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I never understood why they did not just make all the BBC channels subscription-only.

Because that would undermine the entire point of the BBC:

to act in the public interest, serving all audiences through the provision of impartial, high-quality and distinctive output and services which inform, educate and entertain

https://www.bbc.com/aboutthebbc/governance/mission

It's not a commercial broadcaster.

This. So many of the arguments about the license fee seem to miss the point - the BBC isn't a commercial broadcaster. Impartiality and 'public service' as fundamental tenets that drive output would disappear if they had to chase subscriptions.

> if they had to chase subscriptions

They already pretty much do that for their tv channels and iplayer with the tv licenses.

Regardless of that, I do not see how subscriptions would damage impartiality.

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