The BBC's funding model, reliant on the traditional TV licence fee, is "yesterday's model" and "no longer fit for purpose," according to the broadcaster's new director general, Matt Brittin.
Brittin, who took over the BBC six weeks ago after a career at Google, made the remarks during his first major public appearance since assuming the role. He told MPs that while efforts to enforce licence fee collection under the current system should continue, the model itself is outdated. The BBC relies heavily on the approximately £180-a-year TV licence, but has seen a decline in paying households, prompting discussions with the government about reforms.
While Brittin did not outline a specific alternative, he and BBC chair Samir Shah indicated that a compulsory household levy, previously dismissed by the government, could be reconsidered. Brittin suggested such a levy could be collected through common utility bills, such as broadband, mobile phone, or electricity.
He noted that if such a scheme achieved 100% household payment, the fee could potentially be reduced from its current level. "The challenge is it's been ruled out, and I can understand the concerns about cost of living and so on, on households, but I think it's got merits and others have found it to have merits," Brittin stated.
Shah commented that a levy "would solve a lot of problems for us, and we're certainly open to it," while acknowledging that it "could be seen as, and is effectively another tax."