By IRNA,
London : Britain’s current model for broadcast regulation is “exhausted” and reform should start with the BBC and the scrapping of its public licence fee, according to a leading right-wing think-tank.
In a new report published Monday, the Adam Smith Institute argued that hostility to the state-funded broadcaster from its competitors was “justified” and that continuing the licence fee will lead to its “contraction and decline.”
“The BBC is, in reality, a subsidised entertainment firm with some non-commercial obligations. The BBC should no longer be allowed to exploit the exclusive benefits of public subsidy,” it warned, according to a copy of the report obtained by IRNA.
Its call for the ending of the state funding comes ahead of negotiations between the BBC and the government on the next licence fee settlement due to begin next year.
The report, authored by former BBC producer David Graham, envisioned an enhanced global presence for the BBC and suggested that the licence fee be replaced with a voluntary subscription service for certain programing.
It singled out the success of satellite broadcaster Sky with its subscription model, adding that the BBC could have “the global presence of a Hollywood studio but with a wider range of output.”
The Adam Smith Institute, which is renowned for its free market views, advocated that the BBC should become “more ambitious and outward-thinking”, arguing that would be easier without the licence fee.
Last month, Culture Secretary Jeremy Hunt indicated support for continuing with the licence fee, but suggested it could be cut from the current annual charge £145.50 after the next negotiations.