Communications and Digital Committee
Licence to change: BBC future funding

1st Report of Session 2022-23 - published 18 July 2022 - HL Paper 44



Chapter 1: Introduction

Box 1: BBC funding: key facts

Figure 1: BBC expenditure

Box 2: Key terms

Chapter 2: BBC purpose

BBC purpose

Reithian mission

A universal service

Market failure or shaper?

Shaping markets and value to the creative industries

Figure 2: Creative industries’ GVA in Europe

Soft power and international value

Chapter 3: Strategic challenges

Future media environment

Figure 3: Estimated cumulative content expenditure by major SVOD platforms

Figure 4: Breakdown of total UK video viewing age 4+

Figure 5: Online video service used in UK households to watch programmes or films

Figure 6: Breakdown of total UK video viewing, by age group

Figure 7: Adults (15+) share of audio consumption

Figure 8: Annual delivery of savings by category

Serving the whole of the UK

Figure 9: Audience satisfaction distribution

Responses from the BBC and Government

Chapter 4: Funding models

Principles for a funding model

Table 1: Selection of European countries that have abolished their TV licence fees in the past decade

Existing licence fee

Reforming the licence fee

Alternative commercial funding



Alternative public funding

Hypothecated tax on income

Telecommunications levy

Household levy

Grants from the Government

Contestable funding

Hybrid commercial funding

Part domestic subscription

International subscription

Chapter 5: Future transition

Technological and commercial factors


Figure 10: Audio (excluding visual) by device share percentage for all adults

An online-only world?

A hybrid future?

Industry developments

Political process and timing

Public consultation

The BBC’s role

Summary of conclusions and recommendations

Appendix 1: List of Members and declarations of interest

Appendix 2: List of witnesses

Appendix 3: Call for evidence

Appendix 4: Visits and public engagement

Evidence is published online at: and available for inspection at the Parliamentary Archives (020 7219 3074).

Q in footnotes refers to a question in oral evidence

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