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BBC director general Tim Davie has called for license fee reform as part of a wider strategy to transform Britain’s national broadcaster into a more commercial operation.
Davie said Tuesday that we need to “ask fundamental questions about longevity [of the licence fee] in a world that is now full of choices,” outlining a wide-ranging plan to ensure sustained demand for publicly funded companies.
“We are not defensive about the future,” he said at an event hosted by the Royal Television Society in London. “We will need reforms.”
Davie’s speech comes as the broadcaster faces huge financial challenges following the government’s two-year freeze on the license fee, which is owed by all households who watch live TV and provides much of the BBC’s funding.
The company said it was hit by a 30% real-terms cut in funding between 2010 and 2020 as rent failed to keep pace with inflation, prompting an aggressive cost-cutting program that it cut some content and about 1,800 jobs. .
The broadcaster is already looking to cut spending by £500m a year, including across its flagship news program Newsnight — and Davie said on Tuesday it would need to save a further £200 million annually.
Davie warned against the BBC’s move towards a fully commercial model, saying such a move could compromise the corporation’s editorial objectives.
“We live in a world now. . . where algorithms monetize disputes, driven, understandably, by the need to protect traffic as a priority commercial objective,” she said. “We shouldn’t be creating another commercial walled garden.”
Davie, however, has opened the door to introducing a more progressive license fee and rethinking how it will be applied after the current statute expires in 2027. The fee will rise from £10.50 to £169.50 per year starting from April.
The increase comes as the BBC battles falling demand, with UK viewers increasingly likely to opt for streaming platforms such as Netflix over terrestrial TV.
The company said it will seek further partnerships with third parties to increase commercial revenue, similar to the deal it recently signed with US entertainment group Disney to produce the film. Doctor who TV series.
In moving away from broadcast-only production, the BBC has said it will focus on “everything”. [its] commissioning, marketing and social media activities on BBC iPlayer rather than via the linear BBC Three channel.”