BBC director-general Matt Brittin told the BBC's Sunday With Laura Kuenssberg programme that the corporation needs a funding and distribution model that matches how people consume content today. He argued the licence fee limits the BBC's reach and suggested both technical changes to distribution and structural changes to funding.
Brittin said the BBC should be "where audiences are" and listed mainstream streaming and social platforms by name: Netflix, YouTube, TikTok, Spotify and Instagram. He singled out news as a priority for wider distribution, saying being present across platforms would help counter misinformation. He described the licence fee as a constraint: "You pay the licence fee if you watch live TV or you're on iPlayer. I'd like to see reform that allows us to be where audiences are."
The BBC remains predominantly funded by an annual licence fee, which rose to £180 earlier in 2026. The corporation's licence-fee income has declined by more than £1 billion over the last decade. In the 2025/26 financial year the number of TV licences fell by over half a million. The royal charter that governs the BBC is under review ahead of its expiry at the end of 2027, creating a window for discussing funding reforms.
Alternative funding ideas in public debate
Brittin suggested a household levy as an alternative to the licence fee. Related reporting and think-tank work have floated variants of that idea. One proposal referenced in coverage would replace the annual fee with a monthly home internet levy, cited at about £11 per month in one analysis. A Social Market Foundation report cited in related coverage estimates the BBC's services reach over 94% of UK households and models potential economic impacts of reform, including job and output figures.
Brittin's remarks come as part of an ongoing debate over the BBC's future funding model during the charter review process. Political decisions about any replacement mechanism — whether a household levy, broadband surcharge or a retained licence fee with reforms — will need to address collection, equity, and the corporation's public-service remit.