Proposals to introduce subscriptions, allow advertising, or levy higher charges on wealthier households are once again under consideration as ministers revisit the future of BBC funding.
Culture Secretary Lisa Nandy is expected to launch a consultation imminently, setting out a range of options aimed at diversifying the broadcaster’s income streams. The move comes amid growing concern over the rising number of viewers choosing not to pay the licence fee.
While the licence fee is likely to remain in place, it could play a diminished role in the BBC’s overall finances. According to The Times, ministers are “keen for the broadcaster to reduce the proportion of money paid by licence fee payers.”
What might this mean for viewers?
Exact details will become clearer once the consultation paper is published.
However, options could include a freeze or reduction in the current licence fee. The BBC would then have to ‘top-up’ their income, for example by creating a paywall for some content or by carrying adverts.
Alternatively, the current licence fee model could remain, but with different tiers based on the wealth of a household. This might be controversial if pegged to council tax bands. Council tax bands aren’t a strict indicator of wealth and are subject to regional anomalies in England, where council tax is based on how much a house would have been worth in 1991.
Ministers also want the BBC to grow its income from its commercial arm BBC Studios. Just over a third of the BBC’s total income last year came from BBC Studios.
Will I have a say?
The consultation will allow members of the public and those within the media industry to have their say on the matter.
What’s the BBC’s likely response?
The BBC is understood to prefer the retention of the licence fee. It has previously voiced its opposition to carrying advertising or putting content behind a paywall. Charging some users more for the BBC is something that has its backers within the BBC.
Commercial broadcasters are unsurprisingly expected to strongly object to an ad-funded BBC.
Two-tier BBC already exists in theory
BBC Studios already operates a number of subscription and ad-funded services in the UK via its subsidiary UKTV.
UKTV operates pay TV channels U&Gold and U&Alibi and ad-funded streaming service “U”.
There is currently a rule that stops the BBC from using its own branding on ad-funded and pay TV services in the UK. Channels very similar to UKTV’s British services operate outside the UK with BBC branding.
If the outcome of the consultation was to change the way the BBC is funded, the separation between public service BBC and commercial UKTV would be undermined.
By: Marc Thornham |