Another big streaming partnership has been announced, and this time it involves the BBC.
This week, the company announced a major deal with YouTube, which will allow the BBC to produce entertainment content “targeted at YouTube’s younger digital-native audience,” according to the broadcasting giant. As early as February, the BBC will begin showing content on YouTube spanning entertainment, news and sport, starting with the upcoming Winter Olympics.
Although the BBC assures that some of this new content will still be available to watch on iPlayer and Sounds, it raises many questions about the ongoing debate over the company’s business plan. As things stand, the BBC currently relies on the £175 television license fee for its programming, but this deal with YouTube will mark a major change to its model.
Why is the BBC doing this?
As mentioned, the BBC has felt the need to rethink the way it connects with younger audiences, many of whom have swapped traditional TV viewing for services like top streaming services. Paolo Pescatore, founder and analyst at PP Foresight, agrees and shares: “The BBC needs to reconnect, especially with younger audiences.”
Looks like the BBC is abandoning public service broadcasting, right? Well, Abi Watson, head of publishing at Enders Analysis, believes otherwise, telling us: “You have an obligation to produce high-quality, distinctive, creative content – and that’s not platform-specific – which means the BBC is experimenting with new formats, not just recycling linear TV for digital spaces.”
Apart from that, the other determining factor for the BBC’s decision to go for digital viewing is based on changes in viewing habits, which Watson also mentioned. “Secondly, you have a duty to reach audiences where they really are. Viewing habits have changed substantially: around 10% of TV viewing in the UK now goes to YouTube, and for those under 35, it’s closer to a quarter,” he added.
What does this mean for the TV license?
In short, nothing changes for now: while you won’t need a TV license to watch BBC YouTube content in the UK, you will need one to watch or record live TV, or use BBC iPlayer. And that’s the case even if you’re just watching it on the phone.
Until now, the BBC has relied solely on television license fees for its funding, but now that its funding model is being deliberated, it is opting for the ad-supported programming route. As mentioned, ads won’t show when you watch content in the UK, but the idea raises a couple of points.
For one thing, it gives the BBC another source of fundraising and, as Watson says, “content distributed on YouTube can generate modest incremental revenue overseas through advertising. That revenue sits within the BBC’s commercial arm, and any profits made are returned to the public service side and reinvested.” On the other hand, the value is at risk.
“A growing overlap between public service broadcasting and access to commercial platforms risks complicating audiences’ perception of their value. This could intensify over time if YouTube and other third-party services become the primary way people discover and consume BBC content,” said Peter Ingram, research director at Ampere Analysis.
This will drive scrutiny of both value and funding for Pescatore, who told us that “all eyes will be on the BBC as it continues to reinvent itself during uncertain and challenging times, even as consumption patterns change and uses YouTube as a funnel to increase engagement on its own platforms without undermining them.”
What can viewers expect?
For starters, the deal between the BBC and YouTube will be a huge boost to the BBC’s presence in digital broadcasting. The company has used YouTube in the past to promote clips of its programs on its YouTube channel, but this is the first time the BBC will be able to produce new, original content for the platform. For Ingram, visibility is the main bottom line.
“The most immediate impact will be increased visibility of BBC content on YouTube, including a mix of new releases and catalog titles spread across 50 different content channels. Importantly, content created for YouTube is expected to be available on BBC iPlayer and BBC Sounds, meaning existing audiences do not lose access,” Ingram said.
Aside from this, the other big change you can expect is the significant change that will come with the BBC’s funding process, as well as content designed for YouTube, but still essentially the BBC.
“The BBC’s first commission for YouTube is for a new channel run by BBC Three, with around £2m of spend split between two producers. That says a lot – this is a test and learn exercise, not a total reallocation of budgets. On top of that, we understand that initial content will focus on children and sports, genres that already perform well on YouTube and where the BBC has clear strengths. Viewers should expect recognizable BBC content, but designed for YouTube formats and viewing habits from the start,” Watson told us.
As we’ve said, these changes are coming very soon, starting with the Winter Olympics in February. It seems like the BBC has a very clear vision of the direction it wants to take with its YouTube-focused content, but it will be interesting to see what effect this has on its funding model, given its current state of deliberation.
Follow TechRadar on Google News and add us as a preferred source to receive news, reviews and opinions from our experts in your feeds. Be sure to click the Follow button!
And of course you can also follow TechRadar on TikTok for news, reviews, unboxings in video form and receive regular updates from us on WhatsApp also.
