The BBC Director General made the remarks ahead of an announcement of how the broadcaster plans to change services to plug a hole in finances in the coming years.
Tim Davie told delegates at last week’s Deloitte and Enders Media Conference that changes to BBC services are coming. The BBC has to plug a funding gap caused by the licence fee freeze. It also plans to “repurpose” its services and operations to ensure it continued to serve audiences.
The BBC is conducting a detailed review of its services and programmes to see how its services are still relevant to viewers. Many of its programmes, channels and radio stations are based on how viewers and listeners consumed content two decades ago. Davie told delegates the BBC will “shut a few things, reduce volume.”
BBC Four was once thought to be threatened by closure. But Davie has pushed ahead with repurposing the channel as an archive channel, slowly phasing out new programmes, casting doubts over closure rumours.
At the same time, the BBC Board has been considering potential alternatives to the licence fee beyond 2027, including a household levy linked more closely to income. Commercial broadcasters vehemently oppose the BBC being allowed to show advertising.
A 100% subscription model would threaten the BBC’s obligation to provide a universal public service. Until free-to-air digital terrestrial TV, FM and DAB broadcasts are replaced by online streaming, it is also technically impossible to deliver.
What to do about old technology platforms..?
The BBC also faces decisions as to how to manage the retirement of some of its oldest technology platforms, used by an ever decreasing, but highly vocal minority of viewers, including AM radio. The broadcaster appears to have fallen out of favour with DAB, instead moving to push online service BBC Sounds. Until mobile networks are better equipped to handle uninterrupted streaming in cars, DAB will continue to provide a necessary service for many.
Meanwhile, the BBC is also pushing ahead with a full switch to HD broadcasting. This would pave the way for the BBC to turn off SD duplicate channels. However, it is subject to Sky confirming it will end remaining support for its legacy SD receivers. Sky has already operated schemes offering subscribers a free upgrade to HD-compatible receivers. Virgin has already switched to all-HD BBC distribution. Freeview will likely retain SD channels for some time, to cater for the platform’s older audience. Unlike digital switchover, there is unlikely to be any government support to fund a help scheme to encourage households to upgrade.
Could the BBC save all the money by getting rid of its highly paid stars?
The shortfall caused by the licence fee freeze is £1.4 billion.
The BBC’s top 10 paid stars earned £5.3 million in 2020-21* or £0.0053 billion^.
£0.0053 billion of £1.4 billion still leaves £1.3947 billion to find.
In other words, it’s a drop in the ocean.
* Last available figures at time of publication.
^Standard current calculation of a billion (a thousand million), as adopted internationally in English speaking countries. The old British billion was replaced in official statistics during the 1970s.