Morgan: I’m open-minded about axeing TV licence fee
She hints at a Netflix-style service
NICKY Morgan said yesterday that she would be ‘openminded’ about scrapping the BBC licence fee and replacing it with a Netflixstyle subscription scheme.
The Culture Secretary said the ‘ broadcasting sector is changing’ – especially ‘the way the younger generation consumes services’.
Observers said the remarks go further than any of her predecessors on an end to the licence fee.
A subscription scheme would mean that those who want to watch BBC programmes would have to pay a regular fee, similar to the monthly fee charged by Netflix.
It would mean an end to the compulsory £154.50-a-year licence fee, which must be paid by everyone who watches television even if they never watch the BBC. No change would take place until the Corporation’s charter comes up for renewal again in 2027.
During a hearing of the Commons culture committee, Mrs Morgan was questioned about rumours that the next Conservative election manifesto could include the BBC moving to a subscription service.
Tory MP Julian Knight asked: ‘What is your view? Will you man the barricades to maintain the licence fee?’
Mrs Morgan replied: ‘What I haven’t seen is any evidence either way [about] what a subscription-based system would do in terms of revenue.
‘The licence fee last year raised £3.7billion for the BBC. They have other sources of income as well. So I would need to understand what, if you were going to change, that
would do to their income.
‘Overall I think the BBC is a very important institution for this country. I think it’s an enormous part of our soft power around the world. But undoubtedly the broadcasting sector is changing. I think we all know from streaming services and everything else, and the way the younger generation consumes services, it is going to change.’
Pressed on her view on a subscription service, Mrs Morgan said: ‘ I’m openminded and I will have discussions and listen to evidence on all sides.’
Mr Knight, the MP for Solihull, said: ‘This is the furthest I have seen a Culture Secretary go on this – her predecessor was a real fan of the licence fee. The way people consume media is different now and people are conditioned to the idea of subscription because of services like Netflix.
‘A BBC subscription service is an idea that’s gathering pace and I hope we will see some radical thinking about this.’
Last night a spokesman for the Department for Culture, Media and Sport said the Government has committed to maintain the licence fee funding model until 2027.
A BBC spokesman said: ‘The licence fee ensures a universal BBC which serves everyone, is the most popular funding system among the public and is agreed as the method of funding the BBC for another eight years, so any debate about future funding is a long way off.’
‘Radical thinking’