The BBC’s TV Licence fee is facing its highest evasion rate in nearly 30 years, streaming services are dominating our viewing habits, and British content is getting buried under Netflix and Prime Video buttons on our remotes.
But BBC Chairman Samir Shah isn’t backing down. In a landmark speech at Leeds Conservatoire this week, he laid out radical plans to transform how the broadcaster operates – from changing how you find BBC shows on your streaming device, to potentially making the BBC’s Royal Charter permanent, just like the Bank of England’s.
Most surprisingly, despite record-high licence fee evasion rates of 11.30%, Shah firmly rejected both advertising and subscription models for the BBC’s future.
Instead, he announced plans for a major public consultation next year, giving viewers a chance to shape how the BBC should be funded and run in the digital age.
Your Streaming Devices May Get A Major Makeover
Remember when BBC One was always Channel 1 (or 101), and ITV was Channel 3 (or 103)?
While that’s still mostly the case if you’re watching “traditional” TV like Freeview or Sky, it’s a totally different story if streaming apps dominate your TV viewing.
In his speech, Shah painted a stark picture of this shift: “Look at a typical Smart TV home screen. There is no EPG in sight.”
As we previously reported, Public Service Broadcasters (PSBs) have been fighting for better visibility on streaming platforms.
Currently, streaming platforms like Amazon’s Fire TV and Roku often prioritise their own services or those who pay for prominence.
That’s why you’ll find Netflix and Prime Video buttons on your Fire TV remote, but not BBC iPlayer.
But since those services carry less British programming than our own PSBs – the local TV industry ends up being at a disadvantage.
The situation today is particularly challenging – while British content makes up about 80% of traditional broadcast TV, Shah revealed it accounts for only 10% of on-demand viewing on streaming services.
The BBC Chair wants the upcoming Media Bill to ensure proper prominence for PSB apps on digital platforms.
As he put it in his speech, he plans to “work with my PSB colleagues and together impress upon the Government and Ofcom the importance of significant prominence in the implementation of the new Media Act.”
This could mean, for example, a dedicated iPlayer button on remotes, prime positions on home screens, and better visibility in search results.
However, as we previously reported, platform operators like Sky have concerns. Alistair Law, Sky’s Director of Policy, warned that overly strict prominence rules could override what viewers actually want to watch:
“If you imagine somebody using a Sky remote to search for Brassic, one of our comedies… it would be disproportionate for the first search results returned to be non-Brassic programmes from the public service broadcasters.”
Project Kangaroo: A Cautionary Tale of Slow Regulation
Shah highlighted a fascinating “what if” moment in British TV history that demonstrates why regulatory reform is important.
Back in 2009, the BBC, ITV and Channel 4 attempted to launch Project Kangaroo – essentially a British Netflix, long before Netflix dominated streaming.
“The Competition Commission blocked it on the grounds that it was too much of a threat to the emerging VOD market,” Shah explained.
“The result? Well we know the result don’t we. Netflix, Disney, Apple, Amazon – they steal a march on us, and we are still playing catch up.”
This regulatory slowness continues today.
In his speech, Shah pointed out that “The BBC is currently about halfway through what is likely to be a more than year-long process to launch four new music radio station extensions (our first by the way for over twenty years), in response to changes in audience listening habits.
“Meanwhile, in the last few weeks, commercial radio has launched 13 new radio stations, and over 40 in the past six years.
“PSBs need to be able to move with greater agility, flexibility, and pace,” he insisted. “We need the freedom to think innovatively and creatively about how we work with each other: collaborating where it makes sense and competing where it matters.”
A Forever BBC? The Radical Charter Proposal
Here’s something that might surprise you: unlike other Royal Charter organisations, the BBC needs its charter renewed every decade. Shah dropped a bombshell by questioning this arrangement.
“I was surprised to learn that other organisations brought into being by Royal Charter such as The British Council, the Bank of England have no such expiry date,” Shah revealed.
“In fact, there are more than 1,000 Charter bodies, and I am not aware of any other that needs to be renewed like the BBC.”
The current system means the BBC spends about two years preparing for each renewal, plus undergoes mid-Charter assessments. As Shah puts it, this creates “an almost perpetual Government review over the BBC.”
This creates a problematic dynamic where the BBC is constantly under political pressure. Shah explained that as long as the BBC needs periodic Charter renewal from the government, its independence could be compromised.
Every decision the BBC makes has to be weighed against how it might affect its next Charter renewal, potentially influencing editorial decisions and long-term planning.
This is particularly concerning given that the BBC’s role includes holding the government to account through its journalism.
His solution? Either make the BBC’s charter permanent or establish it through legislation instead.
While this would require new ways of reviewing the BBC’s performance, Shah argues it would strengthen the broadcaster’s independence from political pressure.
The Licence Fee Challenge
The TV Licence fee faces unprecedented challenges. As we reported in July, evasion rates have soared to 11.30% – their highest level in nearly three decades.
The number of homes declaring they don’t need a licence has jumped by half a million in just one year, reaching 3.3 million.
Shah acknowledged the need to modernise BBC funding but firmly rejected both advertising and subscription models.
Why? He argues they would “introduce a commercial agenda, which means the priority becomes, not how you serve British audiences, but how you profit from them.”
He was particularly critical of putting BBC content behind a paywall: “It prioritises the needs of the better off, leaves behind the poorer, the more marginalised or the digitally disenfranchised.”
However, Shah’s main concern isn’t just about the funding model – it’s about who controls it. He revealed how government decisions have significantly impacted BBC finances:
“In 2010, the Government decided that – rather than pay for the BBC World Service as it had done since its birth in 1932 – the licence fee should fund it.
“And then, in 2015, the Government announced that it would no longer be paying for free TV licences for those over the age of seventy-five.”
These changes, combined with recent licence fee freezes, have cost the BBC hundreds of millions of pounds. Shah calculates these two policy changes alone now cost about £400 million annually.
What Happens Next?
While these proposals are ambitious, they’re just the beginning of a larger conversation about the BBC’s future. The broadcaster plans to launch a public engagement process next year, giving viewers a chance to shape these decisions.
“Could we all do more to put audiences centre stage?” Shah asked, suggesting everything from social media campaigns to workshops in schools to gather public opinion.
With streaming services continuing to grow, PSB prominence still unresolved, and licence fee evasion at record levels, the BBC faces some of its biggest challenges yet.
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