BBC iPlayer viewers could face a lock on the free online streaming service in the future as the corporation reportedly considers ways to claw back cash lost from people ditching paying the licence fee. Figures released last month showed more than half a million stopped paying the £180 annual charge in the past, and it's estimated the cost of evasion and refusal to pay the fee costs the BBC over £1billion a year.
It's estimated 94% of the UK population uses BBC services every month, but only 80% pay the licence fee. The current BBC charter, through which funding is agreed, ends on December 31, 2027. The broadcaster is also facing increasing competition from US streaming giant services such as Netflix, Amazon and Disney+, which do not currently require viewers to pay a licence fee to watch online.
BBC's Internal Discussions and Funding Challenges
During the half-time break for the World Cup final on July 19, the BBC faced criticism for a three-minute-45-second promotional advert aired, posing the question to viewers, “What has the BBC ever done for me?” The star-studded montage plea for funding was fronted by comedian Romesh Ranganathan and featured top-rated shows such as Strictly Come Dancing and EastEnders. The clip ended with Louis Theroux standing next to an oversized off-switch and telling Romesh, “none of this has to exist if we don’t want it to”.
Showbiz news site Deadline reports that in an all-staff call on Monday, the BBC’s chief customer officer Kerris Bright said looking at locking the iPlayer could be an "opportunity" for the future. Ms Bright added that as the corporation heads to a more IPTV, meaning internet TV-based, world, then putting a lock on the iPlayer "might absolutely be an opportunity for us, depending on the funding model".
Current Stance and Government Considerations
She added: “The data says today [that] absolutely [it] is not the silver bullet to generating more revenue. There’s probably more cost in it than revenue, but it is something we should absolutely keep looking at because it might be something that you actually would want to do in the future.” Ms Bright admitted blocking iPlayer at the moment does not currently make sense, but she said the BBC will keep the idea under review as streaming technology improves.
Lisa Nandy, who at present remains the Secretary of State for Culture, Media and Sport under Andy Burnham, hinted last month that the Government was considering extending the licence fee model to cover streaming services like Netflix and others. She told a cross-party select committee that Labour were committed to “retaining the licence fee but reforming it”.
Future Funding Models and Enforcement
Proposals to include US sites under the fee have already drawn criticism from the Motion Picture Association, which represents the collection of streamers and studios. The new BBC director general Matt Brittin said last month the BBC was doing as "much as possible" on enforcing licence fee collection but he added that it was "yesterday’s model" and "a busted flush" that was "no longer fit for purpose".
He said: "The BBC is in talks with the government about a new charter, which will likely lead to funding model changes. The BBC is not being prescriptive about what could replace the license fee, but thinks the government should reconsider a compulsory household levy, which it previously ruled out." The use of a television receiver without a valid licence can lead to prosecution, a court appearance and a fine of up to £1,000. Cases are usually heard in the magistrates’ courts. If a fine isn’t paid, the court that issued it may impose a custodial sentence. The sentence is for non-payment of the court fine, not for non-payment of the licence fee.
Concerns have been raised about the impact of licence fee enforcement action on vulnerable people and the gender disparity in prosecutions for TV licence evasion.
