Internet TV Tax Coming Next Year Says Minister - By: Paddy Chang

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Two things in life are certain, death and taxes. And for people who watch television on their computers, could be forced to pay an internet tv licence fee from as early as next year.
The people that do not own a TV set but watch shows on services such as the BBC’s iPlayer, ITV Player 4oD etc do not have to pay the £145.50 yearly charge. However the Culture Secretary Jeremy Hunt said that this exemption may be stopped.
The MP reveals that he plans to discuss the matter with BBC’s Director General Mark Thompson when the corporation’s funding levels come up for review next year.
This follows evidence that more tv viewers are turning to online tv servies to watch their favourite programmes.
The BBC’s technology chief Erik Huggers has expressed a concern that some viewers are getting ‘a free ride’ by watching its shows on the internet rather than on television. He suggested increasing the cost of the TV licence to include the iPlayer.

But Mr Hunt said he would not be in favour of simply charging anyone who owned a computer in the same way that anyone who owns a TV has to pay the licence fee.
On the BBC1′s Andrew Marr show, he said: ‘What we have said very clearly is that we accept the principle of the licence fee which is the idea, if you like, of a household tax to fund public service broadcasting that is ring-fenced.
‘We think one of the reasons we have some of the best television and broadcasting in the world in this country is because we have these different streams of income, including the licence fee, including subscription income and including advertising.
‘Now, the way we collect it may have to be rethought because technology is changing. A lot of people are watching TV on their PCs.
‘We are not going to introduce a PC licence fee. That is something [about which] I do need to have discussions with the BBC to see what their ideas are.’
Asked about changes in the price of the licence fee, he added: ‘We haven’t had any discussion at all about the level of the licence fee, that’s something we’ll be doing next year.’
A review by the BBC’s governing body, the BBC Trust, revealed 40 per cent of students in halls of residence use a laptop as their main way to watch TV.
It admitted that their might be some viewers who ‘forgo live television entirely’ by using the catch-up services.
The BBC’s iPlayer makes some shows available for seven days after they were broadcast.
The TaxPayers’ Alliance described the licence fee as ‘increasingly outdated’. ‘The Government should be looking for a source of funding that means fewer people are charged for programmes they don’t watch or listen to,’ the spokesman for the TaxPayers’ Alliance said.

Project Canvas, the internet based digital television consortium formed by the BBC, ITV, BT, Channel 4, Talk Talk and Arqiva, has decided to appointed Kip Meek as its chairman.
Meek, who at this moment is a board member of Ingenious Media and a director at Phorm, will step down from these roles.
At Project Canvas, his role will be to oversee the appointment of a chief executive officer who hold the daily operational responsibility for Project Canvas.
Meek takes on his role with immediate effect and takes over where BBC director of future media and technology Erik Huggers, who has been the projects chair for the last year.
Meek says: “Internet technology creates unlimited choice and can also give people real control over what they watch, and when they watch it.”
“Project Canvas will integrate the broadcast and on-demand worlds to make this possible via the TV. It will also allow third-party business models to thrive through an open platform, bringing the benefits of next-generation TV to anyone who wants it.”
He also added: “With the backing of these six substantial partners, we have the opportunity to transform television.”
Before Meek joined Ingenious Media, he held responsibilities at Ofcom, he also chaired the European Regulators Group, and was also instrumental in the establishment of BT’s infrastructure company, Openreach. But before joining Ofcom, he was managing director of Spectrum Strategy Consultants.
Channel Five pulled out Earlier this month of any further investment in Project Canvas but since Richard Desmond has bought Channel Five he will be looking to join Project Canvas again.

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