Major TV licence change could force Netflix and Amazon Prime subscribers to pay
The BBC has argued that the current rules no longer reflect how audiences typically consume content.
BBC should 'decriminalise not having a TV licence' says MP
UK Households currently need a TV licence if they watch live television or use BBC iPlayer. But that could change under proposals being discussed as part of plans to safeguard the future of the BBC. According to The Times, Netflix and Amazon Prime subscribers could be forced to pay the TV licence fee under new proposals being considered.
Industry sources involved in the discussions told The Times that the government is wary of moving towards a BBC funding model based on advertising or subscriptions. Instead, it is thought to favour retaining the licence fee while widening its scope so that it also covers streaming platforms.
READ MORE: TV licence fee payers could cancel and get £180 refund - check if eligible
READ MORE: Older state pensioners can slash TV licence bill to £0
At present, households are required to pay for a licence if they watch live content, including live events streamed on platforms such as Netflix or Amazon Prime.
However, on-demand viewing is not licensable unless it is BBC content consumed via iPlayer.
The BBC has argued that the current rules no longer reflect how audiences typically consume content.
In its response to a green paper about its future in March, the corporation said: “The precise set of rules that require households to be licensed no longer reflect typical audience behaviour among many households in the UK.”
It added: “The TV licence is predicated upon content being consumed via ‘live TV’. But on-demand consumption is not licensable, unless it is BBC content consumed via iPlayer.”
The BBC also warned it was facing “managed decline”, saying that only 80% of the population now paid the licence fee despite 94% accessing its services every month.
The licence fee rose to £180 in April. Despite that, the corporation says its income has fallen by 25% over the past decade and it has launched a £500million savings plan expected to result in around 2,000 job losses over the next two years.
Culture Secretary Lisa Nandy has previously spoken about moving towards a subscription-based model.
She told The House magazine last year: “It is absolutely right that we explore subscriptions, but if you believe, as I do, that one of the greatest strengths of the BBC is its ability to unite the nation that has found multiple ways to divide itself, then I think you've got to be cautious about the use of subscriptions and paywalls.”
Ministers are also concerned that introducing advertising could damage commercial rivals, including ITV and Channel 4.
However, one streaming industry source criticised the proposals. They told The Times: “It’s pretty desperate to argue that everyone should be made to pay for the BBC whether they watch it or not.
“The BBC needs to think more radically and creatively about how to generate income in ways that don’t undermine universal access.”
A spokesperson for the Department for Digital, Culture, Media and Sport said: “The government does not comment on speculation. We are reviewing responses to the BBC Charter Review consultation and will set out our decisions in a white paper to be published later this year.”
