The BBC has said it faces “permanent and irreversible” trends that mean it cannot survive without major reform, as it revealed a stark divergence between the number of people consuming its content and those paying the license fee.
In its initial response to government talks about its future, the corporation said 94% of people in the UK continued to use the BBC each month, but less than 80% of households contributed to the license fee.
He said the rise of streaming services and digital platforms such as YouTube had caused confusion over when the license fee had to be paid, suggesting there was “a mismatch” between television licensing rules – based on watching live television – and the country’s viewing habits.
“The BBC has gone from a service that almost all households paid for and used to one that almost all households use but for which millions do not pay,” he said.
The broadcaster suggested that the license fee could actually be reduced for some groups and become more progressive if the government found a way to ensure more people paid for it, closing the gap between those who consume and those who finance its production.
The BBC warned that without the change, there would be a “tipping point” where those still paying the license fee would resent having to do so, fueling even greater defaults. He said the current rules would leave a “shrinking number of people paying for a service designed and made available to everyone”.
Its official response to the charter renewal process, in which it will negotiate with the government over its future, suggested that other platforms such as Netflix or YouTube could do more to alert people when they were watching content that required a television license.
Audiences watching live TV on YouTube or streaming platforms need a TV licence, but this is apparently not well known and not enforced effectively.
While the plans suggest the BBC wants to expand and simplify when someone needs to pay the license fee, its 114-page document does not detail exactly what it believes the new rules should cover. However, insiders say tough decisions will have to be made and trying to maintain the status quo in terms of what the license fee covers will only lead to a controlled decline.
The corporation’s document states: “The BBC agrees with the government that a more sustainable funding model is needed. The current model cannot sustain the BBC’s public service mission into the future. When 94% of people use the BBC each month and less than 80% of households contribute, reform is needed to provide sufficient funding in a way that is sustainable and fair for all.”
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 British-based platform that can compete with the likes of Netflix and YouTube.
It said: “It is increasingly clear that in the new world of global streaming, only a few destinations will manage to retain audience scale, and that there is a real danger that none of those destinations will be UK-owned. “We propose that iPlayer could be opened up to other PSBs (public service broadcasters) (and their commercial services), with support for their business models (i.e. advertising or subscription), while keeping the BBC’s public service content ad-free.
“This could help ensure the UK retains a streaming platform that competes with global services and remains the first choice for audiences. We will also explore the possibility of opening up BBC Sounds to third parties and UK creators.”
In the next step of the process, the BBC will engage in intensive discussions with ministers before presenting stronger government proposals later this year.
Overall, the document acknowledged the massive changes in media consumption that the BBC was having to adapt to. “The precise set of rules requiring households to have a license no longer reflects typical audience behavior among many households in the UK,” he said.
“The television license is based on content consumed via ‘live TV’ (i.e. watched while it is broadcast). But on-demand consumption is not subject to licence, unless it is BBC content consumed via iPlayer.”
