

Major changes could be coming to the BBC‘s revenue generation model, as UK officials consider advertisements and a Netflix-style subscription model for the service, Deadline reports.
That’s according to a new policy paper published Tuesday in which ministers said the potential changes are motivated by a desire to reduce public funding for the broadcaster, which could instead receive revenue from private sources, per Deadline.
Among the ideas being pushed in the paper are the establishment of a “top-up subscription service” for historical concent on the network, or a “more expansive” platform in which the BBC would lock certain popular programs, such as The Traitors, behind a paywall, according to Deadline.
The proposals are a radical shift from the BBC’s stated mission to inform, educate, and entertain British viewers.
Per Deadline, the government’s proposal would allow BBC News, current affairs, factual, and children’s programming to remain available to all viewers through the service’s traditional license fee funding structure, while viewers would be charged an additional fee to access premium entertainment content.
“There would also be challenges in determining which content is licence fee funded and which is not – for example, whether British dramas like Waterloo Road or major sporting events involving the home nations should be offered as public service or paywalled output,” the government said in the 92-page report, via Deadline.
“However, it could be accompanied by a reduction in the level of the licence fee to reflect the BBC’s narrower TV remit, reducing cost pressures on households.”
The government also said that advertisements could see limited implementation on the BBC’s online channels, or that ads could be brought to its television network as well, according to Deadline.
Minsters stressed that the motivation for such changes would be to reduce the license fee, which brought in £3.8B ($5.1B) for the BBC last year, per Deadline. Some see a reduction in the fee as necessary to retain viewership in the streaming era, as 2.4 million UK households have opted out of the service recently.
The proposal is likely to meet substantial opposition from both streamers and possibly the BBC itself. Private operators such as Netflix, ITV, Sky, and Paramount-owned Channel 5 are unlikely to welcome a large new competitor to the streaming market.
BBC, for its part, may also argue against a tiered model that would give viewers unequal access based on how much they can pay. The company’s director general, Tim Davie, has advocated for preserving the BBC’s “universality” as part of his charter renewal pitch, according to Deadline.
“We welcome the publication of the government’s green paper and the start of the public consultation on the future of the BBC. We urge everyone who cares about the success of the UK’s world-leading creative industries to have their say,” Davie said via Deadline.
“At the BBC, we want change, so we can continue to deliver for the UK for generations to come. We want to secure a public service BBC that is independent, sustainably funded for the long term, and meets our audience’s needs.”
