TV licence fee is 'yesterday's model', new director general says

Key developments are emerging from the global stage. TV licence fee is 'yesterday's model', new director general saysImage caption, Matt Brittin replaced Tim Davie as director general in MayByPaul Glynn and Ian Youngs, Culture reportersPublished22 minutes agoThe 's new director general has described the traditional TV licence model as "a busted flush" and "no longer fit for purpose". In his first major public appearance since taking over the six weeks ago, former Google executive Matt Brittin told MPs that the licence fee is "yesterday's model". The receives most of its funding from the £180-a-year TV licence, but the number of households paying has declined in recent years, and the broadcaster is discussing reform of the system with the government.

Brittin said: "We can and should be doing as much as possible on licence fee collection under the current model, but it's yesterday's model, it's a busted flush, it's no longer fit for purpose, and that's why we need to make the case for the and a shift of the licence fee model. "He did not specify what he wants to replace it, but he and chair Samir Shah suggested the government should reconsider a compulsory household levy, which it previously ruled out. Brittin told the House of Commons the Culture, Media and Sport committee on Wednesday that such a levy could be collected through utility bills such as broadband, mobile or electricity.

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If 100% of homes paid through such a scheme, the fee could be reduced from its current level, he said. "The challenge is it's been ruled out, and I can understand the concerns about cost of living and so on, on households, but I think it's got merits and others have found it to have merits," Brittin said. Shah said a levy "would solve a lot of problems for us, and we're certainly open to it", but admitted it "could be seen as, and is effectively another tax".

Ads or subscriptions 'would change programming'Currently, a TV licence is legally required to watch or record television on any channel or service, watch live on streaming services or to use iPlayer. But licence fee payment has dropped to 80% of households, Brittin told the committee. There is an ongoing debate about an alternative system, and the government is considering options including allowing the to be funded by adverts or subscriptions.

However, the director general said those systems would be likely to result in the cutting back on services that generate less commercial revenue, such as children's shows like Newsround and local news. "Some of these things would be very, very hard to fund under a commercial funding model for the ," he said. Shah also said "our drama would become increasingly narrowly focused on things that drive subscription" under a Netflix-style system.

"We would stop being universal, we'd actually stop being the that we know," he added.

The story has become one of the most prominent items on the global agenda.