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Monday, 19 February 2024

BBC Boss Davie Gloats as Commercial Rivals Struggle

The BBC Director-General, Tim Davie, has told MPs that he welcomes the financial security of the TV licence at a time when the wider industry is struggling.

Appearing before the House of Commons Public Accounts Committee, Davie said: "In the context of the broader market it is something we welcome because it allows us some certainty despite very significant challenges... in terms of making the budget meet."

He added: "There is not a media organisation in the world, certainly a traditional so-called broadcast organisation, that doesn't need to fundamentally look at its model and make sure [it is] in the right place."

After imposing a two year freeze, the Government agreed that the annual cost of a TV licence, currently £159, would rise in line with inflation from 1st April 2024.

However, with the annual CPI rate of inflation standing at 9 percent, the Government decided to amend the terms of the deal so that the lower September 2023 rate of inflation was used. This means that the TV licence fee will rise by £10 in April, instead of the £15 it would otherwise have been.

The BBC is seeking to make £500 million in annual savings, which has resulted in the merger of its domestic and global news channels and several radio stations moving to an online-only format.

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