The BBC faces mounting financial uncertainty as US President Donald Trump’s proposed protectionist measures threaten a critical source of revenue. The introduction of a 100% tariff on foreign-made films and television content could severely impact BBC Studios, the commercial arm of the BBC, which sold £454 million worth of content to the US market alone last year.
BBC Studios is renowned for exporting popular programmes such as Doctor Who and Frozen Planet. The US has become one of its most important markets, contributing significantly to the BBC’s global earnings, which totaled more than £1.8 billion last year. However, with the details of the proposed tariffs still unclear—specifically whether they will include TV dramas and documentaries—there is growing concern among UK politicians and industry experts that the effect on BBC revenues could be devastating.
In the House of Commons, Conservative Shadow Culture Secretary Stuart Andrew raised questions about the potential financial impact, warning that a decline in BBC Studios’ US profits could force British households to bear higher licence fees to compensate for the shortfall. This is especially concerning as traditional licence fee income continues to drop amid the rise of streaming platforms like Netflix.
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Culture Minister Sir Chris Bryant confirmed that the UK government is actively engaging with US officials to address the issue. Trade discussions are intensifying as ministers seek to protect UK exporters from the consequences of the new US trade regime, which could also impose a 10% tariff on a broad range of British goods. Hollywood insiders, including actor Jon Voight, have reportedly pushed for tariffs on overseas content to shield American productions.
Experts predict such measures could accelerate a shift away from the current £174.50 annual licence fee. Professor Patrick Barwise of London Business School explained that dwindling revenues from US exports could undermine the licence fee model, which relies in part on profits from BBC Studios to subsidize domestic broadcasting. He suggested the BBC may soon need to pursue a fundamentally different funding approach.
The BBC’s Royal Charter, which currently governs the licence fee system, is set to expire in 2027. With Culture Secretary Lisa Nandy having already described the existing model as “unenforceable,” discussions about the broadcaster’s future funding are expected to begin later this year.
A spokesperson for the UK government emphasized that negotiations with the US are ongoing but declined to disclose specifics, reaffirming a commitment to a measured approach aimed at protecting British businesses and consumers from potential economic fallout.