BBC’s digital plans under threat as almost one in four tech staff quit

The BBC is suffering a damaging brain drain that threatens its survival in the digital age, an official review has warned.

Nearly a quarter of tech staff at the state broadcaster have quit over the last year as low wages and a lack of digital nous at the top of the organisation prompt coders to find better paid jobs elsewhere.

In a report published on Wednesday, the National Audit Office (NAO) said that the broadcaster was struggling with a shortage of specialist employees, which is holding back Director General Tim Davie’s push to transform the BBC into a rival to Netflix.

Staff turnover stood at 23pc in the BBC’s product group, which oversees iPlayer, Sounds and the BBC News and Sport apps.

The high level of resignations was blamed in part on the BBC’s policy of paying tech staff less than rivals.

The NAO said the staffing issues were hampering the development of new technology, such as efforts to update the organisation’s ailing search functions.  

Despite recruiting a number of skilled individuals to lead its digital teams, the spending watchdog said the broadcaster also needs to revamp its governance policy to ensure there is enough digital expertise in senior positions.

The report highlights the challenges faced by Mr Davie, who in May outlined a £500m plan to transform the BBC into a digital-first service.

In a speech last week, Mr Davie added that the broadcaster had to prepare for a digital-only future and be ready to switch-off terrestrial TV by the end of the decade.

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 licence 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 capitalise 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, though the broadcaster has also blamed a delay in Ofcom approval for keeping programmes 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 organisation 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 organisations.

“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 spokesman 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 organisation 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.”