Brits who just stream Netflix and Amazon Prime may still need to pay BBC licence fee

Brits who only stream TV shows and film on platforms like Netflix could soon have to pay for the BBC licence anyway. Plans are afoot to safeguard the BBC but it is understood the government is wary of a model funded by advertising or subscriptions. Industry sources involved in discussions instead say an expansive approach, retaining the licence fee while extending it to cover streaming platforms, is favoured. In March, the BBC warned that it was facing "managed decline" in its response to a green paper about its future. This showed only 80 per cent of the population now paid the licence fee, despite 94 per cent accessing its services every month. The corporation has argued that by encouraging more people to pay through expanding the scope of the licence fee, beyond live television and iPlayer , it would be able to reduce its cost, which rose to £180 in April. The corporation has seen its income decline by 25 per cent over the past decade, prompting the introduction of a £500 million cost-cutting programme expected to eliminate around 2,000 jobs over the next two years. Lisa Nandy, the culture secretary, has previously expressed reservations about shifting towards a subscription-based funding model, warning that it could weaken the corporation’s role in bringing the country together. Speaking to The House magazine last year, she said: “It is absolutely right that we explore subscriptions, but if you believe, as I do, that one of the BBC’s greatest strengths is its ability to unite a nation that has increasingly found ways to divide itself, then we need to approach subscriptions and paywalls with caution.” Ministers are also wary that introducing advertising as a funding source for the BBC could further harm commercial broadcasters such as ITV and Channel 4 , both of which are already facing financial pressures. In its response to the green paper, the BBC dismissed both advertising and subscription models. Insiders are nevertheless said to be cautiously encouraged by the tone of early discussions with the Department for Culture, Media and Sport. The broadcaster was further reassured when Nandy indicated in March that she supported granting the BBC a permanent royal charter. The BBC has also proposed extending the licence fee to households that consume streaming services — a suggestion the government is reportedly open to considering. “The current licensing framework no longer reflects the viewing habits of many UK households,” the BBC said. “The television licence is based on the consumption of live TV content. However, on-demand viewing is exempt unless the content is accessed through BBC iPlayer.” At present, only viewers watching live broadcasts — including events such as Netflix’s Tyson Fury v Arslanbek Makhmudov fight last month or Champions League matches on Amazon Prime — are legally required to pay the licence fee, a rule the BBC says is not “widely understood”. One source within the streaming industry criticised the proposal, saying: “It seems rather desperate to insist that everyone should fund the BBC regardless of whether they use it or not. “The BBC needs to think more imaginatively and develop new revenue streams that do not compromise universal access.” The Department for Digital, Culture, Media and Sport declined to comment directly on the proposals, stating: “The government does not comment on speculation. We are currently reviewing responses to the BBC Charter Review consultation and will publish our conclusions in a white paper later this year.”