BBC bosses have unveiled a new “premium service” for millions of American users amid a surge in Britons ditching the £174.50 licence fee.
The broadcaster is introducing its first paywall for American users, who will be charged $8.99 (£6.54) monthly or $49.99 (£36.40) annually for premium access for content.
The subscription service launches today and marks the first time users outside the UK will need to pay for BBC news coverage.
Rebecca Glashow, chief executive of BBC Studios’ global media and streaming, said: “Over three years ago, we set out on a bold mission: to completely reimagine how we deliver the BBC’s world-class news and factual content to consumers in the US.”
The broadcaster confirmed there are no current plans to introduce similar paywalls outside America.
The premium package grants subscribers unlimited access to news and feature articles, alongside a livestream of the BBC News channel.
Ad-free documentary series and films are also included in the subscription.
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Americans who opt not to subscribe will retain access to a selection of news stories and can continue listening to BBC radio stations and podcasts without charge.
Glashow added: “Over the next few months, as we test and learn more about audience needs and habits, additional long-form factual content will be added to the offer for paying users.
“This is a major milestone and just the beginning of an exciting new chapter.”
The introduction of the paywall comes as the BBC grapples with declining licence fee revenue, with approximately 500,000 fewer UK households paying the fee last year.
The broadcaster’s income from the licence fee has fallen by 30 per cent in real terms between 2010 and 2020.
Tim Davie, the BBC’s director-general, has already been forced to call for an increase to the licence fee.
People walking outside of the BBC headquarters in London
PA
Speaking earlier this month, Davie said: “I do want universal funding and I want proper investment and not begrudging, grinding cuts to the BBC, which you’ve had in the last 10 years, which have just not helped.”
The paywall represents the BBC’s attempt to find alternative revenue streams amid these financial pressures.
BBC executives view the US market as a significant commercial opportunity, largely due to what they perceive as the country’s lack of impartial news coverage.
The broadcaster’s website already attracts 60 million American visitors, representing nearly half of its 139 million global users.
A 2020 Reuters survey revealed the BBC was more trusted by American audiences than major US domestic media brands including CBS and The New York Times.
And Culture Secretary Lisa Nandy has previously said the licence fee is “unenforceable” and ruled out funding the BBC through regular taxes, saying she would like to “support a BBC that is empowered to continue to deliver a vital public service, funded in a sustainable way”.