The BBC


Does not do economics. Does not believe in it. Anything vaguely related to economic reasoning is alien to anything that has anything to do with the Beeb. Check this one out:

The likes of Jonathan Ross and Chris Moyles are not receiving salaries above the market rate, according to a review of how the BBC pays its top names.


That’s not taking into account the fact that the BBC has massive price-setting power, being by far the biggest broadcaster in the land (and controlling 2 of the 5 terrestrial channels, only one of which has anything near it’s market share)... I would also think that Jonathan Ross, Chris Moyles, etc pretty much ARE the supply side of the market for extremely well-known and trustworthy TV presenters.

So, over-simplifying but just a little, the report says that the BBC does not pay more for its stars than what the BBC pays for its stars. Nice.

And ignoring market structure completely, they utterly fail to understand what the law of one price implies. ‘The BBC does not pay more than others’ – what’s the alternative? That they paid more than ITV for the same thing just for the fun of it?

I want my license fee back! And yes, I love Dr. Who and Have I Got News for You, but £130 a year?



by datacharmer | Thursday, June 05, 2008
  , , | | The BBC @bluematterblogtwitter

1 comments:

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