The government has paved the way for the BBC to run adverts and launch a Netflix-style subscription service as part of a wide-reaching consultation to make the broadcaster sustainable.
Along with its proposals to grow its commercial income and reduce its reliance on the £174.50 licence fee, ministers have also suggested that poorer households pay less as part of measures for targeted “concessions”.
Launching the process to renew the BBC’s charter for the next ten years from 2028, the culture secretary compared the corporation to the NHS.
Lisa Nandy said: “The BBC is an institution like no other. For over 100 years it has been at the heart of our national life and a light on the hill for people across the world.
“I believe the BBC, alongside the NHS, is one of the two most important institutions in our country. While one is fundamental to the health of our people, the other is fundamental to the health of our democracy. This green paper begins the conversation about how to ensure it remains the beating heart of our nation for decades to come.”
The initial consultation, which will run for 12 weeks before a white paper is published, aims to make the BBC more “sustainable” by further diversifying its income, which totalled £5.9 billion last year.
Changes include the prospect of allowing the BBC to run adverts across all of its services, in a move that would dismay its commercial broadcast rivals. Limiting the BBC’s ability to carry advertising to its website and videos posted on YouTube was also floated.
Hits such as The Traitors and its celebrity version could attract commercial interest
STUDIO LAMBERT/PAUL CHAPPELLS/BBC
Nandy also opened the door to BBC launching an “expansive” Netflix-style subscription service, under which it charges for access to more commercial programmes, such as entertainment shows including The Traitors and Strictly Come Dancing.
“Content that remained universally available could include genres such as news, current affairs, factual and children’s TV. More commercially viable TV content could be provided on a fully commercial basis,” it said.
The paper acknowledged that there would be “challenges” in deciding whether certain British dramas, such as Waterloo Road, and sporting events should sit behind a paywall.
Charging a “targeted top-up” paywall around historic BBC shows was also floated as a potential option.
“Audiences now have much greater choice in what media they consume, and how and when they do so,” the green paper said. “In this environment, where they are now accustomed to accessing advertising or subscription-funded content everywhere, there is a sense among some audiences that the licence fee has become outdated.”
The charter review also focuses on ensuring that the BBC “commands the public’s trust”.
This includes giving it new powers to counter mis- and disinformation, improving the transparency of its editorial decision-making and introducing specific duties around workplace conduct.
Tim Davie, the outgoing BBC director-general, has previously admitted that the licence fee is “regressive” and floated the potential for wealthier households to pay more.
Nandy has also set out an ambition to strengthen its independence by assessing the government’s role in board appointments, after questions were raised following the resignation of Davie and Deborah Turness, former chief executive of BBC News.
The BBC will also be asked to focus on the role it plays in the nations and regions by placing new obligations on it to invest outside of London.
“The BBC is the cornerstone of the UK’s creative industries, generating £5 billion for the UK economy each year. It is the single biggest investor in UK content, employs more than 20,000 people and supports a highly trained workforce,” the DCMS said.
“The charter review is an opportunity to futureproof the BBC to make sure it not only survives, but thrives for decades to come. It will seek to ensure that audiences continue to have access to high quality British drama, entertainment and educational content, as well as the corporation’s world-class journalism.”
The BBC will be expected to focus on areas outside London
PHILIP TOSCANO/PA
Any changes would come into effect from 2028, after the expiration of the present ten-year charter.
Last year the BBC generated £3.8 billion from the licence fee after it rose to £174.50 per year. A record £2.2 billion came from BBC Studios — just over a third of its total income.
The gains have offset a steady decline in the number of households paying the fee. Some 23.8 million people are signed up, compared with 25.2 million in 2020.
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The green paper’s release comes as the BBC faces a potential $10 billion lawsuit from President Trump, who accused the corporation of putting “terrible words in my mouth” in an episode of Panorama broadcast last year.
The broadcaster apologised for the “error of judgment” last month, which led to the resignations of Davie and Turness.
Davie will lead the initial response to the green paper, but the negotiations will ultimately conclude under his successor, who is yet to be appointed.