BBC Studios relaunching international news site amid licence fee freeze
The BBC is gearing up for an expansion in the US market as it seeks to bolster its revenues amid challenges at home.
BBC Studios, the broadcaster’s main commercial arm, is preparing to relaunch its advertising-supported news website in North America, ahead of next year’s US presidential election.
Following its debut there, the revamped website and app will be introduced globally, according to Tom Fussell, chief executive of BBC Studios. .
He told the Financial Times the move aims to attract media buyers with more localised and personalised content in the US.
“This will be a great offering for advertisers. It’s a premium brand,” he said.
The Studios division of the BBC is crucial for its revenue prospects since the UK government froze the licence fee in 2022, the broadcaster’s primary source of funding. It will remain frozen until March 2028.
BBC Studios generated £2.1bn in revenue in its financial year 2022/23, while the licence fee brought in £3.8bn, down by £60m from the previous year.
Fussell is aiming to double revenues by 2028, which he said includes expanding the TV production arm through acquisitions.
It is a rocky patch for the BBC as the mandatory licence fee comes under increasing fire from some who question why they should pay for a service they don’t use.
Meanwhile, streaming services like Netflix and Disney are gathering steam.
The BBC was contacted for comment.