This article is about a licence that is required to own or operate a television or radio. For a licence to broadcast a television or radio station, see
broadcast licence.
"TV tax" redirects here. For the proposed funding mechanism for local Canadian TV stations described by opponents as a "TV tax", see
fee-for-carriage.
Funding of European public broadcasters
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- TV licence
Television licence only
Television licence and advertising
Television licence, advertising and government grants
- No TV licence
Government grants, and advertising (excluding Andorra)
Commercial only (excluding Liechtenstein and Monaco)
Government grants only
Unknown
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A television licence (or broadcast receiving licence) is official permission required in many countries for the reception of television broadcasts, or the possession of a television set. The licence is sometimes also required to own or receive radio broadcasts. A TV licence is generally a hypothecated tax for the purpose of funding public broadcasting, thus allowing public broadcasters to transmit television programmes without, or with only supplemental, funding from radio and television advertisements.
The early days of broadcasting presented broadcasters with the problem of how to raise funding for their services. Some countries adopted the advertising model, but many others adopted a compulsory public subscription model, with the subscription coming in the form of a broadcast licence paid by households owning a radio set (and later, a TV set).
The UK was the first country to adopt the compulsory public subscription model with the licence fee money going to the BBC, which was formed on 1 January 1927 by Royal Charter to produce publicly funded programming yet remain independent from government, both managerially and financially. The licence was originally known as a radio licence.
With the arrival of television some countries created a separate additional television licence, while others simply increased the radio licence fee to cover the additional cost of TV broadcasting, changing the licence's name from "radio licence" to "TV licence" or "receiver licence". Today most countries fund public radio broadcasting from the same licence fee that is used for television, although a few still have separate radio licences, or apply a lower or no fee at all for consumers who only have a radio. Some countries also have different fees for users with colour or monochrome TV. Many give discounts, or charge no fee, for elderly and/or disabled consumers.
Faced with the problem of licence fee evasion, some countries choose to fund public broadcasters directly from taxation or via other less avoidable methods such as a co-payment with electricity billing. National public broadcasters in some countries also carry supplemental advertising.
The Council of Europe created the European Convention on Transfrontier Television in 1989 that regulates among other things advertising standards, time and the format of breaks, which also has an indirect effect on the usage of licensing. In 1993, this treaty entered into force when it achieved 7 ratifications including 5 member states. It has since been acceded to by 34 countries, as of 2010[update].[1]
The Museum of Broadcast Communications in Chicago[2] notes that two-thirds of the countries in Europe and half of the countries in Asia and Africa use television licences to fund public television. TV licensing is rare in the Americas, largely being confined to French overseas departments and British territories
In some countries, radio channels and broadcasters web sites are also funded by a radio receiver licence, giving access to radio and web services free of commercial advertising.
The actual cost and implementation of the television licence varies greatly from country to country. The rest of this section looks at the licence fee in a number of countries around the world.
The Albanian licence fee is 800 Lekë (€5.81) per year.[5] However, the licence fee makes up only a small part of public broadcaster RTSh's funding. RTSh is mainly funded directly from the government through taxes (58%), the remaining 42% comes from commercials and the licence fee.
In accordance with the Austria RGG (TV and Radio Licence Law) all broadcasting reception equipment in use or operational at a given location must be registered. The location of the equipment is taken to be places of residence or any other premises with a uniform purpose of use.
Responsible for licence administration in Austria is GIS - Gebühren Info Service GmbH, a 100% subsidiary of the Austrian Broadcasting Company (ORF), as well as an agency of the Ministry of Finance, charged with performing functions concerning national interests. Transaction volume in 2007 amounted to EUR 682 million, 66% of which are allocated to the ORF for financing the organization and its programs, and 34% are allocated to the federal government and the local governments (taxes and funding of local cultural activities). GIS employs some 191 people and approximately 125 free lancers in field service. 3.4 million Austrian households are registered at GIS, percentage of licence dodgers in Austria amounts to 2.5%.
The main principle of GIS' communication strategy is to inform instead of control. To achieve this goal GIS uses a four-channel communication strategy:
- Above-the-line activities (advertising campaigns in print media, radio and TV)
- Direct Mails
- Distribution channels – outlets where people can acquire the necessary forms for registering (post offices, banks, tobacconists, five GIS Service Centers throughout Austria)
- Field service – customer consultants visiting households not yet registered
The annual television & radio licence varies in price depending on which state one lives in. Annual fees from April 2012 are:[6]
The licence fee in Belgium's Walloon Region and Brussels Region (encompassing the French and German speaking communities) is €149.67 for a TV and €26.72 for a car radio.[7] Only one licence is needed for each household regardless of how many television sets there are. However, each car with a radio must have a separate car radio licence. Household radios do not require a licence. The money raised by the fee is used to fund Belgium's French and German public broadcasters (RTBF and BRF respectively).
The licence fee in Bosnia and Herzegovina is around € 36 per year.[8] The civil war and the associated collapse of infrastructure caused very high evasion rates. This has in part been resolved by collecting the licence fee as part of a household's telephone bill. The licence is used to fund PBSBiH (Public Broadcasting System of Bosnia and Herzegovina) which is an umbrella organisation of three separate broadcasters. These are BHRT (Radio and Television of Bosnia Herzegovina), which serves the whole country; RTVFBiH (Radio-Television of the Federation of Bosnia-Herzegovina) that primarily serves the population in the Federation of BiH; and RTRS (Radio-Television of the Republika Srpska), which primarily serves the population of Republika Srpska.
The licence fee in Croatia is regulated with the Croatian Radiotelevision Act.[9][10] As of 2010[update], the last incarnation of the act dates from 2003.
The licence fee is charged to all owners of equipment capable of receiving TV and radio broadcasts. The total yearly amount of the fee is set each year as a percentage of the average net salary in the previous year, currently equal to 1.5%.[9] This works out at about €137 per year per household with at least one radio or TV receiver.
The fee is the main source of revenue for the national broadcaster Hrvatska Radiotelevizija (HRT), and a secondary source of income for other national and local broadcasters, which receive a minority share of this money. The Statute of the Croatian Radiotelevision[11] further divides their majority share to 66% for television and 34% for the radio, and sets out further financial rules.
