BBC website in US launches paid subscription service

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"BBC Launches Paid Subscription Service for US Visitors"

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The BBC has implemented a paywall for its website and app in the United States, requiring US visitors to subscribe for access to most news stories and features. The subscription options are set at $49.99 per year or $8.99 per month, which will also allow users to stream the BBC News channel. However, users who opt not to subscribe will still have access to selected global breaking news stories, as well as BBC Radio 4, the World Service, some newsletters, and podcasts, albeit in an ad-supported format. Rebecca Glashow, CEO of BBC Studios Global Media & Streaming, characterized this development as a significant milestone for the organization, aiming to unlock new growth opportunities while continuing to serve its audience effectively. The BBC's move to introduce a subscription model is not expected to impact its UK audience or international viewers outside the US, and it intends to supplement its existing funding from UK households through the licence fee, which remains the primary source of income for the organization.

The BBC anticipates a budget deficit of £492 million for the current financial year, prompting a need for alternative revenue streams. While the UK government is reviewing the BBC's funding model, the director general has emphasized that transitioning to a subscription model for UK audiences would not align with the goal of maintaining a universally trusted public service. The BBC's new subscription service mirrors similar strategies employed by other major publications, such as the New York Times, and reflects a broader trend of media organizations placing content behind paywalls. With 139 million global visitors, including nearly 60 million from the US, the BBC is keen to enhance its service offerings. Glashow stated that the BBC aims to reimagine the delivery of news and factual content in the US, with plans to expand the subscription service to include more documentaries, podcasts, and newsletters in the near future. This initiative follows the BBC's recent decision to block access to most stations on the BBC Sounds app for audiences outside the UK, further indicating a shift in its content distribution strategy.

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The BBC has introduced a paywall for people looking at parts of its website and app from the United States. US-basedvisitors to BBC.com will now have to pay $49.99 (£36) a year or $8.99 (£6.50) a month for access to most BBC News stories and features, and to stream the BBC News channel. Those who do not pay will still have ad-supported access to selected global breaking news stories, BBC Radio 4 and the World Service, as well as its language services and some newsletters and podcasts. Rebecca Glashow, CEO of BBC Studios Global Media & Streaming, described the move as a "major milestone" that would "unlock new opportunities for growth". There will be no changes for the BBC's UK audiences or for those elsewhere around the world. The corporation hopes the offer will raise money to help fund the BBC's services alongside revenue from UK households through the licence fee, which costs £174.50 a year and accounted for about two-thirds of its total income last year. The BBC has said it expected to have a £492m budget deficit for the latest financial year. The UK government is set to review the corporation's funding model, but the BBC's director general has said switching to a subscription system for UK audiences would not "pass the test of building a universal trusted public service". The BBC's new US pay model follows similar subscription systems used by other publications including the New York Times, and the likes of the Telegraph and the Sun putting selected stories and content behind paywalls in the UK. BBC.com reaches 139 million visitors globally, including almost 60 million in the US, the corporation said. UK audiences will still be able to access BBC News when travelling to America if they have the latest version of the app. Ms Glashow said the BBC wanted to "reimagine how we deliver" news and factual content to the US. "Our goal? To serve our audiences better than ever before - and unlock new opportunities for growth," she said. "Today, the next phase of that vision becomes reality. We're bringing more of the BBC's trusted, high-quality content together in one powerful, easy-to-access destination." More documentaries, podcasts and newsletters will be added to the subscription offer in the coming months. It comes after the BBC announced it was to block most stations on the BBC Sounds app for audiences outside the UK.

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Source: Bbc News