Half a million households cancelled BBC licence fee last year

Corporation faces stark challenge as it struggles to reach younger audiences who are watching Netflix and YouTube

Half a million households cancelled their licence fee last year as the BBC struggled to connect with younger audiences drifting away to Netflix and YouTube.

The stark extent of the BBC's challenges are set out in the corporation's annual report, which shows the total number of British households paying the 169.50 licence fee fell to 23.9 million, suggesting a growing number of people feel able to go without BBC services.