According to law, advertisements and a number of other sources of income are allowed to HRT. However, the percentage of air time which may be devoted to advertising is limited by law to 9% per hour, and is lower than the one that applies to commercial broadcasters. In addition, other rules govern advertising on HRT, including a limit on a single commercial during short breaks, no breaks during films, etc.
Croatian television law was formed in compliance with the European Convention on Transfrontier Television that Croatia had joined between 1999 and 2002.[1]
The licence fee in the Czech Republic is 135 Kč (€65.94) as from January 1, 2008.[12] This increase is to compensate for the abolishment of paid advertisements except in narrowly defined circumstances during a transitional period. Each household pays for one TV licence regardless of how many televisions they own. Corporations and the self-employed must pay for a licence for each television.
The licence fee in Denmark is 2,260 kr[13] (€303.35) in media licence fee (which applies to all TVs, computers with Internet access above 256 kbit/s or with TV tuners or other devices that can receive broadcast TV: which actually means that you have to pay the TV licence if you have a relatively new mobile phone[14]). Radio licence is 320 kr (around €43). The black/white TV rate is no longer offered after January 1, 2007. The majority of the licence fee is used to fund the national radio and TV broadcaster DR. However, a proportion is used to fund TV 2's regional services.[15] TV2 itself used to get means from the licence fee but is now funded exclusively through advertising revenue.[16] Though economically independent from the licence fee TV2 still has obligations and requirements towards serving the public which is laid down in a so called "public service contract" between the government and all public service providers. TV2 commercials may only be broadcast between programmes, including films. TV2 does receive indirect subsidies through favorable loans from the state of Denmark. TV2 also get a lower part of the licenes for their 8 regional TV-stations which has half an hour of the daily prime time of the channel (commercial free), and may request additional time on a special new regional TV-channel. (This regional channel thow have several other non-commercial broadcasters apart from the TV2-regional programs)
The television fee in Finland is between €244.90 and €253.80 (depending on the interval of payments) per annum for a household with TV (as of 2011). It is the primary source of funding for Yleisradio (YLE). The amount is being adjusted yearly for reasons including transition to digital television. There are no exemptions from the fee, and municipal social welfare is not meant to cover the cost of TV licence.
In 2000, a new constitution guaranteed everyone the right to receive messages without permission as a part of freedom of speech.[17] The term television licence fee was therefore dropped in favour of television fee, but other than that, little has changed.
The switch to digital only transmission of TV in Finland has seen a decline in the number of households with a TV licence.[18] The reason for this is not clear. It may be that people are recouping the mandatory cost of purchasing a digital receiver (€50-€100 for basic models) against the cost of the licence by way of protest, and others may genuinely have given up watching TV altogether.
The TV licence has been criticized for various reasons. The licence inspectors who target households that have no licence are seen as an invasion of privacy. People who have refused (as is their right) to let the inspectors enter their houses have reported that they have been ordered to pay the fee and penalty fees based on questionable evidence or no evidence at all.[19] Yet the inspections are not effective and many people watch TV without paying the licence.[citation needed] With the increased popularity of commercial TV channels, pay-TV, cable, satellite and DVDs the right for YLE to receive the fees has been questioned. IPTV has led the very definition of what is a TV to become vague.[20] Because of this alternative methods of raising the money have been proposed. A parliamentary committee tasked with evaluating the alternative methods has ruled out direct state funding because that would allegedly endanger the independence of the YLE. Scrambling the channels – not just YLE but also commercial would cause technical problems. The most likely alternative, unanimously supported by the aforementioned committee (with representation from all parties in the parliament) and also by the Minister of Communications Suvi Lindén, is to make the fee mandatory for all households and companies, regardless of whether TV is actually watched or not, and collect it as a fixed size (effectively regressive) tax.[21][22] However, more recently splits have appeared and a decision has now been postponed until after the formation of the next parliament.
Finland's current television licence will be replaced by a ring fenced "YLE tax" in 2013. Unlike the licence fee, the tax will be progressive, with the very poorest not paying at all. However, the new tax will also be applied to all adults and not just once per household. The proposals suggest that each adult will pay between €50 and €140 under the new arrangements.[23][24]
In 2010, the television licence fee in France (mainland & Corsica) was €121 and in the overseas departments it was €78.[25] The licence funds services provided by Radio France, France Télévisions and Radio France Internationale. Metropolitan France receives France 2, France 3, France 5, Arte, France 4 and Gulli, while overseas departments receive Outre-Mer 1ère ('[name of department or territory] 1ère', Tempo, and France Ô), though the Metropolitan France channels are also available in the overseas departments through the expansion of TNT service to these areas.[26] Public broadcasters in France supplement their licence fee income with that from advertising. However, changes in the law in 2000 designed to stop public television chasing ratings, have stopped public broadcasters from airing advertising after 8pm.[27] Between 1998 and 2004 the proportion of France Télévision's income that came from advertising declined from around 40% to 30%.[28] To keep the cost of collection low, the licence fee in France is collected as part of local taxes.[28]
The licence fee in Germany is € 215.76 per annum for TV (including radio and Internet) and € 69.12 for radio and Internet.[29] It is billed by the month, but typically paid quarterly (yearly payments are possible). Households with at least one radio and no televisions have to pay the lower fee, and households with at least one television set must pay the higher fee (which includes the radio fee). Radios and TVs at places of work are also subject to license fees.
Unemployed, disabled and people dependent on state benefit payments are exempt from the licence fee, within strict assessment parameters. Since 2007, computers with a working Internet connection are considered liable to license fees in the same way as a radio. The licence fee has to be paid even if the device is not attached or has no immediate capabilities to connect to the Internet. A reform of the licence fee is due to come into effect in 2013, from when every household will have to pay the fee, even if it has no radio, TV or computer. The only people exempted from these fees will be the very poor or the disabled.
