Media companies continue to struggle as consumers pivot away from traditional forms of content.
The latest example comes from the BBC, which has announced it will cut over 100 jobs. The U.K.-based broadcaster is attempting to save £500 million ($670 million) over the next two years.
BBC is primarily funded by a licensing fee, a £180 annual payment that provides viewers with all TV channels, streaming services, and more. It’s designed to keep the BBC “free of advertisements and independent of shareholder and political interest” in the U.K.
However, the number of TV licenses sold has shrunk in recent years.
“We need to make every pound work harder for audiences as we respond to the immediate cost pressures and reinvent the BBC for a changing world, BBC director-general Matt Brittin said in a statement. “We all know that means tough choices.”
Channels and archive radio network cut
In pursuit of this mission, the BBC will also stop broadcasting BBC Scotland and BBC Three, a channel geared toward younger audiences, come spring. It’s further cutting archive radio network Radio 4 Extra, with its content available on the BBC Sounds app.
“Axing these TV channels and Radio 4 Extra may make business sense in a world where audiences are increasingly finding their BBC content on-demand, but I understand it saves less than 10 million pounds a year, a tiny fraction of what’s needed,” BBC News culture and media editor Katie Razzall said in a broadcast. “So far, the BBC has announced 200 million pounds in savings; it needs to find another 300 million pounds more.”
The BBC plans to cut between 1,800 and 2,000 jobs over the next couple years. It already slashed 550 positions in June.
“There is a bigger fight going on here,” Razzall elaborated in an article. “The BBC is negotiating with the government over its future – and how it will be paid for. It won’t harm the negotiations if it can show the corporation is being streamlined and made more efficient.”
Rachel Jupp, director of BBC News, will be announcing more savings plans in early 2027.
Reached for comment, a BBC spokesperson referred Fast Company to its press release about the latest cuts.
BBC Three commissioned popular shows such as Fleabag, Killing Eve, and Normal People. Despite cutting its broadcast, the BBC Three team is receiving more money for commissions targeting audiences aged 16 to 34.
BBC Scotland and BBC Three will be available on BBC iPlayer, the company’s online streamer, along with other platforms such as YouTube. BBC Scotland’s programs will also air on BBC One or BBC Two in the country, but the channel’s nightly News at Seven will stop running. According to the BBC, 12% of Scots watched BBC Scotland last year.