The Government has provided an update on whether Netflix and Amazon Prime subscriptions will come under the TV licence fee, as discussions around a new funding model intensify.
Culture Secretary's Statement
Culture Secretary Lisa Nandy has declined to rule out extending the TV licence fee to Netflix and Amazon Prime subscribers, as the government scrambles to find a sustainable funding model for the BBC.
Speaking at Culture Questions in the House of Commons on Thursday, Ms Nandy explicitly rejected funding the corporation through direct taxation or a levy on streaming services to protect the broadcaster's independence. However, she stopped short of ruling out an expansion of the existing £180 annual licence fee to cover homes that strictly view on-demand streaming content.
The loophole currently allows millions of UK households to legally avoid the fee if they do not watch live television broadcasts or use the BBC iPlayer platform.
Conservative MP Challenges
The issue was brought to the forefront by Conservative MP Bradley Thomas, who challenged the Culture Secretary to explicitly "rule out extending the BBC licence fee to streaming services".
Ms Nandy declined to do so, stating that the government is keeping its options open ahead of the upcoming charter renewal process.
"We have been very careful not to get drawn into speculation about the future funding arrangements for the BBC," Ms Nandy told MPs. "Except to say that we have ruled out a levy on streamers, and we have also ruled out direct taxation going to fund the BBC, because of the need for the BBC to retain its independence."
The Culture Secretary added that she looks forward to debating the broader funding framework in the Commons as the deadline for the BBC's Royal Charter approaches.
Future of BBC Charter
Ms Nandy has previously promised that the current review will be the "last of its kind," aiming to grant the BBC a permanent charter instead of the traditional 10-year renewal cycle. The current charter is set to expire in December 2027.
The refusal to rule out a licence fee expansion follows a report by The Times indicating that ministers are seriously considering the move to safeguard the corporation’s future. Sources noted that the government remains highly wary of shifting the BBC toward an advertising-funded or voluntary subscription-based model.
BBC Financial Pressures
The funding pressure comes as the BBC faces fierce competition from global streaming giants like Netflix and Disney+, resulting in a widening budget deficit. The corporation is currently attempting to find £500 million in savings over the next two years - a target that is expected to trigger sweeping job cuts, the decommissioning of prominent TV programmes, and the axing of radio shows.
The BBC has previously suggested that the current £180 annual cost could actually be cut if more people pay the fee.
According to corporation data, a massive 94% of UK adults use BBC services every month, yet only around 80% of households actually pay the licence. Bringing streaming-only households into the system is seen by some as a way to bridge this gap.
The Press Association has contacted the Department for Culture, Media and Sport (DCMS) for further comment.
