The BBC has said it is facing “permanent and irreversible” trends that mean it cannot survive without a major overhaul, as it revealed a stark divergence between the number of people consuming its content and those paying the licence fee.
In its opening response to government talks over its future, the corporation said 94% of people in the UK continued to use the BBC each month, but fewer than 80% of households contributed to the licence fee.
It said the rise of streaming services and digital platforms such as YouTube had caused blurring and confusion around when the licence fee needed to be paid, suggesting there was “a mismatch” between TV licence rules – based on watching live TV – and the nation’s viewing habits.
“The BBC has gone from being a service almost every household paid for and used to one that almost every household uses but millions do not pay for,” it said.
The broadcaster suggested the licence fee could actually fall for some groups and become more progressive if the government found a way to ensure that more people paid for it, closing the gap between those consuming and those funding its output.
The BBC warned that without the change, there would be a “tipping point” at which those still paying the licence fee would resent having to do so, fuelling even greater non-payment. It said the current rules would leave a “diminishing number of people paying for a service designed for 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 TV licence.
Audiences watching any live TV on the likes of YouTube or streaming platforms need a TV licence, but this is apparently not well known and not effectively enforced.
While the plans suggest the BBC wants to widen and simplify when someone needs to pay the licence fee, its 114-page document did not spell out exactly what it believed the new rules should cover. However, insiders say tough choices will have to be made and that trying to maintain the status quo in terms of what is covered by the licence fee will only lead to managed decline.
The corporation’s document states: “The BBC agrees with the government that a more sustainable funding model is needed. The current model cannot maintain the BBC’s public service mission for the future. When 94% of people use the BBC each month yet fewer than 80% of households contribute, reform is needed to deliver sufficient funding in a way that is sustainable and fair for all.”
The BBC is also proposing to host the content of ITV, Channel 4 and other public service broadcasters on iPlayer in an attempt 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 be successful in retaining audience scale, and that there is a real danger that none of those destinations are UK-owned. We are proposing that iPlayer could be opened to other PSBs [public service broadcasters] (and their commercial services), with support for their business models (ie advertising or subscription), whilst keeping BBC public service content advertising-free.
“This could help ensure the UK retains a streaming platform that competes with global services and remains a first choice for audiences. We will also explore opening up BBC Sounds to UK third parties and creators.”
In the next step in the process, the BBC will engage in intense talks with ministers before more solid government proposals later in the year.
Overall, the document acknowledged the massive changes in media consumption to which the BBC was having to adapt. “The precise set of rules that require households to be licensed no longer reflect typical audience behaviour among many households in the UK,” it said.
“The TV licence is predicated upon content being consumed via ‘live TV’ (ie watched as it is being broadcast). But on-demand consumption is not licensable, unless it is BBC content consumed via iPlayer.”