Q&A: BBC licence fee

Chris Tryhorn

Wednesday October 11, 2006

MediaGuardian.co.uk

Why is there a debate about the BBC licence fee?

The BBC has been funded by the licence fee since 1922 and that model has been guaranteed for another 10 years. The level at which this rises is decided by the government but only after a protracted period of industry debate and lobbying from the BBC and its commercial rivals. Given the BBC's privileged position in the media environment and the resentment felt towards it by many of those rivals, the licence fee settlement is a highly sensitive issue.

What did the BBC ask for?

The BBC wanted an annual increase of 2.3% above inflation, which would mean today's £131.50 fee would go up to more than £180 by 2014. This pitch, made a year ago, was based on a gap in the funding the BBC believed was necessary to pay for things such as better quality programming, moving 1,800 staff to Manchester and driving the switch to digital. Today director general Mark Thompson is expected to revise the BBC's estimates downwards.
But still at a level above inflation?Almost certainly: Thompson will argue the BBC still needs a generous deal to fulfil its obligations as set out in the government's white paper. To put it in historical context, the BBC's licence fee was first linked to the retail price index in 1988 and it was only in 2000 that a settlement above the rate of inflation was granted.

What was the problem with the BBC's first pitch?

Inevitably the BBC set its sights high, privately expecting its proposals to be chipped away at a later date. But problems with the corporation's sums were soon identified by independent analysts. A report by accountants PKF for the Department for Culture, Media and Sport questioned the figures on which the BBC had based its initial bid, and a second report commissioned by ITV also found flaws.

What sort of flaws?

PKF argued the BBC didn't need as much of a licence fee handout when it could save more money - especially at its content divisions. The accountants also suggested there could be an alternative to the BBC's "expensive" plans to invest in high-cost genres such as drama and news and urged the BBC to make its commercial wing work harder.

Any other problems?

In July the BBC had £300m wiped from its bid when Ofcom delayed imposing spectrum charges until 2014. The BBC had factored in the likely charges when it forecast costs between 2007 and 2014. The corporation also admitted that its proposal to move several important departments to Manchester would cost £400m rather than the £600m initially claimed.

So what will Thompson ask for now?

Thompson is giving a speech to the Smith Institute in London today and will use it to address the licence fee question. It is understood he will put a new, lower figure on the proposed deal. This represents his last public gambit to win over the government.

Who makes the decision?

It is up to the culture secretary, Tessa Jowell, who is generally thought to be sympathetic to the BBC, though she has already warned it is unlikely to get what it wants, describing projected wage costs as "very high". But both Downing Street and the Treasury will have their say - and it has been reported that the chancellor and PM-in-waiting, Gordon Brown, wants to keep the licence fee increase below inflation.

When is the decision made?

If Thompson's speech today pushes the right buttons, you can expect it sooner rather than later. In any case we're approaching the endgame: a deal must be agreed by the end of the financial year in April. The creative industries minister, Shaun Woodward, has said he hoped a deal would be completed by the beginning of next year.

http://media.guardian.co.uk/bbc/story/0,,1892869,00.html

Summary

The BBC is just about treading water in keeping the liscense fee in place. Director General Mark Thompson has indicated that in order to keep the liscence fee it needs to go above inflation by 2.3%, icreasing the current £131.50 price tag to £180. He stated that this is needed due to high valued productions shown such as the dramas and to fund for the move of 1,800 employees to Manchester. However Ofcom, PKF and ITV have found flaws in his proposal and and wiped £300m from his bid, where certain things stated, would not cost as much. A decision is going to be reached by the end of the financial year in April.

My Opinion:

I believe that there's no point of the lisence fee anymore due to all the competition around, with cable, sky and freeview. They should just resort to advertising like every other channel for fundage. They tried thier best to keep up but innevviatbly, the prices for the lisence fee are going to become rediculously high, where no one is going to be bothered to pay.

LINKS TO INSTITUTIONS


The first link that i made to the Guradian is EMAP, as both are producers and distributers in the print media.

http://issues-and-debates.blogspot.com/2006/09/emap-case-study.html


The second link is to Fox, as they have a news channel, and the Guardian is a also a distributor of news.

http://rajan-module6.blogspot.com/2006/09/summary-of-fox-broadcasting-company.html



The third and final link is to Sky, as it its owned by Rupert Murdoch, who also own the broadsheet newspaper, The Times, which is a competitor of the Guradian.

http://harveen-media.blogspot.com/2006/09/sky.html

Globalisation

Continuing technological advances and growing global conglomerates are changing the faces of the media. Globalisation centres on the increased mobility of goods, services, labour, technology and capital worldwide.

