Funding
The BBC's site was initially entirely free from advertising, this was due to the BBC's funding, derived primarily from compulsory television licence fees from UK viewers. BBC Worldwide who exploit BBC brands commercially have had several attempts at launching services online including Beeb.com in the late 1990s.
In 2006, the BBC began making controversial plans to raise revenue by including advertising on the international version of BBC News Online accessed from outside the United Kingdom. BBC Online is currently freely available worldwide (via various URLs including bbc.com/news) but planned video services and a lower than expected licence fee settlement paid for by UK residents only led to the BBC introducing banner advertisements to the site from November 2007. The BBC Trust approved the plans for introducing advertisements which also involved creating bbc.com as a part of BBC Worldwide. Sir Michael Lyons, Chairman of the Trust, confirmed the BBC would not charge for online news following News International's planned introduction of charges for online content.
Prior to this there had been criticism from some, as web users outside the UK could use the services (including the entire BBC radio services) without having to pay for them. In addition, where rights to sporting events (such as certain football or cricket matches) do not include international online coverage, users from outside the UK are blocked from listening to commentaries.
On 24 January 2011, it was announced that the BBC was to cut its online budget by 25% or £34 million. To cope with this, many BBC websites would be closed including BBC Switch, BBC Blast, 6-0-6, BBC raw, Video Nation, and planned to sell the Douglas Adams created website h2g2, as well as the automation of many programme websites and radio websites.
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