The BBC has admitted the television licence fee is "no longer fit for the future" as the public broadcaster floats alternative funding model for the service going forward.
This afternoon, the BBC published a 100-page response to the Government's Charter Review consultation, referring to it as a "urgent opportunity for the UK to secure the world’s leading public service media organisation".
In a statement, the broadcaster said: "The Charter must provide a funding model that is fit for the future. The current model can no longer sustain the BBC’s public service mission.
"Reform is required to ensure universal funding that is sufficient, sustainable and fair for all. Government should also take back full funding of the World Service."
The BBC is considering alternatives to the TV licence fee
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BBC Chair Samir Shah said "The BBC is a vital national asset. A shared investment in the UK’s culture, communities, and democracy. It supports world-leading creative industries and drives economic growth, as well as promoting the UK’s interests and influence abroad.
"But it is also at risk like never before and this Charter must deliver reform. In a fast-changing and challenging world, the BBC is needed more than ever."
Director-General Tim Davie added: "The BBC is a world‑class success story at the heart of the UK’s cultural life and our growing creative industries, still rooted in our founding principles to inform, educate and entertain.
"The BBC stands ready to continue to innovate, to do more for audiences and to support our partners across the UK. But the choice here is clear: back the BBC or watch it decline, the status quo is not an option.
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Lisa Nandy has sought to reform the BBC
| PA"Clear decisions are needed to ensure the BBC is funded sustainably and fairly so it can continue to deliver, both for audiences and for the country.
"Our response to the Government consultation sets out our vision for what we think can be achieved in the future, with reform, bold choices and investment - a BBC for all."
The BBC's report highlighted seismic changes in the wider media market, changing audience behaviours, and an outdated funding model as being existential issues for the organisaiton going forward.
Based on last year's figures, income from the TV licence fee came to around a quarter less, or £1.2billion lower in real term, than it was at the beginning of the Charter's period.
The BBC is determined to bring the broadcaster into the 21st century
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According to the BBC, 94 per cent of British adults use the broadcaster's services monthly; however, fewer than 80 per cent of households now contribute, down from over 90 per cent in 2016/17.
Looking ahead to the next BBC Charter, the publicly funded organisation projects that inflationary pressure on premium content will slightly subside but will remain higher than the consumer price index (CPI) rate.
The BBC cited £1.5billion in total savings that were achieved over the Charter, a new savings target has been set to drive a further 10 per cent from the group's Public Service cost base by the end of the 2028/29 financial year.