Sir Keir Starmer’s Government is considering making people who only use streaming services like Netflix and Disney+ pay the BBC licence fee.
The idea forms part of plans to modernise the way it funds the public-service broadcaster.
Prime Minister Keir Starmer’s office, the Treasury, and the Department for Culture, Media, and Sport are all discussing the idea to extend the fee to those who use these streaming websites.
Other options being considered include allowing the BBC to run ads, introducing a special tax on streaming services, or charging people who listen to BBC radio a fee.
These discussions are still ongoing, and those involved have asked to remain anonymous.
Government discussions are still in the early stages
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The UK Government is in the early stages of reviewing how to fund the BBC after its current 11-year charter expires on December 31, 2027.
Ministers are considering whether to keep the existing TV licence fee system, make changes to it, or replace it with alternative funding models like taxation or subscriptions.
This is due to the shift in viewing habits, with more people turning to on-demand services like Netflix and Disney+.
The discussions are sensitive because the BBC is seen as a major part of the UK’s global influence. However, the broadcaster, which prides itself on impartiality, faces criticism from both the political left and right over perceived bias.
One option being considered is to keep the licence fee largely unchanged, with some adjustments, better enforcement, and possibly annual increases.
Sources close to the discussions note that if a clear alternative funding model existed, the licence fee would likely have been replaced already.
Government discussions are still in the early stages, and no decisions have been made yet, according to sources.
A spokesman for the Department for Culture, Media and Sport (DCMS) refused to comment on “speculation”, adding: “We will provide more details about charter review plans in due course.”
The BBC licence fee, introduced in 1946, currently costs £169.50 a year for households that watch live TV or use BBC iPlayer, with annual increases.
Even if people do not watch BBC programs, they still need a licence to stream or watch live content on platforms like YouTube and Amazon Prime Video.
However, it is not required for those who only watch on-demand content from other providers.
In 2023/24, the licence fee raised £3.66billion, slightly more than the £3.51billion in 2010/11.
Expanding the fee to include streaming services could address the rise in on-demand viewing but may face resistance from consumers who already pay for subscriptions.
Other ideas being discussed include imposing a special tax on streaming services, asking BBC radio listeners to pay the license fee, or switching to a subscription model for the BBC’s on-demand service, similar to Netflix or Amazon Prime.
There is also talk of making the license fee more affordable for lower-income households.
