Britons who only stream TV shows and films on platforms like Netflix and Amazon Prime could still be required to pay the BBC licence fee under government plans to safeguard the broadcaster. The government is reportedly favouring an expansive approach that retains the licence fee while extending it to cover streaming services, rather than moving to an advertising or subscription model.
The BBC has warned it faces a 'managed decline' as only 80% of the population now pays the licence fee, despite 94% accessing its services monthly. The corporation's income has fallen by 25% over the past decade, prompting a £500 million cost-cutting programme expected to eliminate around 2,000 jobs over two years.
Culture Secretary Lisa Nandy has expressed reservations about a subscription model, warning it could weaken the BBC's role in uniting the nation. Ministers are also wary that advertising could harm commercial broadcasters like ITV and Channel 4, which are already under financial pressure.
The BBC has proposed extending the licence fee to households that consume streaming services, arguing the current framework no longer reflects viewing habits. At present, only those watching live broadcasts—including events like Netflix's Tyson Fury fight or Champions League matches on Amazon Prime—are legally required to pay, a rule the BBC says is not widely understood.
One streaming industry source criticised the proposal, calling it 'desperate' to insist everyone funds the BBC regardless of use. The Department for Culture, Media and Sport declined to comment on speculation, stating it is reviewing responses to the BBC Charter Review consultation and will publish conclusions in a white paper later this year.
