HALF a million households have cancelled their BBC licence fee in the past year preferring Netflix and YouTube.
The broadcaster relies heavily on an annual £169.50 licence fee paid by every UK household watching live channels on a television.
But the corporation’s annual report suggests it’s grappling with wider changes in media consumption such as streaming and on-demand services.
The BBC collected £80million less in licence fee income in the last year, driven by a two per cent decline in sales volumes and flat licence fee pricing.
The number of active licences dropped from 24.4million in 2022-23 to 23.9million by the end of last year.
The report also shows how young people increasingly feel the broadcaster is not relevant to them.
Only 69 per cent of those under 16 said they consumed any BBC content in an average week.
In addition, the number of 16- to 34-year-olds using the BBC’s audio app BBC Sounds flatlined at 590,000.
It comes as the BBC is also set to axe 500 jobs over the next 20 months in a bid to save £200million and become a “leaner, more agile organisation”.
The redundancies, to be achieved by closing and transferring some roles and creating others in “growth areas”, are the latest layoffs as the BBC copes with squeezed funding and inflationary pressures.
The BBC said the move was part of “accelerating our digital-first approach to reach audiences where they are”.
“Over the course of the next two years, we will look to further move the money we have into the priority areas that provide real value for audiences,” it said.
In his review of the past year, director-general Tim Davie said years of below-inflation licence fee settlements had “chipped away” at its income and put “serious pressure on our finances”.
Although inflation-linked rises have been reinstated, he noted the broadcaster had experienced a 30 per cent real terms cut from 2010 to 2020 and “a tough couple of years of flat funding”.
“We need to create a leaner, more agile organisation, and make the most of the digital-first opportunity to redesign our processes, cut costs and serve audiences better,” Davie said.
“We also need to consider how best to fund the BBC in the long term to secure all the benefits of universal public service broadcasting in the future.”
The BBC chief said that would also require discussions with the government about the “right way” to fund the BBC World Service at “a critical moment for democracy worldwide”.
Meanwhile Gary Lineker and Zoe Ball remain the BBC’s highest-earning stars – with scandal-hit Huw Edwards making the top three despite his time off-air.
Match of the Day presenter Gary, 63, remains top of the list having stayed within the same bracket of £1,350,000 – £1,354,999.
He is followed by Radio 2 host Zoe, although she took a slight cut. Her salary now falls in the bracket £950,000 – £954,999, down from £980,000 – £984,999.
Edwards, who quit the BBC after 40 years in April, was listed as earning £475,000 – £479,999, a rise from the £435,000 – £439,999 bracket a year earlier.
This is despite the newsreader having been suspended on full pay over allegations he paid £35,000 to a young person who sent him explicit images.
SIR Keir Starmer faced backlash after ruling out plans for a Netflix-style subscription model for the BBC.
The PM said he was committed to keeping the £169.50 licence fee despite calls by critics for a shake-up.
The BBC Charter, which outlines its funding and governance, is up in three years.
Sir Keir said there would be “more thought between now and then” on funding.
But he added: “We’ve committed in our manifesto to obviously the BBC and to the licensing scheme.”
Lucy Frazer, Culture Secretary with the Tory government, launched a review into funding models before the next charter period begins to ensure the BBC remained sustainable in the digital age.
Critics are calling for public service programmes to be funded through taxation, with viewers paying for premium shows such as Strictly.
The BBC’s annual salary report covers the period from April 2023 to March 31, 2024.
This means Edwards received the salary despite being off-air from July 2023. He officially parted ways with the Beeb in April.
The BBC said Edwards had resigned on “medical advice” and confirmed he had not been paid off as part of his departure.
Radio 1 breakfast host Greg James is the fourth-highest earner with £415,000 – £419,999, up from £395,000 – £399,999.
Question Time presenter Fiona Bruce received a jump in pay to £405,000 – £409,999, up from £395,000 – £399,999.
Radio 5 Live presenter Stephen Nolan is next on the list, earning between £405,000 – £409,999, a slight bump from the £400,000 – £404,999 he earned the previous year.
BBC 6 Music and Desert Island Discs host Lauren Laverne overtook Lineker’s Match of the Day colleague Alan Shearer to become the fifth-highest paid star, earning £395,000 – £399,999.
Ex-footballer Shearer, meanwhile, was paid £380,000 – £384,999, a significant pay cut from the £445,000 – £449,999 he earned the previous year.
Four women make up the top 10, the same as last year, with Naga Munchetty replacing Sophie Raworth.
