BBC Chairman Samir Shah has told government officials in the United Kingdom that offering subscriptions to or advertisements on its domestic channels would be contrary to its mission as a public service broadcaster.
Shah affirmed the BBC said it is looking at tapping a “universal service fee” instead of subscriptions or advertising, though he offered no specifics. The BBC’s channels are supported locally by a television tax, called a TV license, that is imposed on households with at least one TV set or that watch linear channels using another device like a phone, computer or streaming TV dongle.
The BBC has been forced to shed hundreds of jobs over the last few years as it projects an operating deficit that could grow if lawmakers wind down the TV tax. To address this, the broadcaster has looked at different models for generating revenue to support its domestic and international channels and services.
BBC Worldwide, the commercial arm of the BBC, is bringing in more money each year. That business segment is responsible for operating nearly all of the BBC’s services in North America, to include licensing the BBC brand to AMC Networks for BBC America in the United States and operating the subscription-based streaming platform Britbox International.
The commercial side of the BBC’s business brought in £1.9 billion (around U.S. $2.4 billion) in revenue during the 2023-24 fiscal year, the broadcaster revealed in July, around 10 percent lower than the £2.1 billion (around U.S. $2.7 billion) earned during the prior fiscal period.
Meanwhile, BBC executives say the operating deficit is expected to grow to £263 million (around U.S. $340 million) this year, and projected to increase to £492 million (around U.S. $635.3 million) by 2025. Executives say the British government’s decision to increase the amount households pay through the TV tax — which it calls a TV license — was not enough to keep up with the country’s rate of inflation.
