Key facts
- BBC's new director general Matt Brittin called the TV licence fee model "a busted flush" and "no longer fit for purpose."
- Brittin suggested a compulsory household levy, potentially collected via utility bills, as an alternative.
- BBC chair Samir Shah expressed openness to a levy, acknowledging it could be seen as a tax.
- Brittin warned that advertising or subscription models would likely lead to cuts in less commercially viable programming.
- The BBC is undergoing significant redundancies and cost-saving measures.
- The BBC's global audience has reached over 500 million people weekly.
The BBC's new director general, Matt Brittin, has publicly stated that the traditional TV licence fee model is outdated and no longer fit for purpose. In his first major appearance since taking over the role, Brittin described the licence fee as "a busted flush" and "yesterday's model."
Brittin, who previously worked at Google, told MPs that while efforts should continue to enforce licence fee collection under the current system, a fundamental shift is needed. He suggested that a compulsory household levy, collected through utility bills like broadband or electricity, could be a viable alternative. BBC chair Samir Shah supported this idea, noting it "would solve a lot of problems" but acknowledged it could be perceived as another tax.
The current TV licence is required for watching or recording live TV, using streaming services, or accessing BBC iPlayer. However, licence fee payments have fallen to 80% of households. Brittin warned that alternative funding models such as advertising or subscriptions would likely force the BBC to reduce programming in areas that generate less commercial revenue, such as children's shows and local news. Shah echoed this concern, stating that a subscription model would lead to a narrower focus on content driving subscriptions, potentially compromising the BBC's universal mission.
These discussions occur as the BBC implements significant cost-saving measures, including approximately 2,000 job redundancies. The corporation's current royal charter, which defines its public mission and funding, expires at the end of 2027, prompting a public review of its future arrangements.
In other comments, Shah addressed the issue of Huw Edwards, stating the presenter "should return the money" from licence fees. Brittin also defended the BBC's coverage of Reform UK on "Question Time" and discussed the upcoming Clacton by-election. He highlighted the BBC's role in uniting the nation, citing England's World Cup win broadcast as an example. Brittin could not provide precise numbers on TV licence purchases via QR codes during the World Cup but noted a "lift in licence fee payment."
Separately, the BBC announced that its global audience has surpassed 500 million people weekly for the first time, representing an 11% year-on-year increase across its news services and BBC Studios.