Sunday, February 9, 2025

Farmyard economics

I'm a bit miffed that there's no obvious body out there to rubbish claims that the tv licence could become a charge to be paid by any user of a streaming service, i.e. roughly doubling the annual cost of using Netflix.

The Government is actively pushing content producers to IP (internet protocol) delivery. If the target for a new method of funding the BBC was to produce around £4bn a year (a tad up from 2023's £3.8n, then we might look at the two big means of delivery - fixed broadband connections, currently running at around 20m households, and mobile phone contracts, at 83m and still rising - and add to that a small charge on streaming services. 

At the lowest end, the annual cost of a broadband connection is £300 per year. £30 on top would raise £600m; if the rate was 10% across the board, you might raise £1bn. At the low end, a mobile phone data contract runs at around £150 a year; 2.5 per cent on top of that would bring in £3.1bn.  


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