The BBC has taken a courageous step by offering in the US a service that consumers must pay for, through their subscription. This plan is an important part of the organization’s overall plan to improve its financial health. This move by the BBC is aimed at re-energizing international revenues from its growing international audience. This decision follows a 15-year trend of rapidly declining revenue from traditional license fee sources.
The BBC has for several years been eyeing the US market, though in recent weeks relaunching its international website and app. Until now, the Beeb offered US-based BBC content only to those who had paid the $156.58 annual UK licence fee through their new TV app. Knowing there’s room for further development, the nonprofit recently made the leap to expand their portfolio. No, the BBC operates commercials on BBC.com. This strategy especially distinguishes it from its strategy in Britain, where users pay for content directly through the licence fee.
Now the BBC wants to draw in subscribers in the US to further boost its revenues. The public broadcaster is known all over the world for their commitment to quality journalism. It is consistently the most trusted global news brand. And importantly, this reputation has provided the groundwork to their new premium service – one they’re getting ready to roll out.
You’ll further enjoy access to premium cinematic content including documentary series, films, early podcast releases and exclusive newsletters. The BBC’s plan is to first trial this provision to users who are already deep consumers of its content.
BBC Select’s critically acclaimed documentary service is available to Amazon Prime Video Channels, Apple TV Channels and Roku customers in the US market. Both of these services are included, in tandem with the premium service. Furthermore, while the BBC provides free journalism through BBC.com, it believes there exists an appetite among US consumers to pay for its renowned brand of news and information.
Beginning later this month, US–based users will pay a subscription fee for ad-free, unlimited access to BBC news content along with live, rolling televised coverage. In addition to unlimited news articles and premium investigative/feature pieces, the premium package will include ad-free UK/World news with a livestream of the BBC News channel. The monthly subscription will have an annual cost of £49.99 ($64.81) or £8.99 ($11.66).
Rebecca Glashow, CEO of BBC Studios Americas, spoke to the special relationship that the BBC has built with its viewers.
“We see the BBC as the world’s most trusted global news brand, and we have heard that time and time again. We provide incredibly distinctive global news reporting in this market and we have a distinct relationship with our audiences, where they trust us. And I don’t have to tell you how incredibly valuable and hard it is to create that relationship with consumers in this moment.” – Rebecca Glashow
The BBC.com global platform, now extended to 139 million unique monthly visitors across the globe and next to 60 million users in the US alone. This tremendous audience represents an enormous challenge for the BBC. As it pivots toward a subscription model, the nonprofit news organization seeks to enhance its long-term financial sustainability without sacrificing the quality journalism it’s known for.