March 16, 2006

New Mandate for the BBC: Put Entertainment First
By SARAH LYALL
NY Times

http://www.nytimes.com/2006/03/16/arts/television/16bbc.html?_r=1&oref=slogin&pagewanted=print


LONDON, March 15 — The last few years have been rough for the British 
Broadcasting Corporation. It lost a bitter fight with the government and 
suffered the resignation of its top two officials in 2004 over its news 
coverage of British intelligence leading to the Iraq war. It has 
reorganized itself up and down, begun to lay off thousands of workers and 
worried endlessly about its viability at a time when the broadcasting 
landscape is changing at a dizzying pace.

But this week the government threw a crucial lifeline to the Beeb, as it is 
familiarly called, pledging that it could continue to be financed by the 
license fee — an annual charge levied on all British television owners — at 
least through the next decade. Presenting a so-called white paper setting 
out the government's plans for the corporation, Culture Secretary Tessa 
Jowell said on Tuesday that "we are optimists about the BBC" but warned 
that "it cannot take its position for granted."

Ms. Jowell also said that the BBC, while remaining true to its mission as a 
public-service broadcaster, should take care not to inflict "an overdose of 
worthiness" on viewers.

"The BBC should continue to take fun seriously, ingraining entertainment 
into all its services," Ms. Jowell told the House of Commons.

In a major reorganization of the way the 84-year-old corporation is run, 
the government also said that it would scrap the BBC board of governors, 
which serves as both the BBC's champion and its regulator. Under the new 
system, the board's responsibilities are to be split between an executive 
board, which will run the corporation, and a separate group, known as the 
BBC Trust, that will represent the license-fee payers and to which the 
executive will have to answer.

The BBC began in 1922 as a radio-only operation. Twenty years later, it 
introduced its first television station, and now runs more than eight TV 
stations as well as dozens of radio stations; 10 of the radio stations are 
broadcast nationwide. The centerpiece of its international radio operation, 
the BBC World Service, is broadcast in 43 languages and reaches 146 million 
listeners a week.

The white paper, the culmination of more than two years of wrangling over 
the BBC's future, effectively means that when the corporation's current 
charter expires at the end of this year it will have a new charter in 
place, ensuring its future through 2016. Though Parliament will have a 
chance to discuss the proposals, they are not subject to legislative 
approval and are essentially a done deal.

Critics and competitors of the BBC said they were disappointed.

"The white paper singularly fails to rise to the challenge the BBC now 
faces," Hugo Swire, the Conservative Party's culture spokesman, told 
Parliament. "It was supposed to provide us with a springboard to the new 
digital age. But it is not so much a launching pad as a holding pen."

The most contentious aspect of the BBC's structure is the way it is 
financed, almost entirely through an annual fee levied on all owners of 
television sets in Britain. The system made perfect sense in the old days, 
when the BBC was the only game in town and everybody watched the same thing.

But now most Britons have access to the Internet and to scores of cable and 
digital channels in addition to the BBC's programming, and the BBC's 
audience share has fallen drastically. The BBC's broadcast competitors — 
who are financed through commercials — argue that the license fee is 
antiquated and should either be scrapped or shared with other broadcasters 
whose programming also has a public-service requirement, like Channel Four.

The license fee is currently £126.50 ($220.98) per year for owners of color 
television sets (people with black-and-white sets pay £42, or $73). The BBC 
wants an increase in the fee — with a potential increase to £180 ($314) a 
year by 2013 — but the exact level will be decided in the next few months. 
(The fee now generates about £3 billion, or $5.23 billion, each year for 
the broadcaster.)

The government also said that at some point in the future it would open 
discussions about whether to share the license fee with other broadcasters, 
and would revisit the existence of the license fee itself when the next 
charter expires in 2016, considering, for instance, the possibility of 
charging a subscription fee to BBC viewers.

But for now, the license fee remains a serious cause of disagreement, 
particularly from competitors, who argue that it gives the BBC an unfair 
advantage.

In a statement, Charles Allen, chief executive of ITV, a commercial 
competitor, said, "The BBC's funding must be proportionate to its needs and 
should not be able to stifle competition and innovation."

Meanwhile, Mr. Swire of the Conservative Party called the license fee "an 
example of the stealthiest of stealth taxes."

"In a fast-paced digital age," he said, "with people watching television on 
their mobile phones, iPods, and laptops, and with the eclipse of the 
traditional television channel, is it credible to believe that a compulsory 
tax on the ownership of a television set is the right way to fund our 
national broadcaster for the next 10 years?"


================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu



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