Dan Sabbagh, Media Editor
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The BBC is to conduct a review of the licence-fee system amid concern that a surge in the number of people watching television online is undermining support for the way that the corporation is funded.
More than 700,000 viewers are downloading BBC programmes every day through the iPlayer service. Launched at the beginning of this year, it is expected to have one million daily users by Christmas – and can be watched without a licence fee.
A licence fee is required for people who “watch or record TV programmes as they are broadcast”, according to TV Licensing, the body that collects the money, but it does not apply to Doctor Who, EastEnders and other recently transmitted programmes available via the BBC website. The licence fee raises £3.4 billion.
The BBC is confident that few viewers will refuse to watch live television to avoid the licence fee, but viewing habits are changing rapidly. Many viewers know that it is possible to link a computer to their television, and watch programmes delivered over the internet on a larger screen.
Now Sir Michael Lyons, chairman of the BBC Trust, wants to consult the public on the £139.50 annual licence fee, which is paid by more than 25.3 million households.
A spokesman for TV Licensing said: “If you only watch the iPlayer, and watch or record no live programmes, you don’t need a television licence, although very few people are likely to do that.” That follows from a long-standing exemption that also applies to purchased DVDs and videos. The popularity of the iPlayer has grown quickly. Last Sunday more than 300,000 people watched the finale of Doctor Who online – a record audience for the service. Doctor Who, The Apprentice, EastEnders and Top Gear regularly top the most requested programmes. Channel 4, and to a lesser extent ITV, run similar services.
The review is intended to focus on the way that the compulsory levy is operated and collected, and it will include public consultation on its operation, probably in the autumn. It will also reconsider the balance of its carrot-and-stick approach to enforcement and the tone of its advertising, which has generated a rash of complaints.
The BBC Trust hopes to avoid policy debates “about whether there should be a licence fee” but the inquiry will have to review whether the existing law is effective. Last week Mark Thompson, the Director-General of the BBC, spelt out the limits of the current system when he told MPs on the Culture Select Committee that “if you watch live television through a mains-powered device, you have to pay a licence fee” and that “live [content] is the key point in the current definition”. Most content on the iPlayer has been transmitted previously, so the service is not classified as live. Opposition politicians said that the loophole demonstrated that the licence-fee system was not keeping up with changes in technology.
John Whittingdale, the Conservative MP who is chairman of the Culture Select Committee, said: “Technology is changing the nature of television and the way some of it is funded cannot be based on licensing a box in the corner of the room. In my view this is another reason why the licence fee cannot be sustained in the longer term.”
Don Foster, the Liberal Democrats’ culture spokesman, said: “It does look like the BBC have shot themselves in the foot a little by creating this licence-fee loophole with the iPlayer.”
However the BBC is confident that the loophole would not present a serious problem because of the popularity of live television, as shown by high audiences generated by sporting events, including the 13.1 million who watched the Wimbledon men’s final. It also believes that the licence-fee law could be changed if evasion became widespread.
About one in twenty households refuses to pay the levy, even though TV Licensing has long used aggressive advertising campaigns to scare the public into paying.
During May, viewers made 21.8 million requests to view on the iPlayer, whose success has been so great that internet providers have expressed concern that television traffic is clogging up the internet.
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Why don't the BBC all take a 50% pay cut? For example Jonathon Ross would only get £2.25million a year. On top of that they could sack a few people and cut out a few obscure services. Then they'd be able to halve the license fee.
David Pritchard, Penrith,
The BBC tries to do too much resulting in quality spread ever thinner across the TV and radio channels. I would support a modest - say £25 - licence fee if the BBC were cut to three TV channels and 4 national radio stations Cut out BBC local radio for starters - and prune the huge bureaucracy!.
Lewis Thomas, High Wycombe, UK
I personally dont see the importance of things like sending a bunch of reporters, AT THE COST OF THE STATE, to foreign contrys to report on the same story, just at a different locations in the same country. Surely one person would be enough?!?
