BBC director general Tony Hall said the corporation will have to “close or reduce” services in the face of budget cuts as he unveiled his plan for its future.
Outlining what he called an “open” BBC, Lord Hall proposed the launch of a “best of British” iPlayer broadcasting its programmes along with shows by rivals such as ITV and Channel 4 in a bid to take on online giants including Amazon and Netflix.
But he said the broadcaster had to “live within its means” and make savings of 20 per cent in the next five years, and would get smaller in the next decade compared with its international rivals, whom he described as the “giants of the media world”.
He said: ”We will have to manage our resources ever more carefully and prioritise what we believe the BBC should offer. We will inevitably have to either close or reduce some services.”
He said some savings could come from increased efficiency and greater commercial success with hit shows such as Sherlock and Doctor Who, but the corporation would have to scale back. He did not identify what services could be cut. Digital channel BBC3 is being moved online, and it is thought its sister channel BBC4 may close.
A previous attempt to close a niche service, digital radio station 6Music, floundered in the face of opposition, with the station going on to attract a large new audience.
The director general also announced a move to provide “a more video-based service” by streaming more news for people watching on mobile phones and by making playlisted music from BBC radio stations available online for a limited time.
Lord Hall, who proposed partnerships with regional newspapers and cultural bodies such as the British Museum, said the BBC “must modernise to preserve and enhance what is best about public service broadcasting”. He said the BBC will “need to ride two horses”, serving those who have adopted the internet while continuing to provide traditional broadcasting.
His speech at the Science Museum is part of the corporation’s response to a Green Paper proposing a wide-ranging review of its aims and purposes.
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Culture Secretary John Whittingdale has warned that the BBC should not try to be “all things to all people”, and described the licence fee as “unsustainable” in the long run.
The BBC’s formal response to the Green Paper is due in October, followed by details of its budget plans.
