UK Considers Netflix Tax to Fund BBC as Licence Fee Faces Crisis UK considers extending the £180-a-year BBC licence fee to streaming services like Netflix, as Culture Secretary Lisa Nandy seeks new funding blueprint before Christmas. UK Culture Secretary Lisa Nandy is reportedly considering a plan to extend the £180-a-year BBC licence fee to streaming services, a move that could see viewers of Netflix, Amazon, Disney+ and YouTube paying extra. The proposal, dubbed a Netflix tax, is part of a new blueprint to be published before Christmas. It comes amid a significant decline in licence fee payers, with only 80 per cent of the UK population holding a licence despite 94 per cent accessing BBC coverage. Reports of a Netflix Tax ProposalAccording to the Independent, officials are exploring whether to boost BBC funding by extending the fee to streaming platforms. This could mean that people who watch services like Netflix, Amazon, Disney+ and YouTube would have to pay an additional charge. One of Netflix's most popular current series is Below, a Canadian supernatural drama starring US actor Josh Hartnett. The suggested Netflix tax is being considered as an extension of the TV licence fee by Culture Secretary Lisa Nandy.Some of the extra money raised could be allocated to boost local journalism. The reported proposals come as the number of people paying the licence fee has plunged. The BBC's latest annual report showed that 23.3 million licences were bought in the last year – down by 539,000 on the previous 12 months and a plunge of almost 2 million compared to five years ago. BBC director-general Matt Brittin, who took over in May this year, has spoken of the corporation being held back by the licence fee, calling it no longer fit for purpose. He has suggested a household levy could be an alternative funding option.BBC Director-General Calls for ReformMr Brittin, former head in Europe of Google, recently said that BBC News should be on streaming sites and social media to justify a new universal levy. He told the BBC's Sunday With Laura Kuenssberg programme that the current model needs reform. He said that what we need to look at is the current model, where you pay the licence fee if you watch live TV or you're on iPlayer, and that he would like to see reform that allows the BBC to be where audiences are. He added that he thinks BBC content should be on Netflix, on YouTube, on TikTok, on Spotify, and Instagram, and everywhere where audiences are, particularly news, which he believes is part of disinfecting misinformation. It's the BBC's job to be everywhere, he said.The royal charter, which sets out arrangements for governance of the corporation including its funding, is renewed every ten years and the current one ends in December next year. Possible options include extending the fee to cover streaming services watched by people who avoid tuning into BBC programmes or paying the charge. The BBC says licence fee funding has fallen by £1.3 billion, about 25 per cent, over the past decade. About 60 per cent of this is said to be through Government freezes of the fee and about 40 per cent due to fewer households paying.Government and BBC ResponsesResponding to the proposed new extension of the licence fee, a BBC spokesman said that the corporation has consistently argued that the current funding model is outdated and needs reform. He added that we will continue to engage with government to secure a new charter that provides sustainable, sufficient and universal funding so the BBC can deliver for audiences for generations to come. A Department for Culture, Media and Sport spokesman said that as has been made clear in numerous meetings, speeches, visits and interviews over the past year, the Culture Secretary is heavily engaged in the future direction of the BBC. She has made this Charter Review a clear priority, with the aim of putting the Corporation on a sustainable financial footing, so that it has the resources it needs to continue to deliver for the country. Next steps for BBC Charter Renewal and funding will be set out in a white paper which will be published in due course, the spokesman said.Ms Nandy has previously described the BBC as an institution that matters deeply to the democratic process in this country and to the health of our nation. The minister, who has had a series of meetings with Mr Brittin since his appointment, also said the corporation has to have sustainable funding in order to thrive. The BBC's veteran world affairs editor John Simpson last week said the corporation was going through the worst crisis in its history. The 82-year-old, who has been with the BBC for six decades, predicted it would no longer exist unless funding was sorted out – and he branded viewers who do not pay the licence fee as shoplifters.Concerns Over BBC FutureMr Simpson said the BBC constitutes the essence of what it is to be British and is respected across the world. But he added that he does think this is the worst position the BBC has ever been in. He said that he thinks there is a real possibility we're going to lose it as it is unless the Government and the BBC together can come up with a decent way of funding it. He concluded that he thinks the licence fee has had it. The debate over the licence fee and potential extension to streaming services is ongoing, with a white paper expected in due course.