Rory Sutherland Rory Sutherland

Let’s pay for the BBC content we use

When people are free to choose what they buy, they buy more and pay more

issue 01 August 2015

What follows is a proposal for reducing the BBC licence fee and improving the corporation’s output while saving the British newspaper industry.

All that’s involved is a basic understanding of pricing psychology combined with a digital currency for micropayments. Under my proposals, half the licence fee would fund the BBC’s Reithian purpose; the other £60 could be paid direct to the BBC as now or, if you chose, paid to you as a digital currency (6,000 Beebcoins). People could buy additional Beebcoins, which could be spent on BBC or competitor content — including content from newspapers. Notionally the BBC would lose out; in practice they would gain revenue, as they could now sell premium services. When people can choose what they buy, they buy more and pay more.

A simple fact: people hate paying for things they don’t want.

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