Fury as TV licence fee shake-up could see viewers forced to pay - even if they only watch Netflix

29 January 2025, 09:47

The government has announced a TV license shakeup.
The government has announced a TV license shakeup. Picture: Alamy

By Emma Soteriou

A shake up to the TV licence fee has sparked fury amid concerns streaming-only households will still have to pay.

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The government is said to be planning to expand the licence to cover services such as Netflix and Disney+.

The move is just one of many options being considered by ministers to help with funding, according to Bloomberg.

It has been discussed by the Prime Minister’s office, the Treasury and the Department for Culture, Media and Sport (DCMS).

The DCMS said on Tuesday that the proposal was not under "active consideration" but did not rule it out as an option.

Alternatives include allowing the BBC to advertise, imposing a tax on streaming services and asking BBC Radio listeners to pay a fee.

There is also the option of charging people to use the BBC on-demand app - mirroring the business model of other streaming services.

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Closeup of British TV licence
Closeup of British TV licence. Picture: Alamy

However, the move has sparked outrage online, with John O'Connell, chief executive of the TaxPayers' Alliance, branding it one of the most "bonkers ideas ever concocted".

He added: "Far from modernising the BBC's funding system, it would only further entrench the already archaic nature of the hated TV tax.

"Lisa Nandy should stop kicking the can down the road and move the broadcaster onto a subscription service, with some taxpayer funding for essential programming such as the World Service."

One person said on X: "If this rubbish about having a TV license to stream is being considered, that's a new low. BBC start showing adverts and stop scrounging."

Another social media user said: "Well we will cancel everything and the streaming services will suffer financially. I am not paying for a TV licence and I never will."

A third person added: "This is ridiculous, Netflix/Amazon Prime etc. are options for those who don't want to pay the licence fee. The streaming services are via the internet, not set TV channels it shouldn't come under the TV remit."

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A DCMS spokesman said: "We will provide more details about charter review plans in due course."

A government source told the Telegraph that the process was still at an early, information-gathering stage.

Households who watch live TV or use iPlayer currently have to pay £169.50 a year. The price rises annually in line with inflation.

A TV licence is also needed to stream shows live on services such as YouTube and Prime Video.

However, it is not needed for on-demand and non-BBC services.

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