BBC says ‘irreversible’ trends mean it will not survive without major overhaul | BBC
The BBC has said it faces “permanent and irreversible” trends that will ensure it cannot survive without a major overhaul, revealing a stark gap between the number of people consuming its content and the number of people paying the license fee.
In its opening response to government talks on its future, the company said 94 per cent of people in the UK continue to use the BBC each month, but fewer than 80 per cent of households contribute to the license fee.
He said the rise of streaming services and digital platforms such as YouTube had caused blurring and confusion about when the license fee should be paid, suggesting there was “a mismatch” between TV licensing rules based on viewing live TV and the country’s viewing habits.
“The BBC has gone from being a service that almost every household pays for and is accustomed to, to a service that almost every household uses but millions do not pay for,” the BBC said.
The broadcaster suggested that the license fee could actually fall on some groups and become more progressive if the government found a way to get more people to pay the license fee and close the gap between those who consume and those who fund production.
The BBC warned that unless changes are made, there will be a “tipping point” where those still paying the license fee will resent having to do so, leading to further non-payment rates. He said the current rules would lead to “reduced numbers of people paying for a service designed for and available to everyone.”
His official response to his contract renewal process, the future of which he will consult with the government on, suggested that other platforms such as Netflix or YouTube could do more to warn people when they are watching content that requires a TV licence.
Viewers watching any live TV such as YouTube or streaming platforms need a TV licence, but this is clearly not well known and not effectively enforced.
The 114-page document does not spell out exactly what the new rules are believed to cover, although the plans suggest the BBC wants to broaden and simplify the scope of when someone has to pay the license fee. But insiders say tough choices will have to be made and that trying to maintain the status quo on the scope of the license fee will only lead to controlled decline.
The company document states: “The BBC agrees with the government that a more sustainable funding model is needed. The current model fails to sustain the BBC’s public service mission into the future. With 94% of people using the BBC each month and less than 80% of households contributing, reform is needed to ensure adequate funding for everyone in a sustainable and fair way.”
The BBC is also proposing to host content from ITV, Channel 4 and other public service broadcasters on iPlayer, in a bid to create a UK-based platform that could compete with platforms like Netflix and YouTube.
He said: “In the new world of global broadcasting, it is becoming increasingly clear that only a few destinations will be successful in maintaining audience scale and there is a real danger that none of these destinations will be UK-based. “We would recommend that iPlayer be rolled out to other PSBs. [public service broadcasters] (and its commercial services) support business models (i.e. advertising or subscription) while keeping BBC public service content ad-free.
“This could help the UK maintain a streaming platform that competes with global services and remains the first choice for viewers. We will also explore opening up BBC Sounds to third parties and creators in the UK.”
In the next step of the process, the BBC will hold intensive talks with ministers before presenting more robust government proposals later in the year.
Overall, the document acknowledged the major changes in media consumption that the BBC had to adapt to. “The precise set of rules requiring households to obtain a license no longer reflects typical viewer behavior in many UK households,” he said.
“The TV license provides for content being consumed via ‘live TV’ (i.e. watching as it is broadcast). However, on-demand consumption cannot be licensed unless it is BBC content consumed via iPlayer.”