Media organisations are able to reach increasing audiences. Organizations have resources to expand globally and become ‘global players’.

**AOL Time Warner and Vivendi Universal are now among the largest institutions in the world**

Advanced telecomunications and expanding global media markets mean that national and international cultural traditions are merging into a global culture, where new genres are being formed:

Digital Revolution
New technologies allows us to socialise differently, e.g. shopping and banking online. These new media are changing our lives and expectations. We take for granted that we can send emails to people around the world, an expect more from the service.

Technological Convergence
As technology continues to evolve and media organisations continue to converge, we getting closer to a world where everything from t.v to phone can be accessed by a single device. This will create new forms of interactionacroos each media. We as consumers are choosing particular technology which is the best at transmitiing and recieving information, in one device, expressing our own ideas better.

Cultural Convergence
With an increased access to global media, there is an increased demand for consumer choice, where large organisations are supplying more of the media we consume. Much of this is US-centric and globalisation has been termed the 'McDonaldisation' of the globe. Our cultural perceptions are constructed by the media, therefore gaining the values and ideologies they distribute. This is called cultural homogenisation.

Cultural Imperialism
This is what critics of cultural dominance refer to, back to the times of the British Empire, when the Empire ruled a large population of the developing world and forced British values and ideologies upon it. Current US media domination amounts to cultural imperialism as it forces US culture through the publics consumption of the media. This damages small independent organisations.

Cultural Imperialsim Through News Globalisation
The global news system has evolved as a result of technological advances. National broadcasters are capable and responsible for selecting and repacking information to best suit their conceptions of domestic needs. US monopolises the global information system, dominating nations with less power. News is culturally dependent but also is a product and producer of that culture.

The Global Village
Media reflect and create the social and cultural world we live in because media producers construct our views of the global events, therefore construct our values and ideologies. In the 1960s Canadian critic Marshall McLuhan stated that the world had become a Global Village, with the media creating this.

Freeview sales mainly for second TVs, research shows

Chris Tryhorn

Wednesday October 4, 2006

MediaGuardian.co.uk

Almost all Freeview sales are for households' secondary television sets, according to research published today by media watchdog Ofcom.

It is not the digital terrestrial service but satellite and cable that are chiefly responsible for getting analogue households to go digital for the first time.

There were 1.2m sales of Freeview devices - boxes or TV sets - between April and June, but an increase in Freeview-only households of just 15,000.

This discrepancy suggests that most Freeview boxes are bought by homes that already have the digital terrestrial TV service or a pay-TV service such as Sky or cable.

Ofcom said the number of digital secondary television sets - typically in spare rooms or children's bedrooms - had more than doubled in the year to June, from just under 3.5m to more than 7m. Of these, more than 5m were equipped with Freeview.

"The large majority of digital television receivers are now being bought for use on additional television sets within the home to complement digital viewing on the household's primary television," Ofcom said in its latest quarterly report on digital TV.

On the positive side, this means that more households are going fully digital before the region-by-region analogue switch-off begins in 2008.

More than 40% of the UK's television sets are either connected to a digital set-top-box or have an integrated digital tuner, Ofcom said.

However, with fewer analogue households adopting Freeview, the government has plenty of work to do to push the switchover process forward.

Nearly 30% of households are still without digital TV, even though switchover is scheduled to be completed in 2012.

The report shows that, by the end of June, 70.2% of UK households were watching digital television on at least one set in the home, up from 69.7% at the end of March this year.

The 168,000 net additions to the number of digital households was driven not by Freeview but by satellite and cable.

Nearly two-thirds of these newly digital households were either paying Sky subscribers or viewers of Freesat from Sky, which gives free access to satellite TV for a one-off installation charge.

Cable represented another 50,000 new digital subscribers, most upgrading from analogue cable.
Ofcom said changes in sales patterns had caused it to adopt a new method for this quarter's report.

