television license fees

Jan 09, 2010 11:13


so let me see if i got this straight, because this is a foreign concept for me.

channels such as the BBC get most of their revenue for programming via a licensing fee, something that is charged per household annually and controlled by the government. Because the licensing fee is their main revenue source rather than the typical US model of advertising revenue, this allows them to broadcast without any adverts and allows them to broaden the spectrum of their programming since they are not relying upon advertisers who would only back programs that have the potential to be or are considered commercially successful.

does that sound right? am i missing any important details? is BBC America built under the same model?

tv, entertainment

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