Television licence

Television licence

Summary

A television licence (or broadcast receiver licence) is an official licence required in many countries for the reception of television (and sometimes also radio) broadcasts. It is a form of hypothecation tax to fund public broadcasting, thus allowing public broadcasters to transmit programmes without, or with only supplemental, funding from radio and television commercials.The early days of broadcasting presented broadcasters with the problem of how to raise funding for their services. Some countries adopted the advertising model, but many others adopted a compulsory public subscription model, with the subscription coming in the form of a broadcast licence paid by households owning a radio set (and later, a TV set).The UK was the first country to adopt the compulsory public subscription model with the licence fee money going to the BBC, which was formed on 1st January 1927 by Royal Charter to produce publicly funded programming yet remain independent from government, both managerially and financially.

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