![]() The UK was the first country to adopt the compulsory public subscription model with the licence fee money going to the BBC, which was formed on 1 January 1927 by royal charter to produce publicly funded programming, yet remaining independent from the government, both managerially and financially. Some countries adopted the advertising model, but many others adopted a compulsory public subscription model, with the subscription coming in the form of a broadcast licence paid by households owning a radio set (and later, a TV set). The early days of broadcasting presented broadcasters with the problem of how to raise funding for their services. A TV licence is therefore effectively a hypothecated tax for the purpose of funding public broadcasting. The licence fee is sometimes also required to own a radio or receive radio broadcasts. A television licence or broadcast receiving licence is a permit required in many countries for the reception of television broadcasts, or the possession of a television set where some broadcasts are funded in full or in part by the licence fee paid.
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