Almost every household in Germany already pays a monthly licence fee, but now the state-funded German broadcasters ARD and ZDF are demanding more money. The solution, according to the federal government, might be a contribution that automatically increases every two years.

Current Rundfunkbeitrag licence fee insufficient

Currently, ARD and ZDF are financed primarily by the Rundfunkbeitrag - a tax of 17,50 euros per month handed out to every household registered in Germany (although pensioners and students can apply for exemptions). Altogether, the two broadcasters receive in excess of eight billion euros each year.

However, they argue that the money they currently collect via the German tax system is not enough. The last time the price was increased was nine years ago and now they are in need of an additional billion euros every year. Parcelled out to every household in Germany, that would mean an increase of around two euros per month.

German licence fee might increase automatically in future

Malu Dreyer, Chairman of Germany’s Broadcasting Commission, has indicated that she approves the increase in principle, admitting that television companies have to reckon with higher costs than they did nine years ago. But she also - perhaps rightly - fears that there will be a backlash from the public if prices are suddenly increased.

Dreyer is therefore considering a stepped increase that will meet the broadcasters’ funding demands by 2021 but will also be accepted by the general population. One idea is to link the Rundfunkbeitrag to inflation. This model, which is often used in rental contracts in Germany, would see the contribution being revised every two years to keep it in line with real prices.

Last year, prices in Germany increased by an average of 1,8 percent. If this were applied to the licence fee, it would mean an increase of 32 cents to 17,82 euros. The proposal will be debated by the Broadcasting Commission on June 6 - but it will need unanimous support before it can go forward.