After the new household tax law in Germany, the funding of public service broadcasting had become a nationwide hot topic. Now, the discussion has reached Great Britain, regarding whether the public broadcasting channel BBC should be turned into PAY TV. A commission assigned by BBC regarding funding issues, has offered the globally famous institution to become a PAY TV channel after 2020. BBC denied it. The offered model was a near-pay-TV model, where viewers could subscribe on a free basis.

However, the funding of public service TV channels is an on-going discussion. Similar to the financial challenges of the German ARD and ZDF, BBC is also under the pressure of increasing costs. Last week, the institution decided to close its youth channel BBC Three and to continue it online.

BBC’s solution to its financial problems is to adjust the household taxes to inflation rates – at the present, the household tax is fixed to annually 145,50 Pounds (around 175 Euros). The total budget of BBC is 3,5 billion pounds per year (around 4,2 billion Euros).

It is also notable that this discussion has started a week after the advance of the government to classify pirate TV watching as a breach of civil law, instead of criminal law. BBC is calculating that this will escalate pirate TV watching from the current 5% to a 10% rate, which will cut off more of its income.