UK Netflix and Prime Video subscribers might soon have to pay more to stream content

There could be a change coming that will hit those in the UK who stream content from services like Netflix or Prime Video. The change circulates around the UK's licence fee and how it’s applied - and a proposal that’s in consideration.

As it stands, the UK’s TV licence is only needed to watch live TV services - like Sky, Virgin Media, or Freeview - or to view live broadcasts via a streaming service. However, it’s also required to access BBC iPlayer, regardless of whether you’re watching live or streaming old content.

There has long been a loophole here, which is that you don’t need a licence if you don’t watch live TV. That means that if you’re only watching on-demand content from Netflix, you don’t need a licence, but if you watch or record live TV from any service, you’ll need a licence.

According to Bloomberg (via Radio Times), ministers are considering extending the licence fee to cover those streaming services, not just those watching live TV. That could impact many households who have long since abandoned live TV and only watch on-demand programmes from subscription services.

The proposal is only in consideration, however, as one of a number of options available to boost the funds available under the UK’s TV licence scheme that’s used to pay for the BBC’s services, including television, radio, BBC iPlayer and other BBC apps. The BBC’s Charter – which defines what the BBC’s purpose is and outlines how it’s governed - is up for renewal in 2027, and any change could be part of that process.

However, there’s already a licence fee increase coming in April 2025, which will increase the price of the licence by £5 a year. Any change to the arrangement to cover on-demand streaming services in the UK could increase the costs further and ultimately, make streamers pay for services they might not be using.

As it stands at the moment, there’s no confirmation that this is going to happen, it’s just one of the options on the table.