a range of school books, online materials and other merchandise.

Any profit will be reinvested in the artistic life of the RSC

Elaine Bedell, RSC Enterprises

The plan is part of an attempt by the company's new trading arm, RSC Enterprises, to generate revenue for new productions.

"The company doesn't exist on any media platform other than stage," said Elaine Bedell, executive director of RSC Enterprises.

"But it could establish a presence in film, television, e-learning and publishing through this project."

"It was realised the arts subsidy plus box office income would not be enough to sustain a dynamic theatre company in the 21st Century."

"Any profit will be reinvested in the artistic life of the RSC."

Ms Bedell added she was due to present her plans to the board of RSC Enterprises in November.

Michael Boyd takes over as artistic director next March

She would also be looking at producing merchandise for other countries where the company has toured, including the US and Japan.

Officials said the plans were in no way connected to the change of artistic director at the RSC.

Adrian Noble, who also directed the West End hit Chitty Chitty Bang, announced in April he will be leaving the company when his contract expires in March 2003.

Michael Boyd, an existing associate director of the RSC, will take over the role.

The RSC has also been criticised recently for plans to knock down its current home in Stratford-Upon-Avon and build a new theatre.