It just seems like the BBC enjoy wasting money!!
Dale, Livingston, West Lothian
As broadcasters, I used to value the BBC highly, but since they accepted the role of TV Licensing Authority, their supplementary activities as tax collectors and law enforcers have cost them my respect.
Richard Waterman, Leeds,
Owning a television does NOT mean you have to have a licence. Only the receipt or recording of live broadcasts requires a fee (as the article makes clear).
I do not have a licence as I do not watch broadcasts. I use a PC all the time - it is essential that people like me don't end up paying a fee.
Maryon Jeane, Shrewsbury, England
The mighty BBC has admitted on a BBC blog that they will push for an internet licence once enough people use their internet services. It's about time this liberal/left mouth peice was left to it's own devices instead of forcing the whole country to fund it
John, Salford, England
The future of ALL information, whether TV, music, books, newspapers, video etc is the Net. The BBC is a greedy complacent dinosaur grown fat on coercion, and I have no intention of giving it my cash.
surfthechannel.com!
dirk bruere, Bedford, england
When they extend the TV licence to Internet-enabled computers then it becomes a flat-rate Household Information Tax.
M Goldsmith, Otley, England
BBC shoots itself in foot again. Millions around the world would pay a reasonable subscription for Iplayer viewing, but they are blocked. Even when I was PAYING the licence fee, I couldn't view it from abroad. The trouble is BBC has become addicted to their tax-and-threaten funding system.
George Edwards, Cuevas de San Marcos, Spain
Broadcasting will probably be reduced to sports and news. Everything else is more convenient online.
The BBC has a perfectly good business model, which is to make online content free at the point of viewing, funded by a tax on viewers. All that is needed is a redefinition of the term "television".
Malcolm McLean, Bradford, UK
I don't own a television and so don't have a licence - but I do use the bbc iplayer. I'd have no objection to paying a subscription fee for the service - but they'd need to sort out the poor loading, frequent crashes and complete lack of proper buffering first.
Emma, horsham,
What the TV Licensing authority cannot comprehend, so stuck in the past as it is, is that increasing numbers of people have given up on live broadcast television altogether. It has become increasingly marginalised by other information and entertainment media, so the BBC will demand a PC tax next.
Paul, Coventry,
How to dodge your licence fee? Don't be stupid enough to buy a television in the first place...
Abdul Majeed, Bradford, West Yorkshire, UK
I have been threatened with dire consequences by TV Licencing for owning a computer and/or a mobile phone ! They just cannot understand the concept that I donot want or own a TV .
They are just a load of bullies constantly threatening to intervue me under caution and search my premises .
roscoe, Luton,Beds.., england
The BBC doesn't offer only repeats on its web site, it includes links to live TV programmes (with huge clickable areas in some cases). So, thanks to the BBC, people using computers in unlicensed premises can unintentionally and without warning find themselves criminals.
Joe, East Sussex, England
The cynical might think that the BBC had deliberately brought in the iPlayer as part of a long-term strategy to prop-up and expand the reach of the licence fee to PCs. Instead, why not invite iPlayer users to buy an annual subscription of £20, reduced to £15 if they have a direct debit for 3 years?
Martin Barley, Stoke-on-Trent, UK
"It also believes that the licence-fee law could be changed if evasion became widespread."
Translation: the BBC and TVL will lobby for a computer-ownership tax and a nice cut of the profits with the government. Concerned?
J Marshall, Morston,
Do it like here in Germany -- declare personal computers (even servers, without a monitor) a "new type of receiving set" and collect TV broadcasting fees for them. This is not a joke.
Matt, Berlin, Germany
Emigrate. Here in Japan, paying the NHK (Japan's BBC) licence fee is optional.
Andrew Milner, Karuizawa, Japan
Maybe BBC UK could recoup lost licensing income by inserting commercial content into the repeats shown on iplayer?
Not only would give them a taste of what we see on BBC Canada , but what BBC UK would become without the licence income eliminating the need for commercial content.
Robin Fuller, Shawville, Canada