Culture Secretary declines to rule out making Netflix users pay licence fee

George Thompson, Press Association

The UK Government’s Culture Secretary Lisa Nandy has declined to rule out making Netflix and Amazon Prime subscribers pay the licence fee.

Ms Nandy rejected funding the BBC through a levy on streamers or direct taxation, but stopped short of saying the licence fee would not be extended to cover streamers.

It comes as the BBC attempts to make £500 million in savings over two years, with plans for sweeping job cuts, TV programmes to be decommissioned and radio shows axed.

In May, The Times reported that streaming subscribers could be forced to pay the TV licence fee to safeguard the future of the corporation, with sources saying the Government was wary of moving towards a model funded by advertising or subscription.

The BBC is predominantly funded through the licence fee, which rose earlier this year to £180 annually.

It has faced increasing pressure over recent years as it faces competition from streaming giants like Netflix and Disney+.

The corporation has previously suggested the licence fee could be cut if more people pay the annual fee, reporting that 94% of adults use the service every month, while only around 80% of households pay.

Ms Nandy’s comments came in response to Tory MP Bradley Thomas (Bromsgrove), who asked her to “rule out extending the BBC licence fee to streaming services” at Culture Questions in the Commons on Thursday.

She said: “We have been very careful not to get drawn into speculation about the future funding arrangements for the BBC, except to say that we are, we have ruled out a levy on streamers, and we have also ruled out direct taxation going to fund the BBC, because of the need for the BBC to retain its independence.”

She added that she looks forward to debating the issue in the Commons when it comes up during the charter renewal process.

In April, Ms Nandy recommitted to giving the BBC a permanent charter, promising the current review would be the “last of its kind”.

The document currently has to be renewed roughly every 10 years and is set to end in December 2027.

The charter sets out the arrangements for the governance of the corporation, as well as recognising its editorial independence and sets out its public obligations.

The Department for Culture, Media and Sport has been contacted for comment.