The Future of Public Service Broadcasting and the Funding and Ownership of the BBC

The BBC has been financed by a hypothecated tax levied on television sets since 1946. For most of the subsequent period, there has been substantial governmental control of both broadcast content and platforms. The economic arguments for different types of intervention in public service broadcasting were discussed in the Peacock Report of 1986 which proposed radical change. This paper uses a similar methodology to that of the Peacock Committee and concludes that the case for government support for public service broadcasting has been undermined by the technological developments the Peacock Committee anticipated. It is further argued that the BBC should be financed largely by subscription and that it should adopt a mutual governance structure.