UK’s BBC warns its current funding model is not sustainable

LONDON, July 14 (Reuters) – The BBC warned its current funding model was not sustainable to fund its public broadcasting mission in its annual report on Tuesday, highlighting the gap between the number of users it has and those who pay for its services.

The organisation, which was thrown into crisis last year over accusations of bias which prompted U.S. President Donald Trump to sue it, will need to negotiate a new funding settlement with the government before the current one expires at the end of 2027.

Options include retaining the licence fee paid by TV-watching households or moving to subscriptions or ad-funding.

Here are some further details from the annual report:

• 94% of adults in the UK use the BBC each month, but only 80% of UK households pay the licence fee.

• Director General Matt Brittin, a former Google executive who started in May, said the funding crisis was “a moment of real jeopardy” for the BBC and the UK, adding that work to reinvent the broadcaster is underway.

• Brittin said it was right that the government is looking at the level of the licence fee, its scope and how it is collected in future.

• The government is supportive of the BBC’s conversations with other British broadcasters, such as Channel 4, about bringing content together into a “sovereign media platform”, Brittin said.

• The BBC has made “a significant commitment to improve its culture, processes and standards in recent years”, it said, after a series of high-profile scandals.

• Amongst its top-paid stars were the radio presenters, Scott Mills, who was paid a salary of £745,000 to £749,999 a year, and Greg James, who was paid £440,000 to £449,999 a year. Political presenter Laura Kuenssberg was paid £405,000 to £409,999.

• Scott Mills was sacked in March following allegations about his personal conduct.

(Reporting by Sarah Young; editing by William James)