Category: Βι¶ΉΤΌΕΔ
Date: 24.04.2006
Printable version
The Βι¶ΉΤΌΕΔ Governance Unit has today published an independent report by Professor
Patrick Barwise about the public's opinion of the Βι¶ΉΤΌΕΔ's licence fee bid.
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The report, commissioned by the Board of Governors in January, addresses three issues:
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-
The likely reaction of licence fee payers to a licence fee rising to Β£150 (in
constant prices) in 2013/14, as proposed in the Βι¶ΉΤΌΕΔ's bid
- Licence fee payers'
responses (as both consumers and citizens) to the new investment proposals
in the Βι¶ΉΤΌΕΔ's bid
- Public reactions to the Government proposal to use
the licence fee to fund targeted help for vulnerable citizens during
digital switchover
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The Governors commissioned the research to provide themselves with the most up-to-date understanding of licence fee payers' opinions before the final stage of the licence fee settlement process.
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Additionally, the Governors wanted to understand licence
fee payers' reaction to the Government's plan to fund 'targeted help'
via the licence fee.
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Professor Barwise's report, which includes an executive summary, together with
all the research he reviewed, is available in full at www.bbcgovernors.co.uk.
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Professor Barwise today summarised his findings in response to the three issues
he was asked to address.
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"There is no evidence of a sudden
'tipping point' above which willingness to pay the TV licence would drop
dramatically.
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"Further, the more consumers know about the Βι¶ΉΤΌΕΔ's
proposed new services, the more positive their attitude.
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"When asked to think about it, and if really forced
to choose between paying the licence fee and losing the Βι¶ΉΤΌΕΔ's services,
most licence fee payers would, if they had to, pay substantially
more than the current Β£10 per month for existing Βι¶ΉΤΌΕΔ services.
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"My estimate is that, if the licence fee increased to Β£150 per year in 2013/4 (in constant pounds), the proportion of people willing to pay for the existing services would fall from about 75-80 per cent today (as consumers and citizens, respectively) to about 65-70 per cent in 2013/4.
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"This rises to 70-75 per cent in 2013/4 if the
proposed new services are added.
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"People are more evenly divided when asked about a licence fee supplement to pay for help for the vulnerable during digital switchover (53% support, 47% oppose).
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"However, if the Government proceeds with this
proposal it won't be the straw that breaks the licence fee's back."
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Notes to Editors
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Patrick Barwise is Professor of Management and Marketing at London Business School and co-author (with SeΓ΅n Meehan, IMD, Lausanne) of Simply Better (HBS Press, 2004: www.simply-better.biz), winner of the American Marketing Association's 2005 Berry-AMA Prize for the best recent book in marketing.
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He joined London Business School in 1976, having spent his early career with IBM.
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His previous publications include books on Television and its Audience, Accounting for Brands, Strategic Decisions, Predictions: Media, and Advertising in a Recession, as well as numerous papers and articles on brands, consumer and audience behaviour, marketing expenditure trends and new media.
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In 2004, he led an independent review for the UK Government of the Βι¶ΉΤΌΕΔ's digital television services.
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He is also a Fellow of the Sunningdale Institute, a government think tank and virtual academy on public service management, and a previous deputy chairman of the UK consumer organization Which?
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The report is entirely the work of Professor Patrick Barwise. His comments, conclusions and recommendations are his own and should be attributed only to him.
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All the research reviewed by Professor Barwise is available online via www.bbcgovernors.co.uk.
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The most recent research, published for the first time, was carried out by
Opinion Leader Research and BMRB.
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The former researched the public's reaction to the
proposals within the Βι¶ΉΤΌΕΔ's licence fee case in March 2006; the latter
surveyed public opinion, also in March 2006, about a licence fee
supplement to pay for targeted help.
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