This week, The Times reported that the BBC is considering expanding its definition of live TV for licensing purposes. The report suggests that the BBC may start looking at streaming services like Amazon and Netflix as a new revenue source, as many in the UK are watching without a valid TV license.
According to the BBC’s own data in its annual plan, about 80% of the population pays the license fee despite more people accessing its services each month. This indicates that a significant number of individuals in the UK are watching what the BBC considers ‘live TV’ without a proper license, whether intentionally or unintentionally.
The potential extension of the definition is largely driven by streaming platforms securing rights to live events. For instance, Netflix airs boxing shows, while Prime Video has coverage of golf, the Champions League, and even Premier League football on Boxing Day in 2024. This means many viewers are watching these live events without holding a TV license.
Implications for Live Streaming Sites like Twitch
If the new definition includes any form of live streaming, it could have a significant impact on platforms like YouTube and Twitch, which host live broadcasts of streamers, sports events, and esports competitions.
The white paper and the upcoming Department for Culture, Media, and Sport BBC Charter Review will explore ways to manage the BBC’s budget. Depending on the outcomes, the definition of live streaming could affect the average gamer on Twitch and Kick. This is especially relevant considering that Amazon owns both Prime Video and Twitch, potentially blurring the legal lines between the two platforms.
While this is mostly speculation at this point, representatives from the Department for Culture, Media, and Sport have refrained from commenting on rumors. They plan to release their findings and conduct consultations later in the year as part of the BBC Charter Review and white paper.
Appealing to a New Audience
Targeting younger millennials and older Gen Z viewers is a challenge that the BBC must eventually tackle. These demographics tend to consume less live TV content, preferring creator content, social media, live streamers, and on-demand streaming services for TV and films. The BBC may need to explore these channels to attract younger audiences and re-engage with older generations who now consume entertainment and live events differently.
This shift wouldn’t be the first time the British government has adjusted a tax scheme. Historically, green vehicles were exempt from road tax, but as more people transition to electric cars for a greener future, these exemptions are being reconsidered. Similarly, the TV license may evolve from traditional TV channel viewing to encompass Netflix browsing and live-streaming content consumption.
We’ll have to wait for the White Paper’s release later this year to see what the future holds. However, even then, a white paper proposal does not equate to a policy decision, so any tangible changes may take some time to materialize.