BBC director general Matt Brittin, who took the helm on May 27, told MPs on Wednesday that the TV licence fee is "yesterday's model" and "no longer fit for purpose", proposing instead a compulsory household levy collected via utility bills. Payment has fallen to 80% of households for the £180-a-year charge.
Brittin, appearing before the Culture, Media and Sport Select Committee, outlined the corporation's cost-cutting drive, which has already axed more than 2,000 roles to save £500m. He ruled out the BBC entering TV advertising but confirmed discussions with Channel 4 on funding models. BBC chair Samir Shah warned that a subscription model would narrow programming to subscriber-driving content alone.
The broadcaster expects to address funding reform further at the Edinburgh TV Festival in late August, where Brittin is scheduled to speak on August 27. The BBC's current royal charter expires at the end of 2027.