The Stage

BBC may have to share licence fee, says Ofcom

Published Thursday 10 April 2008 at 16:30 by Matthew Hemley

Ofcom has outlined a series of proposals aimed at safeguarding the future of public service broadcasting in the UK, including sharing the BBC’s licence fee with other broadcasters.

In the first phase of the regulator’s second review of the sector, Ofcom said public service programming was at a “crossroads” and warned that broadcasters such as ITV, Channel 4 and Five would find it increasingly difficult to fund public service content going forward. The growth of digital television has pushed down the value of the commercially-funded broadcasters’ gifted spectrum

Ofcom said PSBs need “clarity about their long-term roles” by 2011 at the latest, when it said the cost of public service broadcasting commitments “may outweigh the benefits” for some broadcasters.

The regulator has now come up with four models of how public service broadcasting might look in the future.

One would see the current PSBs - the BBC’s channels, ITV1, Channel 4 and Five - retain their designated public service role, but with fewer public service responsibilities or additional support to “retain or expand these responsibilities”.

Ofcom’s second model, called “BBC only”, would see the BBC become the “sole UK-wide intervention in public service content”, while the other commercial public service broadcasters would not retain “special designated roles”.

The third option suggests Channel 4 and the BBC become the main public service broadcasters, with Channel 4 given a new remit to cover new programming areas, while the final model proposes allowing a wide range of providers - not just ITV1, Channel 4 and five - to bid for long-term funding to provide public service competition to the BBC.

Ofcom has also suggested potential models for funding public service broadcasting in the future, with one pointing towards money coming from the public in the form of a direct taxation.

Other possible funding models include industry levies or sharing the licence fee with other broadcasters.

Ofcom chief executive Ed Richards said: “Public service broadcasting is at a crossroads. Viewers still want a mix of high-quality UK-made content, but the traditional television model is not enough to meet all their needs. Today’s proposals outline options for a securely-funded PSB future. Now is the time for a wide-ranging debate looking carefully and dispassionately at all the options.”