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 97, Issue 2

Latest Journal Issue

Volume 97, Issue 2

Includes a Collection titled 'Inequality and the Future of London', edited by Graeme Atherton and Rupa Huq MP, which brings together contributions from politicians, academics and think tanks to explore how inequality manifests itself in London. In the opening commentary, Ben Jackson asks 'What is the Point of the Labour Party?' while John Street, Michael Harker and Samuel Cross explore public inquiries and UK press regulation; Paul Thomas assesses the Prevent counter-terrorism strategy after Southport; and Ben Worthy, Mark Bennister, and Arianna Giovannini take a closer look at the Mayor of London at 25. Book reviews include Mary Dejevsky's review of 'The Russia-Ukraine War and its Origins: From the Maidan to the Ukraine War', by Ivan Katchanovski.

Find out more about the latest issue of the journal