This morning the BBC has announced plans, subject to approval by the BBC Trust, to close down BBC Three as a broadcasting channel in Autumn 2015.
If the BBC goes ahead with this, they will save £50 million a year, £30 million of which will then be spend on original drama for BBC One.
The freed up spectrum will be used to provide a BBC One +1 service and to extend CBBC by an hour a night.
But it’s not the end of BBC Three: According to the plan, BBC Three will move to the internet and remain available as an online service.
Director General of the BBC, Tony Hall puts the loss of BBC as a TV channel down to necessary cost savings as he said in an e-mail to BBC staff.
Unlike most commercial networks, the BBC is funded by TV license fees which have not risen in the last 5 years, while the BBC has had to take on extra costs for the BBC World service, S4C and the roll out of broadband.
The BBC says in a statement that BBC Three was launched in February 2009 and under those proposals, would close in Autumn 2015. They also state that BBC Three has the greatest 16-34 market share of any TV channel in the UK, beating competition like E4, Sky One and ITV2, hinting that the closure is not connected to any kind of speculated failure of the service.