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Pages tagged "TV licence fee"

What does Oliver Dowden's panel of broadcasting, journalism and technology leaders mean for the licence fee?

 

 

By Andrew Allison, Head of Campaigns 

Oliver Dowden, the Culture Secretary, has announced that a 10-strong panel of experts will look at the future of public service broadcasting. In an op-ed for the Telegraph, Mr. Dowden said that "the BBC is just one piece of a bigger puzzle. The world has changed, and every broadcaster needs to change with it. So I’m taking a close look at the future of our entire public service broadcasting system. That includes ITV and Channels 4 and 5 – and S4C in Wales and STV in Scotland, both of which are important to those nations." He also said that the "10-strong panel won’t just be tiptoeing around the edges. They have been tasked with asking really profound questions about the role these broadcasters have to play in the digital age – and indeed whether we need them at all. It is a crucial task, given how central public service broadcasters are to our entire creative ecosystem."

This review is long overdue. Most of the output from the BBC is not public service broadcasting. It's output is very similar to other broadcasters. The Beeb chases for ratings in the same way ITV and Sky do. The rise of Netflix, Amazon Prime and other streaming services means fewer hours of live television are being consumed as each year passes. Who knows what the broadcasting landscape will look like in 2027 when the BBC's Royal Charter is up for renewal. 

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Decriminalising non-payment of the licence fee is good, but the Government must go further

In an article published in the Daily Mail yesterday, Culture Secretary, Nicky Morgan, wrote:

"Twenty years ago Blockbuster, the then heavyweight of video rentals, turned down a £38 million merger offer from Netflix. Today Netflix is worth £50 billion, 1,300 times its offer to Blockbuster – which has gone from 3,000 stores to a museum in Oregon, for people who want to remember what video cassettes look like. Netflix now competes with the likes of Amazon, Google and Apple for dominance of the multi-billion-dollar streaming market. The result is that people now spend three times as much time watching subscription services such as Netflix than they do BBC iPlayer. More children now recognise the names Netflix and YouTube than they do the BBC. I believe, no matter how well-funded these international streaming giants are, UK public service broadcasters are vital".

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If the BBC wants iPlayer to dominate the market, end the licence fee

The BBC dominates just about every market it enters, often at the expense of smaller companies. Now the BBC wants its iPlayer to dominate the the online TV market. It wants to compete against Netflix and Amazon. 

Lord Hall, the Beeb's director general, has said that he wants the BBC to become "“the number one online TV service in the face of fierce competition”. The competition he is talking about derive their income from subscription and advertising. But of course, what he doesn't want is an end to the compulsory telly tax that gives the BBC the cash to embark on this expansionist plan. 

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