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BBC director general Tony Hall.
The UK's culture, media, and sport secretary announced a sweep of changes to the BBC on Thursday — most notably, completely changing the way it is governed.
Speaking in the House of Commons on Thursday, John Whittingdale announced the BBC Trust is not "fit for purpose" and will be abolished.
Instead, there will be a new "unitary" board of governors responsible for making sure the public service broadcaster's output meets its obligations, including a requirement for "distinctive" content, independent of political bias.
BBC director general Tony Hall will still be responsible for editorial decisions, but the new board will consider complaints.
For the first time, the BBC will have the ability to appoint the majority of this 12-to-14-member board. In the past, the government selected the majority of the BBC Trust and BBC Governors board.
In another big change, UK communications regulator Ofcom will now be given the power to assess whether the BBC's output is negatively affecting its commercial rivals in the UK. Whittingdale said the BBC has a 33% share of TV, a 53% share in radio, and the third most-popular website in the UK.
The National Audit Office will now be responsible for regulating the BBC's commercial arm.
Here's an outline of the biggest changes to the BBC announced by Whittingdale on Thursday:
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The BBC can now appoint the majority of its board members for the first time (not government.)
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Current BBC Trust Chair Rona Fairhead will remain in post until the end of her term in 2018.
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Ofcom will become the external regulator for the publicly-funded BBC. The National Audit Office will be the BBC's financial auditor.
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Whittingdale wants the BBC to be the "leading broadcaster in addressing diversity."
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The BBC has a duty to produce "distinct" content. Indeed, the whitepaper announcing the changes is titled: "A BBC for the future: a broadcaster of distinction."
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BBC talent on annual compensation of more than £450,000 will have their salaries published. Managers earning more than £150,000 per year will also have their salaries published.
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The £145.50 annual Licence Fee freeze will increase in line with inflation from 2017 until 2022.
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Those watching catch-up content on the BBC iPlayer will also be required to pay the Licence Fee.
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Additional government funding will be provided to the BBC's commercial World Service arm.
The changes are detailed in a whitepaper on the future of the BBC, published on Thursday. It was necessary because the BBC is governed by a Royal Charter and the current Charter will expire at the end of 2016.