The BBC licence fee system isn’t “fit for purpose” and needs to change, according to the Royal Charter Review from the Digital, Culture, Media and Sport Committee.
New challenges connecting with younger audiences means that BBC content – and how we view it – might change too.
Gen Alpha is the first to grow up with more technology than any generation before them.
They are also among the first to switch to YouTube before any other platform, according to Ofcom.
Currently, the majority of the BBC’s funding comes from the licence fee.
A standard one costs £180 annually per household, but with the rising cost of living and changing audience habits, less people are paying for it.
Dr Samir Shah, Chair of the BBC, described the corporation as reaching a “fork in the road” where one option is to shrink the BBC to manage “decline” and the other is “media sovereignty”.
But how can they achieve this, and what would it mean for audiences?
Social media
If the AI Fruit Love Island debacle has taught us anything, it’s that entertainment is changing to accommodate a generation of doom-scrollers and social media addicts.
Just as video content has shifted from landscape to vertical, the media landscape has changed dramatically to accommodate a changing society.
The report recommends that the government continues to “press YouTube” to highlight BBC content for audiences.
They also suggested working with content creators, a move the corporation is already taking very seriously.
BBC’s Creator Lab launched in 2023 in collaboration with TikTok to give social and digital creators the chance to connect with commissioners.
Since then, the corporation has worked with internet personalities such as Joe Sugg (6.5million followers on Instagram), Mariam Musa (752k followers) and Bea Dux (183k followers) through various programs and projects.
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Funding challenges and an “out of date” model
The review warned that: “If the government does not act now […] there will not be a BBC as we know it by the end of the next Charter period (2028).”
The BBC have lost a reported 1.2 to 1.3billion in the last 10 years.
With cuts to programs like Live at the Apollo and RuPaul’s Drag Race, the impact has already been felt for many audiences.
They also called for the government to “reform the licence fee, so it reflects modern media consumption and is no longer linked to a television set.”
What this means for audiences
The underlying message of the review is that things need to change for the BBC to continue bringing in new audiences.
A heavy focus is on the “creator economy” of social media platforms, which means we may be seeing more BBC news and entertainment there.
Changing the licence fee was one of the biggest talking points of the review.
Whether it’s a household levy or subscription model, it’s hoped the £180 licence fee will see a “drop in the individual cost” and no longer be linked to a single device such as a TV.
A lower cost would encourage more to pay.
Ultimately, the survival of the BBC won’t just depend on how it’s funded, but on whether it can convince younger audiences of its value as a “foundational role as part of British life”.
In concluding their report, the review says this “fork in the road” is also “a moment of opportunity” for the UK to call for “an ambitious and innovating BBC that can meet the challenges of the ever-changing media environment”.
By Kara Joubert
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