In the United Kingdom, there is a rule in place called a licensing fee that all citizens who want to watch live television have to pay. If you used streaming services, this fee did not apply to you. Now, however, there is a new TV license rule that could change the way Neflix and Prime Video users pay for their shows. For now, only the regular fee went up, but the government is setting the foundation for that to change soon.
New TV License Rule Impacts On-Demand Viewers
At the moment, the new TV license rule in the UK has only changed pricing for the current charter. Starting at the beginning of April 2025, the yearly fee that citizens who watch live TV had to pay increased by £5. This took the cost from£169.50 to £174.50 a year, which is about £14.50 a month. Live TV and BBC Player are currently the only services impacted; any citizen who does not use those features and instead uses on-demand streaming services, such as Netflix, is exempt from the fee.
Experts say that could be changing soon. According to The Express, there is a current royal charter that outlines the fee. It puts in place the BBC’s operational and governance agreement with the Government, which is set to expire in 2027. Knowing the expiration is fast approaching, discussions on “modernising how the public broadcaster is funded” are currently underway, The Express reports. “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.”
Essentially, the government recognizes that streaming is where a lot of people are now flocking to for viewing television, which saves them money from the new TV license rule. This is hurting the BBC’s overall sustainability. Adding the new TV license rule to streaming sites would balance out the playing field. However, other options are out there as well, including taxing BBC radio listeners or adding advertisements to radio.
Culture Minister Sir Chris Bryant defended their new TV license rule model, stating that the fee is the best way for the BBC to retain the funding needed to be sustainable. His goal is ultimately to have BBC gain rights to both local and international content. However, British citizens have responded with backlash, with the cost of living already increasing, and many have threatened to cancel their TV licenses altogether.
Final Thoughts
In its current form, the new TV license rule is not changing much for UK television watchers. Those who already pay the license fee will be paying a bit more, and those who use streaming on demand can continue to do so without a fee applied. However, as things continue to progress toward 2027, the writing is on the wall that there could be fees associated with streaming soon. Hopefully, the fee will not hurt the public’s ability to afford and watch the shows and arts that they most enjoy. More people having access to more entertainment and more options is good for the public, and losing that would hurt their overall leisure enjoyment.
If the government does choose to make any different rules, the story will be updated accordingly.
