The BBC has floated the idea of opening up its iPlayer platform to rival public broadcasters, as the organization looks to find new ways to force millions more to pay the license fee.
Firing the first shot in the negotiations with the government that will set up the BBC for the next decade, a recently published 100-page review of the proposed “iPlayer could be opened to others. [public service broadcasters] in support of their business models,” which may include their advertisements or subscription offers.
Essentially, this will mean that consumers will be able to watch ITVX, Channel 4 or 5, the PSB’s rival VoD services, through iPlayer. A similar suggestion has been made about BBC Sounds hosting podcast content from third parties.
The BBC said “this would help ensure the UK maintains a competitive broadcasting platform with global services and remains the first choice for audiences.” The BBC is already testing iPlayer advertising hosting for Welsh language broadcaster S4C and could, in theory, use this proprietary technology for ITV, Channel 4, and 5.
This does not mean the company will start placing ads in its iPlayer section, it added. Greater cooperation has been on the agenda in the UK for a while, but today’s legislative plan is the first time the BBC has said it openly. In this way, and with improved technology, it believes that the public broadcaster can take on the power of Netflix, Prime Video and Disney.
At the other end of the spectrum, the BBC said “we will grow our services but also expand the distribution of our content ‘off the stage'” in a statement today.
BBC funding perspective
The idea was one of the “stronger” proposals floated in today’s charter renewal document, which is a response to the government’s security policy of the past few weeks.
The focus is on funding and how the BBC believes a company should make its money in a world of high competition and high inflation.
The BBC has insisted that keeping the annual license fee is the way forward, saying that while 94% of UK households watch the BBC in some way, only 80% pay. This leads to a gap of hundreds of millions of pounds each year which, if filled, would add to the £3.84B generated from the £175 license fee last year.
“During the tenure of the BBC it has gone from being a service that almost every household pays for and is used by almost every household but millions do not pay,” said the document, which added that there is a “disconnect between payment and value.”
The BBC has proposed a number of ways to close that 14% gap, including closing loopholes, improving technology and informing the public that they must pay their license fee when watching live content from other players such as ITV, Channel 4 and even Netflix.
“A TV license is required to watch any live video content on streaming services or video sharing platforms,” the document said. “Although this is normal behavior, many viewers do not understand and little or no effort is made by the services in question to inform them.”
Interestingly, the BBC noted that if more people are forced to pay, then it may reduce the license fee for the first time in its history. “A reformed model that requires more households to contribute less could strengthen fairness and stability while preserving universal access to quality and reliable services.”
While we wouldn’t say this is a strict requirement, we understand that the BBC is questioning whether people could be forced to pay their annual fee just to watch shows and movies from American broadcasters in the UK on demand. This will involve a change in the way people are told to pay their license fee, which has been the basis of the BBC’s funding for more than a century.
The BBC has rejected other funding proposals such as the subscription model (“a subscription to the BBC would mean a very different BBC”) and advertising management (“we have well-founded and long-term concerns”).
The BBC has also pushed back on the idea of a hybrid subscription model, saying it “risks consuming more of the license fee than it receives from subscriptions, causing funding to drop.”
So all roads lead to driving up the license fee, although the BBC has insisted that this requires a complete overhaul. “The current funding model is unsustainable,” the constitutional document concludes. “We are open to new funding models as long as they are fair, sustainable and sustainable, ensuring the BBC remains a service for everyone. We are willing to look at bigger options.”
