The NAO’s report revealed that the BBC’s spending on digital development is in fact falling. Tech investment fell to £98m in the last financial year, down from £109m before the pandemic.
That compares to the £1.7bn Netflix spent on technology and development in 2021.
Tech spending at the BBC will continue to come under pressure, with the public service broadcaster warning it faces a £285m funding shortfall until 2027 due to a freeze in the license fee. It has outlined a string of job and service cuts as part of efforts to save £500m annually.
In its report, the NAO also took aim at the BBC for failing to capitalize on changing viewing habits since launching iPlayer in 2007 – the same year that Netflix launched its streaming service.
iPlayer accounts for only 16pc of all BBC viewing, with the majority of audiences still tuning in via traditional TV and radio.
The report said the slow pace of growth was due in part to under-investment, although the broadcaster has also blamed a delay in Ofcom approval for keeping programs on iPlayer for longer.
The BBC is being forced to shift its focus to digital by the rise of streaming rivals, but must also balance this with the need to maintain traditional broadcasting. The organization also has a responsibility to maintain its critical national infrastructure.
Despite its criticisms, the NAO said the BBC’s digital products were performing well overall compared to many better-funded media companies, adding that the broadcaster now needed to publish a more detailed investment plan for its digital strategy.
Gareth Davies, head of the NAO, said: “The BBC faces a number of challenges in developing its digital offering, and its products are performing well compared to other, better-funded, media organizations.
“Stronger digital leadership structures in particular will enable the BBC to make the improvements it needs to its approach, if it is to maintain this success in a fast moving, global media market.”
A BBC spokesperson said: “The NAO finds the BBC’s digital performance is impressive with more people coming to iPlayer, Sounds and our online services than ever before, but there is more to do. We’re driving digital reforms across the organization to provide people with the BBC content they want, in the ways they want it.
“We have a clear vision for a digital-led BBC which we will continue to deliver on and provide even greater value for all audiences.”
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