BBC chair: UK should be taxing US streamers

BBC chair Samir Shah has for the first time urged the government to impose taxes on US streamers in the UK, while reinforcing his vision for a new and improved BBC News. 

Speaking to the Sunday Times, Shah upped his rhetoric around streamer contributions four months after using his first major speech in November to urge them to do their bit for the grassroots. 

In the speech last year, he claimed that the BBC significantly outspends Netflix on skills and training, and in the new interview he set out the case for taxing streaming giants in the UK.

“It’s important that those that make money out of the British people and take advantage of the amazing talent we have here also give something back,” he said.

He recommended “putting tax revenue raised into training and skills to further strengthen Britain’s creative industries”.

The BBC chair did not stipulate the tax rate, saying this should be “up to the government”. 

In January, a letter from Netflix UK and Ireland senior director of public policy, UK and Ireland Ben King indicated that the streamer has invested an amount equivalent to more than 1% of its UK production spend in training and workforce development in each of the last four years. 

Separately, Shah acknowledged the problem of young people in particular switching off linear BBC viewing in favour of content on the streamers, YouTube and TikTok, adding: “Audience decline in our analogue channels is chronic”.  

At last week’s culture, media and sport select committee hearing, director general Tim Davie suggested it was a “good idea” to explore ways in the streamers could make a “contribution” to local content, including a potential streamer levy by which a portion of SVoD subscription revenue would go into a funding pot for UK content.  

Similar schemes are already in place in 17 other territories, including France and Germany.  

BBC News overhaul 

Shah also spotlighted the need for change within BBC News, where a major new AI department is launching today.  

He raised a gripe with the prioritisation of politics over business within news, saying there is a “Westminster bias” within its coverage.  

“The instinct is to ask ‘What can the government do to alleviate this, that or the other?’ not ‘What can business do?’  

“It’s a Westminster bias. We see things too much through a political lens and not a business lens…

“Business is the most vital thing. Wealth creation is the heart of everything. Whatever your position on distribution of income, nothing happens unless you create wealth in the first place.” 

 “It’s a privilege to work for the BBC. You should just stick to it”  

He also expressed disdain at the idea of BBC staff moonlighting for other companies in lucrative non-BBC speaking roles and event appearances, saying: “It’s a privilege to work for the BBC. You should just stick to it.”  

He said the public thinks “what the hell are these people doing” when they see well-known faces ‘cashing in’ on the BBC brand and insisted they are already paid a “significant amount of money”.  

“If they feel they are underpaid and could earn more at ITV, Sky or Bloomberg, they should leave. No one’s forcing you to work for us.” 

Finally, Shah reiterated the need for the division to engage audiences outside of London, saying the BBC “needs to do a lot more to ensure our staff reflects the country as a whole. We need more variety and diversity…It’s on, frankly, the northern working class where we’re poor. That’s where the focus should be.” 

Royal charter overhaul 

Shah also once again urged reform of the royal charter, after first floating the idea in September and again in November in a bid to put an end to the “sense of almost perpetual government review” over the broadcaster.  

He revealed he is in talks with the culture secretary Lisa Nandy about lengthening the charter which sets out the BBC’s regulatory arrangements is currently renewed every 10 years.  

“We’re the only organisation created by royal charter that has a time limit on the charter. It’s mad,” he said.  

He suggested a framework that would run for “15 to 20 years” and sets out “core principles for the BBC” — such as the need to offer something for everyone in the country. 

The corporation would still be held accountable for its actions by the regulator Ofcom and bosses would continue to be questioned by MPs on parliamentary select committees.