A number of senior figures in the UK television industry have united to oppose the possibility of an increase in the BBC licence fee which would be used to cover the costs of setting up digital television.
Yesterday’s Financial Times included comments by Sir John Birt, director-general of the BBC, that the introduction of a higher licence fee for digital television should be introduced as a means of giving the BBC “another period of buoyancy in revenues.” Such a fee would only be levied against those who decide to buy into television.
In a swift response to Birt’s comments, 11 heads of the UK’s terrestrial, cable and satellite groups wrote to the editor of the Financial Times, voicing their collective concern over such a scheme. “We are strongly opposed to this idea because, as the chairman of the BBC Funding Review Panel, Gavyn Davies, has himself argued, it would represent a substantial disincentive to the take up of digital television,” says the letter.
The statement is signed by Charles Allen, chief executive of Granada Media Group; Mark Booth, chief executive of BSkyB; Steven Cain, chief executive of Carlton Communications; Greg Clarke, chief executive of Cable and Wireless Communications; Barry Cox, independent consultant; Andrew Flanagan, chief executive of Scottish Media Group; Stephen Grabiner, chief executive of ONdigital; Tony Illsley, chief executive of Telewest Communications; Frank McGettigan, director and general manager of Channel 4; Kate Stross, finance and development director at ITV and Malcolm Wall, chief executive of United Broadcasting and Entertainment.
They believe that a higher licence fee for digital television ‘would threaten the enormous progress which has been made so far’ by the industry. “We urge both the BBC Funding Review Panel and the Government to reject this idea which would hinder the development of digital television and operate against the UK’s wider industrial interests,” says the statement.
The BBC Funding Review Panel is currently considering ways in which the Corporation can increase revenues to meet rising costs, without opening the way for advertising (see ‘No Case For Supplementary BBC Funding’ Says The IPA).
