{"id":26449,"date":"2021-03-25T09:56:37","date_gmt":"2021-03-25T09:56:37","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=26449"},"modified":"2021-03-25T09:56:37","modified_gmt":"2021-03-25T09:56:37","slug":"poor-broadband-means-uk-gov-stuck-with-bbc-tv-licence-fee","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2021\/03\/poor-broadband-means-uk-gov-stuck-with-bbc-tv-licence-fee.html","title":{"rendered":"Poor Broadband Means UK Gov Stuck with BBC TV Licence Fee"},"content":{"rendered":"

The Government’s recently proposed idea of replacing the BBC<\/a> TV Licence fee with a Netflix-style subscription model after 2027 (here<\/a>), assuming universal coverage of “fast<\/em>” (or gigabit) broadband is achieved, has been rubbished by a new report from the cross-part DCMS Select Committee.<\/p>\n

The new report – ‘The future of public service broadcasting<\/strong><\/a>‘ (PDF) – concludes that the Government has “left itself with no option on the licence fee<\/em>“, not least because it has “failed to put in place the necessary broadband infrastructure that would facilitate other funding mechanisms<\/em>” in time for the next review.<\/p>\n

At present a standard TV licence costs \u00a3157.50 per year (up \u00a33 on the previous fee) and that will rise to \u00a3159 next month. Part of the issue here, other than the usual political dynamics, is that more and more of us have been switching our viewing habits to consume content on other platforms, such as Netflix, NOW TV<\/a>, Amazon<\/a> (Prime Video), Disney+, Apple TV and so forth. As time goes on it is thus becoming increasingly hard to justify the current approach to TV licencing.<\/p>\n

The Government’s John Whittingdale<\/strong> MP has thus been busy negotiating with the BBC<\/a> about the level at which the licence fee should be set from 2022 to 2027 (it’s currently aligned to inflation). One of the proposals could eventually see it being replaced with a Netflix-style subscription model, but Whittingdale said this probably wouldn’t happen until after 2027, when universal coverage of faster broadband can be achieved.<\/p>\n

However, the DCMS Select Committee warned that the delays to the Government’s “full fibre broadband rollout<\/em>” (note: it’s actually now a technology neutral commitment to “gigabit<\/em>” speeds), meant that a “wholly online public service broadcasting system allowing for universal access is not yet viable<\/em>.”<\/p>\n

The report added that a lack of access to broadband and lack of digital literacy skills could result in “1.8 million households losing television and public service broadcasting services<\/em>” if they were entirely internet-based. Instead, it concludes by saying that the Government either needs to come out with a “strong alternative to the licence fee<\/em>” that it can put to Parliament, or “strongly support the current model for at least the next Charter period<\/em>” (2028<\/span> – 2038<\/strong>) and actively aid the BBC in driving down evasion.<\/p>\n

Julian Knight MP, DCMS Committee Chair, said:<\/strong><\/p>\n

“It\u2019s clear that the BBC TV licence fee has a limited shelf life in a digital media landscape. However, the Government has missed the boat to reform it. Instead of coming up with a workable alternative, it has sealed its own fate through a failure to develop a broadband infrastructure that would allow serious consideration of other means to fund the BBC.<\/p>\n

Not only that, but the Government is effectively allowing the BBC to haemorrhage funds through non-payment of the licence fee as a result of continued speculation over decriminalisation of licence fee evasion, a situation it must bring to an end.<\/p>\n

To enable public service broadcasters to compete in a digital world, Ministers must renew broadcasting laws that are nearly 20 years out of date. It\u2019s a question of prominence \u2013 too often public service broadcasters lose out on dominant platforms with content that\u2019s hard to find or isn\u2019t branded.<\/p>\n

However, there is more that public service broadcasters should be doing for themselves and only by pooling resources can they hope to compete with the likes of Netflix and the platforms. The collaboration by the BBC and ITV on \u2018BritBox\u2019 is a striking example of how they can work together to create a \u2018one stop shop\u2019 for video on demand content – a model for future work.”<\/p><\/blockquote>\n

The Prime Minister, Boris Johnson<\/strong>, originally planned for “full fibre<\/em>” networks to reach every home by the end of 2025, which virtually the entire industry said was unworkable. The target was then promptly watered-down to be technologically neutral via the adoption of “gigabit<\/em>” terminology. But expecting universal gigabit coverage by 2025 was also a tall order and so they eventually watered Project Gigabit<\/strong><\/a> down to target 85% of premises by the same date, which leaves significant uncertainty about when 100% coverage may be achieved.<\/p>\n

In fairness, the report does recognise that even a “decent broadband<\/em>” (Ofcom<\/a>’s definition) service with a USO class speed of 10Mbps+ could enable access to online TV services (remember – most terrestrial TV channels are SD or weak HD resolution – the latest video encoding standards can do this via less than 1Mbps of speed), but it also reminds that 190,000 premises can’t even get 10Mbps.<\/p>\n

Meanwhile, ISPs said they were concerned that switching TV to broadband could result in a surge in demand, which would put networks under much more strain (reality check – they could cope, but some performance detriment is plausible). In fairness, this is something that should be possible to mitigate via effective pre-planning.<\/p>\n

Lest we forget that 2.7 million people (adults) are also unable or unwilling (i.e. via choice, affordability, skills or disability) to use the internet (example<\/a>). On top of that not everybody has an internet-connected TV and some of those who do would find it difficult to access the same channels via an app, which seems rife for causing mass confusion among those who aren’t as comfortable with technology.<\/p>\n

The reality is that the Government probably won’t be able to solve all of these issues by 2027. At this point we’d recommend that sensible readers skip the comment section below because any article about the TV Licence fee almost always descends into an ugly argument over wider disagreements and political tribalism, which tends to corrode any chance of a genuinely constructive debate.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Government’s recently proposed idea of replacing the BBC TV Licence fee with a Netflix-style subscription model after 2027 (here), assuming universal coverage of “fast” (or gigabit) broadband is achieved, has been rubbished by a new report from the cross-part DCMS Select Committee.<\/p>\n","protected":false},"author":1,"featured_media":26451,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[45,42,38,1997,537],"class_list":["post-26449","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-video-streaming","tag-iptv","tag-politics","tag-uk-gigabit-programme","tag-uso"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nPoor Broadband Means UK Gov Stuck with BBC TV Licence Fee - ISPreview UK<\/title>\n<meta name=\"description\" content=\"The Government's recently proposed idea of replacing the BBC TV Licence fee with a Netflix-style subscription model after 2027 (here), assuming universal\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2021\/03\/poor-broadband-means-uk-gov-stuck-with-bbc-tv-licence-fee.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Poor Broadband Means UK Gov Stuck with BBC TV Licence Fee - 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