The TV licence is set to be extended in scope to include all online streaming services such as Disney Plus, YouTube and Netflix under new Government plans - even for non-live content.
Under current rules, contrary to popular belief, customers of streaming services like Netflix and YouTube already need a TV licence to watch live content on a TV, such as the Champions League final broadcast on YouTube or key boxing bouts on Netflix.
Government overhaul to close loophole
The government is now eyeing an overhaul which would bring all content on streaming platforms under the purview of the £180 a year fee, in a bid to close a loophole which allows people to sidestep the TV licence by logging on to the internet via their phones, tablets or laptops.
A White Paper on the BBC’s charter renewal is expected to be published before Christmas, which will set out how the corporation will be governed, regulated and funded from 2028 onwards.
Currently, anyone who uses a television to watch live content as it's broadcast must pay the licence fee, even if they do not watch the BBC. The fee rose to £180 on April 1.
Expansion to streaming platforms
Under the proposed changes, the fee would expand to streaming platforms including Amazon and Disney Plus, even for non-live content.
A BBC spokesperson said: “We have consistently argued that the current funding model is outdated and needs reform.
“We will continue to engage with Government to secure a new charter that provides sustainable, sufficient and universal funding so the BBC can deliver for audiences for generations to come.”
The Department for Culture, Media and Sport (DCMS) said in a statement: “The BBC must be funded by a model that is sustainable and fair to all those that are paying it.
“Through charter review, we are looking at a range of options, including how the licence fee could be reformed, but no final decisions have been made.”
DCMS recommendations and licence fee decline
It comes after the DCMS recommended that the BBC extends the licence fee to cover services other than TV. The DCMS said its current model was “outdated and no longer fit for purpose”, and also suggested that the BBC reduced the cost from its current price of £180 per year.
It also said that a household levy, which would see homes forced to pay the licence fee regardless of whether they used the corporation’s services, would be difficult to introduce.
The standard TV licence is legally required to watch or record television on any channel or service, watch live TV on streaming services, or to use BBC iPlayer.
The BBC’s licence fee income has dropped by more than £1 billion in real terms over the past decade, with the 2026 BBC annual report revealing TV licences fell by more than half a million in the 2025/26 financial year.
The BBC charter has to be renewed every 10 years and is set to end in December 2027.
