The governing body of the BBC has said the below-inflation rise will “have a significant impact on the wider creative sector across the UK”.
So what would a new funding model look like, and what does this mean for the future of the BBC?
On the Sky News Daily, Niall Paterson talks to Roger Mosey, former head of BBC Television News, and Alice Enders, director of research at Enders Analysis about what could come next.
Producer: Alex Edden
Interviews Producer: Melissa Tutesigensi
Promotion producer: David Chipakupaku
Editor: Philly Beaumont