BBC Could Move To Netflix-Style Model & Carry Ads Under Radical Reform Plans

The BBC could be required to launch a Netflix-style subscription service or carry adverts under radical reforms being considered by the UK government.

In a policy paper setting out a vision for the BBC’s next charter, ministers said they wanted to keep the license fee, but reform and reduce the funding model by supplementing it with commercial revenue.

The big ideas on the table could see the BBC launch a “top-up subscription service” for historical BBC content, or a “more expansive” service putting popular content like The Traitors behind a paywall.

The latter would be a seismic departure from the BBC’s current universal mission to inform, educate and entertain British audiences.

The government’s plan would be to keep BBC News, current affairs, factual, and children’s content universally available through license fee funding, but put other high-rating content behind a paywall.

“There would also be challenges in determining which content is license fee funded and which is not – for example, whether British dramas like Waterloo Road or major sporting events involving the home nations should be offered as public service or paywalled output,” the government said in a 92-page paper.

“However, it could be accompanied by a reduction in the level of the license fee to reflect the BBC’s narrower TV remit, reducing cost pressures on households.”

On ads, the government’s paper said the BBC could be allowed to carry “limited advertising” on its online services, such as bbc.co.uk, or be allowed to show ads across its television platforms.

Again, ministers said this would be accompanied by a reduction in the license fee, which generated £3.8B ($5.1B) of income for the BBC last year. The levy is under pressure in the age of streaming, however, with 2.4M households opting out in recent years.

The proposals to allow the BBC to become more of a commercial animal will likely face substantial pushback from rivals, including ITV, Sky, and Paramount-owned Channel 5. Netflix and other streamers are unlikely to be thrilled about the idea of a big new competitor in the monthly subscription market.

It is also unclear if the BBC would support such proposals. Director general Tim Davie has repeatedly put preserving the BBC’s “universality” at the heart of his charter renewal pitch.

Some observers had expected the government to propose alternatives to the £174.50 license fee, but its policy document backs the funding model, albeit on a reduced scale.

“As the license fee is a tried and tested public funding model, we are not considering replacing it with alternative forms of public funding, such as a new tax on households, funding through general taxation, or introducing a levy on the revenues of streaming services to fund the BBC,” the document said.

Culture secretary Lisa Nandy has previously described the license fee as “insufficient” and “deeply regressive,” and the government will explore ways of boosting concessions for lower-income households.

BBC charter renewal is a once-in-a-decade review of the broadcaster’s funding and operating agreement, with the government’s policy paper forming the backbone of a public consultation that will run until March 10, 2026.

A white paper will be published next year, setting in stone some of the reforms being made to the BBC. A draft of the new charter will then be published and debated in Parliament before the current one expires at the end of 2027.

Other reforms being considered by the government include extending the BBC charter beyond a decade to give it greater certainty over its future. The policy paper points to the Bank of England and BFI, which have permanent charters.

The BBC could be asked to create a centralized workplace misconduct complaints system, bringing together internal records with concerns raised by people working on shows produced by external suppliers. 

Ministers are looking at compelling the BBC to move more commissioning and budgetary decision-making powers outside of London, including devolving content spend, enhancing quotas, and setting targets for moving senior commissioners to the nations and regions.

The government will explore ways to empower the BBC to “make better use of external video-sharing platforms to deliver its public service content,” which suggests support for putting more shows on YouTube.

The government also wants to cut red tape to allow the BBC to boost partnerships with rivals, such as Channel 4, and reduce the time it takes Ofcom to conduct market impact reviews when the BBC makes changes to its services.

BBC boss Davie said: “We welcome the publication of the government’s green paper and the start of the public consultation on the future of the BBC. We urge everyone who cares about the success of the UK’s world-leading creative industries to have their say.

“At the BBC, we want change, so we can continue to deliver for the UK for generations to come. We want to secure a public service BBC that is independent, sustainably funded for the long term, and meets our audience’s needs.”