Ministers are reportedly drawing up plans to axe the BBC's £159-per-year licence fee in what would be the biggest overhaul since the fee was introduced in 1946, according to a 46-page white paper.
With more people now turning to online streaming services, the broadcaster has seen a considerable decline in funding as households opt not to hold a TV licence if they do not watch Live TV or BBC streaming services.
The Government is said to be now looking to overhaul the funding model for the public service broadcaster to bring it more inline with how other countries abroad fund their own services, such as turning it into a subscription service.
A think-tank will now be setup to explore other methods of funding ahead of the expiration of the current Royal Charter which is set to expire in 2027. This would mean that the broadcaster could be forced to run ads and program sponsorships on its domestic channels for the first time in its history.
Critics of the licence fee have welcomed the move which would mean that criminal prosecution for non-payment would no longer be a threat.
The BBC which has a regional presence in Salford at MediaCityUk has previously seen itself come under scrutiny over the abolition of free TV licences for all over-75s, with a grace period on payment because of the Covid-19 pandemic having ended on July 31st last year.
Culture Secretary Nadine Dorries has promised a new ‘golden age’ of television with her new Media Bill.
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