The licence fee is used to fund the public broadcasters ZDF and Deutschlandradio as well as the nine regional broadcasters of the ARD network, who altogether run 22 television channels (10 regional, 10 national, 2 international: ARTE and 3sat) and 61 radio stations (58 regional, 3 national). Two national television stations and 32 regional radio station carry limited adverting. The 14 regional regulatory authorities for the private broadcasters are also funded by the licence fee (and not by government grants), and in some states, non-profit community radios also get small amounts of the licence fee. In contrast to ARD, ZDF and Deutschlandradio, Germany's international broadcaster Deutsche Welle is fully funded by the german federal government, though much of its new content is provided by the ARD.
Germany currently has one of the largest total public broadcast budgets in the world. The per capita budget is close to the European average. Annual income from licence fees is approximately 7.6 billion Euro, with an additional 500 million Euro revenue from commercials.
The board of public broadcasters sued the German states for interference with their budgeting process, and on 11 September 2007 the Supreme Court decided in their favour. This effectively rendered the public broadcasters institution independent and self-governing.
Public broadcasters have announced that they are determined to utilize all available ways to reach their "customers" and as such have started a very broad Internet presence with media portals, news and TV programs. National broadcasters have abandoned an earlier pledge to restrict their online activities. This resulted in newspapers taking court action against the ARD, claiming that the ARD's Tagessschau smartphone app, that provides news stories at no cost to the app user, was unfairly subsidised by the license fee, to the detriment of free market providers of news content apps. The case was dismissed with the court advising the two sides to agree a compromise.
The licence fee in Greece is indirect but obligatory and paid through electricity bills. The amount to be paid is €51.60 (2006) for every separate account of the electrical company (including residence, offices, shops and other places provided with electricity). Its beneficiary is the state broadcaster Ellinikí Radiofonía Tileórasi (ERT). Predicted 2006 annual revenue of ERT from the licence fee (officially called "retributive" fee) is €262.6M (from €214.3M in 2005).[30]
There has been some discussion about imposing a direct licence fee after complaints from people who do not own a television set and yet are still forced to fund ERT. An often quoted joke is that even the dead pay the licence fee (since graveyards pay electricity bills).[31]
In Iceland the TV Licence is 32 460 kr[32] (€213.50). Discounts are available for black and white TVs and those who only have radios. The TV Licence is used to fund RÚV.[33] However, this income is supplemented by limited broadcasting commercials (around 3 minutes per hour).
As of 2012 the cost of a television licence in Ireland is €160.[34] In 2006, the charge was €158,[34] up from €155 in 2005. However the licence is free to anyone over the age of 70 (regardless of means or circumstances), to some over 66, and to the blind (although these licences are in fact paid for by the state). The Irish post office, An Post, is responsible for collection of the licence fee and commencement of prosecution proceedings in cases of non-payment. However, An Post has signalled its intention to withdraw from the licence fee collection business.[35] The Irish TV licence makes up 50% of the revenue of RTÉ, the national broadcaster. The rest comes from RTÉ broadcasting advertisements on its radio and TV stations.[36] Furthermore, some RTÉ services, such as RTÉ 2fm, RTÉ Aertel, rte.ie, and the transmission network operate on an entirely commercial basis.
The licence fee does not entirely go to RTÉ. After collection costs, 5% is used for the Broadcasting Commission of Ireland's "Sound and Vision Scheme", which provides a fund for programme production and restoration of archive material which is open to applications from any quarters. 5% of what RTÉ then receive is granted to TG4, as well as a requirement to provide them with programming. The remainder of TG4's funding is direct state grants and commercial income.
The licence applies to a particular premises, so a separate licence is required for holiday homes or motor vehicles which contain a television.[37] The licence must be paid for premises that have any equipment that can potentially decode TV signals, even those that are not RTÉ's.
In 2010, the licence fee in Italy was €109.00 per household with a TV set or "similar devices" (these include computers, mobiles, video-intercoms, etc).[38][39]
It is the primary source of income for RAI, which does, however, also broadcast advertising. Italy has problems with collection of the licence, with approximately 40% of viewers not paying their licence. One of the reasons is that the maximum fine is only half that of the licence itself (plus the licence on top of that), compared to the UK where the fine is up to £1000 (about €1500.)
Viewers in the province of South Tyrol, Italy, which has a large German-speaking majority, can also receive Austrian and German public TV and radio channels via terrestrial transmissions. However, they do not pay the German or Austrian licence fees.
The licence fee in the Republic of Macedonia is around €25.99 per year.[40] Until 2005 it was collected monthly as part of the electricity bill. The current Law on Broadcasting Activity, which was adopted in November 2005, reads that the Public Broadcasting Service – Macedonian Radio and Television (MRT) shall collect the broadcast fee. The funds collected from the broadcasting fee are allocated in the following manner:
- 72% for MRT for covering costs for creating and broadcasting programmes;
- 4.5% for MRT for technical and technological development;
- 16% for MRD (Makedonska Radiodifuzija – Public operator of the transmission networks of the Public Broadcasting Service) for maintenance and use of the public broadcasting network;
- 3.5 % for MRD for public broadcasting network development and
- 4 % for the Broadcasting Council for regulating and development of the broadcasting activity in the Republic of Macedonia.
The MRT shall keep 0.5% of the collected funds from the broadcasting fee as commission fee.
However, MRT still has not found an effective mechanism for collection of the broadcast tax, so it has suffered a severe underfunding in the recent years.
Recently, the Macedonian Government decided to update the Law on Broadcasting authorizing the Public Revenue Office to be in charge of collection of the broadcast fee.
In addition to broadcast fee funding, Macedonian Radio-Television (MRT) also takes advertising and sponsorship.
The broadcasting fee is paid by: every family household in the Republic of Macedonia, hotels and motels are charged one broadcasting fee for every five rooms, legal persons and office space owners are obliged to pay one broadcasting fee to every 20 employees or other persons that use the office space, owners of catering and other public facilities possessing a radio receiver or TV set must pay one broadcasting fee for each receiver/set.
The Government of the Republic of Macedonia, upon a proposal of the Broadcasting Council, shall determine which broadcasting fee payers in populated areas that are not covered by the broadcasting signal shall be exempt from payment of the broadcasting fee. The households with a blind person whose vision is impaired over 90% or families with a person whose hearing is impaired with an intensity of over 60 decibels, as determined in compliance with the regulations on disability insurance, are exempt from the duty to pay the broadcasting fee for the household where the family of the person lives.
