What new TV Licence rules could mean for Netflix and Prime Video subscribers

If you are someone that watches live TV, then you'll hopefully be aware that every year, you have the pay the TV License Fee in the UK. That fee recently increased by £5 on 1 April, taking it to £174.50 a year compared to £169.50, which works out at just over £14.50 a month.

At the moment, you only have to pay the license fee if you watch live TV, or if you want to access BBC iPlayer. If you only watch on-demand content through streaming services like Netflix, Disney+ or Amazon Prime Video, you're exempt from the fee in the current rules.

That's of course not ideal for the financial stability of the BBC and its funding model however given how many of us watch on-demand content now, so it's perhaps unsurprising that there is currently some discussion around bringing streaming services into the licensing fee fold.

According to The Express, the existing royal charter that serves as the backbone of the BBC's operational and governance agreement with the Government is set to expire in 2027. With that expiration, there is talk of "modernising how the public broadcaster" is funded, The Express reports.

The report says, "Sources close to the matter have hinted at discussions within the government about possibly requiring streaming service subscribers to contribute to the licence fees. This move aims to adapt the funding model as more viewers shift towards on-demand content."

It also suggested other considerations could be imposing specific tax on streaming services, charging BBC Radio listeners, or introducing advertising on the BBC.

What does it mean for streaming services now?

At this point in time, nothing has changed if you simply consume TV and films on-demand through a streaming service, like Netflix.

You don't currently have to pay the TV licensing fee unless you want to watch BBC iPlayer or live TV through Sky, Virgin Media, or Freeview.

It's very possible that will change in the future though where a TV license will also be required when watching on-demand content through streaming services.

It means those who only watch on-demand content will need to budget the extra £15 or so a month for the TV Licensing Fee to make sure you can still watch all your favourite TV series.