The British government is considering proposals that would allow the century-old BBC broadcaster to break with tradition by carrying some advertising or offering subscription options, thereby changing the current funding model based on a universal licence fee.
The networks’ conventional funding has long been a source of national debate. This obligation arises because any household that watches live TV is required to pay a subscription fee.
The BBC has also come under greater scrutiny as politicians from different sides have accused it of biased reporting.
The network previously had a large global audience that included the BBC’s World Service radio. However, with the rise of independent digital media, that audience is in decline. The BBC has come under pressure lately from a lawsuit by U.S. President Donald Trump.
Culture Secretary Lisa Nandy launched a review of the BBC’s charter on Tuesday, 16 December, to ‘future proof’ the institution.
The number of BBC subscribers paying a USD 234 annual licence fee has been declining. As such, the government said that it was considering options to generate more commercial revenue, including advertising on its online services.
This move is expected to eliminate a significant distinguishing feature of the BBC, which is its lack of commercials. However, such a stance may also negatively impact other networks. Therefore, a shrinking ad market is likely to affect Britain’s largest free-to-air commercial network, ITV.
An alternate proposal may witness news, current affairs, factual and children’s TV remain funded by a licence for universal accessibility. In addition to this, the proposal includes more commercially viable content, such as drama funded by subscriptions. The proposal is according to the government’s consultation paper.
Nandy believed that the BBC must reflect Britain. She went on to add that the BBC should also be an engine for economic growth, besides being funded sustainably and fairly.
