The BBC is about to have its entire funding model reviewed with the possibility that it could move to a user-pays Netflix type arrangement.
The British Government has told the BBC that the current licence fee of £159 will remain static for the next two years, after which it will rise with inflation for a further four years.
The licence fee pays for services including TV, radio, the BBC website, podcasts, iPlayer and apps.
During the next six years the Government will review future funding models that could scrap the current licence fee and move to a user-pays model.
Culture Secretary Nadine Dorries confirmed the BBC licence fee changes saying, “We need a BBC that is ready to meet the challenges of modern broadcasting.
“We have five or six years, that is plenty of time to decide what a future funding model will look like,” she added. “In 2027/2028, when it starts, many [MPs] many not even be here.
“We’re talking six years away.
“This licence fee announcement will be the last. The days of the elderly being threatened with prison sentences and bailiffs knocking on doors are over. Time now to discuss and debate new ways of funding, supporting and selling great British content.”
BBC director general Tim Davie and chairman Richard Sharp issued a joint statement saying that the BBC “will now have to absorb inflation”.
“That is disappointing not just for licence fee payers, but also for the cultural industries who rely on the BBC for the important work they do across the UK.
“The BBC’s income for UK services is already 30 percent lower in real terms than it was ten years ago.”
Statement on the Licence Fee settlement from Richard Sharp, BBC Chairman, and Tim Davie, BBC Director-General. https://t.co/lbi3zCVfEV pic.twitter.com/4K41QALoyy
— BBC Press Office (@bbcpress) January 17, 2022
TV and Radio Licence fees were abolished in Australia in the early 70’s.
As recently as 2020 Britain’s over 75’s began paying for a licence with the PM, Boris Johnson saying that the BBC should “cough up” and pay for them, but the BBC replied, saying that to do so would force “unprecedented closures” of services.
Now, only over-75s on pension credit are eligible for a free licence.
The current BBC income from licences is £3.2 billion and they are already preparing for the end of the licence fee, with proposals including funding the broadcaster with a grant from general taxation, a universal levy on broadband subscriptions or making the BBC a paid-for subscription service similar to Netflix.
The issue reforming the way the BBC is funded has been discussed since 2004, source: http://news.bbc.co.uk/2/hi/entertainment/3537567.stm.
Currently, the BBC is funded by households, companies, hospitals and schools paying an annual licence fee of over AUD$300, source https://www.theguardian.com/media/2019/oct/17/why-bbc-subscriptions-are-a-long-way-off and https://www.theguardian.com/media/2020/feb/16/no-10-launches-attack-on-bbc-as-licence-fee-comes-under-threat.
The issue of reforming the BBC to a subscription service has been raised since 2019.
By a subscription service means to pay for radio and television services in the same way that one pays for a subscription to Netflix and Stan.
Technically it would mean that if the services are by means of broadcast, the signals would have to be encrypted and a conditional access card would be required to access BBC services via a radio and television services.
There aren't any portable radios and TVs with conditional access card slots. That's unless all the AM, FM, DAB+ and TV services are all transferred to an IP-delivery. Alternatively, broadcast services may be transmitted via DVB and accessed through a DVB settop box with a conditional access card slot.
There may well be a lot of electronic junk if the BBC's radio and TV services should proceed to a subsciption service if existing radios and TVs without a conditional access card slot can't access the BBC.
But does the move to make the BBC a subscription only service have parallels to our ABC and SBS?
Making the ABC a subscription service has been pushed by commentators from Newscorp, Skynews and the IPA for several years. A list of people wanting to push the idea can be found at https://ipa.org.au/ipa-today/new-podcast-their-abc , https://www.podbean.com/site/EpisodeDownload/PB11058A23RCTU .
In episode 5 of the podcast "How to Fix The ABC", the IPA asked people how much people were to pay monthly for the ABC which was a minimum of $2.80 per month. According to the podcast, the IPA knew that it would result in significant cuts to the broadcast as the lack of funding would result in less programming and services.
