The BBC’s funding model is tenable in the streaming age, so the question has not been resolved. Some have suggested moving to an ad or subscription-supported model, but BBC Chairman Samir Shah is not convinced. The BBC reportedly looks at new funding options, including a controversial idea for Netflix users to pay the TV license fee.
Why Is the BBC Considering a Funding Overhaul?
BBC’s TV and radio channels to its online news services are funded by the BBC’s £169.50 annual TV license fee. The payers of millions of UK households are forced to pay it if you do not pay to watch streaming services like Netflix, Amazon Prime Video, or Disney+.
Bloomberg report that the BBC’s Royal Charter is set to expire in 2027, and the UK government is reviewing it and considering different forms of funding. People are moving increasingly from traditional TV to streaming, and the BBC is looking for ways to change.
Streaming: The BBC’s Next Revenue Stream?
The lines between streaming and traditional TV are blurring, with Netflix betting on live events and Amazon Prime showing Premier League games. While live sports or events streamed online are also subject to UK law, viewers must have a TV license to view live TV.
With a growing share of people watching streaming, the government sees an opportunity to modernize the BBC’s funding model by taxing people who only use streaming platforms to watch TV. Such a change could keep the broadcaster viable financially as fewer people continue to pay for its traditional services.
What Are the Other Funding Options?
Alongside the streaming tax proposal, other funding ideas are being considered, including:
- A “progressive” license fee: Wealthier households can pay more than poorer households.
- The extra charge for premium BBC programming. They have some content that will be behind a paywall.
- It is free to listen to BBC radio now, this could change.
These plans aim to make the BBC matter in a changing media world while keeping it financially viable.
What is Next?
The BBC has to find a way to cover streaming platforms reshaping how people consume media. Taxing Netflix and Prime users might be unfair to some, but it could be the only way to keep public broadcasting adequately funded.
The irony is that the BBC’s Royal Charter review is still in progress, and it is likely that the next few years will bring significant changes to how UK households pay for TV and streaming services. Will the government move towards the streaming license fee, or will another alternative be selected? Time will tell.
Ethan Cole is a tech aficionado dedicated to exploring the latest innovations and gadgets, providing reviews and insights to keep you updated in the tech world.
