Revenues versus Viewing shares

As everybody knows, 100% of the TV viewers have to pay a tax that’s used to finance the BBC. However, statistics show that the BBC gets only a 1/3 share of Television audiences.

TV share
% Share of audience according to the Broadcasters Audience Research Board [1]

Given the number of channels now available, the BBC no longer commands the monopoly it once did, but still gets a huge almost-no-questions-asked fund due to its unique status. It could be argued that the licence fee gives an unfair advantage to one broadcaster.

If this is weighed up against the amount of revenue each company has to produce programming and win viewers, the remaining terrestrial channels are really ‘punching above their weight’.

  • Itv has a total external revenue of £2,590 million [2]
  • Channel 4’s total revenue is £908 million a year. [3]
  • UKTV (owning Dave, yesterday, etc) had £265 million in revenue.
  • In comparison, the BBC has a total income of £5.066 billion of which £3.726 billion comes from licence fees. [4]

[1] source: http://www.barb.co.uk/trendspotting/analysis/share-of-viewing-by-channel?_s=4

[2] http://www.itv.com/presscentre/press-releases/itv-full-year-results-year-ended-31-december-2014

[3] http://annualreport.channel4.com/downloads/C4_AR_2013_Financials.pdf

[4] http://www.bbc.co.uk/annualreport/2014/executive/finances/licence_fee.html

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