Government considers expanding TV licence to streaming users

The UK government is considering extending the television licence fee to households using subscription streaming services such as Netflix and Amazon Prime Video as part of discussions over the future funding of the BBC. According to a report in The Times, ministers are wary of moving the BBC towards either a subscription or advertising-funded model and are instead examining ways to broaden the existing licence fee system to reflect changing viewing habits. The BBC has argued that the current framework no longer reflects how audiences consume content, with streaming increasingly replacing traditional linear television viewing. In its response to the government’s charter review green paper earlier this year, the corporation said only 80% of the population now pays the licence fee, despite 94% accessing BBC services each month. Under current rules, households need a licence to watch live television on any platform or to use BBC iPlayer. This means viewers already technically require a licence to watch live events streamed on services such as Netflix or Prime Video, including sports rights carried live online. The broadcaster has suggested that expanding the licence requirement more broadly to streaming households could stabilise funding and potentially reduce the overall cost per household. The annual licence fee increased to £180 in April. Culture Secretary Lisa Nandy has previously expressed caution about subscription models, arguing they could weaken the BBC’s ability to serve as a universal national broadcaster. The government is also understood to have concerns that allowing advertising on BBC services could damage commercial broadcasters including ITV and Channel 4 at a time when the wider television advertising market is already under pressure. The BBC has faced declining revenues in recent years and is implementing a £500 million savings programme expected to lead to around 2,000 job losses. The Department for Culture, Media and Sport said it would publish a white paper on the future of the BBC later this year following its review of responses to the charter consultation.