Britons who exclusively stream TV programmes and films on platforms such as Netflix could soon find themselves liable for the BBC licence fee regardless.
Proposals are being drawn up to protect the BBC, though it is understood the government is reluctant to pursue a model funded by advertising or subscriptions. Industry insiders involved in the talks suggest a broader approach, maintaining the licence fee while extending its reach to encompass streaming platforms, is the preferred option.
In March, the BBC cautioned that it faced "managed decline" in its response to a green paper examining its future. This revealed that only 80 per cent of the population currently paid the licence fee, despite 94 per cent accessing its services every month.
The corporation has contended that by encouraging greater uptake through widening the scope of the licence fee beyond live television and iPlayer, it would be able to lower its cost, which climbed to £180 in April.
The corporation has witnessed its income shrink by 25 per cent over the past decade, prompting the launch of a £500 million cost-cutting programme expected to axe around 2,000 jobs over the next two years.
Lisa Nandy, the culture secretary, has previously voiced reservations about moving towards a subscription-based funding model, cautioning that it could undermine the corporation's role in uniting the nation.
Speaking to The House magazine last year, she said: "It is absolutely right that we explore subscriptions, but if you believe, as I do, that one of the BBC's greatest strengths is its ability to unite a nation that has increasingly found ways to divide itself, then we need to approach subscriptions and paywalls with caution."
Ministers are equally concerned that introducing advertising as a revenue stream for the BBC could inflict further damage on commercial broadcasters such as ITV and Channel 4, both of which are already grappling with significant financial difficulties.
In its response to the green paper, the BBC rejected both advertising and subscription models outright. Insiders are nonetheless reportedly cautiously optimistic about the tone of preliminary discussions with the Department for Culture, Media and Sport.
The broadcaster received further reassurance when Nandy signalled in March that she backed granting the BBC a permanent royal charter.
The BBC has additionally proposed extending the licence fee to households that consume streaming services - a suggestion the government is reportedly willing to consider, according to The Times.
"The current licensing framework no longer reflects the viewing habits of many UK households," the BBC said.
"The television licence is based on the consumption of live TV content. However, on-demand viewing is exempt unless the content is accessed through BBC iPlayer."
Currently, only viewers tuning into live broadcasts - including events such as Netflix's Tyson Fury v Arslanbek Makhmudov bout last month or Champions League fixtures on Amazon Prime - are legally obliged to pay the licence fee, a rule the BBC acknowledges is not "widely understood".
One insider within the streaming industry rounded on the proposal, remarking: "It seems rather desperate to insist that everyone should fund the BBC regardless of whether they use it or not.
"The BBC needs to think more imaginatively and develop new revenue streams that do not compromise universal access."
The Department for Digital, Culture, Media and Sport refused to be drawn directly on the proposals, stating: "The government does not comment on speculation.
"We are currently reviewing responses to the BBC Charter Review consultation and will publish our conclusions in a white paper later this year."
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