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BBC ‘Held Back’ by Licence Fee, Says Director-General
Matt Brittin said the BBC needs universal, sustainable funding as it weighs 550 job cuts and a wider 2,000-role savings plan.
On Wednesday, BBC Director-General Matt Brittin told the Culture, Media and Sport Select Committee that the £180 licence fee is "no longer fit for purpose," describing it as "yesterday's model" of consumption.
Shifting audience habits toward on-demand and subscription services have challenged the licence fee, which remains tied to linear television and iPlayer usage despite evolving viewing patterns.
Brittin argued that while a subscription model like Netflix or Disney+ is "compelling in terms of extending" scope, commercial advertising would "take it away from others" and cause a "devastating impact on the economy."
Government ministers are expected to outline long-term funding plans in a White Paper later this year as part of the Charter Review process.
The broadcaster is reducing costs by 10% over three years, a plan involving around 2,000 job cuts as the BBC reshapes operations for future sustainability.