Netflix, Amazon Prime Video, and Disney+ enthusiasts may soon be roped into paying the licence fee, even if they don’t tune into BBC channels. The government is looking at ways to overhaul the licence fee and modernise it for the streaming age.
BBC radio listeners may also need to get a licence, even if they don’t watch TV, and a ‘two-tier’ licence fee structure could potentially be an option the government explores, cutting the cost for low income households. The government may also look at advertising or subscription models as alternatives to the current system.
With the BBC’s current Royal charter set to expire in 2027, the government will be looking at new ways to fund the BBC in the future. Currently, viewers pay £169.50 per annum for the licence fee, which is set to rise to £174.50 in April.
However, there are discounts and exemptions, including people over 75 who are on pension credit who get a free TV licence, and those in supported housing paying just £7.50 a year for a TV licence if they’re over 60 or have a disability.
Earlier this month, culture secretary Lisa Nandy described the existing licence fee model as “deeply regressive” and highlighted its failure to raise enough cash to fund the BBC. Though the licence fee contributes roughly £3.7 billion annually, it accounts for just 65% of the broadcaster’s budget.
Netflix fans have also recently been hit with a stark warning: tune into live shows on the streaming giant without a TV licence and you could face a hefty fine. The platform has recently begun streaming live shows such as WWE raw from the USA, and viewers who only watch the streaming platform may be unaware they’ll still need a TV licence.
A common misconception is that a TV licence is only necessary for BBC channels, but in reality, it’s mandatory for any live television across all platforms.
When Bloomberg contacted the Department for Digital, Culture, Media and Sport (DCMS) they said: “We will provide more details about charter review plans in due course.” and refused to comment on “speculation”.
Meanwhile, a BBC spokesperson emphasised their commitment to audience value, saying: “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.”