The government is reportedly looking into asking Netflix and Disney+ viewers to contribute to a licence fee to secure the future of the BBC.
As viewing habits evolve the government could consider funding options to support the broadcaster when it reviews the BBC’s current Royal Charter, which will end in 2027.
Sources told Bloomberg, options on the table include allowing the BBC to use advertising, creating a specific tax for streaming services or making BBC Radio listeners pay.
Rebecca Ryan, from pressure group Defund the BBC, called the possible move “opportunistic” and “desperate”.
She told The Independent: “Is there anything this government won’t tax?
“Streaming is not broadcast TV. What will be next, YouTubers, gaming or podcasts? It’s just a tax on entertainment.”
The discussions come after Culture minister Sir Chris Bryant said he wants a “massive production budget” for creating TV and films in the UK to remain part of the purpose of the BBC licence fee.
“I do want the streamers to come here. Tom Cruise has made massive investments in the UK,” he added.
“But I also want us to have a system where a British production company is commissioned by others to make something that where the Intellectual Property (IP), or some of the IP, remains with the production company. I kind of want a bit of both.”
The BBC licence fee, which the government has committed to increasing in line with inflation each year until 2027, is to rise to £174.50 in April.
The broadcaster has been cash-strapped in recent years following the licence fee being frozen for two years at £159 – before it was increased at a lower rate than the corporation expected, and rising inflation.
The last rise in the household payment, which funds much of the BBC’s operations, saw a £10.50 increase, which brought the charge to £169.50 in April 2024.
Culture secretary Lisa Nandy told BBC Breakfast that the licence fee was “not only insufficient, it’s raising insufficient money to support the BBC, but it also is deeply regressive”.
A BBC spokesperson said: “We want everyone to get value from the BBC, which is why we’re focused on delivering what audiences want from us – trusted news, the best homegrown storytelling and the moments that bring us together.
“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 Department for Digital, Culture, Media and Sport (DCMS), Netflix and Disney+ have been approached for comment.