The licence fee in Malta is €34.90.[41] It is used to fund the television (TVM) and radio channels (Radio Malta and Radju Parliament) run by Public Broadcasting Services. Approximately two-thirds of TVM's funding comes from the licence fee, with much of the remainder coming from commercials.[42]
In accordance with the Broadcasting Law (December 2002), every household and legal entity, situated in the Republic, where technical conditions for reception of at least one radio or television programme have been provided, is obliged to pay a monthly broadcasting subscription fee. The monthly fee is €3.50.
The Broadcasting Agency of Montenegro is in charge of collecting the fee (currently through the telephone bills, but after the privatization of state owned Telekom, the new owners, T-com, announced that they will not administer the collection of fee from July 2007).
The funds from the subscription received by the Agency belong to:
- the Republic's public broadcasting services (radio and television) – 75%
- the Agency's fund for the support of the local public broadcasting services (radio and television) – 10%
- the Agency's fund for the support of the commercial broadcasting services (radio and television) – 10%
- the Agency – 5%
The licence fee in Norway is 2477,52 kr[43] (€314.78) per annum. The fee is mandatory for any owner of a TV set, and is the primary source of income for Norsk Rikskringkasting (NRK). The licence fee is charged on a per household basis. Therefore addresses with more than one television receiver only require a single licence.
The current (2012) annual licence fee in Poland for television set is 199.80 zł (€45,33 at average NBP exchange rate from 2011-12-29) per annum[44] The licence may be paid monthly, bi-monthly, quarterly, half-yearly or annually, but the total cost when paying for less than a year in advance is higher (up to 10%). Those that have no TV but have a radio must pay the radio-only licence which costs 59.40 zł (€13,48) per year. The licence is collected and maintained by the Polish post office, Poczta Polska.[45]
Around 60% of the fee goes to Telewizja Polska with the rest going to Polskie Radio. In return public television is not permitted to interrupt its programmes with advertisements (advertisements are only allowed between one programme and another). The TV licence is waived for those over 75. Only one licence is required for a single household irrespective of number of sets, but in case of commercial premises one licence for each set must be paid (this includes radios and TVs in company vehicles). However, public health institutions, all nurseries, educational institutions, hospices and retirement homes need to pay only single licence per building or building complex they occupy.
There is a major problem with licence evasion in Poland. This is due to the collection based on the honesty-based opt-in system, rather than the British system of opt-out, i.e. a person liable to pay the licence has to register on their own, there being no effective means to compel people to register and to prosecute those that fail to do so. Also as the licensing inspectors, who are usually postmen (and -women), do not have right of entry to inspect premises and must get the owner’s or main occupier’s permission to enter. Due to this, it is estimated that about 65% of households evade the licence fee, compared to an average of 10% in the European Union.[46] Due to the difficulty in licence fee collection, the current PO-PSL government is reviewing the funding for public broadcasting, which could include abolishing the fee.
The licence fee in Romania for a household is 48 RON (€ 11.27) per annum.[47] Small businesses pay about €45 and large businesses about € 150. The licence fee is collected as part of the electricity bill. The licence fee makes up part of Televiziunea Română's funding, with the rest coming from advertising and government grants.
The total licence in Slovakia comes to approximately €42 per annum.[48] In addition to the licence fee STV also receives state subsidies and money from advertising.
In 2008, the annual licence fee in Slovenia stood at €132 for receiving both television and radio services (the same level since April 2004), or €39 for radio services only, paid by the month. This amount is payable once per household, regardless of the number of televisions or radios (or other devices capable of receiving TV or radio broadcasts). Businesses and the self-employed pay this amount for every set, and pay higher rates where they are intended for public viewing rather than the private use of its employees.[49]
The licence fee is used to fund national broadcaster RTV Slovenija. In calendar year 2007, the licence fee raised €78.1 million, or approximately 68% of total operating revenue. The broadcaster then supplements this income with advertising, which by comparison provided revenues of €21.6 million in 2007, or about 19% of operating revenue.[50]
The licence fee in Serbia is about €46.5 per annum for TV and radio, and €10.00 for car radio. It is billed by the month for TV and radio, and yearly for car radio. Serbia has problems with collection of the licence, with approximately 45% of viewers not paying their licence.
The current licence fee (Swedish: TV-avgift, literally TV fee) in Sweden is 2076 kr[51] (€232.47) per annum. It is collected on behalf of the three public broadcasters (Sveriges Television, Sveriges Radio and Sveriges Utbildningsradio) by Radiotjänst i Kiruna AB, which is jointly owned by them.
The fee pays for five TV channels, 45 radio channels as well as TV and radio on the Internet. In Sweden, the term "television licence" was replaced a few years ago by "television fee", which was regarded as less ambiguous. The fee is leveraged based per household with TV service, not per TV set. Although the fee also pays for radio broadcasting, there is no fee for radios. Suggestions of replacing the "fee" with a tax occur sometimes in media. Only around 90% of the households have reported that the have a television set and thereby needs pay the fee. Not every household contents a TV set, but these households are generally considered to be a lot fewer than the around 10% that not pay licences. The civil servants of Radiotjänst have no authorities to investigate inside households (for instance flats on higher floor levels).
According to the Swiss Federal Law on Radio and Television (RTVG), the reception of radio or television programs from SRG SSR idée suisse must be registered and is subject to reception fees. The fees are paid per household or business location and not per device.
The licence fee in Switzerland is CHF 462.40(€385.00) per year for TV and radio.[52]
Viewers in South Tyrol, Italy, which has a large German-speaking minority, can also receive the Swiss German-language channels via terrestrial digital transmissions, but do not have to pay a licence fee.
According to the law, a licence fee at the rate of 8% or 16%, depending on equipment type is paid to TRT (state broadcaster) by the producer/importer of the TV receiving equipment. Consumers indirectly pay this fee only for once, at initial purchase of the equipment. Also 2% tax is cut from each household/commercial/industrial electricity bill. However, government has plans to cancel this tax soon and fund the state broadcaster mainly from state budget.
No registration is required for purchasing TV receiver equipment.
