U.K: BBC to Cut Radio And Web Spending

By REUTERS

Published: March 2, 2010

Filed at 7:30 a.m. ET

LONDON (Reuters) - The BBC<BBC.UL> is to close radio stations, slash spending on its Web site and cap other parts of its budget in response to pressure from commercial rivals and politicians.

The British Broadcasting Corporation's announcement on Tuesday comes as a general election looms and follows an increasingly public spat between the group, some rivals and legislators who accuse the broadcaster of unnecessary expansion at a time when commercial firms are struggling in the downturn.

James Murdoch, seen as the heir to his father Rupert Murdoch's News Corp's <NWSA.O> media empire, has described the broadcaster's scale and intention as "chilling."

Unions and analysts have also interpreted the move as a bid by the corporation to get its plans in ahead of an election this year which is likely to result in cuts to public spending.

"The public pick up the bill for the BBC and it is right that it constantly evolves to meet their expectations," said Michael Lyons, the head of the BBC Trust, which will now consider the proposals.

"This strategy review is a key part of that process."

The BBC, which is renowned for its news coverage and comedy programmes such as The Office, receives a guaranteed 3.6 billion pounds income a year from the licence fee, a tax paid by all television-owning households.

It said the overall aim would be to move nearly 600 million pounds a year towards higher quality content.

Britain's media minister Ben Bradshaw, who had previously argued that the corporation needed to be reined in, said he welcomed the BBC's thinking and said it was now important for the public's voice to be heard as part of a consultation.

BBC Director General Mark Thompson said he would recommend halving the number of sections on the website and spending 25 percent less on the site per year by 2013.

It also proposed closing Radio 6 Music, the Asian Network and teen offerings BBC Switch and Blast.

(Reporting by Kate Holton; Editing by Andrew Callus)

($1=.6713 Pound)

Source: http://nyti.ms/dvmG4i

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