The effect has been to downgrade the historic figures: for instance, digital TV penetration at the end of March was previously calculated as 72.5% of the UK total, whereas the revised figure is 69.7%.

http://media.guardian.co.uk/broadcast/story/0,,1887376,00.html

My Oppinion:

This so very true. In my household, we are connected to Sky, however on the other television sets the standard analogue signal is recievied through and external ariel. I think the reason being for Freeview only used on secondary and tertiary television sets in households, is becuse there is no connection fee, no monthly fee, just a one off payment, whereby you recieve the five channels recieved through the analogue signal, however in digital quality with the addition of extra channels depending on the package chosen. I disagree with the idea of switching the analogue signal off completely as some people won't be ablt to afford freeview and that it would be pointless to get freeview for small televisions.

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MediaGuardian is the Guardian's specialist section dedicated to in-depth coverage of Britain's leading creative industries. We track the latest developments in broadcasting, print, new media, advertising and public relations - including the important content, policy and personality developments.

MediaGuardian.co.uk [opens new window] is the most widely used media news and information website amongst media professionals, and is considered by the industry to be a clear leader in its field. A valued resource that is the first to break the big media stories, MediaGuardian.co.uk succeeds in attracting an influential audience from not only all sectors and levels of the media industry but the Government and public sector too.

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The Guradian Media Group

Who owns GMG?

The Scott Trust was created in 1936 by John Scott (son of CP Scott, the Manchester Guardian's editor for 50 years and its one time proprietor).


Who set up GMG?

Guardian Media Group was set up in 1993. Previous to this it was known as GMEN (Guardian and Manchester Evening News PLC). GMEN was formed in 1972, before this it is was known as Guardian Newspapers Ltd and the Manchester Evening News Ltd. This was established in 1967 when Guardian Newspapers Ltd and the Manchester Evening News Ltd were formed as wholly owned subsidiary companies of The Manchester Guardian and Evening News Ltd with their own Boards of Directors.

What titles/brands does GMG own?
National Newspaper Division

The Guardian, The Observer, Guardian Weekly, Money Observer, Learnthings, Guardian Unlimited

Regional Newspaper Division

Manchester Evening News, Manchester Online, Greater Manchester Weekly Newspapers, Rochdale Observer, Rochdale Express and Asian News, Rossendale Free Press, Middleton Guardian, Heywood Advertiser, Accrington Observer, Tameside and Glossop Advertiser, Salford/West Manchester Advertiser and Prestwich Advertiser, North East Manchester Advertiser, Oldham Advertiser, Surrey Advertiser Group, Aldershot News Group, Esher News and Mail Series, Woking News and Mail Series, Reading Evening Post, Wokingham Times Series.

Radio Division

Owns 5 regional radio licences; operates regional radio stations under the Real Radio brand, broadcasting in South Wales, South and West Yorkshire and Central Scotland and two Smooth FM stations in London and the north-west. Also owns jazzfm.com.

Trader Media Group

Auto Trader, autotrader.co.uk, Top Marques, Bike Trader, Truck Trader, Ad Trader.

Who is the Editor?

Alan Rusbridger is the Editor of the Guardian Newspaper. Roger Alton is the Editor of the Observer Newspaper. Paul Horrocks is the Editor of the Manchester Evening News. Details of Editors for other newspapers within the group can be found on the individual group websites (links in bottom left hand corner of this page).

How many other companies are part of GMG?

Guardian Media Group can be split into the following: Guardian Newspapers Ltd, GMG Regional Newspapers, GMG Radio Holdings Ltd and Trader Media Group Ltd. GMG has interests in the following companies; Trafford Park Printers, Paper Purchase and Management, Fish4 and Seven Publishing Group ltd.


What countries does GMG operate in?

GMG's sales are made substantially in the UK.

The Newsroom Staff

Luke Dodd, Director
Luke Dodd has been involved in a wide variety of museum and archive projects over the past twenty years in Ireland, the US and Europe.

Gavin McGuffie, Archivist
Gavin McGuffie joined the Newsroom from the School of Oriental and African Studies where he catalogued and encouraged research into photographs collected by British missionary societies.




Margaret Holborn, Head of Education
Margaret Holborn joins the Newsroom after a successful ten year career in teaching and management at a state comprehensive in South London.





Louise Hutchinson, Education Officer
Louise Hutchinson is a qualified primary school teacher with experience of teaching all national curriculum subjects.





