Netflix users who do not watch the BBC could be made to pay the licence fee under new funding options being considered by the Government.
Extending the licence fee to streaming subscribers is one proposal being looked at by ministers examining mechanisms to support the BBC when its current Royal Charter ends – which sets out the corporation’s governance – in 2027, according to Bloomberg.
Alternatives under discussion include allowing the BBC to charge a top-up subscription to receive additional programming, making the £169.50 licence fee “progressive” so that wealthier households pay more, and asking those who listen to BBC radio stations to pay a charge.
Whitehall sources said the Netflix tax plan was “speculation”, although it was not ruled out.
Currently households are required to hold a TV licence to view or stream programmes live on sites including YouTube, Netflix and Amazon Prime Video. However it is not needed by those who only watch on-demand, non-BBC content.
However the streaming giants are increasingly moving in to live programming like sports, with Amazon buying rights to Premiership football and tennis.
There are currently 20 million UK households who subscribe to at least one streaming service, according to Ofcom figures, with Netflix claiming around 17 million subscribers.
There were 23.9 million households in the UK with a TV licence last year, down from the 24.4 million licences in force in 2023.
Tapping into the rising number of streaming platform subscribers could provide a new long-term revenue stream for the BBC, as the number of people who choose to pay for its services declines.
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Read MoreHowever asking Disney, Amazon and Netflix users to pay a so-called TV tax for BBC programmes they do not watch could be a politically unpopular move by the Government.
A Whitehall source told The i Paper: “The process is at an early, information gathering stage – it’s not something being actively considered by the Secretary of State.”
Ministers ruled out the idea of imposing a 5 per cent levy on Netflix to help solve a funding crisis for UK drama series.
Sir Chris Bryant, the creative industries minister, told the Department for Digital, Culture, Media and Sport select committee that “we haven’t got any plans” to follow other European countries in introducing a “streamer levy.”
A BBC spokesperson said: “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.”
The reports about the future of the licence fee come as the BBC heads for the biggest shake-up of its governance in more than a century. Culture Secretary Lisa Nandy will explore moves to “mutualise” the BBC when discussions over the new Charter begin next year.
Intended to give licence-fee payers a direct stake in the BBC‘s future, the mutual model could include a “viewers’ champion”, who would sit on the BBC’s ruling board and speak on behalf of the 24m people currently paying the £169.50 charge.
Netflix has been contacted for comment.
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