Menu Expand
In Focus: The Case for Privatising the BBC

In Focus: The Case for Privatising the BBC

Philip Booth | Ryan Bourne | Tim Congdon | Stephen Davies | Cento Veljanovski

(2016)

Additional Information

Abstract

The BBC holds a special place in the world of broadcasting. It derives its funding from a compulsory levy on people who may not even use the service. The protection it receives is justified on the grounds that it contributes to national welfare because of its role in ‘public service broadcasting’. The authors of this book argue that the BBC’s funding model is becoming untenable as technology changes. Furthermore, technology has also undermined the justification for government support for public service broadcasting. There is also major concern about bias at the BBC. However, the book concludes that bias is not confined to the BBC, but is common to all media providers. The problem is not bias as such, but the link between the BBC and the government, together with the compulsory funding model which does not allow people to not fund content of which they disapprove. Various options for reform are presented, concluding with a proposal for fullblown privatisation. It is concluded that this is the only way to realise the potential of an organisation that should be international in scope and which, under the current funding model, will become marginalised by media players operating worldwide across a range of platforms. This book is essential reading for anybody involved in public policy or the economics of broadcasting.

Table of Contents

Section Title Page Action Price
_GoBack x
16 xiii
a2 30
n3 30
n13 36
n5 36
n6 36
The authors ix
Foreword xi
Acknowledgement xiv
Summary xv
Tables, figures and boxes xviii
1\tIntroduction: broadcasting in the twenty-first century 1
Philip Booth and Stephen Davies 1
The origins of the licence fee 1
The evolution to a hypothecated television tax 3
The collapse of the justification for licence fee funding 4
Television broadcasts are not a public good 6
The licence fee debate should be dead – at least among economists 8
What might replace the licence fee model of funding the BBC? 8
Public service broadcasting 10
Bias and the BBC 12
Privatising the BBC 16
Conclusion 19
References 21
2\tPublic service broadcasting: ownership, funding and provision 23
Cento Veljanovski 23
Background 24
The structure of public service broadcasting 26
What was and is public service broadcasting? 30
Where does the PSB concept stand today? 36
Market failure 38
Can a case be for public service broadcasting? 48
Funding of PSB 49
Structural reforms 57
Conclusion 61
References 62
3\tThe problem of bias in the BBC 67
Ryan Bourne 67
Introduction 67
Does bias matter? 69
Absolute or relative bias? 71
Bias by omission 72
Bias by selection 78
Bias by presentation 87
Conclusion 96
References 98
4\tWhy is the BBC biased? 100
Stephen Davies 100
Is the BBC biased to the left? 100
Institutional bias and the BBC 101
Shared values of BBC staff 103
The BBC, ‘conventional wisdom’ and the problem of nuanced views 108
Conclusion 110
References 112
5\tPrivatising the BBC 114
Tim Congdon 114
Setting the scene 114
The case for ending the licence fee 117
The BBC in the digital era 126
Common defences of state funding of broadcasting 128
Final remarks on the licence fee 132
The case for the privatisation of the BBC 133
A possible alternative approach: a smaller BBC? 140
References 144
About the IEA 146
Table 1\tPSB channels and channels operated by public service broadcasters 27
Table 2\tThink-tank citations by politicians and the BBC News website 81
Table 3\tThink-tank mentions and health warnings on the BBC website in the previous Parliament 92
Table 4\tUK television industry metrics 122
Figure 1\tViewer shares by channel (aged 4+), 1988–2014 29
Figure 2\tPSB and portfolio share of TV viewing, all individuals, by channel: 2004–14 31
Figure 3\tHow PSB channels are delivered to viewers, 2014 40
Figure 4\tPublic service broadcasting by non-public-service broadcasters 49
Figure 5\tTotal TV revenues by source, 2009–14 56
Figure 6\tNumber of citations by Labour politicians as a proportion of citations by Labour and Conservative politicians 80
Figure 7\tEU interview comparisons 97
Figure 8\tThe financing of British television today (£ billion revenues) 121
Figure 9\tIs the BBC already an underdog? 123
Figure 10\tGlobal TV industry revenues by source (£ billion) 143
Box 1\tCompetition policy and the BBC 50