The future of the BBC TV Licence could involve 'enormous' change, the broadcaster's director-general has said.
It comes just one week before the licence fee is once again raised, with the government responsible for any changes.
That itself comes after two years of the fee being frozen to support families in the gruelling cost of living crisis.
From 1 April, 2024, the TV Licence will be upped by a tenner. It'll go from £159 per annum to £169.50.
But the future of the licence in its current form is set to change forever following a landmark review that is about to get under way.
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And new comments today (26 March) from BBC director-general Tim Davie have given the biggest hint yet as to where the future of the BBC could lie.
What is the review?
Dubbed the BBC Funding Model Review, it'll look in to the future of the TV Licence funding model.
Currently, the BBC Charter period runs until 31 December, 2027, with any changes set to come in after then.
The Department for Culture, Media and Sport (DCMS) has said it remains committed to maintaining the licence fee for the current Charter period.
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It said last week: "The findings of this assessment will support the government to make an informed choice on whether to pursue and consult on potential alternative funding models at Charter Review."
What has Tim Davie said?
Tim Davie has been speaking about the future of the TV Licence at a Royal Television Society (RTS) event in London to discuss the future direction of the BBC and its role for the UK.
It comes as the BBC has had to make £500 million of cuts after the Government announced it would use a lower rate of inflation to increase the TV Licence from April.
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Speaking about the future of the TV Licence after 2027, Davie said they are planning to 'proactively research' how they will reform the fee in 2028.
Davie acknowledged 'reform was needed' to the BBC; an organisation he described as 'precious'.
What has he hinted could happen?
For Davie, one of the big things could be partnering with 'major tech players' on how to fill funding gaps.
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The BBC boss said that he believes the broadcaster can grow, saying: “We are a small fish in the trillion-dollar, shark-infested waters otherwise known as the global media market.”
It comes after the BBC partnered with streaming giant Disney+ for its new Doctor Who series.
He said: “If you talk to the tech titans and you talk to media companies in the US that are under pressure, the one thing they’ll say is that you do need deep pockets to compete.
“And I think we do need major global partnerships with some of the tech players… we’re an incredibly good testing ground, we’re innovative.
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"We’ve always had that history, but I don’t think we can do it alone as a walled garden of R&D [research and development].”
Davie added: “The commercial arm can expand enormously… the critical things is protecting the funding for the UK public service and the World Service to do something that is absolutely by the values I’ve talked about.”
Should the commercial arm expand like Davie hints, it could change exactly how much is needed from the taxpayer via a post-2027 licence fee.
For now, we'll wait and see.
Topics: BBC, Cannes Film Festival, Money, TV, TV and Film, UK News, Technology, Entertainment, Film
Tom Earnshaw