For those who regularly watch live television, it is important to note that in the UK, an annual TV License Fee is required.

As of April 1st, this fee has risen by £5, bringing the total to £174.50 per year, up from £169.50. This amounts to a monthly cost of just over £14.50.

Currently, the license fee is required only if you watch live television or wish to use BBC (The British Broadcasting Corporation) iPlayer. Those who exclusively watch on-demand content through streaming services like Netflix, Disney+, or Amazon Prime Video are not subject to this fee according to the current guidelines.

While this situation is not optimal for the financial stability of the BBC and its funding structure, it is perhaps expected, considering the increasing number of viewers consuming on-demand content. Consequently, there are current conversations about integrating streaming services into the licensing fee structure.

The Express reports that the current royal charter, which underpins the BBC's operational and governance framework with the Government, is scheduled to expire in 2027. In light of this, there are conversations about updating the funding mechanisms for the public broadcaster.

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 license fees. This move aims to adapt the funding model as more viewers shift towards on-demand content."

What does it mean for streaming services now?

 As of now, there is no difference for individuals who access TV shows and films on-demand through a streaming service, such as Netflix.