Gareth James, Centre Administrator
Gareth James has worked for many years in theatre. He moved from his position of Theatre Manager at the Young Vic Theatre in London to join the Newsroom.

Guardian History Timeline

1821 John Edward Taylor publishes the first Manchester Guardian on 5 May 1821 as newspaper in the liberal interest. The newspaper is published weekly on a Saturday at a price of 7d.

1855 Stamp Duty tax on newspapers is abolished allowing the Guardian to publish daily, Monday to Saturday, at a reduced price of 2d.

1872 Charles Prestwich Scott becomes editor of the Guardian, a post he holds for 57 years. CP Scott is a liberal thinker with strong principles "Comment is free, but facts are sacred. ...The voice of opponents no less than that of friends has a right to be heard."

1907 Following the death of John Edward Taylor's son in 1905 CP Scott buys the Guardian. He is both owner and editor.

1919 On 4 July 1919 Guardian Weekly is launched to provide a compact weekly edition of the newspaper.

1929 CP Scott retires as editor in favour of his son Ted.

1932 Ted Scott dies in a tragic boating accident and William Perceival Crozier is appointed as editor.

1936 Ownership of the Guardian is transferred to a trust. The Scott Trust ensures the independence of the newspaper and continues the journalistic principles of CP Scott.

1944 On WP Crozier's death, Alfred Powell Wadsworth becomes editor.

1953 On 3 June 1953, the day after the coronation of Queen Elizabeth II, David Low's 'Morning After' cartoon appeared in the Guardian. The cartoon sparked controversy and many letters from readers, two-third of which critical asking "how low can Low get?".

1956 Alastair Hetherington becomes editor following Wadsworth's death.
In contrast to the majority of the British press the Guardian criticises the Governments military action in Suez. Readership increases by 10%.

1959 On 24 August 1959 the newspaper changes its title from the Manchester Guardian to the Guardian, to reflect the growing importance of national and international affairs in the newspaper.

1961 To enable swifter delivery of the Guardian to southern England the newspaper begins printing in London as well as Manchester on 11 September 1961. Difficulties with the printing system earn the newspaper the nickname 'The Grauniad'.

1964 The editor's office and major editorial departments relocate from Manchester to London.

1965-66 Financial difficulties lead to discussion with the Times on a possible merger of the two newspapers. The Scott Trust throw out the proposal.

1970 On 29 August the Guardian moves from its home in Cross Street, Manchester to new offices in nearby Deansgate. The Guardian had been written and printed from its Cross Street building since 1886. The Manchester office remains at Deansgate.

1975 Peter Preston is appointed editor.

1976 The Guardian moves to its current London home at 119 Farringdon Road.

1983 A Foreign and Commonwealth Office clerical officer gives the Guardian documents on the movement of nuclear weapons. The Guardian is taken to court and ordered to reveal their source and Sarah Tisdall is imprisoned for six months.

1988 The Guardian has a radical redesign, splitting the newspaper into two sections and introducing a new masthead. An international edition is launched in Europe.

1995 Alan Rusbridger becomes editor.

1997 The Guardian's investigation into conservative MP Neil Hamilton wins the Team Reporting Award at the British Press Awards and the Guardian is named Newspaper of the Year by What the Papers Say, an award it also wins in 1998 and 1999.
The Guardian is the first national newspaper to appoint a readers' editor, producer of the daily Corrections and Clarifications column.

1999 Guardian Unlimited network of websites is launched in January. By March 2001 GU has over 2.4 million unique users, making it the most popular UK newspaper website.

2001 The Guardian wins widespread acclaim for its coverage of the events of 11th September proclaimed "bold, simple and courageous" at the British Press Awards.

2002 The Newsroom, Guardian and Observer Archive and Visitor Centre, opens its doors. The centre preserves and promotes the histories and values of the newspapers through educational programmes, exhibitions and research.

2003 Life, a new Thursday science and technology supplement, launched. A daily Media Business page was introduced.

2004 Digital editions of the Guardian and the Observer, online replicas of the newspapers, launched. The paper also introduced a weekly tabloid edition aimed at students and distributed through university campuses across the UK.

2005 The new Guardian launches, with a ground-breaking design in a mid-size format. The Guardian becomes the UK's first full-colour national newspaper, and the first UK national newspaper ever to adopt this size.