LONDON, Dec 16 (Reuters) – Britain launched a review of the BBC's funding on Tuesday as it seeks to “protect the future” of the broadcaster as it faces a lawsuit brought by U.S. President Donald Trump.
Trump is suing the BBC for up to $10 billion in damages over edited excerpts of a speech that he says defamed him, according to a lawsuit filed in Miami federal court on Monday. The BBC is defending the matter, having already apologized to Trump.
In addition to Trump's lawsuit, the network is battling competition from streaming giants and digital video platforms.
Currently, the BBC's funding comes primarily from an annual fee of £174.50 ($234) levied on all watching households, but the number of licensees is declining.
The government said on Tuesday it was considering reforms, including options to generate more commercial income.
It will also consider funding options for the World Service, which broadcasts to 453 million people around the world every week.
Introducing the review, Culture Secretary Lisa Nandy said the BBC should reflect the whole of Britain, be an engine of economic growth and be “funded in a sustainable and fair way”.
“The BBC must remain completely independent, accountable and able to enjoy public trust,” she said.
The television and radio company operates on the basis of a charter, which is revised every ten years. The current one expires in December 2027.
The BBC has been rocked by scandal in recent years, although polls published by the government showed 60% of British adults were happy with BBC News.
In addition to Trump's lawsuit, news anchor Huw Edwards resigned last year after pleading guilty to possessing indecent images of children, and a documentary about the lives of children in Gaza violated the British public broadcaster's editorial guidelines for accuracy.
BBC director-general Tim Davie, who resigned over Trump's complaint but has not yet left, said the BBC welcomed the government's reform plan.
“At the BBC we want change so we can continue to deliver for the UK for future generations,” he said.
($1 = 0.7454 pounds)
(Reporting by Sarah Young; Editing by Paul Sandle)
