Members of the public are being asked to share their thoughts on how the BBC should be funded as part of the Government’s review of its Charter – the agreement under which its UK services operate.
At present much of the corporation’s funding comes from an annual Licence Fee payable by all viewers who watch live content from any broadcaster or who watch the BBC’s iPlayer streaming service.
However the BBC also generates significant commercial income – around £1.8bn last year – from the sale of shows, formats, consumer goods and its portfolio of advert and subscription funded channels both internationally and here in the UK.
The number of households willing to pay the Licence Fee, which last year generated around £3.8 billion, is decline as viewers increasingly migrate to streaming services which offer greater choices of picture and sound quality than the BBC and on easier monthly terms.
As part of the review, Ministers will consider possible “reform of the licence fee, whether licence fee concessions should be updated, and options for the BBC to generate more commercial revenue.”
Options highlighted in the consultation include the BBC making more use of platforms such as YouTube to deliver content to audiences, use of iPlayer being linked to an active TV licence and the introduction of adverts and/or subscriptions for some BBC services.
Anyone wishing to share their views can complete the consultation on gov.uk.
Culture Secretary Lisa Nandy said: “We want the BBC to continue to enrich people’s lives, tell Britain’s story and showcase our values and culture at home and overseas, long into the future.
“My aims for the Charter Review are clear. The BBC must remain fiercely independent, accountable and be able to command public trust. It must reflect the whole of the UK, remain an engine for economic growth and be funded in a way that is sustainable and fair for audiences.
“As a government, we will ensure that this Charter Review is the catalyst that helps the BBC adapt to a rapidly changing media landscape and secures its role at the heart of national life.