Former culture secretary warns Netflix revolution has made BBC licence fee unsustainable

Sir John Whittingdale was the last culture secretary to renegotiate the BBC charter including the licence fee but now believes it needs to find a new means of funding

The last culture secretary to renegotiate the BBC charter has claimed that the licence fee is now “unsustainable” and must be replaced by an alternative form of funding.

Sir John Whittingdale has responded to a new report which suggests that viewers have turned off from the BBC and moved to streaming services such as Netflix and Amazon.

It comes just ahead of the Labour government opening talks for the next charter renewal.

While Sir John has not specified a preferred option, theBBC could turn to advertising or a new version of the licence fee. One of the options understood to be on the table is that viewers of Netflix, Amazon and Disney Plus who do not watch the BBC may be forced to pay the licence fee in the future.

Former culture secretary minister Sir John Whittingdale (Dominic Lipinski/PA) (PA Archive)

The former Tory minister said: “The broadcasting landscape has changed dramatically since the last BBC charter review with more and more people choosing to subscribe to streaming services. At the same time, the number refusing to pay a licence fee is growing each year putting increasing pressure on the BBC’s finances.

“It is plain that the compulsory licence fee model cannot be sustained for much longer and that we need to begin the debate now about the role of the BBC going forward and how best to fund it."

He was responding to the report ‘Outdated, Outpaced and Out of Touch: The Future of the BBC Licence Fee’, from Defund the BBC, warning that the BBC is a “shadow of its former self” with serious doubts over the licence fee model being “in the best interests of the taxpaying public” and “unsustainable” in the modern age.

Analysis suggests that, in a record first, Brits will spend more on streaming services than traditional TV packages in 2025. If this proves accurate, it will have taken only 13 years for streaming platforms to have eclipsed traditional broadcast media.

It also claimed that the BBC reputation for impartiality has been damaged with only 25 per cent believing it is neutral now.

However, the BBC has hit back at the criticism.

A BBC spokesperson said: “This report contains inaccuracies and selective use of out-of-date statistics.

“The BBC is the most used media brand in the UK, BBC iPlayer is the country’s fastest growing streaming service, and more than 80 per cent of adults use the BBC on average each week.

“The public cares about the BBC and this year, we will launch our biggest ever public engagement exercise so audiences can help drive and shape what they want from a universal and independent BBC in the future. We want to continue to reform and evolve and look forward to engaging with government on the next Charter and securing the long term future of the BBC.”