Amol Rajan calls on Burnham to act on BBC licence fee model as he departs for YouTube

Amol Rajan at the Edinburgh TV Festival

ETVF: Amol Rajan, the broadcaster who is leaving the BBC to join the creator economy, has urged new UK prime minister Andy Burnham to consider a radical alternative to the licence fee, warning that the pubcaster’s funding crisis means it will be “screwed” otherwise.

In his Alternative MacTaggart Lecture here at the Edinburgh TV Festival on Thursday, Rajan painted a stark picture of decline at his current employer and called on Burnham to act immediately to protect the BBC’s future.

“The phrase ‘managed decline’ is far too generous,” Rajan said. “When it comes to the actions of British governments in recent years, there hasn’t even been any managing. I want everyone here, and beyond, to wake up to the reality of the BBC’s finances. This is the unvarnished truth.

“To understand how screwed the BBC is, you just have to understand compounding. Last year, 539,000 fewer people paid the licence fee. The year before, it was 300,000 – massive even then. What if this year, the number is 800,000? Within three years, you’ve lost one-and-a-half-million customers.”

Rajan pointed to recent Enders Analysis figures showing licence fee income has fallen by 28% in the past 15 years. “The BBC has cut costs by 15%. It’s found £1.5bn [US$2bn] in savings, and is on target to find another £500m. Revenues tumbling; costs rising. This equation cannot last. You cannot cut your way to growth,” he said.

“In the case of the BBC, the consequences are clear. These cuts are just the beginning; there is worse to come. The finances are much worse than most people even here realise.”

Rajan said he hoped the arrival of Burnham was potentially a last chance to save the corporation. He proposed a new mutual model to replace the licence fee, offering licence fee payers a chance to own and trade shares in the BBC, with a protected 51% stake preserving it as a mutual.

“People say the BBC is always in crisis. I say the BBC is always in bloody consultation… Do you know what has resulted from all these endless reviews and consultations? Absolutely sweet diddly squat,” said Rajan.

“Make a decision, stop dithering. This could not be more urgent, and it could be a great legacy for you.”

Elsewhere during his speech, Rajan discussed the extent to which the internet and social media have contributed to social isolation, leaving people lacking meaningful, human connection.

Rajan made the case for the BBC as the great connector of UK citizens, meaning it must be protected at all costs. He also admitted to hypocrisy given he is leaving the corporation next week to immediately launch his own show and podcast on YouTube called The Amol Rajan Connection.

The show is part of a production and distribution deal with Jane Featherstone and Liz Murdoch’s Sister Group, which is led by CEO Lucinda Hicks. Creator economy and platform executives Rich Waterworth (TikTok, YouTube) and Bryony Hopkins (LADBible, Flight Story) will be consultants on the project, with Waterworth leading strategy and Hopkins leading production.

Rajan will record content at the studios at the KOKO venue in Camden, North London, in which Sister Group is a stakeholder.

Sister Group co-founders Murdoch and Featherstone said in a joint statement: “Amol’s curiosity, intellect and drive are infectious; he is a generational talent with a natural instinct for where the industry is going and what audiences truly want. We are followers already and thrilled to play a part in bringing The Amol Rajan Connection to the world.”