Netflix and Prime Video subscribers could soon face a $240 annual charge or a $1,350 fine, and the government hasn’t ruled it out

Netflix and Prime Video subscribers in the UK could soon be required to pay the TV licence fee even if they never watch live television. The government is reviewing whether to extend the existing licence requirement to cover all streaming content, not just live broadcasts or BBC iPlayer, as it looks for ways to secure the long-term future of BBC funding. As first highlighted by LADbible, the proposed change could see households face an annual charge of £180 ($240) or a maximum fine of £1,000 ($1,350) for non-compliance.

Under current rules, you only need a TV licence if you watch or record live television on any device, or if you use BBC iPlayer. If you are already watching live sports on platforms like Prime Video or a live boxing match on Netflix, you are required to have a licence regardless of your existing subscription. The proposals under consideration would go further, potentially capturing all on-demand viewing as well.

The financial pressure on the BBC is significant. Reports indicate that while 94 percent of people in the UK use the broadcaster, only around 80 percent of households actually pay the licence fee. That gap has left the BBC missing out on approximately £1 billion ($1.34 billion) in funding, and licence fee revenues have dropped by around a quarter in real terms over the past decade.

The government is trying to avoid a bigger problem with the BBC

The government is reportedly reluctant to move the BBC toward either a subscription or advertising-funded model. The concern with advertising is that a commercially funded BBC would become attractive enough to advertisers to drain revenue away from other UK broadcasters, including ITV and Channel 4. Since funding the BBC through general taxation has also been ruled out, expanding the existing licence criteria is seen as the most viable path forward. The BBC’s financial struggles are part of a wider pattern of governments stepping into streaming regulation, with authorities in multiple countries introducing new rules for platforms operating in their markets.

The Department for Culture, Media and Sport has not committed to the change but has not ruled it out either. A spokesperson stated: “The government does not comment on speculation. We are reviewing responses to the BBC Charter Review consultation and will set out our decisions in a white paper to be published later this year.” Until that document is released, the exact scope of any rule change remains unclear.

For heavy streaming users, the practical impact could be substantial. A household currently avoiding the licence fee because it does not watch live TV could find itself legally obligated to pay under any expanded framework. The licence fee, which rose to £180 ($240) in April, already places a significant annual cost on UK households, and adding streaming platforms to its scope would push that cost further into the daily lives of people who have specifically moved away from traditional broadcast television. This comes as Netflix is already navigating significant financial and structural pressures, including its multibillion-dollar bid for Warner Bros. facing a challenge from a competing offer by Paramount.

The white paper detailing the future of the licence fee is expected later in 2026. For now, the existing rules covering live TV and BBC iPlayer remain in place.