People who watch streaming services such as Netflix and Disney+ may soon find they’re forced to pay the licence fee, even if they don’t watch BBC channels. The plans come as the government aims to modernise the licence fee for the streaming age.
The plans would see people who listen to BBC radio stations also needing to buy a licence, and there’s also the possibility of a ‘two-tier’ system for licence fees, where lower income households would pay less. Options that the government may consider include advertising or subscription models.
The BBC’s current royal charter expires in 2027, and the government is looking for ways to fund the corporation beyond this date. At the moment, the annual licence fee costs £169.50. which is rising to £174.50 in April, up £5, although there are discounts and exemptions available.
Free TV licences are available for people over 75 who receive pension credit, and people who live in sheltered accommodation such as care homes can get a TV licence for just £7.50 if they’re over 60 or disabled. Earlier this month, culture secretary Lisa Nandy described the current licence fee system as “deeply regressive” and stated that it doesn’t cover the costs of running the BBC. While the licence fee brings in about £3.7 billion a year, this is only 65% of the BBC’s funding.
The proposed changes come as Netflix viewers have been warned that watching live shows on the streaming service could lead to a fine if they don’t have a TV licence. The streaming platform has recently started showing live episodes of WWE Raw from the USA. What many viewers don’t realise is that a TV licence is required for watching any live TV on any platform, not just BBC ones.
When Bloomberg contacted the Department for Digital, Culture, Media and Sport (DCMS) they were told the DCMS wouldn’t comment on speculation and that: “We will provide more details about charter review plans in due course.”
A BBC spokesperson said: “We want everyone to get value from the BBC, which is why we’re focused on delivering what audiences want from us – trusted news, the best homegrown storytelling and the moments that bring us together.
“The public cares about the BBC and this year, we will launch our biggest ever public engagement exercise so audiences can help drive and shape what they want from a universal and independent BBC in the future. We look forward to engaging with government on the next Charter and securing the long term future of the BBC.”