A television licence is required for each household where television programmes are watched as they are broadcast, irrespective of the signal method (terrestrial, satellite, cable or the Internet). A licence is not required, however, if you use your television only to watch DVDs or play video games, or you only watch programmes on your computer after they have been shown on TV.
The licence fee is used almost entirely to fund the BBC's domestic radio, television and internet services. The money received from the fee represents approximately 75% of the cost of these services with most of the remainder coming from the profits of BBC Worldwide — a commercial wing of the corporation which sells programmes and runs stations overseas (such as BBC World News), as well as other business allied to broadcasting such as publishing.[53] The BBC also receives some funding from the Scottish Government via MG Alba to finance the BBC Alba television service in Scotland. The BBC also receives a direct government grant from the Foreign and Commonwealth Office to fund television and radio services broadcast to other countries such as the BBC World Service radio and BBC Arabic Television. These services run on a non-profit, non-commercial basis distinct from other BBC 'branded' overseas services provided by the commercial BBC Worldwide (see above). Hence, neither the World Service nor the commercial BBC services receive any UK licence money.[citation needed] The BBC's web sites are popular outside the UK but these carry advertising when seen outside the UK. Advertising is not seen on the BBC web sites when viewed from within the UK. Advertising is seen however on BBC web sites created by the BBC Worldwide company, regardless of where they are viewed; the BBC web site clarifies (at the foot of the page) the funding source.
The BBC is not the only public service broadcaster. Channel 4 is also a public television service but is funded through advertising and Government grants. The Welsh language S4C in Wales is funded through a combination of direct grant from the Department for Culture, Media and Sport, advertising and receives some of its programming free of charge by the BBC (see above). These other broadcasters are all much smaller than the BBC.
In addition to the public broadcasters, the UK has a wide range of commercial television funded by a mixture of advertising and subscription. A television licence is still required by viewers who solely watch such commercial channels.
The current licence costs £145.50 (€174.99) for a colour licence and £49.00 (€58.89) for monochrome.[54] Discounted, free or government-paid licences are available to viewers over 75, blind people and those in residential care. One licence covers multiple receivers in a 'household', with separately rented or leased rooms and apartments being considered as individual households.[55] The cost is set annually by the Secretary of State for Culture, Media and Sport with the BBC responsible for collecting payment. As it is classified in law as a tax,[56] evasion is a criminal offence. A small portion of the licence fee is used by the BBC to enforce payment, as well as funding Digital UK, a body established to assist in the process of digital switchover and a direct payment to Channel 4, to assist in its digital switchover.[57]
A similar licence, mandated by the 1904 Wireless Telegraphy Act, existed for radio, but was abolished in 1971.
The television licence for 2012 in Israel is ₪ 369 (€75) and the radio licence is ₪ 114 (€23). The licence fee is the primary source of revenue for the Israel Broadcasting Authority, the state broadcaster; however, its radio stations carry full advertising and some TV programmes are sponsored by commercial entities.
In Japan, the annual licence fee for terrestrial television broadcasts is ¥15,490 (€144.29) (slightly less if paid by direct debit) and ¥25,520 (€237.72) if you receive satellite broadcasts.[58] There is a separate licence for monochrome TV, and fees are different in Okinawa. The Japanese licence fee pays for the national broadcaster Nippon Hōsō Kyōkai (NHK).
While every household in Japan with a television set is required to have a licence, it was reported in 2006 that "non-payment [had] become an epidemic" because of a series of scandals involving NHK.[59] As reported in 2005, "there is no fine or any other form of sanction for non-payment".[60]
In South Korea, the television licence fee is collected for the Korean Broadcasting System and Educational Broadcasting System and is ₩30,000 per year[61] (about €20.67). It has stood at this level since 1981, and now makes up less than 40% of KBS's income and less than 8% of EBS's income.[62] Its purpose is to maintain public broadcasting in South Korea, and to give public broadcasters the resources to do their best to produce and broadcast public interest programs. The fee is collected by the Korea Electric Power Corporation through electricity billing.
The television licence in Pakistan is Rs300 per year (€2.71). It is collected as a Rs25 per month charge to all consumers of electricity.[63] The proceeds of the fee and advertising are used to fund PTV.
The licence fee in Ghana is ¢3,000[64] (about €0.29) (2006). The fee is used to fund the Ghana Broadcasting Corporation (GBC). There has recently been controversy in the Ghanaian Parliament over the number of people who do not pay the licence.[64]
The licence fee in Mauritius is Rs 1200 per year (around €29).[65] It is collected as part of the electricity bill. The proceeds of the licence fee are used to fund the Mauritius Broadcasting Corporation (MBC). The licence fee makes up 60% of MBC's funding with the other 40% coming from television commercials.[66] However, the introduction of private broadcasting in 2002 has put pressure on MBC's revenue from commercials and this is decreasing. Furthermore, MBC is affecting the profitability of the private stations who want the government to make MBC commercial free[65]
The licence fee in Namibia was N$204 (about €23) in 2001.[67] The fee is used to fund the Namibian Broadcasting Corporation (NBC).[68]
The licence fee in South Africa is R250 (about €23) per annum (R276 per year if paid on a monthly basis) for TV.[69] A concessionary rate of R65 is available for those over 70, and disabled persons or war veterans who are on social welfare. The licence fee partially funds the public broadcaster, the South African Broadcasting Corporation. The SABC does, unlike some other public broadcasters, derive much of its income from advertising. Proposals to abolish licencing have been circulating since October 2009. The national carrier hopes to receive funding entirely via state subsidies and commercials. According to IOL.co.za: "Television licence collections for the 2008/09 financial year (April 1, 2008 to March 31, 2009) amounted to R972m." (almost €90m)
Brazil has no licence taxes for receiving TV or radio stations. The Brazilian licence fee (applied only to broadcasters) is charged from any radiofrequency station, no matter the technology (analog or digital) and the kind of data (audio, video or other). The fee, that varies from R$1.34 to R$1,703.00, is used to fund the Empresa Brasil de Comunicação – EBC.
