BBC Mulls Content Cuts As Funding Crisis Hits Corporation

The New Diplomat
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By Kolawole Ojebisi

The British Broadcasting Corporation (BBC) is considering cutting the volume of its content as the media organisation’s income takes a plunge.

The BBC said on Monday that its real income has fallen by £1 billion ($1.3 billion) adding that the situation this year is comparable to 2010.

With this development the organisation warned of “unprecedented” challenges to funding its content.

“Without intervention, it will be difficult to maintain the current ambition and volume of UK content,” the BBC said in its strategic plan for the year ahead.

BBC Group also added that it expects income of £6.1 billion in 2025/26, which represents a £1 billion annual drop since 2010 once inflation is taken into account.

“We have delivered significant efficiencies, including cutting 2,000 roles over the last five years but we have reached the limit of substantial future gains from this approach,” warned the annual report.

The BBC “faces an unprecedented content funding challenge, as co-production partnerships with global streamers and media companies have reduced across the sector,” it added.

The BBC is funded primarily through a licence fee on television owners, but that has been frozen for the past two years while general inflation has risen sharply.

The government is currently reviewing the BBC’s Royal Charter, which outlines the corporation’s governance.

“We believe the new Charter should secure a universal public service BBC for a generation,” urged the broadcaster.

“This requires a Charter that: safeguards the BBC’s independence; ensures that it is sustainable for the long term, including sufficient, reliable funding; and allows the BBC to respond to changing audience needs with speed and agility,” it added.

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