MUMBAI:  The British media is all agog about British prime minister Keir Starmer's government’s plans to modernise the BBC licence fee, including extending it to those who only use streaming services such as Netflix and Disney+. The review is part of discussions between the prime minister's office, the Treasury, and the department for culture, media, and sport on how to fund the public-service broadcaster beyond its current charter, which expires on 31 December 2027. 

Other proposals being considered include allowing the BBC to run advertisements, imposing a special tax on streaming platforms, or introducing a fee for BBC radio listeners. 

The potential reforms come amid changing viewing habits, with audiences increasingly shifting to on-demand services. The government is reviewing whether to retain the existing £169.50 annual licence fee, make adjustments with better enforcement and possible annual increases, or adopt new models like taxation or subscription-based funding.

The BBC, a key element of the UK’s global influence, faces criticism from both the political left and right over perceived bias but remains a symbol of impartial public broadcasting. In 2023/24, the licence fee generated £3.66 billion in revenue, slightly up from £3.51 billion in 2010/11.

Expanding the licence fee to include streaming service users aims to address the rise of on-demand viewing but may face resistance from consumers already paying subscription fees. Other considerations include making the licence fee more affordable for lower-income households or adopting a subscription model for BBC on-demand services similar to Netflix and Amazon Prime.

Government insiders noted that without a clear alternative, the licence fee remains the most feasible option for BBC funding.