The following countries have had television licences, but subsequently abolished them:
Radio licence fees were introduced in Australia in the 1920s to fund the first privately owned broadcasters which were not permitted to sell advertising. With the formation of the government-owned Australian Broadcasting Commission in 1932 the licence fees were used to fund ABC broadcasts while the privately owned stations were permitted to seek revenue from advertising and sponsorship. Television licence fees were also introduced in 1956 when the ABC began TV transmissions. All licence fees were abolished in 1974 by the Australian Labor Party government led by Gough Whitlam on the basis that the near-universality of television and radio services meant that public funding was a fairer method of providing revenue for government-owned radio and television broadcasters. The ABC has since then been funded by government grants, now totalling around A$1.13 billion a year, and its own commercial activities (merchandising, overseas sale of programmes, etc.).
In 1964 the Australian Television Licence cost 6 pounds (pre-decimal) and the fine for not having a licence was 100 pounds. The licence was issued on a punch card (pre-computers).
The Flemish region of Belgium abolished its television licence in 2001. The Flemish broadcaster VRT is now funded from general taxation.
Cyprus used to have an indirect but obligatory tax for CyBC, its state-run public broadcasting service. The tax was added to electricity bills, and the amount paid depended on the size of the home. By the late 1990s, it was abolished due to pressure from private radio and TV broadcasters. CyBC is currently funded by advertising and government grants.
It was announced in Gibraltar's budget speech of June 23, 2006 that Gibraltar would abolish its TV licence.[70] The 7,452[71] TV licence fees were previously used to part fund the Gibraltar Broadcasting Corporation (GBC). However, the majority of the GBC's funding came in the form of a grant from the government.
In Hungary the licence fees nominally exist, but since 2002 the government has decided to pay them out of the state budget.[72] Effectively this means that funding for Magyar Televízió and Duna TV now comes from the government through taxation.
As of Spring 2007 commercial units (hotels, bars etc.) have to pay television licence fees again, on a per TV set basis.
Since the Parliament decides on the amount of public broadcasters' income, during the 2009 crisis it was possible for it to decide to cut their funding by more than 30%. This move was publicly protested by the EBU.[73]
The television licensing scheme has been a problem for Hungarian public broadcasters ever since the initial privatization changes in 1995,[74][75] and the public broadcaster MTV has been stuck in a permanent financial crisis for years.[76]
India introduced a radio receiver licence system in 1928, for All India Radio. With the advent of television broadcasting in 1956–57, television was also licensed. With the spurt in television stations beginning 1971–72, a separate broadcasting company, Doordarshan, was formed. The radio & TV licences in question needed to be renewed at the post offices on a yearly basis.annual premium for radio was 15 rupees in the 1970s and 1980s.
In 1984, the licensing system was withdrawn, with both of the Indian national public broadcasters, AIR and, Doordarshan funded instead by the Government of India, and by advertising.
Malaysia abolished the TV licence at the end of 1999. Now, RTM is funded by government tax and advertising, whilst Media Prima owned another four more private broadcasting channels of TV3, NTV7, 8TV and TV9.
Since 1967, advertising has been introduced on the public television and radio, but this was only allowed as a small segment before and after news broadcasts. It wasn't until the late 1980s so called "floating commercial breaks" were introduced, these breaks are usually segments of multiple commercials with a total duration of 1 to 3 minutes and are placed in-between programmes, to allow programmes themselves to run uninterrupted. At the time, advertising on Sundays still wasn't yet allowed, mainly in part due to the heavy influence of the churches. In 1991 advertising on Sundays slowly began to take place.
With the plan to abolish the licence fee in 2000 due to the excessive collection costs[41] and in order to pay for public television from government funds, income tax was increased[41] in the late 1990s and maximum run time of commercial breaks was extended to 5 and 7 minutes. The Netherlands Public Broadcasting is now funded by government subsidy and advertising. The amount of time used by commercial breaks may not exceed 15% of daily available broadcasting time and 10% of the total yearly available time.
Licence fees were first used in New Zealand to fund the radio services of what was to become the New Zealand Broadcasting Corporation. Television was introduced in 1960, and with it the television licence fee. The licence fee was capped at NZ$100 a year in the 1970s, and the country's two television channels, while still publicly owned, became increasingly reliant on advertising. From 1989, the public broadcasting fee was collected and disbursed by the broadcasting commission (NZ On Air) on a contestable basis to support local content production. The licence fee was abolished in New Zealand in 1999, ostensibly because of concerns about collection costs. NZ On Air was then funded by a direct appropriation from the Ministry for Culture and Heritage.
The licence fee was abolished in 1992 by the Cavaco Silva government, the fee funded the national public broadcaster RTP (Rádio e Televisão de Portugal). It was replaced with direct government subsidy and advertisements.[77]
However, since the merger between the public radio and television enterprises in Portugal, a fraction of the radio licence fee has served to fund the commercial advertising-free channel RTP2. The radio licence fee was instituted in the early 90's to fund the public radio channels which are advertising-free, and is charged through electricity bills under the name "Taxa de Contribuição Audiovisual" (Portuguese for Broadcasting Contribution Tax). The radio licence fee is approximately €20.52 per year (€1.71 per month).
Singaporeans with TVs in their households or TVs and radios in their vehicles were required to acquire the appropriate licenses from 1963 to 2010. The cost of the TV licence for a household in Singapore was S$110 (€65.84).[78] Additional licences are required for radios and TVs in vehicles (S$27 and S$110 respectively).
The licence fee for television and radio has since been removed with immediate effect from 1 January 2011. This was announced during Finance Minister Tharman Shanmugaratnam's budget statement on 18 February 2011. Mr Shanmugaratnam chose to abolish the fees as they were "losing their relevance".[79]
Ràdio i Televisió d'Andorra, the public broadcaster, is funded by both advertising and government grants, there is no fee.
In Estonia there are two public TV channels: Eesti Televisioon (ETV) and ETV2. The funding comes from government grant-in-aid. Around 15% of which was until 2008 funded by the fees paid by Estonian commercial broadcasters in return for their exclusive right to screen television advertising. Showing commercials in public broadcasting television was stopped in 2002 (after a previous unsuccessful attempt in 1998–1999). One argument was that its low-cost advertising rates were damaging the ability of commercial broadcasters to operate. The introduction of licence fee system was considered but ultimately rejected in the face of public opposition.[80] ETV is the only public television in EU which has neither advertising nor licence fee, it is funded by national governments grants.
