Theme: Society & Culture | Content Type: Journal article

BBC Funding: Much Ado about the Cost of a Coffee a Week

Patrick Barwise

10 Barwise coffee nathan-dumlao-nBJHO6wmRWw-unsplash(1)

Nathan Dumlao

| 1 min read

BBC funding (the licence fee model and the funding level) has been turned into a big issue out of all proportion to the low financial stakes—equivalent to the cost of one takeaway coffee a week for the whole household, excluding those with free TV licences. This article first proposes and explores three possible reasons for all the fuss: that licence payers take the BBC for granted, underestimating the value they get from it; that the attacks on BBC funding are part of a wider ‘war’ against it, driven by commercial or political vested interests; and that at least some of the criticisms of the licence fee reflect genuine, although much exaggerated, disadvantages. The article then evaluates four alternative funding models: advertising, subscriptions, general taxation and a universal household levy. It argues that the best long-term model would be a flat, universal household levy, with exemptions for those least able to pay, as in Germany, with the funding level set by an independent body organised by Ofcom; and that, because the licence fee is becoming harder to sustain, this new funding model should be introduced at the start of the next BBC Charter in January 2028.

Read the full article on Wiley

Need help using Wiley? Click here for help using Wiley

  • Patrick_Barwise_02_02_24.jpg

    Patrick Barwise

    Patrick Barwise is Emeritus Professor of Management and Marketing at London Business School and Chairman of the Archive of Market and Social Research.

    Articles by Patrick Barwise
Volume 96, Issue 1

Latest Journal Issue

Volume 96, Issue 1

This issue features a collection titled 'The 2024 UK General Election' edited by Ben Jackson, Colm Murphy and Peter Sloman, in which authors including Ross Mckibbin; Will Jennings,  Gerry Stoker, Paula Surridge, Maria Sobolewska, Mathew Lawrence and many more discuss the sources of Labour’s victory and consider how the result will shape the future of British politics. Other articles include a commentary by Deborah Mabbett on Trump's proposal to buy Greenland; 'Centralised by Design: Anglocentric Constitutionalism, Accountability and the Failure of English Devolution' by John Denham and Janice Morphet; 'Broke and Broken: The Crises Facing Local Government in England' by David Jeffery; and 'Biographies of Discontent: The Challenges Facing Labour' by Helen Goodman. A selection of book reviews feature Morgan Jones' thoughts on 'Against Landlords: How to Solve the Housing Crisis' by Nick Bano, and Lyndsey Jenkins' review of 'Orwell's Ghosts: Wisdom and Warnings for the Twenty-First Century' by Laura Beers.

Find out more about the latest issue of the journal