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The license fee was originally levied on radio receivers and funded the BBC to produce programmes. This model of funding has pretty much continued since it started in 1904. Nowadays, the license fee is for owning TV receiving apparatus - VCR, DVD recorder or TV. The fee for monochrome receivers is roughly a third of the colour license. Note that the license is not for receiving BBC programmes, but for owning the equipment - in an extreme example, you could own a VCR and only record commercial programmes and you would still have to pay a colour license. Some disgruntled people complain that they pay a license and receive nothing in return, but the transmission infrastructure and radio services are partly funded through the license fee and so practically everyone who watches TV or listens to radio benefits from the license fee. Part of the constitution of the BBC is that it doesn't advertise in the UK; outside the UK channels such as BBC Prime are supported by subscription and advertising.

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