In Liechtenstein there is the public radio station Radio Liechtenstein. It was founded as a private station in 1995, but was nationalized in 2004. Radio Liechtenstein is funded by commercials and government grants. A television station, 1FLTV, was launched in August 2008.
Luxembourg has never had a television licence, because when RTL (RTL Télé Lëtzebuerg) was established, it was simply a commercial broadcaster, and acted with public broadcasting dimension in its programming. Plus many Luxembourgers are trilingual in French, German and Luxembourgish, so many watched French, German and Belgian television as well as local TV, so putting a television licence in place would be seen as unfair.
Monaco has never had a television licence requirement. State broadcaster Télé Monte Carlo is run as a commercial broadcaster.
RTVE, the public broadcaster, had been funded by government grants and advertising incomes since it was launched in 1937 (radio) and 1956 (television). Although the state-owner national radio stations removed all its advertising in 1986, its public nationwide TV channels continued broadcasting commercial breaks until 2009. Since 2010, the public broadcaster is funded by government grants and taxes paid by private nationwide TV broadcasters and telecommunications companies.[81]
In contrast to the situation in Europe, receiver licensing in Canada never had much to do with the funding of broadcasts. Before 1952, Canadian law required the licensing of all radio receivers, not just those for tuning in broadcasts. In 1952 the Radio Act was amended to exempt broadcast-only receivers from licensing, and the Department of Transport (DOT) was given authority to exempt other receiver types from licensing as it saw fit. DOT exempted all "home-type" receivers capable of receiving any radio communications other than "public correspondence" (a term defined as "radio transmissions not intended to be received by just anyone but rather by a member of the public who has paid for the message" – examples include ship-to-shore radiotelephone calls or car-phone transmissions). After 1952, licenses were required in Canada only for general coverage shortwave receivers with single-sideband capability, and VHF/UHF scanners which could tune to the maritime or land mobile radiotelephone bands.[citation needed]
Beginning in 1982, in response to a Canadian court's finding that all unscrambled radio signals imply a forfeiture of the right to privacy, the DOC (Department of Communications) required receiver licensing only in cases where it was necessary to ensure technical compatibility with the transmitter.[citation needed]
Regulation SOR-89-253 (published in the 4 February 1989 issue of the Canada Gazette, pages 498–502) removed the licence requirement for all radio and TV receivers.
The responsibility for regulating radio spectrum affairs in Canada has devolved to a number of federal departments and agencies, beginning with the Department of Marine and Fisheries (to 1935), Department of Transport (from 1935 to 1969), Department of Communications (1969 to 1996) and most recently to Industry Canada (since 1995).[citation needed]
In the United States, historically, privately owned "commercial" radio stations selling advertising quickly proved to be commercially viable enterprises during the first half of the twentieth century; though a few governments owned non-commercial radio stations (such as WNYC, owned by New York City from 1922 to 1997), most were owned by charitable organizations and supported by donations. The pattern repeated itself with television in the second half of that century, except that some governments, mostly states, also established educational television stations alongside the privately owned stations.
The United States created the Corporation for Public Broadcasting (CPB) in 1967, which eventually led to the Public Broadcasting Service (PBS) and National Public Radio (NPR); however, those are loose networks of non-commercial educational (NCE) stations owned by state and local governments, educational institutions, or non-profit organizations, more like U.S. commercial networks (though there are some differences) than European public broadcasters. The CPB and virtually all government-owned stations are funded through general taxes, and donations from individual persons (usually in the form of "memberships") and charitable organizations. Additionally, all individual programs on PBS and NPR are now sponsored by companies. While programming is not interrupted by traditional commercial breaks, underwriters typically precede and follow each program. Because between 53 and 60 percent of public television's revenues come from private membership donations and grants,[82] most stations solicit individual donations by methods including fundraising, pledge drives or telethons which can disrupt regularly scheduled programming. Normal programming can be replaced with specials aimed at a wider audience to solicit new members and donations.[83]
The annual funding for public television in the United States is about $2 per capita.[citation needed]
In some rural portions of the United States, broadcast translator districts exist, which are funded by an ad valorem property tax on all property within the district,[84] or a parcel tax on each dwelling unit within the district. Failure to pay the TV translator tax has the same repercussions as failing to pay any other property tax, including a lien placed on the property and eventual seizure.[85] In addition, fines can be levied on viewers who watch TV from the signals from the translator without paying the fee. Depending on the jurisdiction, the tax may be charged regardless of whether the resident watches TV from the translator or instead watches it via cable TV or satellite, or the property owner may certify that they do not use the translator district's services and get a waiver.
Another substitute for TV licenses comes through cable television franchise fee agreements. The itemized fee on customers' bills is included or added to the cable TV operator's gross income to fund public, educational, and government access (PEG) television for the municipality that granted the franchise agreement. State governments also may add their own taxes. These taxes generate controversy since these taxes sometimes go into the general fund of governmental entities or there is double taxation (e.g., a tax funds public-access television, but the cable TV operator must pay for the equipment or facilities out of its own pocket anyways, or the cable TV operator must pay for earmark projects of the local municipality that are not related to television).
Neither the Republic of China (est. in 1912), nor its successor, the People's Republic of China (est. in 1949), has ever had a television licence fee to pay for the state broadcaster. The current state broadcaster, China Central Television (CCTV), established in 1958, is funded almost entirely through the sale of commercial advertising time, although this is supplemented by government funding. As a result, almost all television channels in China show commercial advertising.
Hong Kong has never had a television licence fee, despite having been a British crown colony until 1997. Over-the-air television terrestrial broadcasts are always free of charge, no matter whether they are analogue or digital.
There are public television programmes produced by Radio Television Hong Kong (RTHK). RTHK is funded by the Hong Kong Government, but it does not have its own TV channel. Rather, it uses commercial television channels to broadcast its own programmes, and each of the traditional four terrestrial commercial TV channels in Hong Kong (TVB Jade and ATV Home, which carry Cantonese-language broadcasts, and TVB Pearl and ATV World, which carry English-language broadcasts), are required to broadcast 2.5 hours of public television per week. However, there is no such requirement for the newer digital channels.
