Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
The BBC will charge US users for access to its journalism through a subscription fee for its overseas website to boost revenues ahead of crucial negotiations over future funding.
On Thursday, the UK licence fee funded broadcaster will reveal plans to offer a subscription of $49.99 per year, or $8.99 per month, for US users to get unlimited access to its news, features and livestream of the BBC News channel.
The UK national broadcaster described it in a statement on Thursday as “the first phase of a pay model for BBC.com visitors in the US”, with ad-free documentary series and films, early release podcasts and exclusive newsletters and content to be included in the offer later this year.
The move is a significant step towards boosting overseas revenues for the BBC, whose services are freely available in the UK as a public sector broadcaster. BBC.com reaches 139mn visitors globally, including nearly 60mn in the US.
This will be the first time that the BBC charges a direct subscription for its journalism to consumers, although its news channel is already available in the US as part of broader bundles of cable pay TV.
The BBC said that there were “no current plans to introduce a pay model outside of North America”.
The broadcaster is under pressure to raise more money from its commercial activities overseas, which are separate to the public sector remit of its operations in the UK.
The BBC’s current royal charter, which sets out its terms and funding model, is being renegotiated with the government ahead of it expiring in 2027.
A number of options have been floated as possible alternatives to its existing licence fee model, although a broader subscription model for all of its services in the UK has been dismissed by boss Tim Davie as failing its universal obligations.
Last year, it upgraded BBC.com and launched a new international app. BBC.com has seen double-digit year-on-year growth since the relaunch, according to the broadcaster. Unlike in the UK, the site will continue to offer advertising.
All users visiting BBC.com in the US will be assessed based on how much they read and how long they stay on the platform, with heavier users then being asked to pay to gain unlimited access to all of the site’s content.
Visitors who choose not to pay will still have access to some global breaking news stories, BBC Radio 4 and BBC World Service radio livestreams, BBC World Service Languages sites, and a variety of free newsletters and podcasts.
BBC Studios, which oversees the BBC.com news website internationally, also manages the broadcaster’s other commercial operations such as production and the sale of programmes such as Doctor Who and Bluey.
In the 2023-24 financial year, BBC Studios made about £1.9bn in revenue through the production and sale of shows to channels and streaming services in the UK and internationally, and licensing formats and brands. The group is aiming to double its 2021-22 sales and profits by 2027-28.
Rebecca Glashow, CEO BBC Studios global media and streaming, told the FT that the BBC had seen “a lot of growth in our audience in North America, and around the world” in the back of its revamped offering.
Glashow said that the US “market [was] accustomed to paying for premium journalism, premium video experiences and audio experiences”.
“This is an incredibly robust and distinctive ‘read, watch and listen’ proposition, all sitting behind what we believe is the most powerful global news brand in the world,” she added.
