Tuesday, 22 September 2015

Conservative commitments - 39, 31 failures



As the BBC is a high-quality, low-cost broadcaster it’s clearly terrible news for Sky, which costs a lot. Furthermore, the BBC’s charter that requires it to be unbiased means that it doesn’t give the flattering, right-wing coverage that online echo-chambers and less regulated media outlets do. The further someone gets from the truth, the more objectionable they will find an organisation that is committed to it.
I therefore take people’s dislike of the BBC as a convenient measure for how loony they are. There are perfectly good ways of complaining to the BBC about its impartiality, and complaints are investigated. The endless chorus of criticism serves three interlinked purposes: big media organisations put the boot into a major competitor that can’t fight back; it encourages people to distrust the truth and believe what the organisation is peddling; and it creates a marketing niche.
Given that inflation does indeed occur, a freeze is effectively a cut in income. The BBC is one of the most widely-recognised and widely-trusted media organisations in the world, with a global reach. When the Syrian government condemned western countries’ interference with the Middle East, it attacked America, because they have power, and Britain, because the BBC’s Arabic service was telling Syrians what was actually happening, in contrast with Syrian state propaganda. Similarly, Afghans liked to listen to the World Service. The Foreign Office has cut support for the World Service.
Advertising isn’t a perfect way to fund television instead: advertising does have costs. Beyond the insidious effects of advertising on programme quality, there’s the simple fact that this money doesn’t magically appear. We pay for it in consumer goods. I haven’t been able to find a relatively old article I once read that calculated the total cost to an average consumer of ITV, but it worked out that it was more than the license fee. And although the licence fee is regressive, a bit like a poll tax, advertising is no better. The poor spend a much higher proportion of their income on basic goods, so they’ll pay more for advertising than the rich.
The BBC might focus too much on ratings, because its executives have come from commercial broadcasters, and it might have a stupid interpretation of ‘unbiased’, in which science deniers get an equal platform with truth, but these are not complaints about its overarching purpose, nor any reason to cut funding.
Yes, as people give up on televisions and watch ‘television’ on numerous devices we will need to give up on the licence fee, which needed reforming anyway. But I see no proposal to replace the lost money for the BBC. This is simply business bias against competitors. It shouldn’t be the Conservatives’ job to do competitors’ dirty work by shutting down the BBC. Media organisations should just work hard to deserve their audiences.
The licence fee is currently worth £3.6bn to the BBC, so a freeze, preventing it rising with inflation, will be an effective cut of £377 million per year by the end of the Parliament, assuming inflation at the BoE target of 2%. A cut of 10% is important. Further news shows that the BBC has instead agreed to fund free licences for old people. I’m not sure why old people get free licences, but since this is worth £650m per year, it seems that the BBC has been pushed into a 20% cut right there. I’d like to see a business take a 20% cut and survive. Perhaps  the government should mandate that Sky charges 20% less for all services.

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