UK may extend BBC licence fee to Netflix and YouTube viewers

The UK government is reportedly considering extending the BBC licence fee to online streaming services such as Netflix, Disney+ and YouTube. The plan has been dubbed a “YouTube tax“.

The Independent reported the proposal, citing a senior Whitehall source. The aim is to stop households avoiding the fee by watching on phones, tablets and laptops.

“It’s not fair that people are essentially able to watch television content but avoid the licence fee,” the source said.

Netflix was the African giant for a long time

A White Paper on the BBC’s royal charter renewal is expected before Christmas. It will set out how the corporation is funded and regulated from 2028. The current charter runs until December 2027.

The Department for Culture, Media and Sport (DCMS) said nothing is settled.

“Through charter review, we are looking at a range of options, including how the licence fee could be reformed, but no final decisions have been made,” it said.

A BBC spokesperson said: “We have consistently argued that the current funding model is outdated and needs reform.”

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What would change for streaming viewers?

A licence is currently required to watch live TV on any channel or service, including live streams on platforms such as Netflix and YouTube. It is also required to use BBC iPlayer. Ordinary on-demand viewing on Netflix, Disney+ or Amazon Prime Video does not need one.

The proposal would widen that rule to cover online viewing. Neither the government nor the BBC has said whether the annual fee would rise from £180.

Why the BBC wants reform

The report stated that 539,000 fewer TV licences were in force in the year to 31 March 2026. That is part of a drop of about two million over five years. Licence fee revenue has fallen by more than £1 billion in real terms over the past decade.

DCMS has reportedly recommended extending the fee beyond television. It has also noted that a universal household levy would be difficult to introduce.

Enforcement could be the sticking point. Richard Broughton, executive director at Ampere Analysis, told reporters:

“Identifying who should be paying the licence fee would require streaming service providers to report names/addresses centrally to TV Licensing – else evasion may remain a significant issue for the BBC.”

Until the White Paper is published, the current rules stand. Watching on-demand content on Netflix or YouTube does not require a TV licence.

Similar read: YouTube doubles monetisation requirement to 8,000 watch hours for new creators from 2027