Davie will oversee all BBC radio stations, the three BBC orchestras in England, the BBC Singers, the BBC Proms, classical music and performance television, and radio resources.
He will also be responsible for radio drama, television music entertainment and all the corporations audio output.
Davie, whose full job title at present is BBC director of marketing, communications and audiences, has kept a relatively low profile, although last year he was revealed to be the highest-paid public sector communications officer in 2007, with earnings of £406,000.
He is a relative newcomer to the BBC, joining in 2005 from PepsiCo Europe, where he was vice-president of marketing and franchise. He took over from Andy Duncan, who left to join Channel 4.
Davie has overseen a review of the Corporation's creative roster and digital advertising rosters, as well as cutbacks in the marketing departments.
Mark Thompson, director-general of the BBC, said: "Radio is at the heart of the BBC's public service mission and millions of listeners rely on its quality, range and integrity every day.
"Tim's drive, knowledge and sheer love of the medium will ensure that BBC radio remains creatively strong and vibrant in the years to come," he added. "His insight into audiences and their expectations of the BBC will be particularly valuable."
Jenny Abramsky revealed in April that she was leaving the BBC after almost 40 years, to chair the Heritage Lottery Fund.
Abramsky has run the Corporation's national radio stations since 1999, before which she was head of the BBC's continuous news department.
She was responsible for setting up Radio 5 Live, News 24 and News Online. She has also been editor of Radio 4's Today, PM and the World at One programmes.
Jennifer Whitehead, Media Week, 27 June 2008, 2:22pm
Davie to oversee BBC's audio and music output
LONDON - The BBC has promoted marketing director Tim Davie to take over as director of BBC audio and music from corporation veteran Jenny Abramsky.
Tim Davie
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