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BBC grasps at straws

Who remembers the TV license?

Many, many years ago right here in New Zealand, it was a legal requirement to pay for a TV license if you wanted to watch broadcast television. Of course for much of the time the license was a requirement, broadcast TV was the only thing you could watch.

Every year, law-abiding TV owners would have to pay as much as $110 for the privilege of watching the ad-ridden content that was "free to air" television.

Eventually, in 2000, the license scheme was abandoned here in New Zealand but over in the UK, the tax continues unabated with all the fee going to that country's state broadcaster, the BBC.

Now, in the wake of numerous scandals involving child abuse and such, the UK public are pushing back and many are refusing to pay even though a failure to do so could result in stiff fines and even a criminal conviction.

The fact that so many TV set owners are no longer watching broadcast transmissions covered by the license fee has also contributed to a huge fall in the BBC's revenues from the license.

Those who watch YouTube, Netflix and other streaming services only, do not legally need to buy a license -- unless they watch "live" streams on those services.

Like me, you're probably wondering why the fact that something is broadcast "live" by someone other than the BBC would entitle the BBC to demand a license fee for watching it -- but that is the law.

If UK residents watch *any* BBC content via the internet, using the iPlayer service, they still need to get a license. Right now however, they can watch exactly the same content on YouTube quite legally without a license. Crazy!

Recently it was revealed that more people watch YouTube than the BBC's broadcasts and that has resulted in a very interesting move on the part of the BBC.

They clearly see the writing on the wall and have recognised that if they don't do something, the dramatic plunge in license revenues represents an almost existential threat.

As a result of these pressures, the BBC has cut a formal deal with YouTube to carry programmes specially produced for that platform.

The BBC has stated that UK residents will be able to watch this new content on YouTube without the need for a license but many others are concerned that this may be part of a move on the part of the broadcaster to bring YouTube into its licensing net.

It's unlikely that ads placed on its YT-specific content will generate nearly as much revenue as the decline being seen in license revenues so many commentators are expecting that pretty soon the government will move to mandate that anyone watching YouTube on their TV set in the UK will then be required to buy a license.

Could the deal struck between the BBC and YouTube be "the thin end of the wedge" that will eventually close a loophole that has devastated the broadcaster's revenues?

I would not be surprised.

Carpe Diem folks!

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