BBC Outlines Plans to Cut $228 Million in Costs

LONDON: The BBC is looking to cut £150 million ($228 million) in costs, with plans to reduce its TV sports rights budget by £35 million ($53 million).

The BBC said the cuts are meant to address a "shortfall in funding" identified earlier this year. The plan is for £50 million ($76 million) to be saved by creating a simpler, leaner BBC, with fewer divisions and senior managers, fewer layers between the top and bottom of the organization and cutting 1,000 posts.

A further £35 million ($53 million) will be saved from the BBC’s TV sports-rights budget, as it anticipates losing some existing rights and events. An additional £12 million ($18 million) will come from the BBC’s TV budget. It says that drama will be protected, but some reductions will be made across factual, comedy and entertainment.

Additionally, £12 million ($18 million) will be cut from BBC Online; £5 million ($7.6 million) will come from news; and £20 million ($30 million) in savings will come from long-term contracts and other costs, due to the current lower levels of inflation. There are also plans for savings in distribution costs, and the BBC will be exploring a phased exit from the broadcast Red Button service and further savings from BBC Online.

Director-General Tony Hall said: “The BBC has and is doing everything possible to make sure the impact on the public is minimized. Wherever possible we’re targeting savings by creating a simpler, leaner BBC.

“But cuts to budgets for programs and services are unavoidable. No Director-General wants to announce reduced spending on services that the public love. This is very tough, but the BBC’s financial position means there is no alternative.”