BBC is "reviewing all alternatives" to the licence fee, says Chairman
However, Richard Sharp argued that "some form of funding" is necessary for the broadcaster to survive.
The BBC will "consider all alternatives" to the licence fee as part of a "very deliberate strategic review", according to the broadcaster's Chairman.
Speaking at the Edinburgh International TV Festival 2022, Richard Sharp acknowledged that "different models" of funding are a possibility in future.
"We're reviewing all alternatives and we haven't reached a conclusion," Sharp said. "We've been asked to consider all alternatives, and we're going to consider all alternatives, so that's a very deliberate strategic review.
"But you don't start with the funding – you start with the purpose, you start with what it takes to succeed, and then you look at the funding it takes to support that."
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Sharp added that he believes "that some form of funding is necessary" for the BBC to survive, saying: "We know there are different models, in terms of licence fee or household tax or there can be hybrid solutions."
"Everybody's paying a licence fee, these are very difficult times, and my mother says there's nothing more corrupt than spending somebody else's money," he continued. "The BBC has to demonstrate that when it spends the people's money, it's spending wisely."
Sharp said the broadcaster will need to "be a little less defensive" and "open to constructive criticism" with regards to its funding models.
However, Sharp – who was formerly an advisor to both Boris Johnson during his tenure as London Mayor and to Rishi Sunak as Chancellor – explained that some of his own negative views about the broadcaster had been dispelled since his appointment as Chairman in February 2021.
"Like many people who are influenced by the press, I had felt that the BBC was bloated, I felt it was self-important, I felt it had too much of its own voice," he admitted, before going on to say that it is in fact "quite extraordinary how well it bats above its budget".
"If you look at the comparative spend – in terms of the amount we spend on drama, the bang for the buck... it really speaks to an extraordinary quality, something you can't take for granted, and extremely talented people making very good decisions."
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Authors
Morgan Jeffery is the Digital Editor for Radio Times, overseeing all editorial output across the brand's digital platforms. He was previously TV Editor at Digital Spy and has featured as a TV expert on BBC Breakfast, BBC Radio 5 Live and Sky Atlantic.
