• Subscribe
  • Advertise
    • Media Info
    • Terms & Conditions for Advertisers
    • Mechanical Data

Broadband TV News

Independent. Since 2003

  • Home
  • News Line
    • Central & East Europe
    • People
  • TV
    • On Demand/VOD
    • IPTV
    • Cable
    • Satellite
    • Terrestrial
    • Distribution
  • Business
  • Tech
  • Columns
    • Chris Dziadul
    • Julian Clover
    • Robert Briel
  • Events
    • Events Diary
    • BTN Events
    • Events Coverage
    • Submit the details of your event
  • Features
  • Resources
    • White Papers

BBC facing “significant challenges” to income

January 20, 2021 12.40 Europe/London By Julian Clover

The BBC is yet to tackle the most difficult aspects of its savings programme and is facing “significant challenges” to its income, according to a report from the National Audit Office (NAO).

It says for three of the past five years, the BBC’s costs have outstripped its income, with it making a loss of £119 million in 2019-20.

Part of the reason for the losses is that between 2017-18 and 2019-20 almost 450,000 fewer non-over-75 households bought TV licences due to changes in viewing habits brought about by the continued growth of streaming services.

The BBC has expanded its own online TV services, making content available on iPlayer for 12 months instead of 30 days, and is collaborating with ITV on the Britbox service in the UK, the United States and Australia, amongst other territories.

But the NAO still wants the BBC to set out a clear strategy for its aspirations for technology and personalisation of its services, with a focus on timing and how this will be funded. The BBC says it will do this in its Annual Plan for 2021/22 in March 2021.

“The BBC faces significant financial challenges as it embarks upon licence fee negotiations and its mid-term charter review. It has made significant cost savings and has identified the need for more with licence fee income under pressure,” said Gareth Davies, the head of the NAO. “As decisions about the licence fee are made, the BBC needs to develop a clear financial plan for the future setting out where it will invest and how it will continue to make savings. Without such a plan, it will be difficult for the BBC to effectively implement its new strategic priorities.”

In response the BBC said: “Since 2010/11, to the end of the previous financial year, we have calculated that the BBC has seen a real-term reduction in licence fee revenue of around 31%, initially largely through the freezing of the licence fee for six years and significant new obligations being placed on the BBC then, more recently as the NAO highlight, due to the gradual withdrawal of government funding for free licences for the over 75s.

“During this time, again as the NAO have reported, there have been high levels of cost inflation within the entertainment industry, not least the result of the spending power of new market entrants. The impacts of Covid-19 have also contributed to the BBC internal savings target across this period being increased from £800 million to close to £1 billion per year.”

  • Click to share on Facebook (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on WhatsApp (Opens in new window)

Related

Filed Under: Newsline, TV Tagged With: BBC Edited: 20 January 2021 12:42

Avatar photo

About Julian Clover

Julian Clover is a Media and Technology journalist based in Cambridge, UK. He works in online and printed media. Julian is also a voice on local radio. You can talk to Julian on Twitter @julianclover, on Facebook or by email at jclover@broadbandtvnews.com.

Latest News

  • BBC Annual plan navigates tough financial climate
  • Porsche and ScreenHits TV in global streaming first
  • BBC to review social media guidance
  • Spain ups fast broadband coverage
  • Ukraine enacts and clarifies new media law

Free Ebook

Whitepaper: Why Wi-Fi 6 is Key for ISP Success

Wi-Fi 6 and Wi-Fi 6E client devices are entering the home in an unprecedented way, surpassing 50% market share since their introduction in 2019 (compared to four years for Wi-Fi 5). … [Download the eBook...]

Q & A

Q&A with Przemyslaw Frasunek, Redge Technologies

Broadband TV News speaks with Przemyslaw Frasunek, the CEO of Redge Technologies, about the CEE region OTT landscape and the most effective video security solutions.

Broadband TV News

  • Subscribe
  • About us
  • Contacts
  • Logos & Pictures
  • Privacy Policy
  • Terms and Conditions

Advertising

  • Media Info
  • Terms & Conditions
  • Mechanical Data
  • Video Services

News

  • Latest
  • Central & East Europe
  • TV
  • Tech
  • Streaming
  • Cable
  • Satellite
  • Terrestrial
  • IPTV
  • Business
  • People

Events

  • Events Diary
  • BTN Events
  • Submit the details of your event
  • Media Meet & Greet

Broadband TV News

PO Box 499
Cambridge
United Kingdom
CB1 0AH
news@broadbandtvnews.com

Connect with Us

 

Copyright © 2023 Broadband TV News LLP · Log in

 

Loading Comments...