BBC chief hits out at threat from Netflix

BRITISH-made shows such as Strictly Come Dancing and Sherlock are under ‘serious threat’ due to the rise of Netflix and Amazon, the BBC boss has warned.

Director- general Lord Hall raised concerns about a dramatic decline in the amount spent on programmes on BBC and ITV, due to the increasing prominence of on- demand services and a fall in advertising revenues.

In a speech yesterday he revealed a ‘worrying’ report had found that funding could drop by £500million a year over the next decade, creating an ‘uncertain’ future for home-grown content. It is based on an assumption of broadcasters spending 20 per cent of revenues on British shows.

So far this year, the five most popular shows on British TV have all been made here – including Sherlock and Strictly.

However, Lord Hall told an audience in Liverpool: ‘We have to face the reality that the British content we value and rely upon is under serious threat. Over the next ten years we can expect a substantial gap to open up between the amount that is spent on UK content now and the amount that will be spent in the future.’

Most of the BBC’s £5billion annual budget comes from the £147 licence fee. Meanwhile, streaming services make most their money through subscriptions, which cost between £5.99 to £9.99 a month.

Netflix has recently announced it will spend £6billion on making original content. But Lord Hall warned streaming sites’ focus was on finding international hits, and it was ‘unlikely’ they would ‘make up’ the UK TV funding shortfall.