London: The BBC is cutting 1,000 jobs because of a £150 million shortfall – blamed on more people watching on iPlayer. The corporation has already taken measures to make £1.5 billion of savings a year by 2017, mainly through cutting administration and property costs, pay and jobs as well as shared sports rights.
A BBC statement said: “Despite the progress already made, and the realities of the licence fee being frozen for seven years, a new financial challenge means additional savings must now be found. “The licence fee income in 2016/17 is now forecast to be £150 million less than it was expected to be in 2011.
“This is because as more people use iPlayer, mobiles and online catch-up, the number of households owning televisions is falling.
“It also provides further evidence of the need for the licence fee to be modernised to cover digital services.” Director General Tony Hall told staff in a video message that staff cuts in the “high hundreds” are necessary for the BBC to be able to protect its remaining television channels and radio stations.
The BBC, famous around the world for the quality of its drama and documentaries, is facing the biggest financial challenges ever.