BBC to cut spending on new shows by £150m as streaming wars bite

Telegraph

31-03-2025

The BBC is to spend £150m less on new shows in the coming year as it warned of an 'unprecedented' funding challenge for British television.
The public service broadcaster said it plans to spend just over £2.5bn on programming in the current financial year, down from almost £2.7bn last year.
It follows industry-wide warnings of a funding crisis for British programmes amid growing competition from streaming rivals such as Netflix.
A gold rush of investment from US companies has driven up the cost of making shows, while TV executives have warned that streaming services are shunning co-productions as they look to retain full ownership of rights.
The BBC has previously said that a number of its productions, including an adaptation of Douglas Stuart's award-winning novel Shuggie Bain, are 'stuck in limbo' owing to a lack of cash.
The funding drought has prompted calls for a government intervention, with proposals including a shake-up of existing tax incentives or even a new 'Netflix tax' on streaming companies.
In its annual plan published on Monday, the BBC said it was facing an 'unprecedented content funding challenge'. It added: 'Without intervention, it will be difficult to maintain the current ambition and volume of UK content.'
Funding squeeze
It comes amid a broader funding squeeze for the BBC, which is now locked in discussions with ministers over the future of the licence fee.
The corporation last year rolled out sweeping cuts to jobs and programming as Tim Davie, the BBC's director general, tried to plug a black hole in its finances of nearly £500m.
Bosses said they had cut 2,000 roles over the last five years but warned this approach was 'no longer sustainable'.
The BBC had said it expected to return to a surplus in the coming year. However, the broadcaster warned today that a further deficit of £33m is expected due to delays in some cost-cutting initiatives.
The BBC forecast income of just over £6bn in the coming year, including roughly £3.9bn from the licence fee. That is up from £3.8bn last year, with an inflation-linked increase in the licence fee to £174.50 offset in part by a 1pc decline in the number of people paying the levy.
The corporation said its budget was down by £1bn in real terms compared to 15 years ago.
The BBC has been investing heavily in its streaming service iPlayer as it looks to stem an exodus of viewers to streaming services –particularly among younger audiences.
The broadcaster said it 'remains a unifying force in a digitally fragmented world', pointing to major successes for Wallace & Gromit: Vengeance Most Fowl and Gavin & Stacey: The Finale, which both pulled in more than 20m viewers.
It also attracted large audiences for major sporting events such as the Olympics, men's Euros and Wimbledon.
The BBC also emphasised the importance of its news output at a 'challenging time for global democracy'.
The corporation pointed to figures showing the British public has more trust in broadcast news than in social media, while the BBC remains the number one news source in the UK.
Samir Shah, the BBC chairman, said: 'The BBC's role has never been more important, both here in the UK and around the world, to deliver trusted, impartial news in a world of disinformation; develop and promote the most compelling home-grown content; and be the place where people come together for unforgettable shared moments.
'The BBC board fully endorses this plan, as we plot the long-term future of this marvellous organisation and deliver for audiences for generations to come.'
Mr Davie said: 'We are focused on our mission to deliver value for all, through our journalism, our storytelling and our unique ability to bring people together.
'The UK's creative industry continues to change rapidly, as does the world around us. This plan sets out how the BBC continues to evolve for audiences, both on and off air, but also how we will support and invest in the wider industry.'