EBU Media Intelligence Service – Licence Fee 2020 (public version)
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When the licence fee is not allocated in full to PSM, it is normally used for related audiovisual activities. In several cases, however, the fee is also transferred
to non-media institutions, putting the public’s acceptance of the fee at risk.
WHO BENEFITS?
A LONG LIST OF BENEFICIARIES FROM TOP-SLICING
Redistribution, or top-slicing, of the licence fee is one of the recurrent issues brought to the
public debate by those challenging PSM access to the revenues generated.
Who are the various stakeholders also benefiting from the fee in the EBU area?
Regulatory authority
One of the most common uses of the portion of the licence fee not allocated to PSM is to pay
for the broadcasting regulatory authority.
In 2019, in at least four countries (Croatia, Germany, Ireland and Switzerland), the regulators
were funded from the licence fee, from minimal amounts (0.3% in Switzerland) to the 6.6%
normatively fixed for the Irish authority.
In the case of Ireland, this transfer has a specific purpose, the Sound and Vision scheme,
which funds independent television and radio programmes on a series of topics that are later
distributed by eligible broadcasters (not only PSM) under certain conditions specified by law.
In this sense, part of the money used under this scheme indirectly helps to fund programming
at the two Irish PSM.
Other broadcasters
The licence fee also funds public service programming in Denmark: 11.1% of the amount
collected in 2019 went towards public service programming on the regional network of TV2
(commercially funded but publicly owned).
In Switzerland, the licence fee is used to subsidize local and regional television and radio
stations (5.9% of the total amount in 2019), most of which are privately owned. The share of
the fee allotted to local and regional broadcasters has increased in Switzerland from 4.8% in
2018 to 5.9% from 2019, when the country replaced the traditional fee by the modernized
household charge. The fee also pays for the Swiss audience measurement system with 0.2%
of the amount collected.
Local channels in the UK also benefited in the past from a small amount of income derived
from the fee (0.1% of the total amount in 2017). This was to support the launch of local TV
channels in the UK. However, this scheme did not prove very successful and was phased out.
Cinema activities
Another purpose of top-slicing is to pay for cinema and other audiovisual activities in general.
In 2019, this was seen in France (2.3% allotted to the audiovisual archives, INA), Slovenia
(2.0% to the Slovenian Film Centre) and Croatia (1.8% to the Croatian Audiovisual Centre).
Government departments
Government departments were also allotted variably significant proportions of the fee in
2019. The amounts transferred to the state were quite substantial in several markets, ranging
from 5.4% for the ministry of culture in Denmark, 16.4% (incl. 4% VAT) for the ministry of
economic affairs and finance in Italy and a breathtaking 23.4% in Austria (shared between the
federal states, the ministry of finance and the ministry of art and culture, and not including a
6.9% share for VAT).
Top-slicing and public acceptance
Top-slicing of the fee may prove to be highly problematic for PSM, undermining their financial
resources and ability to remain relevant and to innovate.
On the other hand, the sharing of the licence fee income between various media stakeholders
might help in creating alliances and building the case for preserving the fee and this particular
funding model.
However, top-slicing sometimes also benefits activities which are far removed from those
originally intended for the licence fee. Such a phenomenon clearly undermines the legitimacy
of the fee and its public acceptance, and this kind of top-slicing should be avoided.
Top-slicing in a context of crisis
Regular calls from commercial media groups to benefit from licence fee income were brought
to the public debate in recent years in several EBU countries, such as Germany, Ireland and
Albania, for example.
Further calls were repeated and amplified in the COVID-19 crisis context and further calls to
amplify top-slicing are expected as a consequence of the forthcoming recession in Europe.
Sources: EBU based on Members’ data