The government recently announced this month that the current TV License fee of £159 is set to increase by £10.50 – a rise of 6.6%. This was at a figure that was less than anticipated as the rate of inflation has fallen in recent months however this still leaves the BBC with a funding gap of around £90m. If the increase had been made at the inflation rate then the corporation would have been set to receive an additional £1.16bn from changing the fee alone. But what is the future of the TV license and how are the BBC going to plug the gap in terms of the £90m deficit that they are facing? Do current trends in the way in which consumers view and digest current media conform with a healthy future for BBC broadcasts in the future? We take a look at insights into the future of the TV license in this article.
At The Aerial Man, we are the leading independent installer of TV aerials in Swindon and the surrounding areas. If you require TV aerial installation, Freeview installation or other TV-related services – get in touch with our expert team today. You can call us now or email us directly from our website.
Why is the TV License Fee Increasing?
The government has deemed that the price needed to increase due to rises in inflation and then calculates the costs of BBC budget and content produced as well as other costs. Rather than increasing using the inflation rate medium of the entire year, they decided to use September’s rate rounded at 6.6% as the increase per household for the cost of the license. This is the first time that the price has risen since 1 April 2022 and this is directly due to the rise in inflation in the UK in 2023.
Why is the TV License Necessary?
It’s a legal requirement to have a TV license if you are accessing live services on your TV. If you are using it to watch TV live, or an online TV service or using programmes such as BBC iPlayer or on-demand services then you need a TV license. You don’t need to have a TV license to own a TV but as soon as you access these services you are required to have a license. These license fees are used to subsidise free services today but the original TV license was introduced in June 1946 to coincide with the post-war resumption of the BBC service. This is for TV services and not streaming services.
What is the Future of BBC Content & Media
There is no hiding from the fact that the TV licensing model was introduced after the Second World War. That’s coming up to 80 years ago in 2026 so there are critics who question the need for a license. There’s no doubt that the BBC would not be able to operate without the license it’s the core revenue stream that keeps their services up and running and ensures that they do not need a private subscription. But with the cost of living – fees such as this are at the forefront of people’s minds. If you are watching live TV on a streaming platform such as YouTube then you will need a license. However, you don’t need a TV license to watch on-demand such as Netflix so this has thrown the future of the TV license into doubt. With the changing viewing habits of viewers – may the TV license be defunct in the future?
At The Aerial Man, we are the leading independent installer of TV aerials in Swindon and the surrounding areas. If you require TV aerial installation, Freeview installation or other TV-related services – get in touch with our expert team today. You can call us now or email us directly from our website.