The Government is apparently split today over the increase in 'license' fee for the BBC (here) . The Beeb as usual wants more than inflation to fund it monopoly; however they claim it is to pay for analogue switch-off which the Government foisted on them (here).
Many Bloggers have commented on various issues with the BBC, see Biased BBC for the most fervent anit-beeb campaign.
However, my concern is different to many other peoples. I think the BBC produces super content and justifies being paid for it...but not subsidised. There is a better way of funding and this is called subscription or better still, general taxation.
I digress though, my main point is to see how much the BBC is being over-funded you just have to look at the private media sectors that it lays waste too. Most commercial radio companies are heading to insolvency and I would bet plenty of money that many stationd will disappear in the next few years, even some biggies like Capital are in the firing line. They can't compete on wages or with advert free radio.
ITV too has become a basket case as it cannot keep the good staff and invest in the quality of programmes that the BBC can. This is because when its viewing figures fall so does its revenue, something unstoppable in a multi-channel world. The BBC does not suffer from this as its income is guaranteed.
Even online the BBC dominates, a great service, but why is there no good ITN news site; simple, it just can't commercially compete with the BBC investment.
Channel 4 and % are also not making real headway in terms of commercial profitability. Which leaves Sky and the subscription model which is successful.
Overall then my view is that the market is clearly distorted. The huge subsidy the Governmetn gives to the Media, Â£2 billion a year, will never be challenged in the MSM as too many of them benefit or have benefited. This does not mean it should not be distributed more fairly or horror of horrors to the Lefties; break-up the BBC (the Beeb has even tried to profit from this themselves by outsourcing to Siemens and commercialising BBC Worldwide.)
Come on Ofcom - show us your teeth! (fat chance)