Unions propose new media levies to support public service broadcasting

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Levies for internet service providers, mobile network operators and commercial broadcasters could help plug a gap in funding for public service broadcasting (PSB), a new report from two industry unions has said.

The research commissioned by the National Union of Journalists (NUJ) and BECTU proposes charges for companies which profit from PSB content, but do not fund its production.

A one per cent 'direct media' fee on the revenues of Virgin Media and BskyB could raise around £70 million a year and is a model currently used in France, according to the report.

Alternatively a new media levy could be brought in, either as a percentage of a firm's revenue or as surcharge for users subscribing to a broadband or mobile phone service, it is suggested.

The report indicates that, based on current revenues, £208 million could be raised yearly through a one per cent charge on the profits of the UK's five major mobile phone operators.

"Whilst the unions are not being prescriptive over the level at which any duty should be set, they say the research shows that levies present a serious alternative to the decline of local news, current affairs and children's programming," a press release said.

New means for funding PSB in the UK are needed if current levels of provision are to be maintained, it is suggested in the report.

Research by Ofcom, which suggested that levies were seen by the public as a plausible way to support PSB, is cited by the publication in support of the proposals.

Other levies introduced could include charges for recording equipment and blank media used to make copies of broadcasters' content.

While the report outline some flaws with these levies, it said such a system 'introduces the principle of industry contributing collectively to address a market failure'.

"Levies continue to present a possible solution to bridging the funding gap in order to maintain current levels of PSB. There are inherent political difficulties: an additional tax is unlikely to be received enthusiastically by those industries to which it applies," the report said.

"However, in exploring this option the UK would hardly be breaking new ground: levies exist in other countries across the world, and are an established mechanism for funding content and media services."

The full report can be downloaded at this link .