Post by Teddy Bear on Jul 18, 2008 19:19:23 GMT
While I'd prefer the licence fee to end altogether, having the BBC lose entitlement to all of it as at present would make a good start.
BBC could lose part of the licence fee, head of broadcasting watchdog warns
By Richard Alleyne and Nicole Martin
Last Updated: 7:32PM BST 17/07/2008
The head of the broadcasting watchdog has given the strongest indication yet that the BBC might have to lose part of its licence fee.
Lord Currie, the Ofcom chairman, questioned one of the BBC's key arguments for keeping its exclusive right to £3 billion of taxpayers' money.
The corporation has always argued that sharing the licence fee with other channels would make it difficult for people to know where their money is being spent.
As the sole recipient of public money, it claims that the BBC has a "unique link" with viewers.
However, Lord Currie said the special relationship was more of "an article of faith" than an "evidenced reality" because many viewers had no idea what the licence fee was used for.
He said that confusion had been caused by the increasing number of the BBC's digital channels and services.
"While 80 per cent think the licence fee funds television programmes on BBC One and Two, only 60 per cent believe it funds the BBC's digital services, 50 per cent its radio services and only 40 per cent BBC Online," he told an audience at the London Business School.
Insiders said it was the strongest hint yet from the watchdog that the BBC might be forced to share the money to fund public service broadcasting with other channels.
Lord Currie's warning came as Sir Michael Lyons, the chairman of the BBC Trust, mounted a robust defence of the licence fee.
He said the BBC contributes £6.5billion to the economy; about twice as much as it receives in licence fee payments, according to Sir Michael Lyons.
The BBC Trust, the corporation's governing body, estimates that the broadcaster contributes £5 billion to the creative wealth of the country and another £1.5 billion to the rest of the economy.
That means for every pound it takes out in licence fee payments - more than £3billion a year - the report claims it gives £2 back.
The report, disclosed by Sir Michael in a speech to the European Union, also claims that far from it squeezing the commercial sector it acts as a catalyst for growth and helps it through lean times when rival channels are cutting back.
But critics of the corporation condemned the findings, which they said ignored the distorting affect the corporation had on the free market.
Philip Davies, the Conservative MP who sits on the culture, media and sport select committee, said: "Like most people I am very cynical about reports that reflect exactly the views of those that have commissioned it.
"The general public see that every other channel provides programmes free of charge and they have to pay for the BBC.
"Most people would consider it even better value for money if they didn't have to pay anything at all. The BBC causes damage to the commercial sector by inflating production prices and squeezes their market.
"Every other broadcaster contributes to the economy but we don't have to pay for them."
The figures come at a time when the debate over the licence fee and public sector broadcasting reaches a critical stage.
In an era where multi-channel digital television and the internet are putting pressure on audience shares, Channel 4 is seeking a £150m annual share of public money by 2012, and ITV is looking at the possibility of surrendering its public sector broadcasting role altogether.
The BBC has repeatedly mounted a robust defence of the licence fee and has sought to counter the idea that the corporation prevents commercial broadcasters from thriving.
Sir Michael said the overall economic impact of the BBC is "positive".
"Removing licence fee funded services would be unlikely to provide a significant boost to commercial channels - all it would do is take away money from the broadcasting supply chain," he added.
"The BBC is a stable source of funding and because of this it sustains a much more vibrant independent production sector in the UK than would otherwise be the case, particularly when the economy goes through hard times.
"It is no wonder that the UK punches above its weight in the global media market: the second biggest exporter of television programmes after the US and the leading exporter of formats," he added,
He said that many of the ways in which the BBC contributed to the general UK economy were "intangibles such as innovation, imagination and creativity".
"These are what give an economy the edge when competing in a global market. The BBC's public purpose of stimulating creativity should, I believe, be read in this context."
The report was carried out by PriceWaterhouseCoopers, the financial consultants, on the request of the BBC Trust.
By Richard Alleyne and Nicole Martin
Last Updated: 7:32PM BST 17/07/2008
The head of the broadcasting watchdog has given the strongest indication yet that the BBC might have to lose part of its licence fee.
Lord Currie, the Ofcom chairman, questioned one of the BBC's key arguments for keeping its exclusive right to £3 billion of taxpayers' money.
The corporation has always argued that sharing the licence fee with other channels would make it difficult for people to know where their money is being spent.
As the sole recipient of public money, it claims that the BBC has a "unique link" with viewers.
However, Lord Currie said the special relationship was more of "an article of faith" than an "evidenced reality" because many viewers had no idea what the licence fee was used for.
He said that confusion had been caused by the increasing number of the BBC's digital channels and services.
"While 80 per cent think the licence fee funds television programmes on BBC One and Two, only 60 per cent believe it funds the BBC's digital services, 50 per cent its radio services and only 40 per cent BBC Online," he told an audience at the London Business School.
Insiders said it was the strongest hint yet from the watchdog that the BBC might be forced to share the money to fund public service broadcasting with other channels.
Lord Currie's warning came as Sir Michael Lyons, the chairman of the BBC Trust, mounted a robust defence of the licence fee.
He said the BBC contributes £6.5billion to the economy; about twice as much as it receives in licence fee payments, according to Sir Michael Lyons.
The BBC Trust, the corporation's governing body, estimates that the broadcaster contributes £5 billion to the creative wealth of the country and another £1.5 billion to the rest of the economy.
That means for every pound it takes out in licence fee payments - more than £3billion a year - the report claims it gives £2 back.
The report, disclosed by Sir Michael in a speech to the European Union, also claims that far from it squeezing the commercial sector it acts as a catalyst for growth and helps it through lean times when rival channels are cutting back.
But critics of the corporation condemned the findings, which they said ignored the distorting affect the corporation had on the free market.
Philip Davies, the Conservative MP who sits on the culture, media and sport select committee, said: "Like most people I am very cynical about reports that reflect exactly the views of those that have commissioned it.
"The general public see that every other channel provides programmes free of charge and they have to pay for the BBC.
"Most people would consider it even better value for money if they didn't have to pay anything at all. The BBC causes damage to the commercial sector by inflating production prices and squeezes their market.
"Every other broadcaster contributes to the economy but we don't have to pay for them."
The figures come at a time when the debate over the licence fee and public sector broadcasting reaches a critical stage.
In an era where multi-channel digital television and the internet are putting pressure on audience shares, Channel 4 is seeking a £150m annual share of public money by 2012, and ITV is looking at the possibility of surrendering its public sector broadcasting role altogether.
The BBC has repeatedly mounted a robust defence of the licence fee and has sought to counter the idea that the corporation prevents commercial broadcasters from thriving.
Sir Michael said the overall economic impact of the BBC is "positive".
"Removing licence fee funded services would be unlikely to provide a significant boost to commercial channels - all it would do is take away money from the broadcasting supply chain," he added.
"The BBC is a stable source of funding and because of this it sustains a much more vibrant independent production sector in the UK than would otherwise be the case, particularly when the economy goes through hard times.
"It is no wonder that the UK punches above its weight in the global media market: the second biggest exporter of television programmes after the US and the leading exporter of formats," he added,
He said that many of the ways in which the BBC contributed to the general UK economy were "intangibles such as innovation, imagination and creativity".
"These are what give an economy the edge when competing in a global market. The BBC's public purpose of stimulating creativity should, I believe, be read in this context."
The report was carried out by PriceWaterhouseCoopers, the financial consultants, on the request of the BBC Trust.
