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Originally Posted by cj136uk
This is NOT license fee money. It was money collected along side the license fee (not for the bbc) which was intended for digital switchover. There was a considerable amount of money left over and parliament decided to spend it on this.
Btw we have perfectly good regional news on bbc 1 and ITV as part of the licenses to broadcast. One poster suggested there wasn't enough news, on these channels. Audience research says there's the right balance.
These local licenses are about the micro city level news and information based. Anything else like repeats of entertainment programs is a bonus, but causes license issues on DSAT. Really London's station should have dealt with their freesat/DSAT licensing issue sooner.
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I was going by this document, but after what you said about the funding arrangements, I have found other articles about the top slicing of the licence fee.
Perhaps it's a mix of both
The BBC will also be indirectly funding local TV by agreeing to buy news coverage from them, according to these other articles.