Iran has never employed television licences. After the 1979 Islamic Revolution, National Iranian Radio and Television was renamed Islamic Republic of Iran Broadcasting, and it became the state broadcaster. In Iran, private broadcasting is illegal.
Today, almost all television channels in Vietnam carry advertisements, although these networks are state-owned and the media is heavily censored. Now-defunct television and radio stations that operated in the former North and South had almost no commercials, and were also government funded and run
In the Philippines, commercial television networks such as ABS-CBN, GMA and TV5 air advertisements instead of collecting fees from selling television licences. The three state-owned networks—PTV, RPN (branded as ETC), and Intercontinental Broadcasting Company—are primarily financed by government subsidies aside from advertising and home shopping programmes.
Television licences are not used in Nigeria, except in the sense of broadcasting licences granted to private networks. The federal government's television station, NTA (Nigerian Television Authority), has two broadcast networks – NTA 1 and NTA 2. NTA 1 is partly funded by the central government and partly by advertising revenue, while NTA 2 is wholly funded by advertisements. Almost all of the thirty-six states have their own television stations stations funded wholly or substantially by their respective governments.
In many jurisdictions, television licences are enforced. The BBC states 'television detector vans' are employed by TV Licensing in the UK.[86] Besides claims of (usually undisclosed) sophisticated technological methods (such as TEMPEST[citation needed]) for the detection of operating televisions, detection of illegal television sets can be as simple as the observation of the lights and sounds of an illegally used television in a user's home at night. Detection is made much easier because nearly all houses do have a licence, so only those houses that do not have a licence need to be checked. However, in the UK there has been not one single prosecution for TV licence evasion based upon evidence obtained using detection equipment, and there is no technical evidence supporting claims that such detection equipment is capable of carrying out the specific task of locating television sets accurately; indeed, detection equipment used even at the perimeter of a dwelling cannot specifically pinpoint receiving devices based upon the equipments I.F. (intermediate) frequency. This frequency is too low down the frequency spectrum (very low wavelength) to allow such capabilities of any equipment, handheld or otherwise. An effort to compel the BBC to release key information about the television detection vans (and possible handheld equivalents) based on the Freedom of Information Act was rejected.[87]
Advocates argue that one of the main advantages of television fully funded by a licence fee is that programming can be enjoyed without interruptions for advertisements. Television funded by advertising is not truly free of cost to the viewer, since the advertising is used mostly to sell mass-market items, and the cost of mass-market goods includes the cost of TV advertising, such that viewers effectively pay for TV when they purchase those products. Viewers also pay in time lost watching advertising.
Europeans tend to watch one hour less TV per day than do North Americans,[88] but in practice may be enjoying the same amount of television but gaining extra leisure time by not watching advertisements. Even the channels in Europe that do carry advertising carry about 25% less advertising per hour than their North American counterparts.[89]
Critics of receiver licensing point out that a licence is a regressive form of taxation, because poor people pay more for the service in relation to income.[90] In contrast, the advertisement model implies that costs are covered in proportion to consumption of mass-market goods, particularly luxury goods, so the poorer the viewer, the greater the subsidy. The experience with broadcast deregulation in Europe suggests that demand for commercial-free content is not as high as once thought.[citation needed]
The third option, voluntary funding of public television via subscriptions, requires a subscription level higher than the licence fee (because not all people that currently pay the licence would voluntarily pay a subscription) if quality and/or output volume are not to decline. These higher fees would deter even more people from subscribing, leading to further hikes in subscription levels. In time, if public subscription television were subject to encryption to deny access to non-subscribers, the poorest in society would be denied access to the well-funded programmes that public broadcasters produce today in exchange for the relatively lower cost of the licence.[citation needed]
The UK government's Department for Culture, Media and Sport, as part of its BBC Charter review, asked the public what it thought of various funding alternatives. Fifty-nine percent of respondents agreed with the statement "Advertising would interfere with my enjoyment of programmes", while 31 percent disagreed; 71 percent agreed with the statement "subscription funding would be unfair to those that could not pay", while 16 percent disagreed. The Department concluded that the licence fee was "the least worse [sic] option".[91]
The British government described the licence fee system as "the best (and most widely supported) funding model, even though it is not perfect".[92][93] That is, they believe that the disadvantages of having a licence fee are less than the disadvantages of all other methods. In fact, the disadvantages of other methods have led to some countries, especially those in the former Eastern Bloc, to consider the introduction of a TV licence.
Both Bulgaria[94] and Serbia[95] have attempted to legislate to introduce a television licence. In Bulgaria, a fee is specified in the broadcasting law, but it has never been implemented in practice. Lithuania[96] and Latvia have also long debated the introduction of a licence fee but so far made little progress on legislating for one. In the case of Latvia, some analysts believe this is partly because the government is unwilling to relinquish the control of Latvijas Televīzija that funding from general taxation gives it.[who?][97]
In the Czech Republic,[98] have increased the proportion of funding that the public broadcaster gets from licence fee, justifying the move with the argument that the existing public service broadcasters cannot compete with commercial broadcasters for advertising revenues.
The development of the global Internet has created the ability for television and radio programming to be easily accessed outside of its country of origin, with little technological investment needed to implement the capability. Prior to the development of the Internet, this would have required specially-acquired satellite relaying and/or local terrestrial rebroadcasting of the international content, at considerable cost to the international viewer. This access can now instead be readily facilitated using off-the-shelf video encoding and streaming equipment, using broadband services within the country of origin.
In some cases, no additional technology is needed for international program access via the Internet, if the national broadcaster already has a broadband streaming service established for citizens of their own country. However, countries with TV licensing systems often don't have a way to accommodate international access via the Internet, and instead work to actively block and prevent access because their national licensing rules have not evolved fast enough to adapt to the ever-expanding potential global audience for their material.
For example, it is currently not possible for a citizen of the United States to pay for a British TV License in order to watch all of the BBC's programming, streamed live over the Internet in its original format.
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