Lord Redwood Calls for BBC Commercial Arm’s Privatisation

By the Editorial Team · Sunday, August 9, 2026

Lord Redwood has proposed privatising the BBC’s commercial division and giving all licence fee payers a share in the organisation to transform it into a mutual entity with greater public influence. He argues this restructuring would boost investment in technology and content, helping the BBC compete with dominant US streaming firms ahead of the broadcaster’s 2028 charter renewal.

Lord Redwood has proposed a significant restructuring of the British Broadcasting Corporation, suggesting that the broadcaster’s commercial arm be privatised and that all households paying the BBC licence fee be granted shares in the organisation. Speaking this week, the peer argued that the BBC should operate as a mutual entity, with licence fee payers each holding a single share, enabling them to influence management decisions such as appointing the director general and shaping service offerings.

A former adviser to Margaret Thatcher in the 1980s, Lord Redwood drew on his experience with privatisation efforts to advocate for the sale of BBC Commercial, the division responsible for producing and distributing content globally. He contended that listing the commercial arm on the UK stock market would allow the broadcaster to raise substantial capital, which could then be reinvested in new technology, creative talent, and programming.

Lord Redwood expressed concern that the UK media sector is losing ground to large American companies, noting that UK consumers spend heavily on streaming services like Netflix, Amazon Prime, and Disney+ while also being obligated to pay the £180 annual BBC licence fee. He criticised the current financial performance of BBC Commercial, which generated £2.2 billion in revenue for the 2024/25 fiscal year but returned only £377 million back to the BBC. He argued that with changes to management and business models, the UK media industry could become far more competitive, highlighting that the combined turnover of major US media firms eclipses that of the BBC by a factor of approximately 30.

This intervention comes amid an ongoing ten-year charter review for the BBC, set to conclude with a renewal in 2028. The corporation has acknowledged the need for “radical reform” to establish a funding framework that is universal, fair, sustainable, and adaptable to future challenges. Government officials have emphasized that any reforms must enhance the BBC’s efficiency, boost revenue generation, and ensure the broadcaster remains representative of and relevant to all segments of the British public.

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