The options to replace the licence fee funding model for the BBC
Mr Davie quit as director general on Sunday night after a row around Panorama’s coverage of the January 6 Capitol riots, which were found to have misled viewers .
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Donald Trump has now threatened to sue the corporation for $1billion “for the harm caused” by a doctored clip of his speech.
While a crowded cast of characters is said to now be eyeing Mr Davie’s old job, voices such as LBC’s Nick Ferrari have called for fundamental change around the organisation.
“[There has also been] criticism of its reporting on Gaza, allegations of anti-Israel bias on BBC Arabic, the complaints about its Glastonbury output and a backlash over trans coverage, you have a broadcaster facing a full-scale credibility crisis,” Nick wrote.
Others, such as right-wing figureheads Nigel Farage and Boris Johnson, have called for the licence fee model to be scrapped (the latter saying he will stop paying), but how likely is this?
How much is the licence fee?
A standard UK TV Licence costs £174.50, with many holders opting to spread the cost over a direct debit.
There are concessions available and more than 3,000 UK households still have a black and white TV licence for £58 – despite colour television being on offer for more than 50 years.
Will the licence fee continue?
The BBC's Royal Charter is up for renewal in 2027 and the Labour government is considering its options as to what next and if the licence fee is still the best model.
Once the charter is agreed, that will dictate the course of the BBC's action for the next 11 years.
Culture secretary Lisa Nandy previously told the Commons: “Public Service Media is fighting to be seen and heard in an increasingly competitive market.
“It fights with one arm behind its back, staring down multiple challenges – funding shortfalls, changing viewing habits and regulation that hasn’t kept pace with the media revolution of recent years.
“Together we need to fix those foundations for the long term.”
Speaking to LBC, Ms Nandy had backed Mr Davie before his resignation and subsequently thanked him for his work.
The Department for Culture, Media and Sport has told LBC: “We are preparing for the upcoming Charter Review which we expect to launch in due course.
“It will consider a range of issues, including how the BBC can continue to prosper supported by a sustainable funding model.”
What are the alternatives to a TV licence funding model?
The BBC makes almost £4billion every year from licence fees, with the figure paying for television, online content, radio and Welsh language channel S4C.
No alternative has been openly discussed by the corporation, but some of the options could be:
Again, neither the BBC nor the government has said that any of these are being considered.
