Should National Lottery money be used to subsidise commercial broadcasters such as Channel 4 and ITV? A recent poll held by the Observer newspaper say viewers would prefer if this was the source of the revenue stream rather than the mandatory BBC Channel 4 has argued that it needs public money to survive as more channels launch and its audience share falls, and has called for the licence fee to be shared so it can continue to meet its obligations as a 'public service broadcaster'.

But research carried out by the BBC, which surveyed 10,000 members of the public, is believed to show that most people are opposed to the idea. The research will form part of the BBC's submission to media regulator Ofcom, which is conducting a review of the broadcasting sector to determine how shows including children's programming, regional news and political coverage should be funded.

In recent years the BBC has had to fight its corner as other channels demand parity of the airwaves.
Terrestrial broadcasters are required to screen a quota of such shows in exchange for free access to the airwaves, but that system will be defunct when the government turns off the analogue TV signal in 2012.

Many in the industry believe the BBC is still inefficient and wasteful in its financial dealings and so its command of the television industry in the UK may be under serious threat in the coming years.
The TV licence fee will rise by 3% over each of the next two years, then by smaller amounts up to a maximum price of £151.50 in 2012.

Culture Secretary Tessa Jowell said the deal would allow the BBC to maintain all its current services and provide up to £1.2bn for new activities.

It would also pay for the relocation of departments including the BBC sports and children's departments, involving some 1,500 jobs, from London to Salford.

Ms Jowell said the corporation would also get a 12.5% increase in its borrowing capacity to help deliver the switchover from analogue to digital TV, due to be completed by 2012.

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