A taxation-based model has been proposed as a potential replacement for the outdated licence fee model for funding public service broadcasting. The Future of Media Commission (FOMC) has advocated for this alternative, stating that it would be fairer, more effective, more stable, and better future-proofed. The FOMC’s recommendations come at a time when funding for public service media in Ireland is already in crisis, exacerbated by the declining licence fee and strained commercial advertising income.
The FOMC was established by the Irish government in 2020 to address the challenges facing the media sector and ensure the delivery of public service aims over the next decade. The commission conducted extensive consultations with stakeholders and analyzed international best practices. It found that the public in Ireland values a strong system of public service media but recognizes the need for a new funding mechanism.
The existing licence fee model presents a significant problem as an increasing number of households and businesses in Ireland do not own a TV set. In addition, evasion rates for the TV licence fee are high and growing. Recent figures reveal that evasion rates have reached 19 percent by the end of 2023. The government needs to transition to a more sustainable funding model for public service media to address these challenges.
The FOMC’s final report, published in July 2022, made 50 recommendations, with 49 of them being accepted in principle by the government. One of the key recommendations concerns public funding. The FOMC concluded that a dual funding system, drawing from both commercial and public sources, should be maintained. However, the report acknowledges the limitations of the existing licence fee model and proposes alternative models for consideration.
One option suggested by the European Broadcasting Union (EBU) is a media charge levied on households and businesses regardless of device ownership or public service media usage. This model is already in use in Germany and Switzerland. The FOMC report highlights the advantages of a household charge, including wider cost distribution, adequate revenue generation, fairness, and better future-proofing. However, implementing a household charge in Ireland may face challenges given the lack of suitable mechanisms and concerns over political acceptance.
A second option is a taxation-based model, which has been adopted by several European countries such as Finland, Sweden, Norway, and Denmark. Under this model, the public component of public service media funding is financed through general taxation. The FOMC considers taxation-based funding to be fairer, more effective, more stable, and better future-proofed than the TV licence fee. However, to ensure the acceptability of this model, measures must be in place to protect the autonomy and independence of public service media from political interference.
The FOMC emphasizes the need for a separate body of experts, independent of both the government and media management, to oversee and assess funding arrangements. This independent oversight would help ensure decisions are based on cost and the public interest rather than political considerations. The use of multiyear financial allocations and proportional cuts during economic crises are also recommended to enhance stability and prevent politically motivated measures against public service media.
The FOMC’s recommendations and proposed alternatives aim to address the funding crisis in public service media in Ireland and ensure the delivery of impartial news and high-quality content. The transition to a new funding model is necessary to secure the future of public service broadcasting, particularly in light of changing viewing habits and the rise of digital distribution. As discussions and deliberations continue, it is vital to find a stable, progressive, and sustainable model that meets the needs of Irish citizens.
