Beeb to review its size and its resources

So the BBC is going to address the concerns of the James Murdoch's in looking at their size and role.

Sir Michael Lyons has released aa open letter to the license payer saying that

Recent debate has focused on two particular arguments. The first is that the BBC should be much smaller and should scale back its involvement in areas such as providing news for free on the internet. The second, as proposed by the Government, is that the licence fee should be shared and that an element should pass to a range of commercial media companies - initially regional news providers - breaking the historic funding link between the BBC and its audiences. Both arguments are rooted in the problems faced by the broadcasting and wider communications industries as the internet challenges the traditional role of both broadcasters and newspapers and the recession cuts into advertising revenue.

Mark Thompson is now to oversee a review on whether the BBC is indeed the right size what areas it should concentrate its resources on in future.