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The culture secretary believes advertising would 'dumb down' the quality of BBC programming.
The Government this week rejected funding the BBC through advertising, saying it would result in 'dumbing down', but opened the door for subscription to eventually replace the licence fee.
In a Green Paper published on Wednesday, the culture secretary, Tessa Jowell, safeguarded the licence fee for at least another ten years to give the BBC 'stability and security'. She said alternative funding methods, subscription in particular, would be considered after 2016. At that point, ministers would also consider hiving off part of the licence fee to other public service broadcasters.
Jowell announced that the BBC governors, who have overseen the BBC since its foundation more than 80 years ago, will be replaced by a BBC Trust.
The Trust will have responsibility for the licence fee and ensuring the corporation fulfils its public service obligations and also for a formally constituted executive board to deliver services under a framework set by the Trust.
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