BBC Channels May Carry Ads

Chris Smith, the Secretary of State for Culture, Media and Sport, yesterday said that the Government is considering allowing the BBC to receiving funding which is supplementary to the licence fee. This would include advertisements carried on some of the Corporation’s channels which have so far remained non-commercial hallowed ground.

Whilst arguing that it is not yet appropriate to consider alternatives to the licence fee as the main source of BBC funding, Smith did concede that advertising on some digital channels, like BBC Choice and BBC News 24, may be a viable way of beefing up the Beeb’s funds. This would not happen until after 2002, when the BBC’s current licence fee agreement expires. The core public service channels, including BBC Radio, will remain advertiser-free.

Smith also said that the Charter for the licence fee system of funding will be guaranteed until 2006. An independent panel is to be set up to discuss the future of BBC funding.

Chris Smith told the Royal Television Symposium: “The BBC must be capable of adapting, surviving and prospering in the fragmented modern market. It must also be seen as a benchmark for quality, provide something for everybody, inform, educate and entertain. “This review is intended to help ensure that the BBC continues to fulfil its public service obligations effectively, whilst at the same time ensuring that it retains the ability to operate effectively in the market place.”

The BBC currently gains revenue from advertisers through its commercial projects, which including UKTV, the joint venture with Flextech.

Department for Culture, Media & Sport: 0171 211 6272