Millions of Netflix, Disney+ and Prime Video subscribers could be required to pay towards the BBC under plans being considered by the Government.
Culture Secretary Lisa Nandy has backed the idea of extending the TV licence fee to cover people who only subscribe to streaming services, as ministers consider the future funding of the BBC.
Speaking to the Culture, Media and Sport Committee, Ms Nandy outlined a tiered system for the £180 annual licence fee.
Under the proposals, households that watch both BBC programmes and streaming services would continue paying the full licence fee, while those who only use commercial streaming platforms such as Netflix, Disney+ and Prime Video could pay a reduced amount.
Ms Nandy also said any new system could include “targeted concessions for people who need them”.
The proposals come as negotiations over the BBC’s next Royal Charter gather pace, with the Motion Picture Association already opposing the idea.
Ms Nandy argued that streaming companies benefit from the BBC’s programmes, infrastructure and talent.
“At some point everything comes back to the BBC in this country and they should be shouting about that,” she told the committee.
Streaming companies benefit from the BBC’s programmes, infrastructure and talent
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BBCThe BBC says 94 per cent of people in the UK use its services every month, but fewer than 80 per cent pay the licence fee, leaving the broadcaster hundreds of millions of pounds short each year.
Ms Nandy suggested that if more people contributed through an expanded system, it could make it possible to reduce the cost of the licence fee for everyone.
The government has firmly ruled out implementing a streamer levy, a mechanism adopted by several other countries that would require streaming services to contribute a portion of their UK subscription revenue to a cultural fund supporting British content.
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Ms Nandy confirmed she has engaged in discussions with streaming companies regarding the proposed changes. “They can speak for themselves” on their response, she noted.
The minister suggested the platforms would prefer charges falling on consumers rather than their businesses directly.
“[The streamers] would be reluctant to see additional charges on their consumers, but I think they would be more reluctant to see additional charges on their businesses,” she explained, adding that the government wishes to avoid deterring investment in Britain.
Ms Nandy also addressed the ongoing mass redundancies at the BBC, describing the timing of the announcement as “somewhat strange” given it was made by the interim Director General before Matt Brittin assumed his role in May.
The Culture Secretary has held discussions with BBC leadership, trade unions and workplace representatives regarding the job losses.
She expressed concern that the corporation’s plan to reduce costs by £500million over the coming three years could undermine progress made under Brittin’s predecessor Tim Davie in distributing power and resources beyond London to other parts of the country.