{ BBC IN TURMOIL } FALLOUT OF TOP EXECUTIVES’ RESIGNATIONS 'Error of judgement'?: Bias scandal puts future funding of Britain’s public broadcaster at risk

The BBC scandal that triggered the resignations of two top executives has put the spotlight on the UK public service broadcaster's business model, already under political and commercial pressure.

- Bloomberg

Director-General Tim Davie and Head of News Deborah Turness stepped down on Sunday, after the leak of a damaging internal memo that alleged the BBC aired a misleading edit of President Donald Trump's remarks in its flagship current affairs program Panorama.

After a week of silence, BBC chair Samir Shah apologised for the edit as “an error of judgement” on Monday.

The BBC said separately on Monday that it had received a letter from Trump threatening legal action over the report. The letter, seen by Bloomberg and dated November 9, calls fora retraction, apology and compensation for Trump.

“It'sa pretty extraordinary set of circumstances, the Director General and head of BBC News leaving,” said Dr Phil Ramsey, a media lecturer at Ulster University, adding that the broadcaster's current funding model is “not sustainable” with the rise of streaming.

The BBC is about to enter sensitive talks with the UK government over its next funding settlement. The broadcaster is funded by the television licence fee, paid annually by UK households that watch or stream BBC programming on any device, which provides more than two-thirds of its £5.5 billion ($7.2 billion) annual revenue. The rest comes from the sale of advertising and licensing shows overseas.