Ministers signaled the end of the BBC television license fee as they set out plans to seek a “fair and appropriate” alternative.
The government’s White Paper on the Future of Broadcasting says the landscape has changed significantly since the license fee was last revised less than a decade ago.
“Technology has revolutionized how, when and where audiences can access and watch content,” the document said.
“A growing number of households choose not to have a TV license, as fewer people choose to watch live TV or other activities that require a license.
“If this trend continues as expected, there are clear challenges on the horizon for the sustainability of the license fee.”
The government said it would look at how other countries fund their public service broadcasters in the review.
He also warned that the BBC needs to do more to address impartiality, although the corporation has already set out a 10-point action plan that promises to ensure that the breadth of views is reflected in its coverage.
The government said it would also consider Ofcom’s role as the BBC’s regulator and ask if the system needed improvement.
Currently, anyone who has a complaint against a broadcaster has to take it directly to the BBC and can only take it to Ofcom if they are not happy at the end of the corporation’s process.
The document adds: “The BBC needs to address the issues of impartiality and group thinking, and in order to do so, it needs to make material and rapid progress.
“The government also wants to see the BBC take steps to reform over the next six years. This includes taking action to improve its impartiality, which is essential for the BBC’s mission and to maintain public confidence … Although the action plan is a good start, changes are needed and they need to be delivered. “
The mid-term review of the government’s charter will look at how effective the BBC’s governance and regulation are “to make progress against our ambitions for greater impartiality, greater accountability for editorial standards, including complaint handling, and the BBC, which represents a broad audience, for which it was created.
“It’s not just about how well the BBC is doing – we also want to look at the effectiveness of the framework through which Ofcom holds the BBC accountable.”
A BBC spokesman said: “We look forward to working with the government on both the forthcoming mid-term review and the national debate on the next charter. The White Paper recognizes the BBC’s critical role in supporting the UK creative sector and we remain focused on delivering great value to all license fee payers. “
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