BBC to charge Americans for news as Britons ditch licence fee

Telegraph

6 days ago

The BBC is to start charging US-based users for access to news and live TV amid a decline in Britons paying the licence fee.
The broadcaster unveiled details of the paywall on Thursday, which will see American households charged $8.99 (£6.55) a month for a 'premium service'. An annual subscription will be priced at $49.99.
The package will grant users unlimited access to news and feature articles, while a livestream of the BBC News channel will also be available.
Ad-free documentary series and films will be included in the subscription, which will be launched on Thursday.
It is the first time that users outside the UK will have to pay for the BBC's news coverage, although bosses said there were no plans to introduce a similar model outside the US.
The introduction of a paid-for subscription service comes as the BBC seeks alternative sources of revenue to counter a growing number of people not paying the licence fee.
The number of UK households paying the fee dropped by roughly 500,000 last year.
BBC executives are targeting the US as they believe it represents a major commercial opportunity for the broadcaster, largely owing to the country's lack of impartial news coverage.
American appeal
The BBC has become increasingly popular across the Atlantic in recent years.
In 2020, a Reuters survey found it to be more trusted by American audiences than large US domestic media brands such as CBS and The New York Times.
Its website alone reaches 60m Americans, which is almost half of its 139m global visitors.
However, the BBC's global expansion efforts have been hampered by the rise of streaming services such as Netflix.
This has been compounded by dwindling income from the licence fee, which fell by 30pc in real terms between 2010 and 2020.
Tim Davie, the BBC's director-general, has called for the licence fee, which costs £174.50 per year, to be raised to stem what he called a decade of 'grinding cuts'.
He said earlier this month: 'I do want universal funding and I want proper investment and not begrudging, grinding cuts to the BBC, which you've had in the last 10 years, which have just not helped.'
Americans who choose not to pay for the service will still be able to access a selection of news stories and will be able to listen to BBC radio stations and podcasts.
It comes ahead of talks over the renewal of the BBC's Royal Charter, which is likely to determine how the broadcaster is funded.
Lisa Nandy, the Culture Secretary, has previously said the licence fee was 'unenforceable' and ruled out funding the BBC through regular taxes, saying she would like to 'support a BBC that is empowered to continue to deliver a vital public service, funded in a sustainable way'.
Following the paywall's announcement, Rebecca Glashow, the chief executive of BBC Studios' global media and streaming, said: 'Over three years ago, we set out on a bold mission: to completely reimagine how we deliver the BBC's world-class news and factual content to consumers in the US.
'Over the next few months, as we test and learn more about audience needs and habits, additional long-form factual content will be added to the offer for paying users.
'This is a major milestone and just the beginning of an exciting new chapter.'