Netflix and Amazon Prime Video subscribers who do not even watch the BBC could still be forced to pay the £180-a-year TV licence fee to help fund the corporation, according to industry sources. The Government is reportedly wary of funding the BBC with advertising as it would hurt ITV and Channel 4.
Expansion of Licence Fee to Streaming Platforms
Instead, a blanket approach, where the licence fee is expanded to cover streaming platforms, could be imposed by the end of 2027. Currently, people do not need a TV licence to watch on-demand shows on services like Netflix, Amazon Prime, Disney+, and Apple TV. It is only if Britons stream live TV, such as live Champions League football on Amazon Prime, that they are required to buy a licence.
Closing this loophole is an option for Labour. An industry source has told The Times that ministers favour this expansive approach to the licence fee over an advertising model.
BBC's Position and Public Usage
The BBC declined to comment, saying it was a matter for the Department for Culture, Media and Sport. However, in March, a BBC paper on its future described how 80 per cent of the UK pay the licence fee, even though the corporation believes 94 per cent of the population use BBC services on TV, radio, or online each month. The document warned: 'Households that watch or record live TV – on the BBC or elsewhere – or use BBC iPlayer to watch BBC content are required to hold a licence. The number of people consuming live TV has fallen, as has the volume of live TV consumed. This is because audience behaviour has changed at a pace and scale not anticipated in the last Charter Review.'
The paper added: 'The general approach others [abroad] have taken has been to restore universality of payment while taking steps to enhance fairness through progressive pricing or concessions to help those on lower incomes.'
Streamers' Opposition
Streamers are said to be very unhappy about the idea that all their customers would be charged the licence fee on top of their subscription fee. One senior streaming source said: 'It's pretty desperate to argue that everyone should be made to pay for the BBC whether they watch it or not. The BBC needs to think more radically and creatively about how to generate income in ways that don't undermine universal access.'
The Department for Digital, Culture, Media and Sport said in a statement: 'The government does not comment on speculation. We are reviewing responses to the BBC Charter Review consultation and will set out our decisions in a white paper to be published later this year.'
Future Funding Options
The Government is looking at how to replace or change the current licence fee funding model when the current BBC charter ends in December 2027. If people watch or stream live TV, they are required to buy a licence. But if they stream on-demand shows, they do not, for now.
Among the alternative options being considered by ministers are letting the BBC use advertising, hitting streaming services with a particular tax, or making those who tune in to BBC radio pay a charge. The government could also still decide to alter or even keep the current TV licence system. Funding through taxation or subscription remain options. Ministers will also consider calls for a system which sees wealthier households pay more than poorer ones.
