The BBC collected £3.66 billion in licence fee income in the 2023/24 financial year, down 2% from the previous year, according to the state broadcaster’s annual report.
There were 23.9 million licences in force as of 30 April, down half a million from 24.4 million the previous year.
Flat licence fee pricing, combined with high inflation and the application of a lower inflation rate for the April 2024 price increase, has significantly impacted funding, said the broadcaster.
When comparing licence fee revenues from 2011, the results become even more concerning for the BBC.
In real terms, the licence fee generated 30% more income in the 2010/11 financial year compared to today, equating to a difference of more than £1 billion annually.
In 2010/11, there were 25.7 million TV licences in force; nearly two million more than there are today.
By coincidence or not, that means the BBC has lost nearly a third of this licence fee income, and nearly two million supporters, since the launch of streaming giant Netflix on January 9, 2012.
While not a direct comparison – BBC services span far more than just televisual content – there is an undeniable correlation between the decline in licence fee subscriptions and the rise of streaming platforms ushered in by Netflix.
It remains a criminal offence to consume BBC TV and online content without paying the current £169.50 licence fee.
However, there are growing calls for change, particularly among right-wing politicians and commentators.
BBC chairman Samir Shah warned that further cuts will be needed if licence fee income continues to fall.
He said: “In December, the Government restored a link to inflation on the licence fee after two years of no increases. It certainly brought more financial certainty, but the rise was less than anticipated.
“It is an outcome that requires the BBC to make still further changes on top of the major savings we have already been delivering.”