Last year, the BBC suffered a major setback when the British government announced a freeze on annual television fees for the next two years. The government also said that by 2027 it will completely abolish the fees.
BBC Documentary: After the making of a controversial documentary on the Gujarat riots, the ruckus had not completely subsided that questions started to arise regarding its agenda and funding. Meanwhile, the Income Tax Department team has reached the head office in Delhi and the Mumbai office. It is being told that the team of Income Tax Department is conducting survey in the offices located in Delhi and Mumbai.
BBC has been accused of running an agenda against third world countries including India and in such a situation questions have also been raised about its funding. Let’s try to understand, how BBC works, how it is operated and where does all this money come from to run the company.
start of bbc
BBC i.e. British Broadcasting Company was established in October, 1922 as a private organization. Earlier only British makers were allowed to hold shares in it. Initially, the company had to struggle a lot to gain a foothold in the industry. Its heyday began during the 1926 general strike, when its coverage of the crisis was widely appreciated by British citizens.
In the same year, a parliamentary committee recommended for this. Said that this private company should be replaced as a public sector crown-chartered organization. This recommendation made the BBC accountable to the Parliament, but it always enjoyed autonomy and independence regarding its activities.
How does BBC work?
The BBC operates under a Royal Charter. It is an instrument of incorporation granted by the Government in the UK, which makes it mandatory to obtain a license from the Home Secretary. This charter has to be renewed every 10 years. According to reports, the current charter is valid till December 31, 2027.
The Charter sets out the objectives of the broadcasting company, which states that the BBC should provide accurate and fair news, current affairs and factual programming duly understood by people in all parts of Britain and the wider world.
Who is the owner of BBC?
The company is regulated by the BBC Trust, its executive board and a government-approved regulatory authority called Ofcam. However, after an independent review in 2016, it was dissolved after finding deficiencies in the trust. A BBC board was then set up to govern the company, while Ofcam had the sole responsibility of regulating it. Presently the executive board only oversees its functioning.
In its annual report, BBC had told that the executive board is separate from the trust and the person sitting on the post of Director General operates it. The command of distribution of its programs is also in his hands.
BBC funding
Much of the BBC’s funding comes from an annual fee charged to British institutions with equipment to receive or record live television broadcasts. Apart from this, it also gets considerable revenue from its commercial subsidiaries BBC StudioWorks and BBC Studios.
Last year (in 2022) the BBC suffered a major setback when the British government announced a freeze on annual television fees for the next two years. The government also said that by 2027 it will completely abolish the fees.
According to a report published in The Guardian, “BBC will continue to get 3.2 billion pounds i.e. more than 32 thousand crore rupees (3,22,24,95,25,760)”. It has been told in the report that due to rising inflation, competition and challenges from OTT, the cost of making programs is increasing rapidly.
The bulk of its revenue comes from BBC Studios (BBC Worldwide), which sells its programs and services internationally. It also earns a lot from the distribution of BBC News Service, World News and Digital reports.
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