The IPA's main "beef" is about bias in their news and current affairs programming that has allegedly being blamed on Mr Allan Ashbolt (1921-2005) a senior head of the news department who was associated with the left organisations and started a culture of journalists thinking outside the supposed norm, https://quadrant.org.au/opinion/qed/2014/02/abcs-marxists/.
But the move against the ABC has been since 1932 when Sir Keith Murdoch owner of 3UZ was opposed to the formation of the Australian Broadcasting Company's formation into the Australian Broadcasting Commission.
The argument then was that the presence of the ABC was 'stealing' audiences from commercial entities.
Today the argument still persists when the ABC has been pro-active in adopting to new program distribution methods such as the internet and using google adwords to promote the ABC's services.
There is nothing to stop commercial operators from being pro-active to promote their services on the internet using google adwords to and using the internet to distribute program material. One only has to go to 2GB and Nova for example and look at the range of podcasts available on their websites.
Unfortunately, over time the amount of programming and print content has been consolidating such that there is a reduction in news rooms in regional areas and fewer local newspapers.
Consequently, I doubt that if the ABC's services are reduced which the IPA says is taking away from commercial entities will result in a revitalisation of commerical electronic media and print of rural newsrooms, dramas, investigative journalism and educational programming.
I don't think that Sky-tv will be presenting "Playschool" after the ABC's reduction in services.
Even now, the number of radio services on Sydney metropolitan stations has been reducing in the last 30 years. Years ago, you could see several microphones at a press conference in Canberra: 2SM, 2CH, 2SM, 2KY, 2WS, 2GB and 2UE. That's NSW stations alone. You may be lucky to see three or four microphones.
Until the late 1980s, there were half hour news bulletins on 2GB and 2UE at midday. With consolidation of radio station ownership we're only getting a five minute bulletin at midday. 2GB does not have a dedicated current affairs progam. News services on commercial radio have also consolidated. One cannot foresee the resumption of more news services on commercial radio if the ABC's services are significantly reduced due to its subscription-only funding model.
Thus if the ABC's services were diminished, I cannot foresee the commercial stations restarting and increasing their news services.
However, the IPA may well have a valid reason for amalgamating the ABC and SBS.
Why have a multicultural TV broadcaster transmit mainly English-language programming and many shows having no relation to our multicultural nation? I admit to being a consumer of programs on SBS including Michael Portillo's train documentaries, documentaries about World War II and programs about archaeology on the Nile River. I also enjoy watching programs such as "Mystery Diners" and programs on the Vice channel.
Surely these programs could easily transfer to the ABC as well as Insight. The World News program could easily be transferred to the ABC in addition to the ABC 7pm bulletin.
Surely given the availability of k-band satellite dishes, people are watching programs from all over the world or watching overseas programming via the web. Then people could also be purchasing DVDs and blu-rays.
It may well be a very valid reason to amalgamate the SBS with the ABC.
Then the ABC could well consolidate the number of its TV channels. Do we need ABC2 and ABCMe which show childrens' programming? Why not move our NITV to replace ABCMe.
However, the ABC does need a presence in the Asica Pacific region and resume short-wave (AM) and/or short-wave (DRM+) broadcasting as a means of soft power. Maybe funding can be obtained from the Foreign Affairs office in the same way that the UK's Foreign Office funds BBC World.
Thank you,
Anthony of highly-ciritical Belfield in the lands of the Wangal and Darug peoples of the Eora Nation
I suspect that moving into the future, the BBC will be funded from general taxation and will have to get used to the idea of operating on a leaner budget. I also suspect that National International news broadcasting services aren't considered desirable in all quarters of our National security agencies.
The UK has more than 50 % listening to DAB. No one knows how many can only listen to DAB and not be able to listen to DAB+. Then the BBC could transmit all of their programs in stereo. There are quite a few DAB+ programs on the commercial digital networks. Now that it is compulsory that all new cars in the EU have to be able to receive terrestrial digital radio (DAB+ and DRM), now is the time to switch off analog. Converters are available for old cars.
