Tuesday, August 3, 2010
BBC should do away with licence fees in exchange for ''the global presence of a Hollywood studio'' - report
The BBC should consider getting rid of its licence fee, suggests the Adam Smith Institute in Britain.
Like the South Africa's South African Broadcasting Corporation (SABC), the British Broadcasting Corporation (BBC) is one of a select few remaining broadcasting institutions still receiving a licence fee from viewers through the national government.
In the report Global Player or Subsidy Junkie: Decision Time for the BBC written by the British media consultant David Graham, he argues that the practice of TV households having to renew an annual TV licence is ''unfair and obsolete''. In the report he suggests that the BBC get rid of licence fees which would actually help the broadcaster to expand to becoming an international TV studio and give it ''the global presence of a Hollywood studio but with a wider range of output''.
In the paper David Graham, a former BBC producer, argues that the continued licence fee payable to the BBC is steering the broadcaster to ''contraction and decline''. The BBC currently receives about £3.5 billion annually from licence fees.