BBC License Fees: What will an alternative funding method look like after 2027? | UK News

A review of the BBC’s funding model is to be carried out by the government.

Speech at Commons on Monday, Secretary of Culture Nadine Dorries He said it was time to ask the question, “Is the compulsory license fee appropriate?” And confirmed that the government’s consideration of this issue would begin “soon.”

of Tweet of the day Earlier, Ms. Dolly added, “This license fee will be announced last.”

She is MP License fee will remain fixed at £ 159 until April 2024 It will then rise in line with inflation for the next four years until the end of the current Royal Charter on December 31, 2027.

BBC The boss promised to “continue to make a strong claim to the government about investing” in the enterprise.

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Nadine Dorries explains why the BBC license fee freeze.

What is the license fee? How does it work?

An annual BBC license fee (currently £ 159) is required for all homes that consume BBC TV channels, radio, online programs, and services such as iPlayer, Radio 1, CBeebies, and World Service.

This applies to all formats of transmission, including the use of iPlayer on smart TVs, laptops and tablets.

It also funds the Welsh TV channel S4C and local TV channels, which are reported to be worth a total of around £ 3.2 billion for the BBC.

The license fee was introduced in 1946, when broadcasting resumed after World War II.

Government-set BBC license payments are usually raised in April each year.

In 2016, the government announced that inflation would increase costs for five years starting in April 2017.

However, in a speech at Commons on Monday, Ms. Dolly confirmed that the BBC license fee would be frozen at £ 159 for the next two years and then rise in inflation for the next four years.

This represents a severe and substantial reduction for the enterprise.

But with reports that the Conservative government plans to ax license fees beyond the end of the current Charter of December 2027, what are the alternatives to funding businesses in the long run? mosquito?

Pic: AP
People can pay a subscription to take advantage of the BBC’s programming and services, just as they do with streaming giants such as Netflix.

Voluntary subscription fee

Subscription services such as the systems used by streaming giants Netflix and Amazon Prime have people who voluntarily pay a monthly or annual fee to use the BBC’s programming and services.

This means that those who use the BBC service can continue to opt in, while those who think they don’t need a current BBC license can opt out.

Subscription fees may be offered at a higher price compared to the current £ 159 TV license. This is because fewer people choose to pay the total.

Also, if a significant percentage of households currently holding a BBC license do not sign up for and continue with the subscription service, the BBC’s income may be lost.

Another potential problem with this option is the difficulty of placing some services behind what is effectively a paywall, such as the large numbers of local television and radio broadcast by businesses.

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BBC currently does not host ads on domestic channels


Another way the BBC can raise money is to place ads on websites, TV channels and radio stations.

Currently, the BBC has no ad breaks on domestic TV channels such as BBC One, BBC Two and BBC News Channel, and no ads on its website, but has ads on international channels such as BBC World.

The company states that these “help fund the BBC service and keep license fees lower than other methods.”

The BBC can do the same because other national broadcasters in the UK (including other public broadcasters ITV and Channel 4) have already placed ads.

However, such a move could increase the BBC’s tendency to attract more viewers and then consider programs that reduce the diversity of their programs.

Also, advertising revenue alone is unlikely to be sufficient to sustain the BBC’s current range of services.

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Governments can directly provide public broadcast media with annual subsidies for programs and services.

Government subsidy

The Australian Broadcasting Corporation is Australia’s national broadcaster, and most of its existence has been funded by annual government grants of the time.

Applying this option to the BBC eliminates the need to collect totals from individual UK households, instead the UK government will directly provide the company with a certain amount of funding for the year.

However, the BBC’s mission is that the BBC is an independent and impartial broadcaster, and receiving direct funding from the government can jeopardize the BBC’s editorial independence.

It also means that the government will continue to be responsible for the amount of money the broadcaster receives. This means that corporate budgets can be dramatically reduced if the government at the time desires.

All broadband networks "One-touch switch" Process carried out by April 2023
Broadband levy can be introduced as an alternative to license fees

Broadband levy

Another option is for the BBC to introduce a broadband tax on all connections in the UK.

This move modernizes the current approach and license fees are collected from home television.

This means that all households will continue to pay an amount to use the BBC service, which may be collected by the broadband provider and passed to the BBC.

However, one problem with this idea is that it makes it difficult for people who need the Internet to opt out of paying fees again.

Another concern is that the price of broadband for homes will rise when living expenses are rising, and the internet may be too expensive for some people to buy.

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You can create a special new tax to fund public service media

Introduce new taxes directly to public media

In 2019, Sweden removed the TV licensing model and instead introduced new taxes on people’s income to fund television and radio in domestic public services.

The tax paid by everyone, whether or not they own a television, is equivalent to 1% of an individual’s income and is capped at a certain amount. In 2019, this was Skr 1,300 (at the current exchange rate £ 105.16).

Those with a monthly income of less than 13,600 kroner (£ 1,100.40 at the current exchange rate) will pay a discounted rate, and those without income or students will not have to pay.

Money is paid to pots sent directly to public service media. This reduces the risk of compromising a company’s editorial independence when implemented on the BBC.

Such a move will see new taxes appearing on UK pay slips along with income tax and national insurance contributions from 2028.

Tim Davie
BBC Secretary Tim Davey said he was “disappointed” with the announcement of the government’s license fee on Monday.

Other options:

However, another option to keep the many programming and services offered by the BBC over the next decade is whether the government will keep the BBC license fee after December 2027 and freeze the costs at that time. ,inflation.

August 2020, People over 75 have started paying for TV licenses, I used to receive it for free, and the income of the company has increased.

The BBC is currently testing qualifications and people over the age of 75 must have pension credits to receive a free license.

The BBC has agreed to be responsible for funding this plan as part of a Charter Agreement signed with the Government in 2015.

He said he could not afford to continue the universal qualifications that would hurt “programs and services.”

BBC License Fees: What will an alternative funding method look like after 2027? | UK News

Source link BBC License Fees: What will an alternative funding method look like after 2027? | UK News

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