Switching off the AM and FM would not only save the BBC a lot of money, it would substantially reduce their carbon footprint. They cannot have an audience without the carbon dioxide produced for AM, FM, and the internet particularly the mobile internet.
The overseas service of the BBC can be reliably heard in Australia. I can listen to it on high frequency (Short Wave) DRM from Singapore 4,000 km away and it sounds like the ABC transmitter just up the road. They need to start promoting and increasing the number of high frequency transmitters using DRM. This reduces the electricity consumption by half. All India Radio simulcasts DRM & AM on many transmitters, but transmit an hour a day of pure DRM only. They also have 4 high powered DRM only transmitters which transmit a pair of programs each. AIR has 39 very high/high powered DRM transmitters for domestic use, on air.
The GFK radio ratings collect how listeners get their live programming in Australia, this includes AM/FM, DAB+, mobile phone, PC/Tablet, Smart speaker and whether headphones are being used.
Radio Broadcasters could also switch off analog and substantially reduce transmission costs against competition of the audio on demand companies. DAB+ has been on air 12 years, Band 1 DRM can be used in regional areas and HF DRM for remote Australia.
Anthony, you are a braver man than I. Switching off "Bluey" on the ABC Kids program will produce a big reaction in parents of young children.
What is the difference between a subscription model and a licence? Subscription means controlled access without the labour of checking licences, it also means that the whole population do not have to pay for a service available to all.
The BBC funding their overseas service, gives it credibility because it is not directly controlled by Government. The Foreign Affairs Department is to promote their Government's agenda directly, which is why it has not happened in Australia.
Dear Mr St. John,
"Anthony, you are a braver man than I. Switching off "Bluey" on the ABC Kids program will produce a big reaction in parents of young children."
I wouldn't be switching off "Bluey" as it's already on ABC2/ABCKids.
How an amalgamated ABC/SBS 're-jigs' its channel and programming allocationa is another topic. So too is the legislation to harmonize the two entities is another topic.
Ultimately it's up to the Federal Parliament and what the citizens want.
Personally, I don't believe there is the sentiment and motivation to amalgamate the ABC and SBS.
Nevertheless, you have to consider what is the purpose of SBS broadcasting mainly English language programming which could be accommodated on the ABC.
Remember the ABC in the pre-digital analogue days, there were funding issues with one analogue TV channel and the metro radio (2BL, 3LO etc), regional radio, RN, ABC Classic and JJJ.
Typically on ABC-TV, the continuity announcer would announce "....until our next program, for the next three hours we hope you enjoy our test card (Philips PM5544) and music!.....". ABC-TV would close before midnight.
Now ABC-TV is a 24 hour operation with more programs and more more digital TV and radio channels as well as a significant web presence.
It demonstrates that more can be achieved with less money. But it does not justify spending more money where savings can be found.
At the same time ABC with its many services is still cheaper at $1.1 billion compared to Network 7's revenue of $1.27 billion with fewer services, reference https://tvtonight.com.au/2021/08/seven-net-profit-lifts-to-318-1m.html and https://www.smh.com.au/business/companies/tv-revenue-data-revealed-ahead-of-seven-nine-financial-results-20210815-p58iu6.html#:~:text=Seven%2C%20which%20runs%207Plus%2C%20is,million%20for%20Nine's%20platform%2C%209Now.
Until there are reforms, I'll be enjoying and consuming SBS programs such as The World News, Michael Portillo's train documentaries, documentaries on ancient history, slow shows on "The Indian Pacific" and cruising along The Kimberley. It seems a waste of money when these programs could be accommodated on the ABC.
Thank you,
Anthony of exciting, critical and analytical Belfield on the lands of the Wangal and Darug Peoples of the Eora Nation